245 Business Model Design and Innovation Satisfy market: Fulfill an unanswered market need (e.g. Tata car, NetJets, GrameenBank, Lulu.com) Bring to market: Bring a new technology, product, or service to market or exploit existing intellectual property (IP) (e.g. Xerox 914, Swatch, Nespresso, Red Hat) Improve market: Improve or disrupt an existing market (e.g. Dell, EFG Bank, Nintendo Wii, IKEA, Bharti Airtel, Skype, Zipcar, Ryanair, Amazon.com retail, better place) Create market: Create an entirely new type of business (Diners Club, Google) c h a l l e n g e s • Finding the right model • Testing the model before a full-scale launch • Inducing the market to adopt the new model • Continuously adapting the model in response to market feedback • Managing uncertainty c h a l l e n g e s • Developing an appetite for new models • Aligning old and new models • Managing vested interests • Focusing on the long term Factors Specific to Established Organizations Reactive: Arising out of a crisis with the existing business model (e.g. IBM in the 1990s, Nintendo Wii, Rolls Royce jet engines) Adaptive: Adjusting, improving, or defending the existing business model (Nokia “comes with music,” P&G open innovation, Hilti) Expansive: Launching a new technology, product, or service (e.g. Nespresso, Xerox 914 in the 1960s, iPod/iTunes) Pro-active/explorative: Preparing for the future (e.g. car2go by Daimler, Amazon Web Services) s t a r t i n g p o i n t f o r b u s i n e s s m o d e l i n n o v a t i o n bmgen_final.indd 245 6/15/10 5:45 PM