Business models don't last as long as they used to. The only way to avoid being Netflixed is to explore and test new business models.
R&D for New Business Models:
The New Strategic Imperative
Why? A Netflix, Uber, or Airbnb can swoop in and disrupt or totally destroy existing industry business models, including yours. And make no mistake — this is not about new technologies or new products, it’s about new business models. These upstart companies didn’t invent anything; they have deployed new business models that networked available capabilities differently, to create new ways to deliver customer value.
Don't Get Netflixed
To avoid being disrupted, some companies join industry-wide efforts to enforce existing legislation against upstarts, or create new legislation — both are stop-gap measures, at best. Most companies work on strengthening and innovating their current business model, in order to make it more competitive — an important, worthwhile effort. But it won't prevent your company from being Netflixed.
Don't Wait Until It's Too Late
How can leaders avoid being Netflixed? The only way is through ongoing R&D for new business models, the same way companies do R&D for new products and technologies today. Companies must explore and test new business models in the real world, even if a new model might disrupt the current model. You can be sure that someone is exploring a business model that will disrupt yours. Business model R&D must be ongoing, while the current model is strong. If your business has already been Netflixed, it's too late. Just ask anyone in the newspaper business.
You Need A Business Model Sandbox
Here’s how R&D for new business models works: Create a sandbox — connected to but autonomous from your core business — in which to combine and recombine capabilities in new ways that are not constrained by the current business model. From this sandbox, conduct real-world business model experiments. At all times, companies should have a portfolio of business model explorations underway, including early-stage concepts, in-market prototypes, and later-stage, scalable models.
BIF's Business Model Sandbox
Think of BIF as your R&D department for new business models. In BIF’s Business Model Sandbox, you can explore and test new business models in the real world — or we can help you create a sandbox of your own.