Monitor Business Model Innovation 22 Nov

7/31/2019 Monitor Business Model Innovation 22 Nov

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by Geoff Tuff and Stephen Wunker

MONITOR

PERSPECTIVES

Beacons for Business

Model Innovation

How applying two pattern recognition tools

can empower companies to pick and develop

breakthrough winners in their innovation portfolio.

Business Model Innovation is a hot topic in

management thinking these days, even though

there seems to be little agreement about what it

looks like and even less about how to discover

it. But there is no reason for Business Model

Innovation to feel mysterious or hard to achieve.

By using analytic tools that provide better

decision-making insights, executives can vastly

improve their innovation success rateand

ensure their business model investments generate

bigger returns.


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2 BEACONS FOR BUSINESS MODEL INNOVATION

MONITOR

PERSPECTIVES

Tupelo, Mississippi has seen its share o

people upending tradition. Not only is this

small Southern town the birthplace o music

revolutionary Elvis Presley, it is also ground

zero or a new movement that seeks to trans-

orm a totally dierent eldhow we care or

our elders. Rejecting traditional models o

senior livingones that eature a large medi-

cal sta tending to hundreds o patients in

an institutionalized settinga Tupelo doctor

created the rst Green House senior home.

These acilities contain no more than a dozen

residents. The residents interact with each

other in a large common area, play a role in

decision-making, and are cared or by a single

multi-tasking nurses aide. As the name sug-

gests, the place eels like a house, not a hospi-

tal or a nursing home. Residents ound the

Green House experience so compelling that

the concept has now been replicated more

than 50 times. The radical approach to care

is mirrored by an equally unique economic

model that slashes stang and overhead

costs. Due to the small scale o the acility

and the act that there is just one multi-

tasking worker, total sta time is 30 minutes

less per resident-day, even while nursing care

time (what matters most to the residents) is

1.5 hours more. Green Houses are a new busi-

ness model ounded on a total rethinking othe customer experience o elder residents.

By contrast, Business Model Innovation in the

newspaper industry seems to have lost touch

with the customer and has instead become

a euphemism or cost cutting. Even leading

institutions such as the Tribune Company,

owner oThe Chicago Tribune and other newspa-

pers, seem to have been doing little new except

or cutting journalists and putting articles

online. Taking an inward-looking view, many

in this industry seem to think that the simul-

taneous implosion o advertising and circu-

lation can be addressed by thinner papers

carrying more wire service stories, rather than

through innovations in areas such as syndi-

cating content and creating ocused reader

communities. A customer-ocused view might

have looked at the many touchpoints newspa-

pers can have in peoples lives and communi-

ties. There is little reason, or example, that

newspapers could not have dominated the

online classied industry rather than ceding

it to upstarts such as Monster.com and eBay.

It is not a shock that newspapers have largely

ailed to create new business models. The

promise o Business Model Innovationto

create new product and service categories that

make money in new ways and achieve acceler-

ated growthgenerates enthusiasm but comes

with a big catch: it requires true integrative

change across many unctions o a company,

rom nance and operations to manuactur-

ing, marketing and sales. It requires new

skills, new behaviors and the courage rom

leaders to think, act and lead dierently.

Executives can increase their odds o success

by using a rigorous set o decision-making

and pattern recognition tools. In this ar-

ticle, we will briefy touch on two critical


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BEACONS FOR BUSINESS MODEL INNOVATION 3

diagnostic tools, the Ten Types o Innova-

tion and Economic Value Estimation. By

taking advantage o the insights these tools

oer, corporate leaders can analyze which

Business Model Innovation projects oer the

most value or customers, allowing them to

pick the winners and shut down the losers.

The Ten Types of Innovation: Meshing

Inventive Revenue Models with New

Customer Experiences

In examining more than 5,000 innovations

successul and not over the past 15 years, we

have been able to classiy innovation activi-

ties into Ten Types o Innovation. Sadly,

most o these innovations have not been

successul (dened as returning their cost o

capital), achieving in aggregate an abysmal

success rate o 4.5 percent. Why? The vast

majority o them and especially the ailed

attempts have been centered on Product

and Product System innovation (see Exhibit

1 below). This should not be surprising:

new product ideas are easy to dream up and

just as easy to kill in the average companys

stage-gate process. I they are lucky enough

to make it through to market launch, many

product-ocused innovators nd themselves

vulnerable to competitors. This challenge is

becoming only more daunting as competi-

tion heats up in all corners o the world,

especially in emerging markets where patent

law may be less eective and mastery o com-

plex distribution systems can matter more

than having the best product on the shel.

