Innovative business models are viewed as a way to protect businesses from disruption. Unlike product innovations, multi-dimensional business models are more difficult for competitors to replicate.
According to Soren Kaplan, best-selling author of Leapfrogging and The Invisible Advantage, and co-founder of UpBOARD , one of the first steps for business owners when pursing a new business model should be an assessment of the current industry. “If new competitors are entering the market, if competition is increasingly based on price, if differentiation is harder, you’re in a mature market,” says Kaplan. “This means you’re likely to see business model innovation happen.”
With digital disruption happening in virtually every industry, your choices are to drive it yourself or become the next Blockbuster or Borders.
To drive it yourself, Kaplan describes a process anyone can use to uncover and create new opportunities. Using his LEAPS process (Listen, Explore, Act, Persist, and Seize), companies can learn to recognize solutions that “leap” beyond the current expectations of customers, partners, employees, the market, and the competition.
In the ‘Listen’ phase, try to find “sparks of surprise,” centered around identifying an unmet customer need, problem or opportunity.