Innovation is not just about designing a better mouse trap. Often, the significant opportunities are uncovered when companies try a different business model. In this Signal 360 issue, we look at business model innovation and what it takes to reinvent successfully.
Sometimes businesses which are perceived to be in a steady decline find the urgency and courage to reinvent themselves from the core. Best Buy revived its business by focusing on personal advice and service. Lego not only optimized its supply chain but put its attention on reengaging childhood fans with special sets. It even created a movie franchise as a new way to create more interest in their products. Both examples started from great consumer insights.
Tim Armstrong is no stranger to navigating new business models. The former Google ads chief and AOL CEO recently launched the DTX Company, built on the explosion of direct-to-consumer retail. In this month’s edition of Fastest Learner Wins, Armstrong explains how consumers get more benefit when they connect directly with the brands they love.
Business model innovation requires courage, patience, and a new approach to innovation itself. Guest author David Kidder argues that companies should build their growth portfolios the way venture capitalists do, investing a lot less money in a lot more experiments.
That approach requires a long view. In his Signal 2018 interview, Lean Startup author Eric Ries made the point that a long-term approach is far more effective than is a quarter-by-quarter management mindset. It’s worth revisiting those lessons.
Inside of P&G we are seeing many new innovation approaches to established business categories. Take, for example, the revival of Gleem, an old oral care brand brought back with startup passion. Signal Entrepreneur Maggie Chang showcases the notion that scrappy innovation inside a large company can both lead to a thriving business and generate the great personal satisfaction of building something from the ground up.
Great innovation is not just about the next new product. Often there are new ways to deliver value to consumers using existing products or product technology. We hope this Signal360 issue inspires and educates you to explore new business opportunities ahead.
—Stan Joosten and John Battelle, editors-In-chief, Signal360 and cofounders, Signal P&G