| Asymmetric Business Betting | A dimension of asymmetric betting that considers the impact and reversibility of ideas within a business, leading to “Jackpot” bets with high impact and easy reversibility. | When organizations want to evaluate and pursue high-impact ideas with a focus on both their potential benefits and ease of reversibility. | Allows for strategic decision-making on high-impact ideas. | Requires thorough assessment of impact and reversibility. |
| Business Engineering | The application of engineering principles and methodologies to optimize and improve various aspects of a business, including processes, systems, and operations. | When organizations seek to enhance efficiency, effectiveness, and innovation in their business processes and operations by applying engineering principles. | Optimizes and improves business processes and operations. | May require expertise in both engineering and business. |
| Business Model Innovation | The process of creating new business models or modifying existing ones to increase an organization’s success by delivering compelling value propositions, scaling up customers, and gaining a competitive advantage while serving key customers effectively. | When organizations aim to redefine their business models to adapt to changing market conditions, improve value propositions, and achieve a lasting competitive edge. | Drives competitive advantage and adaptability. | Requires a deep understanding of customer needs. |
| Constructive Disruption | A concept embraced by consumer brand companies like Procter & Gamble (P&G), involving a willingness to change, adapt, and create new trends and technologies in areas like lean innovation, brand building, supply chain, and digitalization & data analytics to shape the industry’s future. | When organizations want to proactively drive change, innovation, and trends in their industry by embracing disruption in various aspects of their business, from innovation to digitalization. | Encourages industry leadership and innovation. | Demands a commitment to change and continuous adaptation. |
| Continuous Innovation | A process of ongoing innovation that involves a feedback loop to develop valuable products and build viable business models, prioritizing customer problem-solving over technical solutions. | When organizations aim to continuously improve products and services based on customer feedback, ensuring that solutions address real customer problems effectively. | Aligns product development with customer needs. | Requires a customer-centric and iterative approach. |
| Business Competition | An analysis of competition in a technology-driven and digitalized business landscape, considering customer, technology, distribution, and financial model overlaps, while anticipating potential intersections among industries that may initially seem unrelated. | When organizations need to understand the evolving and fluid nature of competition driven by technology and digitalization, identifying overlaps and potential intersections among industries. | Provides insights into dynamic competitive landscapes. | Demands continuous monitoring and adaptation. |
| Business Innovation Matrix | The creation of new opportunities for organizations to reinvent core offerings, revenue streams, and value propositions, leading to the renewal of entire business models by understanding market structures and adapting or anticipating market changes effectively. | When organizations seek to innovate their business models, explore new revenue streams, and enhance value propositions by adapting to market structures and dynamics. | Facilitates adaptation to market changes and innovation. | Requires in-depth market analysis and foresight. |
| Digital Transformation | The process of leveraging digital technologies for business model innovation, focusing on customer-centricity and developing a new digital-era mindset while better serving key customers and enhancing business operations. | When organizations aim to transform their operations, strategies, and mindset by adopting digital technologies to better serve key customers, remain competitive, and innovate their business models. | Enhances customer-centricity and competitiveness. | Demands a shift in organizational mindset and culture. |
| Disruptive Innovation | A concept introduced by Clayton M. Christensen, describing how products or services start at the bottom of a market, eventually displacing established competitors, products, firms, or alliances by addressing previously unmet customer needs and creating disruption in the market. | When organizations aim to introduce innovative products or services that challenge incumbents, gain market share, and address unmet customer needs, leading to market disruption. | Can lead to market disruption and competitive advantage. | May face resistance from established players. |
| Idea Generation | The process of generating new ideas, solutions, or concepts, often through brainstorming, creativity techniques, or problem-solving approaches, to address specific challenges or opportunities within an organization. | When organizations need to stimulate creative thinking, brainstorm solutions, or generate new concepts to tackle challenges, seize opportunities, or drive innovation. | Encourages creative thinking and problem-solving. | Requires time and effort for idea generation sessions. |
| Innovation Funnel | A tool or process that screens and tests innovative ideas to ensure that only the best ones are executed, aligning with an organization’s goals and criteria for viability, and ultimately launching the most promising products, processes, or business models to the market. | When organizations want to manage and prioritize innovative ideas effectively, ensuring that resources are allocated to the most viable and valuable ones. | Filters out less viable ideas and focuses on the best. | May involve rejecting potentially valuable ideas. |
| Innovation Matrix | A framework for assessing the level of innovation within a business, classifying it into digitally-enabled, digitally-enhanced, tech or platform business models, and business platforms/ecosystems, based on the extent of digital transformation and innovation adoption. | When organizations need to evaluate and categorize their level of innovation, identify their position in the digital landscape, and align their strategies accordingly. | Provides clarity on the organization’s innovation level. | Requires accurate assessment of digital transformation. |
