To Profit More, Carefully Study and Improve How You Have Made Successful Business Innovations

In the typical growing company, most employees have been with the organization in their current job for only a few years. Today's reality seems like all that there is, or ever has been. As a result, people are conservative in wanting to optimize what they have today. But if the company had simply done that kind of optimization in the past, the company might not have survived.

How did we get to where we are today, and what does it teach us about what we need to be doing now?

Most companies employed a process at least once to create the current business model. By making that process explicit, you can begin to see what elements need to be repeated and by whom.

Key elements of this process mapping include:

(1) How does the process begin?
(2) How are objectives set?
(3) What questions are asked?
(4) How are the questions answered?
(5) What does the output look like?
(6) How is the output used?
(7) How is this thinking turned into operating results?

Note that for smaller companies, you may be describing the inner dialogues that some of the senior executives have with themselves.

Locate the Opportunities to Improve Your Process

If you have only seem one example of something, it may look pretty good. The first telephone was a marvel in its time, but we would find it hopelessly ineffective today. If Alexander Graham Bell had known all that we know today, the original telephone would have looked much different

How can we see beyond the first example? You may have the same problem with a business model innovation process. You may have difficulty in seeing how it could be made better. Here are some suggestions to help you.

You can use five primary methods for making this assessment. Each one will teach you something you need to know. So, you should them all.

First, compare the process you have now to the best process for business model innovation in place among your current and potential competitors. What elements are present in their processes that would enhance yours?

Second, ask those who would employ the process what seems most difficult for them to do now. Ask them to separate their replies into two categories:

(a) The ways the process can be simplified or sped up; and
(b) What knowledge, information, experience, tools, and other resources would make the tasks easier.

Third, ask your stakeholders how the process could be improved to better serve their needs. In many cases, you will find that your business model improvement process does not consider or involve stakeholders enough.

Fourth, think of the most effective innovation process you have seen employed by any other organization. What elements did those processes have that yours does not? What elements does yours have that the other one eliminated? Which of these changes would make good sense for you?

Fifth, imagine perfection in improving business models. This might mean being able to produce a business model overnight that would lead to a rapidly increasing lead over competitors, could be instantly implemented, and would reduce costs from where you are today. What could you do better to move closer to that image of perfection?