By contrast, the most successul innova-

tions we studied share two important traits.

First, they ocus on shits in the revenue

model and the customer experience. And

second, they employ multiple types o in-

novationrequently six or moremaking

them genuinely new and dierent business

Exhibit 1:

The Ten Types of Innovation

The most successful business model innovations combine new ways of making money

with new, great customer experiences.

Biggest opportunities are anchored here

Most companies focus here

Finance

Businessmodel

Enablingprocess

Coreprocess

Productperformance

Productsystem

Customerexperience

Networking Service Channel Brand

Process Offering Delivery


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MONITOR

PERSPECTIVES

models. These are breakthrough innova-tions that deliver unique value to customers

and are integrative in nature (across company

unctions) and thus hard to replicate. In

our research, only 2 percent o the initia-

tives demonstrated these attributes and yet

they delivered 90 percent o the cumula-

tive value o all the innovations studied.

In the course o this research we also discov-ered that it is very hard to innovate around

revenue models and customer experience

and notpull along other types o innovative

change. For real Business Model Innovation,

a company must assemble six or more types

o innovation, with at least one innovation

type coming rom each o the our major

categories (Finance, Process, Oering and

INSIDE THE BUSINESS MODEL INNOVATIONS AT THREE LEADERS

Dellrevolutionizesthepersonalcomputermarket.Dell was founded in 1984 on the premise that individual-

ized computers could be sold directly to customers in order to better understand and meet consumer needs while

responding more quickly to changes in the marketplace. This approach, combined with the introduction of relatively

novel supply chain processes such as configure-to-order and just-in-time manufacturing, allowed the company to

have substantially lower costs than its competitors. Dell rose from dormitory room start-up to global leadership in

personal computer sales within just 15 years.

NestlNespressoleveragesbrandawarenesstoopenaboutiqueretailbusiness.The Nespresso offering

started with an innovative high-end productspecially designed machines and individual coffee capsules that

enabled consumers to quickly produce a quality and individualized cup of espresso. It has since grown into an

integrated customer experience. In addition to its 24-hour information and ordering service, Nespresso has opened

a line of boutique retail outlets designed to provide Nespresso Club Members with an opportunity to learn about

premium coffee, preparation techniques, and new Nespresso products. In addition to affording the company signifi-

cant direct access to customers, the global network of 190 boutiques accounts for 30 percent of Nespresso sales.

Plans are in place to open 30 new locations during 2010.

HSBCFirstDirectcreatesabranchlessbank.First Direct was founded in 1989 based on the insight that a

significant number of bank clients did not use branch services and those that did reported relatively low customersatisfaction. In order to serve this market segment, First Direct offered a new approach to banking in the U.K.:

customers could access all banking services over the telephone 24 hours a day, 7 days a week, 365 days a year.

This was in stark contrast to traditional banks, which were generally open from 9 a.m. to 4 p.m. and closed for most

of the weekend. First Direct has continued to lead in innovative services, such as being one of the first banks with

online and mobile banking. As a result, it has attracted more than one million customers since inception.


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Delivery). Changing these undamentals re-quires signicant shits across the business

value chain. For example, it is a steep chal-

lenge to build a great, new customer experi-

ence without also innovating your oering,

processes, partnerships and payment terms.

These ndings lead to a relatively basic condi-

tion or innovation success: i you want to be

in the small minority o companies that have

really created value rom innovation, developconcepts that are anchored at the ends o

the Ten Types spectrum and that contain pos-

sibilities or at least our other innovation

Types as well. Sometimes, this will involve

creating a thrilling experience or your cus-

tomers and guring out how to make money

rom it in novel ways think Apples iTunes

or Nestls Nespresso. Other times, it will

involve delivering at least an acceptable prod-

uct-service package much more cost eective-ly than is possible using the accepted business

models think Dell or Southwest Airlines.

Estimating the Economic Value of

Innovative Business Models

Eective Business Model Innovation is the

ability to discover new ways o making money.

It is oten developed by tying scalable revenue

or margin opportunities to untapped sourceso customer value or by creating value more

cost-eectively than the competition. For

decades, precepts o good marketing have

taught us that oers should satisy cus-

tomer needs. The diculty, o course, is that

customers oten cannot provide a ull and

accurate description o what they want. Theymay not have the language or it, they may

be (unconsciously) motivated to obscure the

truth, they may be basing their consideration

on past experience, and they certainly can-

not predict how their needs will evolve in the

uture. Increasingly, companies are tapping

into the eld o design-driven innovation or

inspiration about how to explore their cus-

tomers needs and desires. Especially when

it comes to discovering what might lead to

a thrilling customer experience, it is vital

to use non-traditional research techniques.

