How can an organization innovate?
That's the question every business leader should be asking themselves in 2016. Failing to innovate successfully could mean closing your doors in today's business and technology climate.
To achieve organizational innovation, every facet of a business needs to move together in the same direction. That can be difficult without a clear visual of what your business model is and how your activites should be aligned. You need to identify what your company wants - and is prepared - to do before innovation can turn from a buzzword into an action.
Are you familiar with a Business Model Canvas? You should become familiar - the Business Model Canvas is a methodology on the rise. It helps companies visualize and position their business models for growth and innovation.
What is a Business Model Canvas?
Strategyzer defines it: "The Business Model Canvas, is a strategic management and entrepreneurial tool. It allows you to describe, design, challenge, invent, and pivot your business model."
The Business Model Canvas breaks your business model down into easily-understood segments: Key Partners, Key Activities, Key Resources, Value Propositions, Customer Relationships, Channels, Customer Segments, Cost Structure, and Revenue Streams.
By digging into these elements of your company, you can recognize and act on areas that can be improved. It also reveals clear paths on which to build your organizational innovation strategy.
Gaining a better understanding of your business never hurts. It helps you communicate your goals to your team. It helps communicate to clients why they should do business with you. It helps pull into focus what your business does and how it will continue to do it - successfully - into the future. The Business Model Canvas is an invaluable tool for startups and Fortune 500 staples alike.
Watch this for more information on why your company should use the Business Model Canvas:
How can it help organizational innovation?
Innovation is disruptive. But, not every business is prepared for disruption. Without a plan, pivoting is next to impossible. For an organization to innovate, it has to have a fine-tuned strategy that guides it towards a viable future business model. Using a tool like the Business Model Canvas can serve to unite your company under a clear visualization of where your organization sits today and where it can be tomorrow (and how it will get there).
The Business Model Canvas moves innovation out of the 'in-theory' stage and into the planning stage. See clearly, for example, what your strongest revenue streams are and how they can complement each other. Or, more closely examine your value propositions and discover better ways to position your product or service to customers. Use customer segments to find out exactly who you're talking to and how to approach them more effectively.
Your company's future is hidden in the details. Find it and you'll be ready to innovate successfully.