Business Model Innovation as a Dynamic Capability by Marc Sniukas

Author:Marc Sniukas
Language: eng
Format: epub
ISBN: 9783030501006
Publisher: Springer International Publishing

Theme

Representative quotations

Business model is not working/is not fully defined, creating risks

• “This played out for several years and the business was growing, but we stepped back at one point and said, this actually isn’t working. And what we meant by that was, we were delivering amazing ideas, driven by high-level creativity, but the needle on hit rate was not moving at all. Some of our ideas were moving forward, an awful lot were not. The funny thing was we had very, very happy clients who just accepted innovations fail a lot. But this wasn’t enough for us. We were in this business to create better outcomes to overcome innovation failure. So the model was not wrong, it was just not enough to overcome innovation failure. So with all this business coming our way … we were very good at what we were doing in the eyes of our clients, but we were not successful by our own measures, on changing the hit rate of ideas actually going to market and doing what they were expected to do from a company growth standpoint.” (President Fahrenheit 212)

• “The first thing we realised was that tying all our incentives to a percentage of sales in the market made the timing way too long. Particularly as a lot of the innovation we are doing is breakthrough and has a considerable lead-time. Not only did we have to wait 12 months to launch, but also another 12 months post launch to see how did it perform. The realisation was that this timeframe was quite unhelpful.” (President Fahrenheit 212)

• “There were internal power struggles so to say and it was in the beginning not 100% clear, we establish a medical system, we have this head of the medical system, who presides over this triangle of the medical institutions, and nursing, but what is in his competence, what can he tell them, what not, based on which KPIs does he lead, etc.” (Former head of corporate development Klinik Hirslanden)

• “At first it was the way that we still had a [financing] partner … . However, there were problems with them, because they took high interests from our customers, but passed the risk to us. There were repurchase agreements and collateral, etc. and at some point we said, it cannot be that they have all the fun and we the risk, we have to turn this around. And because they were a bit difficult to discuss with, we started to push them out of the regions. That wasn’t easy at first, because our sales people were used to working with them in the regions. Anyway, it was a bit tough to introduce our financing topics at the beginning. And in the beginning we did the financing in-house. Meaning the money came from Trumpf, which was then just used for financing.” (CFO Trumpf)

• “We couldn’t agree with the [external financing company] how flexible they could handle this issue in the back office. We have small customers, sometimes these small customer earn a lot of money.

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