Video ethnography, eld observation and

in-depth interviews are the tools o cultural

anthropologists who are behind some o

todays most exciting customer discover-

ies. These tools provide insight into not just

what customers say they want, but also their

latent, emerging and wholly unmet needs.

In order to tie insight to protable opportu-

nities, we like to borrow the Economic Value

Estimation (EVE) tool pioneered by pricing

strategist Tom Nagle. EVE is a simple rame-

work which breaks down the economic value

o an oer into its component parts and

compares this value to a next-best competitive

alternative (see Exhibit 2). By combining EVE

with non-traditional research techniques

(ocused on generating new customer experi-ences), companies can begin to hypothesize

what cost and value would be associated with

any new oering. Establishing the EVE o a

potential innovation can help set a thresh-

old or when a project is worth pursuing.


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MONITOR

PERSPECTIVES

Me-too or low-payback initiatives should be

scrutinized early in the development process

and either killed or reshaped. High-payback

innovations will either leverage a higher ab-

solute level o value than alternatives or a

lower (though still acceptable) level o value

using a much lower cost structure. Find the

innovations within your portolio which

have the highest ratio o Total Economic

Value to Reerence Value (o course, or a

breakthrough innovation creating a new

market, a Reerence Value will not exist and

that in turn will magniy the innovations

Economic Value). And out o those, the

ones that combine multiple types o innova-

tion at least six are your likely winners.

It is enlightening to examine a recent innova-

tion in light o Economic Value Estimation.

The leading Arican telecom company Celtel

(now owned by Indias Bharti) launched a

mobile commerce service targeting business-

to-business payments, given that so many o

these transactions occur in cash in the worlds

least developed markets. Potential corporate

customers were initially skeptical o paying

Celtel transaction ees until the companys

sta rode along with trucking feets and

discovered just how valuable mobile com-

merce could be. For example, during a typical

eight-hour delivery run, three hours could be

spent counting cash in very small bills, and

cash could be counted eight times between

the time it was paid and ultimately

banked. There were huge ineciencies

to address. Even more compellingly,

Celtel saw that distributors were losing

substantial sales by taking their orders

during the prior days delivery, and

that mobile technology could empower

them to accept orders in real time rom

handsets so they could adjust or de-

mand swings as they happened. The

company calculated that its services

were worth 1 to 4 percent o the total

transaction value, depending upon its

clients circumstances. Ethnographygave Celtel the power to price mobile

commerce according to the value it

created and provided insights into

totally new directions or the service.

PositiveDifferentiation

Value

ReferenceValue

Negative

DifferentiationValue

Differentiation Value: Thevalue to the customer (bothpositive and negative) ofany differences betweenyour offering and thereference product

Reference Value: The price(adjusted for differences in

units) of the customersbest alternative

Exhibit 2: How EVE Pinpoints High-Value Innovations

Source: Thomas T. Nagle, John E. Hogan and Joseph Zale,The Strategy and Tactics ofPricing, Fifth Edition (Saddle River, N.J.: Prentice Hall), 20.

TotalEconomic

Value


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Where to Start

Any company that wants to take ac-

tion on Ten Types and EVE diagnostic

work will need to start with two un-

damental requirements or success:

1. Understand the basic operat-

ing parameters o your company

to be able to determine what is

economically and organization-

ally viable and what is not

2. Know the collection orevenue

models that the business world has

used over time and understand how

these analogs mightand might

notbe applied to your company

Operating parameters. The rst require-

ment or success is that you understand the

basic operating parameters o your company

to determine what is viable. To think about

the hidden shackles that prevent business

model change, untangle the web o business

processes, supply chain partnerships and oth-

er relationships that enable a rm to succeed.

These include the suppliers, sales channels,

and even the types o customers to target.

Which o these operating parameters would

be threatened by a new business model? How

could a new model start o the radar sokey stakeholders were not threatened? Think

through all o the companys competencies,

rules and behaviors that acilitate the cur-

rent model, and how these might need to

change. For instance, will sales compensation

need to emphasize more teamwork than at

present? Will the emphasis be on a dierent

sort o buyerone with an oce and not a

cubicle? Proactively addressing these hurdles

in ocused pilots can reduce an organiza-

tions reluctance towards change while at the

same time revealing unseen dependencies.

