Connecting Community and Business Model Innovation

Connecting Community and Business Model Innovation

Renee Hopkins Communications and Community Engagement Manager Business Innovation Factory

What’s a business model?

1.  A story of how an organization creates, delivers, and captures value.

2.  A network of capabilities and a sustainable financial model to deliver value to target customers.

3.  The magical intersection of a problem that matters + a solution that delivers + numbers that work. (Scott Anthony, Innosight)

How does ‘community’ fit into a business model?

Quite simply, “community” can be a feature of one or more of the three aspects of a business model:

1.  How value is created for customers 2.  How value is delivered to customers 3.  How value is captured for stakeholders

‘Community’ is part of a business model when community is the structure through which a business creates value, delivers value, and/or captures value.

Examples of community as a way to create value:

•  Co-creation: •  IBM Innovation Jams, Dell Ideastorm, LEGO,

Wikipedia, Genius, Barclaycard Ring •  Marketplace:

•  Ebay, Amazon •  Social Media:

•  Facebook, Twitter, Instagram

Examples of community as a way to deliver value:

•  Competitions: •  Netflix prize

•  Recommendations/Idea Evaluation: •  Amazon, Netflix, Google •  Barclaycard Ring •  Quirky

Examples of community as a way to capture value:

•  Crowdfunding: •  Kickstarter, Indiegogo, Patreon, Rally

•  Prediction Markets: •  Eli Lilly, Google

•  Sharing: •  Uber, Sidecar

What do we really mean by business model innovation?

•  Innovation = a new way to deliver value to customers. •  Business model innovation = a new system for

delivering value to customers.

How can you help your company understand how community can drive business model innovation — whether by tweaks or transformation?

1.  Understand your company’s current business model.

Don’t be daunted if you don’t already know — it’s common for even management to have a slippery grasp on their company’s business model.

2.  Understand how business model innovation processes work.

BIF Business Model Design Process

3.  Understand that business model tweaks and transformations — in fact, all innovation — starts with a customer need or “job-to-be-done”.

•  A community manager who works directly with customers is in a perfect position to discover these needs.

•  A community manager can understand how a community can be better integrated into the company’s current business model AND how the community can serve as a lever for an entirely new business model.

“My challenge to all the community managers, builders, and strategists out there — reclaim the term “community” as a vital part of the product and the lifeblood of the business, or invent a new term altogether.”

Christopher Pedregal, The Problem With Community

Questions and Discussion

Thank You!

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