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Entries in Business Model Innovation (3)


Business Model War Game - a battle of business models

It is the time of year that most companies start to rethink their strategy and business models. An effective way to think out of the box in strategy formulation is to organise a Business War Game. SunIdee has developed a special version of such a War Game to help companies rethink their business model in a strategic context: the Business Model War Game.

Are you curious how this works in practice? View our slideshare or visit

The results of your war game will be summarised in a movie clip, making it easy for you to share results with colleagues. Let us know if you would like to offer your colleagues a whole new experience!

Are you new to War Games or Business Model Innovation? Read on:

Business War Games
Business war gaming provides vital insights into market dynamics and possible future scenarios, and is a great way to engage the organisation in strategy formulation when the competitive environment is undergoing massive change. By simulating moves and countermoves in a commercial setting, it gives new insight into how different companies can react to change, as well as to each other. These insights are crucial for developing a robust strategy that enables your organisation to win in the marketplace.

In many battles that have been fought in the marketplace, the market leader found himself outsmarted by a competitor with a completely different culture and behaviour. Not feeling limited by any of the unwritten business rules, this competitor makes smart moves by altering the business model. Some examples: changing launch windows (Zara), creating product-service systems (iPod / iTunes), building ‘long tail’ portfolios (Netflix), changing pricing structures (Google auctioning off search terms), and many more. This is why we believe a business model approach to war games adds value.

Business Model Innovation
Read our blog on Business Model Innovation

The Lego story: fail forward to success.

The rise, fall and comeback of the 'brick'.

As The LEGO Group celebrates its 80th Birthday, they take a look back at its history with an animated film. It shows that innovation is hard work, and requires personal drive and persistence to turn innovation into a successful business.

We all know that Lego experienced very hard times in the last decade, almost going bankrupt in 2004, but they managed to get their act together. Some of the things they did: restructuring the product portfolio and reducing the number of products from 13,000 to 6,000, selling off some properties, licensing the amusement park business and videogame business to people who actually know how to run it and reducing their product development cycle from idea to launch by 50% to one year. And the brick made a comeback!
If you want to know more, I recommend you watch this ABC News video from 2009.

But in all of its history, the greatest achievement of Lego in term of innovation is that it ‘put a system into toys’. Thank you Lego! And happy birthday.

The role of the disruptor is not to make life easy for the disrupted

I am following a discussion about business model innovation in the entertainment industry. In one of his blogs Mike Masnick is paying attention to "The Lack Of A 'Golden Ticket' Business Model". As he says it "Doesn't Mean You Give Up And Go Home".

Mike explains how a disruptive business model works. "The disrupted whine and complain about how the disruptors haven't shown them how to continue making the same monopoly rents they made in the past. But that, of course, ignores the nature of disruption. Disruption doesn't work by having someone come along and show the legacy players how to exactly replicate their old profits. It's the exact opposite of that. Disruption is when others figure out how to break down the barriers to do something more efficiently, and undercut the old business model. But that doesn't mean that there's anything wrong for the underlying benefit that people get.

- The lack of a golden ticket most certainly does not mean there are no business models
- Those who are embracing new business models are finding plenty of opportunity to do amazingly well
- It involves hard work and multiple streams of revenue
- It's not the old "sit back and let the cash roll in" model that the industry is used to.

Prince is one of the greatest rock stars on the planet. A living legend who has sold more than 100 million albums over 30 years. Last year he explained in an interview with the Mirror why he decided his new album would be released in CD format only in the Mirror. "There'll be no downloads anywhere in the world because of his ongoing battles against internet abuses." Unlike most other rock stars, he has banned YouTube and iTunes from using any of his music and has even closed down his own official website. He says: "The internet's completely over."

Mike's comment is clear. "More entertainment content -- movies, music, books -- are being made today than ever before. Anyone bitching and complaining about how the internet is "destroying" the industry isn't paying attention. What they should be focused on are all of the massive new opportunities created by this sudden glut of content, combined with massively more efficient (and often free) methods for content creation, distribution and promotion."

When you have anything to say about it, tune in. We are both listening!