| Level of Innovation | Classification of digital and tech business models into four levels: digitally-enabled, digitally-enhanced, tech or platform business models, and business platforms/ecosystems, based on the degree of digital transformation and innovation integration within the organization. | When organizations want to assess their current level of digital innovation and determine their position in the digital business landscape to inform strategic decisions. | Helps organizations understand their digital maturity. | Requires accurate evaluation and benchmarking. |
| McKinsey Horizon Model | A strategy framework divided into three horizons, focusing on innovation and growth, where Horizon 1 represents core business activities, Horizon 2 involves emerging opportunities, and Horizon 3 explores innovative ideas and concepts that may shape the future of the organization. | When organizations want to prioritize and manage their innovation and growth initiatives by categorizing them into different horizons based on their relevance and impact. | Enables effective prioritization of innovation efforts. | Requires alignment with strategic objectives and resources. |
| Technological Modeling | A discipline that helps organizations sustain innovation by developing both incremental and breakthrough products, using a two-sided approach that balances continuous innovation with strategic bets on groundbreaking technological developments. | When organizations seek to balance ongoing innovation with strategic investments in groundbreaking technologies to secure long-term success and competitiveness. | Supports both short-term and long-term innovation goals. | Demands strategic planning and resource allocation. |
| Transitional Business Models | Business models employed by companies to enter a market, gain initial traction, validate ideas, secure capital, and shape long-term scalable business models based on market feedback, allowing controlled experimentation and validation. | When organizations want to validate market demand, secure initial funding, and transition to scalable business models while minimizing risk through controlled experimentation. | Facilitates controlled experimentation and risk management. | Requires adaptation and scaling after validation. |
| Minimum Viable Audience | The smallest possible audience that can sustain a business, starting from a microniche within an existing market, and focusing on unmet needs of a subset of customers who can support the business as it grows. | When organizations aim to identify and target a niche audience with unmet needs, enabling them to build a sustainable business and gradually expand their customer base. | Allows for efficient resource allocation and market entry. | Requires a deep understanding of the target audience. |
| Business Scaling | The transformation of a business as its product gains validation in wider market segments, creating traction, and aligning product, business model, and organizational design for broader scale, focusing on growth and scalability while serving a larger customer base. | When organizations seek to expand their product offerings to larger market segments, focusing on growth, scalability, and alignment across all aspects of the business to dominate the market. | Enables expansion and market dominance under uncertainty. | Demands strategic alignment and scalability planning. |
| Market Expansion Theory | The process of providing a product or service to a broader portion of an existing market, expanding that market, or creating an entirely new market, allowing a company to scale and grow in conjunction with the market it covers. | When organizations want to expand their market reach and growth potential by addressing broader customer segments, either within an existing market or by creating new markets. | Supports market-based growth and strategic expansion. | Requires market analysis and adaptation strategies. |
| Speed-Reversibility | A framework for assessing decisions based on the balance between the speed of implementation and the potential for reversibility, helping organizations make informed choices that consider both the urgency and the ability to reverse or modify decisions. | When organizations need to make decisions that involve trade-offs between the speed of implementation and the ability to reverse or adapt those decisions based on changing circumstances. | Provides a structured approach to decision-making. | Requires careful consideration of decision factors. |
| Growth Matrix | A framework for applying growth strategies based on customer segments and problem domains, including gain, expand, extend, and reinvent modes, to align growth initiatives with specific objectives and market contexts, enabling organizations to tailor their growth strategies effectively. | When organizations want to strategize growth efforts based on different customer segments and problem-solving approaches, ensuring alignment with goals and market contexts. | Helps tailor growth strategies to specific market contexts. | Requires strategic planning and execution. |
| Revenue Streams Matrix | A classification of revenue streams based on the kind of interactions an organization has with key customers, taking into account the frequency and ownership of those interactions to optimize revenue generation methods. | When organizations aim to categorize and optimize revenue streams based on customer interactions and ownership, maximizing revenue potential and sustainability. | Provides clarity on revenue sources and interactions. | Requires a deep understanding of customer relationships. |
| Revenue Modeling | Revenue model patterns that guide how companies generate short-term financial resources to support business operations, influencing the overall business model and aligning the way a company makes money with its strategic objectives and long-term financial sustainability. | When organizations need to define revenue generation methods that align with their business models, ensuring financial sustainability and profitability while serving key customers. | Shapes the financial aspect of the business model. | Requires consideration of long-term financial viability. |
| Pricing Strategies | Strategies and models for determining product or service pricing to align with business models, customer needs, and profitability goals, aiming to find the right pricing formula that balances customer value, competitiveness, and long-term financial sustainability. | When organizations want to establish pricing strategies that strike a balance between customer value, competitiveness, and financial sustainability, supporting their overall business model. | Helps find the right pricing formula for the business model. | Requires continuous pricing analysis and adaptation. |