Prototyping via pilots enables you to test the

fexibility o your companya key need or

Business Model Innovation. Because these

approaches are not simply window dressing

and checklists or one-o projects, they must

become corporate capabilities that enable a

company to sustain its position over time.

Senior executives need to lead by example and

embed fexibility into their company. Some-

times, the solution is not to invent a com-

pletely new way o doing business, but instead

to do old things in new ways and discover

undamentally cheaper methods to deliver

existing sources o value to your customers.

Revenue models. The second requirement

or success is to understand the types o rev-

enue models that exist across the business

landscape today. Through our retrospective

look at past successul innovations, we have

catalogued 20 dierent revenue models that

are typically used by corporations today.

These are shown in Exhibit 3 on pages 8 and 9.

Knowing these models is necessary but not

sucient; to really unlock the potential

behind alternate revenue models, rst un-

derstand company and industry orthodox-

ies i.e., just the way things are done around


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MONITOR

PERSPECTIVES

Exhibit 3: 20 Sample Revenue Models from Successful InnovatorsTACTIC DEFINITION EXAMPLE

Subscription Create predictable cash flows by charging customersup front (a one time or recurring fee) to have access tothe product/service over time.

NETFLIX turned the video rental industry on its head withthe implementation of a subscription model (no morelate fees!).

Float Receive payment prior to building the offeringuse the cash to earn interest prior to makingmargins.

DELL chose to carry no inventory and only built eachcomputer after it was ordered and paid for: earninginterest instead of carrying inventory risk.

Freemium Offer basic services for free, while charging apremium for advanced or special features.

SKYPE developed free Skype-to-Skype calls, but chargeda premium for outgoing and incoming calls to landlinesand mobiles.

Flexible Pricing Vary prices for offering based on expected demand. AMERICAN AIRLINES implemented Super Saverfares in 1977 that enabled variable pricing dependingon demand patterns in an effort to fill seats during less-

traveled times.

Installed Base Offer a core product for slim margins or loss todrive demand, realize profit on follow-up productsand services.

HEWLETT PACKARD subsidized the initial cost of printersand made its profits on high margin replacement inkcartridges and paper.

Auction Allow a market to set the price for goods andservices.

SECOND LIFE, an online virtual world, auctioned offparcels of virtual land for player development; thewinning bidder could pay with either US dollars orLindens (the in-world currency).

User-Defined Invite customers to set a price they wish to pay. RADIOHEAD went direct to fans when it offered its albumIn Rainbowsonline and allowed fans to set the price theywanted to pay for the entire album.

Ad-Supported Provides content / services for free to one party whileselling listeners, viewers or eyeballs to another party.

GOOGLEs AdSense charged sponsors to place links onusers (free) search results pages; the revenue supportedthe majority of Googles operations.

Forced Scarcity Limit the number of offerings available, by quantity ortime frame, to drive up demand and price point. GROUPON, a bulk-buying website, chose to offereverything from yoga classes to teeth whitening torestaurant discounts but only one deal is available perday, starting promptly at midnight and ending at 11:59p.m. or when it sells out ... whichever comes first.

Volume Earn outsized margins on large-size products ortransactions by keeping cost per unit fixed, regardlessof unit size.

MORGAN STANLEYs costs for managing large sumsof money were roughly the same as for small sums,but fees and thus profit escalated with largertransactions.

Cost Leadership Keep variable costs low and sell high volumes at lowprices.

BIC created the first low-cost ballpoint pens andobliterated the fountain pen market with its low marginproduct sold in immense quantities.

Multi-LevelMarketing

Sell bulk or packaged goods to a sales force that turnsaround and sells it.

AMWAY sold its beauty, wellness, and home productsdirectly to its network of independent business ownerswho took on the responsibility of selling the productsthrough personal referrals.

Premium Price at a higher margin than competitors, usually fora superior product, offering, experience, service orbrand.

APPLE typically priced its products well above thecompetitionnonetheless, customers purchased Appleproducts for their design, ease of use, and cachet.

Licensing Grant permission to some other group or individualto use your offering in a defined way for a specifiedpayment.

MONSANTO applied a yearly software licensing modelto a batch of its seeds to ensure yearly revenues fromgrowers.


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here and then consider how analogous

models rom other industries might be put

to use. As an example o industry orthodoxy,consider the Installed Base model represented

by Hewlett-Packards approach to the print-

ing business. HP built a ormidable market

position through selling printers at a small

loss and attempting to lock users into buying

its highly lucrative ink cartridges. Kodak, a

latecomer to this industry, has had to play the

game dierently to gain traction. Rather than

copy the HP model, Kodak reversed it. It sells

printers at a healthy margin and provides theink at relatively low prices. The model caters

to customers who print extensively and un-

derstand that ink cartridge purchases can add

up to cost serious money. As a result o this

novel approach, inkjet printers have become

one o Kodaks principal growth drivers.

