Business Model Innovation (BMI): Business Model Journey (PowerPoint PPTX Slide Deck)

MATURITY MODEL PPT DESCRIPTION

Editor Summary Business Model Innovation (BMI): Business Model Journey is a 29-slide PowerPoint framework developed by former McKinsey and Big Four consultants that outlines a 3-phase Business Model Journey: Creating Innovation, Sustaining Innovation, and Optimizing Innovation. Read more Includes 6 practical templates/tools: Business Model Blueprint, Customer Value Proposition framework, Profit Formula model, Key Processes checklist, Innovation Journey template, and KPI tracking sheet. Targeted at corporate executives, strategy teams, consultants, product managers, and change leaders for use in strategic planning, workshops, model assessment, and training; available on Flevy with immediate digital download.

Use this deck when an organization must reassess or transform its business model because of disruption, growth goals, or strategic repositioning.

  Corporate executives setting priorities and deciding resource allocation to support a new Customer Value Proposition during strategic planning.
  Strategy and business development teams mapping current and new models using a Business Model Blueprint and Profit Formula assessment.
  Consultants facilitating client workshops to generate and validate innovation options with templates.
  Product managers refining offerings and testing fit against defined customer segments using the CVP framework.
  Change leaders designing stakeholder engagement and KPI tracking for rollout.

The 3-phase, stage-based journey (Creating, Sustaining, Optimizing) mirrors stage-oriented transformation approaches used at McKinsey and Big Four firms.

Read Marcus Overview

Explore Slides inside the Deck:

Phased Evolution of Business Models for Innovation Core Elements of a Business Model Framework Maximizing Efficiency: The Final Phase of Business Model Innovation

Innovative Business Models can reshape industries and drive tremendous growth. In fact, if executed successfully, Business Model Transformation can make organizations resilient in the face of Disruption and create Growth unbounded by the limitations of its businesses.

However, Corporate Renewal and Business Model Innovation (BMI) is difficult, as many executives do not understand what truly drives BMI. In this framework, we discuss the Business Model Journey, which shows us how Business Models develop through 3 predictable stages over time:

1. Creating Innovation
2. Sustaining Innovation
3. Optimizing Innovation

Each stage is suited for specific types of BMI. A Business Model Innovation must be consistent with the current priorities of the existing Business Model.

This presentation dives into each phase. Additional topics discussed include the Elements of a Business Model, Profit Formula, Customer Value Proposition, Business Maturity, among others.

This deck also includes slide templates for you to use in your own business presentations.

This comprehensive presentation also delves into the intricacies of the Profit Formula, Key Resources, and Key Processes, which are critical components of any robust business model. It provides a clear depiction of how these elements interconnect to deliver a compelling Customer Value Proposition. The PPT is designed to help you understand the dynamics between these elements and how they evolve as your business matures.

The deck includes practical templates that can be customized to fit your organization's specific needs. These templates are invaluable tools for illustrating your business model's journey from creation to optimization. By leveraging these resources, you can effectively communicate your strategic vision and operational plans to stakeholders, ensuring alignment and buy-in across the board.

MARCUS OVERVIEW

This synopsis was written by Marcus [?] based on the analysis of the full 29-slide presentation.

Executive Summary
The Business Model Innovation (BMI): Business Model Journey presentation offers a comprehensive framework for understanding and implementing business model innovation. Designed by former consultants from McKinsey and the Big Four, this presentation outlines the critical phases of the Business Model Journey: Creating Innovation, Sustaining Innovation, and Optimizing Innovation. Each phase is tailored to address specific challenges and opportunities in business model transformation, enabling organizations to achieve sustainable growth and resilience against market disruptions. The deck includes practical templates and tools to facilitate the application of these concepts in real-world scenarios.

Who This Is For and When to Use
•  Corporate executives seeking to drive innovation within their organizations
•  Strategy and business development teams focused on enhancing business models
•  Consultants advising clients on business transformation and innovation strategies
•  Product managers responsible for aligning offerings with market needs
•  Change management leaders implementing new business strategies

Best-fit moments to use this deck:
•  During strategic planning sessions to align on business model innovation objectives
•  In workshops aimed at developing or refining customer value propositions
•  When assessing the effectiveness of existing business models and identifying areas for improvement
•  In training sessions for teams focused on innovation and process optimization

Learning Objectives
•  Define the 3 phases of the Business Model Journey and their significance
•  Identify key elements of a business model: Customer Value Proposition, Profit Formula, Key Resources, and Key Processes
•  Develop strategies for creating, sustaining, and optimizing innovation within a business model
•  Analyze market conditions that necessitate business model changes
•  Implement templates and tools for practical application in business scenarios
•  Measure the effectiveness of innovations through relevant Key Performance Indicators (KPIs)

