This PPT slide, part of the 30-slide Business Model Innovation PowerPoint presentation, addresses the invisible institutional barriers that hinder the adoption of new business models within organizations. It emphasizes that the core understanding of a business model often becomes obscured by entrenched rules, norms, and metrics that exist within a company. These barriers can significantly impede the integration of innovative approaches, as they are deeply rooted in the organizational culture and operational practices.

The slide categorizes these institutional barriers into 3 main areas: Financial, Operational, and Other. Each category lists specific examples of rules and metrics that can obstruct change.

In the Financial section, key metrics such as gross margins, opportunity size, and unit pricing are highlighted. These financial metrics often dictate decision-making and can create resistance to new models that do not align with established financial expectations.

The Operational section includes factors like end-product quality and customer service, which reflect the importance of maintaining existing standards that may conflict with innovative practices. The reliance on established channels and lead times can further entrench existing operational norms.

The Other category encompasses broader considerations like pricing strategies and performance demands. These elements can create additional layers of complexity, as they often tie into individual incentives and brand parameters that may not support new initiatives.

The concluding remark underscores that these institutionalized rules and metrics can lead to stagnation, making it difficult for companies to adapt and thrive in a changing environment. Understanding these barriers is crucial for any organization looking to innovate effectively.

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Innovation Management Business Model Innovation Business Model Design Customer Service Organizational Culture Innovation