The team developed a common business model framework to guide the creation, validation, launch and scale of new digital business models in the complex healthcare industry, supporting the transformation from product sale to digital service and platform models. This new framework is widely accepted and used across different levels of the organization. Business Model Innovation became a core part of the global strategy and innovation agenda. All new ventures apply the framework and way of working to support them in the implementation of new business models.
A cross-functional ‘community of practice’ was set-up to lead the transformation in the organization in a ‘bottom-up’ fashion. Board of Innovation took a leading role in this team. The team evolved into a formal center of excellence with the support of senior executives. A director of business model innovation was hired, with the responsibility to create a portfolio of new business models reporting directly into the senior leadership of the organization.
The community of practice applied the framework on +65 innovation projects. This created a common language and library of business model patterns that increased transparency and consistency in the role of new business models in the organization.
A new way to evaluate the portfolio of new business initiatives was applied to the full (+2 Billion) R&D portfolio of the organization.
Key benefits of the new portfolio framework include:
- Ability to invest in diverse new business models (in comparison to more traditional business models)
- More focus on assumption validation (in comparison to traditional business case evaluation)
People throughout the full organization are continuously sharing insights and learning from new business models via physical and digital platforms. A new Business Model Innovation module was created and added to the learning curriculum for strategic stakeholders in the organization.