Table of Contents
•  Overview (page 1)
•  Business Model Innovation (page 5)
•  Business Model Journey (page 11)
•  Creating Innovation (page 13)
•  Sustaining Innovation (page 16)
•  Optimizing Innovation (page 19)
•  Templates (page 22)

Primary Topics Covered
•  Business Model Innovation - A strategic approach to transforming business models to drive growth and resilience.
•  Business Model Journey - An overview of the 3 phases: Creating, Sustaining, and Optimizing Innovation.
•  Creating Innovation - Focus on developing a compelling Customer Value Proposition and aligning resources effectively.
•  Sustaining Innovation - Strategies for scaling operations and enhancing customer loyalty through structured processes.
•  Optimizing Innovation - Techniques for achieving efficiencies and cost savings while maximizing shareholder value.
•  Key Performance Indicators (KPIs) - Metrics to evaluate the success of innovations and business model effectiveness.

Deliverables, Templates, and Tools
•  Business Model Blueprint template for mapping existing and new business models
•  Customer Value Proposition framework for defining target customer needs
•  Profit Formula model to assess revenue generation and cost structure
•  Key Processes checklist for establishing operational efficiencies
•  Innovation Journey template to visualize the 3 phases of business model evolution
•  KPI tracking sheet for measuring the impact of innovations

Slide Highlights
•  Overview of the Business Model Journey with a visual representation of the 3 phases
•  Detailed breakdown of the elements of a business model and their interconnections
•  Case studies illustrating successful business model transformations
•  Key questions to guide innovation opportunities and strategic decisions
•  Templates for practical application in organizational settings

Potential Workshop Agenda
Business Model Innovation Overview (60 minutes)
•  Introduce the concept of Business Model Innovation and its importance
•  Discuss the 3 phases of the Business Model Journey
•  Explore case studies of successful business model transformations

Creating Innovation Workshop (90 minutes)
•  Identify customer needs and develop a compelling Customer Value Proposition
•  Work through the Business Model Blueprint template
•  Share insights and feedback on proposed innovations

Sustaining and Optimizing Innovation Session (90 minutes)
•  Discuss strategies for scaling operations and enhancing customer loyalty
•  Analyze metrics for measuring innovation success
•  Develop action plans for implementing changes in business models

Customization Guidance
•  Tailor the Customer Value Proposition to reflect specific market needs and customer segments
•  Adjust the Profit Formula to align with organizational financial goals and resource capabilities
•  Modify Key Processes to fit the operational structure and culture of the organization
•  Update templates with relevant data and insights from internal assessments

Secondary Topics Covered
•  Market conditions that necessitate business model changes
•  The role of technology in enabling business model innovation
•  Strategies for managing resistance to change within organizations
•  The impact of competitive dynamics on business model evolution
•  Best practices for fostering a culture of innovation

Topic FAQ

What are the typical phases of a business model innovation journey?

Business model innovation typically progresses through 3 distinct phases: Creating Innovation (developing new customer value propositions and aligning resources), Sustaining Innovation (scaling operations and building customer loyalty), and Optimizing Innovation (improving efficiencies and cost structures). These are presented as the 3 phases in the Business Model Journey.

What core elements of a business model should I map before redesigning it?

Key elements to map are the Customer Value Proposition, Profit Formula, Key Resources, and Key Processes. Documenting how these elements interconnect helps identify gaps and redesign priorities, as reflected in the deck’s core model elements: Customer Value Proposition, Profit Formula, Key Resources, and Key Processes.

How should I measure whether a business model change is working?

Measure changes using KPIs aligned to strategic objectives, such as revenue growth, customer satisfaction, and operational efficiency. Select metrics that reflect both value creation and cost implications so you can track impact over time; the deck includes a KPI tracking sheet to capture these measures.

Which templates are most useful for running a business model innovation workshop?

Useful templates include a Business Model Blueprint for mapping models, a Customer Value Proposition framework, a Profit Formula model, a Key Processes checklist, an Innovation Journey template, and a KPI tracking sheet. Flevy’s Business Model Innovation (BMI): Business Model Journey supplies these 6 templates for workshop use.

When should a company prioritize optimizing innovation rather than creating new offerings?

Prioritize optimizing innovation when the business model is mature and the focus shifts to efficiencies, cost savings, and shareholder value. Prioritizing creation is appropriate when the firm needs a new or stronger Customer Value Proposition; the framework distinguishes Creating, Sustaining, and Optimizing phases.

How can I adapt a profit formula to different organizational financial goals?

Adapt the Profit Formula by adjusting revenue assumptions, pricing structures, and cost allocations to align with organizational financial targets and available resources. The deck explicitly advises tailoring the Profit Formula to organizational financial goals and resource capabilities and includes a Profit Formula model template.

What common obstacles block successful business model innovation?

