Thinking about BM in existing companies is slightly different than in a start-up.
The best way to look at it is by drawing a continuum between improving existing businesses that a companies has and inventing new businesses that companies plans to build.
On the left hand side you have one or several existing businesses models.
The company knows them well and the entire organization is trimmed to execute and incrementally improve them.
Here the company operates in a known environment with existing customers and a good understanding of the market.
In such a known environment it is possible to make relatively accurate forecasts about sales and predictions about growth.
Hence the left hand side is all about executing and improving known BM or improving them incrementally.
On the right hand side you have one or several new BM that the company is trying to develop.
The models are far from proven and the organization is still experimenting with them. Contrary to the improve-end in the continuum, inventing is usually done in an unknown environment.
Predictions such as sales forecast or growth numbers are practically impossible to make at the early stages. The company is still developing a good market understanding.
Hence the right hand side is all about the search for Business Models that work.
The rules of the game are almost totally different on the opposite ends of the continuum.
For existing business models and their improvement you make business plans with performance projections.
You evaluate people on how they meet those projections.
Failure is not an option.
When it comes to new BM detailed plans are worthless. Projections don’t make sense for yet unproven Business Models.
What you really want to do is perform many small experiments to test the hypothesis of your unproven BM.
You learn from these continuous small bets.
Which will allow you to improve, adapt or pivot your BM until you make sure it will really work.
Existing and new business models require completely different thinking, different rules and different organizational structures to succeed.
Are you able to play both games in parallel?
Source: Strategyser.com