Business Model Design and Innovation
We help companies see beyond the creation of new products and services to envision entirely new growth businesses. This requires a new level of thinking—systems thinking. Since every new business is a unique set of components, every piece of the business must be designed to gear together.
Our collaboration with Medtronic on a new model for cardiac care demonstrates how we find breakthrough ways to unlock new markets. In India, a nation where heart disease is the #1 killer of adults under 70, more than 90 percent of the population cannot afford basic technologies such as pacemakers.
As the world's largest maker of medical devices, Medtronic needed a way to deliver life-saving therapies to this massive base of potential customers. But there were major barriers standing in the way, including lack of patient awareness, lack of diagnostics, complex care pathways, and lack of affordability.
The solution: Healthy Heart for All, a new business model that addresses all those problems at once. Combining patient outreach, free diagnostic events, partnerships with hospitals, and an industry-first consumer financing plan, Innosight worked closely with the Medtronic team to test and refine the model in a regional hospital before expanding it across India. "We're scaling it up very rapidly," says Omar Ishrak, Medtronic's CEO, "to the point where this will become the core of how we deploy cardiac therapies in India."
Seizing the White Space
As the Medtronic case shows, it's often the business system, not the product itself, which provides the bulk of the value for both the producer and customer. While every company has a business model, certain companies have become famous for challenging the way value is created in their industry. Companies that endure for more than one or two product cycles have generally reinvented themselves in different points of their history by changing their business system.
These strategies are detailed in Seizing the White Space, the book by Innosight co-founder Mark W. Johnson. The book shows how business model innovation can enable companies to open new markets, differentiate themselves from rivals, or drive costs down far enough to deliver a new level of access to products and services, leading to new avenues for growth. This requires rethinking all the business components at once—including a new cost model, resource model, delivery model, and financial model.
Meeting the business model challenge
When so many companies want the new growth that business model innovation can bring, why can so few pull it off? What makes achieving transformational growth through business model innovation so difficult? Our clients come to us to aid them in identifying the limitations in their own business model. In turn, we help envision the opportunities that could be realized with a fresh approach.
What we offer
Setting Goals and Bounds
Setting constraints can be liberating. Knowing a company's goals (what it wants to do) and boundaries (what it won't do) can more sharply focus creative efforts. We guide senior management through a structured approach to determine what is "desirable," "discussable," and "unthinkable" around each of the core elements of a growth strategy, focusing on key vectors such as distribution channels and revenue sources.
Business Model Innovation
We hold structured sessions for designing new businesses. This includes a comprehensive blueprint for a business model, including the profit formula, the customer value proposition, and all the necessary resources and processes to deliver that value. We envision a range of models and prioritize choices based on company goals and bounds.