Typical obstacles include resistance to change among stakeholders, misalignment of resources to the new model, and difficulty measuring innovation impact. Addressing stakeholder engagement, resource allocation, and KPI design helps mitigate these barriers; these challenges are noted in the deck’s FAQ and guidance sections.

How can I structure a workshop to explore business model changes using available materials?

The presentation provides a suggested agenda: a 60-minute Business Model Innovation overview, a 90-minute Creating Innovation workshop, and a 90-minute Sustaining & Optimizing session. Use these modules and the included templates (Blueprint, CVP, Profit Formula) to plan workshop timing and activities.

Document FAQ
These are questions addressed within this presentation.

What is Business Model Innovation?
Business Model Innovation refers to the process of transforming an organization's business model to drive growth, enhance customer value, and improve operational efficiency.

What are the 3 phases of the Business Model Journey?
The 3 phases are Creating Innovation, Sustaining Innovation, and Optimizing Innovation, each focusing on different aspects of business model development and implementation.

How can I measure the success of business model innovations?
Success can be measured using Key Performance Indicators (KPIs) that align with the organization's strategic goals, such as revenue growth, customer satisfaction, and operational efficiency.

What tools are included in this presentation?
The presentation includes templates for the Business Model Blueprint, Customer Value Proposition, Profit Formula, and Key Processes, along with frameworks for practical application.

Who should participate in the workshops?
Workshops are designed for corporate executives, strategy teams, product managers, and any stakeholders involved in business transformation initiatives.

How can I customize the templates provided in the deck?
Templates can be tailored by inserting specific data, adjusting frameworks to reflect organizational priorities, and aligning metrics with strategic objectives.

What challenges might I face during business model innovation?
Common challenges include resistance to change, misalignment of resources, and difficulty in measuring the impact of innovations.

How do I ensure stakeholder buy-in for business model changes?
Engaging stakeholders early in the process, communicating the benefits of innovation, and involving them in decision-making can help secure buy-in.

Glossary
•  Business Model Innovation - The process of transforming an organization's business model to enhance growth and value.
•  Customer Value Proposition - The unique value a product or service provides to customers.
•  Profit Formula - The financial structure that outlines how a business generates revenue and manages costs.
•  Key Resources - The essential assets required to deliver the Customer Value Proposition.
•  Key Processes - The operational methods and practices that enable the business to function effectively.
•  KPI (Key Performance Indicator) - A measurable value that demonstrates how effectively a company is achieving its key business objectives.
•  Market Conditions - The economic and competitive environment that influences business operations and strategies.
•  Operational Efficiency - The ability of an organization to deliver products or services in the most cost-effective manner.
•  Stakeholder Engagement - The process of involving individuals or groups who may be affected by or can affect a business initiative.
•  Change Management - The approach to transitioning individuals, teams, and organizations to a desired future state.
•  Innovation Culture - An organizational environment that encourages and supports innovative thinking and practices.
•  Competitive Dynamics - The interactions and strategies of competing firms within a market.
•  Resource Allocation - The process of assigning available resources in an efficient manner to maximize outcomes.
•  Customer Feedback Mechanism - Tools and processes used to gather insights from customers regarding their experiences and needs.
•  Business Model Blueprint - A visual representation of the components and relationships within a business model.
•  Sustaining Innovation - Efforts to improve and enhance existing products or services to meet customer needs.
•  Optimizing Innovation - Strategies focused on achieving efficiencies and cost savings within a business model.
•  Modular Structure - An organizational design that allows for flexibility and outsourcing of non-core activities.
•  Shareholder Value - The value delivered to shareholders as a result of the company's ability to generate profits.
•  Market Saturation - A situation where a product has become widespread in the market, limiting further growth opportunities.
•  Disruptive Innovation - Innovations that create new markets and value networks, eventually displacing established market leaders.

MATURITY MODEL PPT SLIDES

Phased Evolution of Business Models for Innovation

This PPT slide outlines a structured approach to business model evolution through 3 phases: Creating Innovation, Sustaining Innovation, and Optimizing Innovation. In the Creating Innovation phase, the focus is on establishing a market presence by forming a business model that integrates customer value propositions, resources, profit formulas, and processes. The Sustaining Innovation phase emphasizes refining the business model to adapt to market changes and operational demands, with more defined processes addressing recurring tasks. Finally, the Optimizing Innovation phase drives efficiencies and maximizes returns, optimizing the business model to meet investor expectations while addressing potential performance oversupply and the need for a modular structure to enhance agility. Business models must evolve to avoid resistance to change, crucial for sustaining long-term growth.

