4 Steps to
Business
Model
Innovation
NO. 36
E-Book
SAP Center for Business Insight | Brief | Q&A | Case Study | Inquiry | E-Book
E-Book: 4 Steps to Business Model Innovation 2 NO. 36 SAP Center for Business Insight | Brief | Q&A | Case Study | Inquiry | E-Book
Theres a New Type of Innovation:
Business Models
Although the scope and risks of business
model innovations are greater (think
Apple going from device seller to
entertainment and software retailer),
so are the benefts when they succeed.
Business model innovations are more
difcult for competitors to copy than
products or processes.
IT Has the Opportunity to Lead
Business Model Change
Most business model changes these days
are based on IT. But CIOs need to get out
of the business of spending all their time
running IT before they can change.
Heres How:
E-Book: 4 Steps to Business Model Innovation 3 NO. 36 SAP Center for Business Insight | Brief | Q&A | Case Study | Inquiry | E-Book
The transformation-focused IT organization:
1 Structure IT as a Transformation Driver
Source: How CIOs Can Become Business Innovators
Involves stakeholders.
Those who are afected remain involved and clear about the
business reasons for the initiative.
Tracks results.
The CIO and other project sponsors together defne and measure
the value of the investment by tracking the business benefts.
Doesnt do IT projects.
Instead, it carries out business projects that incorporate
technology.
Focuses on business outcomes.
Rather than delivering an IT system, the organization provides a
set of business benefts that are achieved partly by investing in
technology.
Manages change.
Rather than having an IT implementation plan, there is a
holistic change management plan that takes into account the
accompanying changes to business processes, organizational
structure, and the impact on suppliers and customers.
Hires market-oriented staf.
The organization needs IT professionals who know what drives
the companys strategy and their industry so they can exploit
technology for the greatest business benefts.
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Networking is how you learn about state-of-the-art technology
and concepts that deserve attention from corporate colleagues
and which lead to new business ideas. Heres how to do it:
2 Build an Advisory Network
Get out of the ofce
Attend IT and industry conferences, and
take advantage of meetings organized by
vendors who present their research and
new products to customers. Join peer group associations in your
industry so you can compare notes with other CIOs about business
trends and daily IT challenges.
Organize workshops
on your business challenges
Workshops can be a great way to fuel your
and your teams imagination. But your job is
to execute business strategy, so keep them focused on issues
relevant to your business.
Dont leave meetings to
chance
Set up a regular schedule of meetings and
phone calls.
Seek out big thinkers
Seek out local colleges and universities with
strong IT and business programs, and reach out
to a cross section of academics in both areas.
Source: How CIOs Can Become Business Innovators
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3 Establish Your Own Think Tank
Creating a special team within IT that is dedicated to innovation sends
a message to the business leaders: operations will not sufer while the
innovation team experiments with new ideas. Here are some ways to
increase the chances for success:
Create a dedicated workspace.
The space should be organized and designed to encourage
conversation and independent thinking and to facilitate small-
group collaborations as well as meetings or workshops with
business colleagues or outside experts.
Meet regularly with business leaders.
Having a regular interdisciplinary forum for discussing
innovations in addition to informal, unstructured conversations
means that the IT team can learn about business challenges
and get regular business feedback on their ideas.
Partner with outsiders.
Paul Stratil, CIO at SAS Automotive, has parlayed relationships
with researchers at three universities into business innovations.
A partnership with the University of Stuttgart and the University
of Siegen led to the development of customized simulation tools
that SAS Automotive used to design an optimized manufacturing
plant layout for assembling automobile dashboards.
Source: How CIOs Can Become Business Innovators
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4 Hand Of IT Operations
Source: Q&A: The Key to IT-Enabled Innovation: Think Outside the Business Model
I spend 70% of my time on changing the business
working on new ideas, holding workshops, and
developing road maps for doing business in a new
way. That includes attention to small changes that
enable us to do things better. My managers, on the
other hand, spend 70% of their time on operations.
Werner Schultheis, CIO, Randstad Germany
E-Book: 4 Steps to Business Model Innovation 7 NO. 36 SAP Center for Business Insight | Brief | Q&A | Case Study | Inquiry | E-Book
Theres More
The SAP Center for Business Insight is a program that supports the discovery and development
of new research-based thinking to address the challenges of business and technology executives.
To learn more, read How CIOs Can Become
Business Innovators , an in-depth report
from the SAP Center for Business Insight.
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