How do you reduce negative impacts of business model innovation?

2 Validate your assumptions

BMI often requires you to challenge your assumptions and experiment with new ideas. However, you also need to validate your assumptions and test your hypotheses before you scale or implement your new business model. This can help you reduce the risk of failure, waste, and disappointment. You can use tools such as the lean canvas, the value proposition canvas, and the business model canvas to map out your assumptions and validate them with data, feedback, and evidence. You can also use methods such as prototyping, piloting, and MVPs to test your value proposition and business model with real customers.

3 Manage your portfolio

BMI can be seen as a portfolio of options, where you have different business models for different segments, markets, or scenarios. You need to manage your portfolio strategically, by balancing your core business model with your new or emerging ones. You also need to allocate your resources, capabilities, and attention accordingly, by considering the potential and performance of each business model. You can use tools such as the portfolio map, the innovation matrix, and the three horizons framework to assess and manage your portfolio.

4 Engage your stakeholders

BMI can affect not only your customers, but also your employees, partners, suppliers, investors, regulators, and competitors. You need to engage your stakeholders throughout the innovation process, by involving them in co-creating, co-designing, and co-delivering value. You also need to address their concerns, expectations, and interests, by communicating clearly, transparently, and frequently. You can use tools such as the stakeholder map, the empathy map, and the feedback loop to identify, understand, and interact with your stakeholders.

5 Learn and adapt

BMI is not a one-time event, but a continuous process of learning and adapting. You need to monitor your progress, measure your results, and evaluate your impact. You also need to learn from your successes and failures, by reflecting on your assumptions, experiments, and outcomes. You need to be open to feedback, criticism, and suggestions, by listening to your customers, employees, partners, and other sources of insight. You need to be flexible and agile, by adjusting your strategy, tactics, and actions according to changing conditions and opportunities.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?