Core Elements of a Business Model Framework

This PPT slide outlines the fundamental components of a business model: Customer Value Proposition, Profit Formula, Key Resources, and Key Processes. The Customer Value Proposition attracts and retains customers by addressing their needs. The Profit Formula details revenue generation and cost management, ensuring business sustainability. Key Resources encompass the assets required to deliver the value proposition, including human resources and technology. Key Processes involve operational workflows that maintain quality and efficiency in service delivery. Interconnections between these elements indicate that changes in one area impact others, such as adjustments in Key Resources or Processes following a shift in the Customer Value Proposition. Priorities guide organizations in balancing these elements to create value for customers and the business.

Maximizing Efficiency: The Final Phase of Business Model Innovation

The final phase of the Business Model Journey, "Optimizing Innovation," focuses on enhancing process efficiencies and achieving cost savings. As businesses mature, investments in product performance yield diminishing returns, leading to operational changes that drive efficiencies. Strategies include eliminating labor costs, redesigning products, and outsourcing activities. Consolidating operations leverages economies of scale, crucial for maximizing profitability. Stakeholder priorities shift, with shareholder interests becoming more prominent than customer needs, emphasizing financial performance metrics and improving the Balance Sheet to maximize shareholder value. Data collection centers on costs and efficiency metrics, and adopting a modular structure can enhance efficiency, though it may reduce flexibility. An increase in merger and acquisition activities occurs as businesses with excess cash flow seek growth opportunities, while organic growth avenues may become limited, necessitating a strategic approach to M&A. Balancing efficiency with flexibility remains essential while focusing on shareholder value.

Interconnection of Business Model Elements for Value Delivery

This PPT slide outlines the interconnected components of a business model: the Profit Formula, Key Resources, and Key Processes that align to fulfill the Customer Value Proposition. The Customer Value Proposition consists of 3 elements: target customer, job to be done, and offering. The Profit Formula determines financial viability, including the Revenue Model for income streams, Cost Structure for expense management, and Margin Model for expected net profit. Resource Velocity highlights efficient resource utilization. Key Resources include people, technology, equipment, information, channels, and partnerships, essential for delivering the value proposition. Key Processes cover operational aspects, established rules, performance metrics, and decision-making norms, providing a comprehensive view of aligning resources and processes for value delivery and profitability.

Defining the Core Elements of a Business Model

This PPT slide outlines the 4 fundamental components of a business model: Customer Value Proposition, Profit Formula, Key Resources, and Key Processes. The Customer Value Proposition addresses specific customer needs, with its effectiveness determined by how well it meets expectations. The Profit Formula ensures revenue generation by specifying necessary margins, asset velocity, and scale for satisfactory returns. Key Resources include physical assets, human resources, technology, and financial capital essential for delivering value. Key Processes encompass operational frameworks that enable efficient functioning, including training, service delivery, and budgeting. High-tech startups often excel in defining their Customer Value Proposition, but may struggle with the Profit Formula, jeopardizing overall business viability.

Refining Business Processes for Sustainable Innovation

This PPT slide presents a framework for evolving business models, focusing on key areas: customer value proposition, profit formula, resources, and processes. It illustrates the interdependencies among these elements and their influence on one another. Key questions guide executives in assessing innovation opportunities, including enhancing the value proposition, expanding market reach, optimizing profit structures, and evaluating current capabilities. While achieving product-market fit is important, adaptability within the profit formula is essential for sustaining innovation. Emphasizing strong business processes indicates a strategic shift towards operational excellence, crucial for maintaining relevance in a dynamic market. This structured approach to business model dynamics provides a pathway for refining strategies and enhancing market position.

Key Circumstances Driving Business Model Change

This PPT slide outlines 5 key circumstances prompting business model changes, categorized into opportunities and needs. The first circumstance is disruptive innovation, targeting underserved customer segments due to high costs or complexity, indicating a market gap for innovative solutions. The second highlights new technologies, where companies can develop models around novel technologies or apply existing ones in new markets for growth. The third focuses on the "job-to-be-done" approach, urging businesses to identify unmet customer needs rather than just refining products. The fourth addresses the threat of low-end disruptors offering lower-cost solutions that can erode market share. Lastly, it notes the commoditization of market segments over time, necessitating proactive strategies to maintain relevance and profitability.

Developing Customer Value Proposition in Early Innovation Phase

This PPT slide outlines the initial phase of the Business Model Journey, focusing on "Creating Innovation" and developing a compelling Customer Value Proposition. The objective is to identify unmet market needs and achieve product-market fit. Resources are typically scarce, with a founding team, limited funding, and potential technology or intellectual property. This scarcity requires a flexible approach to understand the Customer Journey and enhance Customer Experience. Metrics center on defining the Customer Value Proposition and the specific jobs customers need accomplished, with limited data reflecting the nascent market. As the link between the Value Proposition and Key Resources forms, the Business Model remains unstructured, and the Profit Formula is in early stages, allowing exploration of growth avenues.

Source: Best Practices in Maturity Model, Innovation, Business Model Innovation PowerPoint Slides: Business Model Innovation (BMI): Business Model Journey PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting