Companies these days cannot afford to stand still! Cheryl Perkins, Founder and President of Innovationedge and a visionary business leader, will share best practices of companies who are defining and implementing new business models. These models are used to create new pathways to value and deliver growth in today’s business climate. She will lead you on a journey through business model basics and describe how companies are taking innovation strategy to the next level, while tackling the current challenges of talent management and innovation fatigue.

1. Cheryl Perkins Maria Heredia-Meza
With: Moderated by:
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Best Practices in Business Innovation
Business Models Changing the
Landscape of Growth and Innovation

2. Click on the Questions panel to
interact with the presenters
https://www.businessinnovationbrief.com/frs/12403212/business-models-changing-the-landscape-of-growth-and-innovation/

3. About Cheryl Perkins
Cheryl Perkins is the president of Innovationedge, which she founded in 2006. As a global thought leader in innovation, Perkins brings
more than 25 years of expertise in leading companies to identify and transform insights, designs, technologies and capabilities into total
solutions and new to-the-world innovations. Additionally, the Innovationedge model gives inventors an edge by crafting winning business
plans and aligning strategic corporate partnerships for commercialization.
Perkins is a passionate keynote speaker who has inspired audiences all over the world sharing her insights with C-level executives and
innovation leaders about discovering design tools to deliver innovation solutions for sustainable growth.
About Maria Heredia-Meza
Maria went to Princeton University and majored in Spanish and Portuguese with a minor in Latin American Studies. She now works as an editor at
Aggregage, providing some of the most interesting thought-leaders in business innovation with a space to celebrate the diversity, depth, and
experience of their professional cultures, personalities, and passions.

4. Business Models Changing the
Landscape of Growth and Innovation
4

5. Innovation
• At its simplest form, is the creation and
introduction of something new that will deliver
economic value
• It’s about not being satisfied with the status quo
and taking action
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6. Five Business Model
Innovations
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7. Business Model
• The differentiated way in which a company creates and
receives value
• Societal (customers, partners, investors, stakeholders)
• Financial (sales, margins, cash flow, return on investment,
shareholder gains)
• Models encompass products, services, operations, processes,
capabilities, assets, channels, alliances, supply chains, and
logistics
• They are systemic; changing one element will change the rest
• To succeed, all the pieces must fit together synchronistically
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8. Five Business Models for Sustainable Growth
• As a result of digital technologies and socioeconomic shifts,
several new business model archetypes have emerged - the
five we believe all incumbents should consider are:
1. Subscription/Rental - “retain the customer”
2. Premium, Personalized, Service-Focused - “cater to the customer”
3. Digital/Physical and Omnichannel – “own the customer”
4. Platforms and Ecosystems - “connect the customer & marketplace”
5. Incubators and Accelerators - “test and launch with customers”
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5

9. 1. Subscription/Rental Model
“Retain the customer”
• The aim is long-term customer retention and recurring
revenue
• There has also been an increase in B2B industries which
were not traditionally using recurring revenue models
moving to subscription business models, driven in part by
the Internet of Things (IoT)
• The Everything-as-a-Service (XaaS) business model has
helped companies in the B2B space generate continuous
revenue from their products
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10. Grove Collaborative
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11. Subscription Economy
Shift is away from a pay-
per-product model to a
subscription-based model
Younger people prefer
temporary versus permanent
ownership
The formula for growth is
focused on monetizing long-
term relationships rather
than shipping products
Increase the intimacy
between companies and
their customers
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12. Rent the Runway
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13. Capabilities Required
• Marketing, fulfillment, customer service, and data analytics
coupled with integrated CRM systems are the main capabilities
required
• Companies must nurture subscribers and continuously evolve the
product/service
• Machine learning and/or AI capabilities can enhance offerings
through deeper understanding of consumer needs
• Partnerships and acquisitions are also common in this model
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14. Value Proposition
• A subscription model can drive shareholder value through
customer acquisition, retention, and recurring revenue
• With the right cost and pricing structure, higher margins are
possible since inventory could more predictably match demand
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15. 2. Customer Service vs Customer Experience
“Cater to the customer”
• Know the Difference between Customer Service and Customer
Experience
• Create an organizational common purpose
• Get to know your customers holistically
• View exceptional service as an economic asset instead of an expense
• Premium, personalized, service-focused
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What is the impression of your business
that the customer walks away with?

16. Interflora
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17. Premium, Personalized, and Service
• While luxury and custom-made products are far from new, the advent
of digitalization and 3D printing has enabled personalization at an
affordable level on a much larger scale
• Smartphones, tablets, and mobile apps have played a key role in
allowing businesses to engage directly with customers while gaining
deeper insight into their behavior
• Wearables and tracking devices are also making it possible for
consumers to personalize their experiences through voluntary data
sharing
• Home testing kits, including those that analyze genetic information,
have opened the door to personalization based on biology
• As a result of these trends and developments, brands can create
specialized products, services, and experiences that directly meet
customers’ needs – and command a premium price
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18. L’Oreal D.O.S.E
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19. Capabilities Required
• Companies will need to develop data analytics and interpretation
skills, customer responsiveness, and strong customer engagement
approaches
• Technologies include:
• Flexible Manufacturing and 3D Printing
• Sensors/Scanning Tools
• AI and Machine Learning
• Customer Relationship Management
• Data Mining
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20. Value Proposition
• For consumers the value of customized products, services, and
experiences is high and growing
• These consumers are potentially more loyal once trust has been
established
• The data they share could guide future product development
• Margins are higher since inventory is reduced
• The value in the health and wellness industry goes even further –
customized tracking and monitoring devices potentially save lives
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21. 3. Digital/Physical and Omnichannel
“Own the customer”
• E-commerce and brick-and-mortar are no longer two distinct entities.
While established firms are scrambling to become digital, online players
are increasingly building storefront presence
• Physical and digital are becoming one and the same, and companies
must be accessible and attractive to customers wherever they are
• Shopping options must also straddle both worlds
• BOPIS (buy online, pick up in store) and mobile ordering apps for fast food are
today’s norm
• Geo-location and tracking have redefined ‘point of purchase’
• Supply chain and warehouse capabilities must be set up for both; last
mile delivery must be fast, flexible, and efficient
• For all industries, integrating digital with physical is key to
competitiveness. As omnichannel has become the prevalent business
model, companies must realign goals and processes to ensure a seamless
customer experience
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22. Amazon and Whole Foods
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23. Omni-Channel & Multi-Channel
• Omni-channel and multi-channel are similar but distinct:
• Multi-channel marketing is the ability to interact with consumers on a
wide variety of platforms, such as a promotional event, website, retail
location, or word-of-mouth
Consumers have many choices for channels to engage with the brand,
but the channels exist as disconnected, independent entities
• Omni-channel marketing connects all of these channels into a single
seamless experience, allowing the consumer to shift between channels
(and experience multiple channels at the same time) without missing a
beat
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24. Capabilities Required
• Companies need a thorough understanding of customer behavior,
smart channel investments, grasp of customer data, creativity in
blending old and new, strong operational capabilities, and great IT
systems
• It takes strong vision and leadership to create organizational
change
(Westerman, McAfee, and Bonnet, Leading Digital)
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25. Value Proposition
• For customers:
• Accessibility, ‘anytime, anywhere’ convenience, rewards and loyalty
programs, the ability to easily comparison shop, seamless experiences,
and cost savings are just a few of the benefits
• For businesses:
• Connecting with customers across platforms and touch points
• Higher return on marketing investment
• Retailers’ omni-channel customers are more valuable on multiple counts:
• They spend an average of 4% more on every shopping occasion in the store
and 10% more online than single-channel customers
• Even more compelling, with every additional channel they used, the
shoppers spent more money in the store
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Harvard Business Review study

26. 4. Platforms and Ecosystems
“Connect the customer & marketplace”
• Digital platforms enable value-creating interactions between
producers and consumers
• Platforms differ from conventional ‘pipeline’ businesses in their networked
vs. linear structure
• For example, Apple’s handset business is a pipeline
• But combined with the App Store marketplace (that connects app
developers and iPhone owners), it’s a platform
• Companies can be both pipelines and platforms, but platforms
usually win in the competitive marketplace
• Ecosystems are dynamic, multi-company systems that bring
together capabilities to create new products and services
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27. Platforms All Have An Ecosystem
• Typically they are composed of four types of players:
1. Owners control intellectual property and governance
2. Providers serve as the platforms’ interface with users
3. Producers create their offerings
4. Consumers use those offerings
• Players can create and derive value from any position,
owning the platform is not right for every company
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4

28. Players in a Platform Ecosystem
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29. Capabilities Required
• Ecosystems require IT capabilities such as APIs, internet of things
technology, and tools for data gathering and analysis
• Orchestration of cross-industry ecosystems requires a compelling
vision, an existing platform, the ability to scale, and cash reserves
along with commitment and patience
• CEOs need to decide how their company will operate within the
ecosystem, not every business can or should set out to orchestrate
one
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30. Value Proposition
• Using the Apple example, the iPhone and its operating system was
designed to connect participants in two-sided markets—app
developers on one side and app users on the other—generating value
for both groups
• As the number of participants on each side grew, that value
increased—a phenomenon called the network effect, which is central
to platform strategy
• By 2018 the company’s App Store offered 2 million apps, made Apple
$40 billion, and had cumulatively generated over $100 billion for
developers
• The network effect is the chief value and it is powerful. Data
exchange and customer insights afford further value in terms of
ongoing product development
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31. 5. Incubators and Accelerators
“Test and launch with customers”
• An incubator is a multi-tenant facility providing affordable space and an
environment that promotes the growth of small companies
• Corporate incubators provide entrepreneurs with training, idea prototyping, mentorship
particularly during the development phase (including specific vertical industry expertise),
partner networks (including VCs), and facilities
• An innovation accelerator is a program to develop, test, and grow new business
ideas in a short time span, outside of the company’s every day activities
• Typically they are fixed-term, cohort-based, mentorship-driven, and they culminate in a
graduation, pitch, or “demo day”
• While similar in that both help startups get off the ground, there are some key
differences between incubators and accelerators
• First, accelerators invest in their startups, typically $20-100K in each company, whereas
incubators don’t
• Second, accelerators support startups in groups, also referred to as cohorts, and classes,
whereas incubators do so on-demand. A corporation can start with a startup incubation
model and progress to an acceleration model
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32. Webinar 2020 32

33. Value Proposition
• For both established and startup companies, the main value is in being
able to test and launch new products – as well as new business models
-- rapidly
• The environment is conducive to collaboration
• These models also offer the opportunity to experiment with startup
organizational approaches; to manage internal groups using startup
company structures (flat management, open communication) which
help develop high performance organizations
• The ultimate value is in the successful launch of new businesses,
though the value in the learning that takes place is also significant,
regardless of outcome
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34. Capabilities Required
• Incubators and accelerators require capabilities such as openness,
rapid prototyping, experimentation, risk-taking, working with
uncertainty, and collaboration over distributed environments
• There must be a dedicated facility and knowledge of current VC
practices
• Other requirements include the ability to create and deliver
proposals, business cases, and pitches to secure funding
• The best accelerators and incubators are built around a
community of internal and external stakeholders, customers, and
mentors
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35. Five Business Models for Sustainable Growth
• While these models have overlapping features, each has its own value
proposition and situational applicability
1. Subscription/Rental - “retain the customer”
2. Premium, Personalized, Service-focused - “cater to the customer”
3. Digital/Physical and Omnichannel – “own the customer”
4. Platforms and Ecosystems - “connect the customer & marketplace”
5. Incubators and Accelerators - “test and launch with customers”
• A company will typically focus on one primary play, based on its core
strengths and strategic objectives
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36. Putting It All Together
• Overall the power of Business Model innovation is in the holistic
orchestration of your unique value proposition and strengths with
operational excellence
• There are many permutations and combinations, the Business
Model archetypes outlined today are not discrete
• Most companies will find the best model(s) align with current
capabilities and goals
• The key is finding your unique points of differentiation and
recognizing that the holistic system is what makes it harder to
copy than product innovation, more sustainable, and powerful
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37. Innovationedge, LLC
1526 S Commercial St Suite 200
Neenah, WI 54956
920-967-0470
www.innovationedge.com
Strategic solutions for a changing world
Thank You

38. Q&A
Maria Heredia-Meza
With: Moderated by:
Founder and President, Innovationedge
LinkedIn page: /in/cperkins/
Twitter ID: @CherylPerkins
Email: cperkins@innovationedge.com
Website: innovationedge.com
Cheryl Perkins
Editor, Business Innovation Brief
LinkedIn page: /in/maria-heredia-meza-
561285192/
Twitter ID: @InnovationBrief
Email: maria@aggregage.com
Website: businessinnovationbrief.com
https://www.businessinnovationbrief.com/frs/12403212/business-models-changing-the-landscape-of-growth-and-innovation/