Finding and using analogies across indus-

triesto apply the business model o one

industry to anothercan reveal exciting newopportunities. Analogies are a antastic way

to think beyond orthodoxies in one industry

by imagining how borrowing rom other

industries can turn a companys model on its

head. Consider the GE Aviation jet engine

business model, in which the company has an-

alyzed real-world airline engine maintenance

data and priced its leasing and service oering

to be more cost eective than customers own-

ing their engines. This is a model increasinglyollowed by competitors and quite a dierent

approach rom the traditional one o product-

ollowed-by-parts-and-service. This predictive

analytics modelwell known among retail-

ers who mine consumer data to anticipate

uture spending behaviorscould very well

have applicability in many other industries.

TACTIC DEFINITION EXAMPLE

Microtransac-tions

Sell many items that cost close to a dollar or as low asone cent to create acceptable impulse purchases.

KARTRIDER, on online multiplayer racing game, offeredplayers virtual items in-game, including different types ofvehicles and spray paint that added new functionality fornominal fees.

Financing Capture revenue not directly from the sale of aproduct, but from structured payment plans and after-sale interest.

GMAC provided profitable automotive leasing andfinancing options to give customers the ability to lease orown a General Motors vehicle.

Switchboard Connect multiple sellers with multiple buyers; themore buyers and sellers who join, the more valuablethe switchboard.

eBay collected fees for posting items and took apercentage of every item sold; in return it offered sellerscentralized access to millions of buyers and collectors.

Membership Charge a time-based payment to permit access to

locations, offerings, or services that non-membersdont have.

SAMS CLUB collected an annual membership fee to

provide members access to wholesale prices and bulkdeals that could not be matched in traditional retail.

PredictiveAnalytics

Model past performance data to predict futureoutcomes and price offerings accordingly.

GE AVIATION analyzed real-world airline enginemaintenance data and precisely priced its leasing andservice offering to be more cost-effective for airlines thanowning their engines.

Metered Use Allow customers to pay for only what they use. BETTER PLACE, an electric car charging system,developed a model that sells mobility miles to driverson a pay-as-you-go basis.

All company examples are used for illustrative purposes only.


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MONITOR

PERSPECTIVES

Taking Action

The best way to start tapping into the enor-

mous value oered by Business Model In-

novation is to take a look at what you have in

your portolio already. Using the Ten Types

o Innovation and EVE models as pattern

recognition tools, carve out the ew initia-

tives which appear to have the characteristics

o uture winners. I there is nothing there,

then ocus your team on creating unique,

unimagined customer experiences with

revenue models that break your industrys

conventional wisdom. Lest you get dragged

down the route o incrementalism, start by

looking or inspiration outsideseek insights,

perspectives on your industry orthodoxies,

and understanding o where the real value

lies or your customer base, as well as or

those who are not your customers yet. It

is most important to ocus on the demand

side o this work and then wend backwards

through the capability, asset, and cost im-

plications. As with most breakthrough in-

novation, think about back-o-the-envelope

cost calculations, not detailed economic

models, and always look or opportunities

to take out pieces o the cost structure as you

explore new user and revenue possibilities.

Many companies have a well-dened process

or creating new products, but very ew have

articulated a means or shaping new busi-

ness models. Without a deliberate approach

to the task, companies run several risks: the

subtle re-direction o new business model

eorts to look more like the core business,

resistance by business unctions impacted by

THE CHALLENGE OF

CONTINUOUS REINVENTION

Even successful business model innovators have

trouble sustaining their innovations over time.

Examining the shareholder return for three hugely

successful Business Model innovators (Dell, Home

Depot and Southwest) highlights how even com-

panies with Innovation DNA can get complacent,

wedded to tradition, and stymied when trying to

create a second breakthrough.

Dell

Home Depot

Soutwest Airlines

200

150

100

50

0

200

150

100

50

0

200

150

100

50

0

0 1 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 0 3 1

Cumulative

IndexedTSR

Years Since IPO

Note: TSR = (closing price opening price + dividends) / opening price; prices are

adjusted for stock splits and special events

Source: Yahoo Finance

Indexed Cumulative Total Shareholder Return


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the new model, an inability to rapidly iterate,

and an overload o organizational change.

Circumventing these barriers requires care-

ul attention to process rom the beginning.

A cross-unctional governing team o senior

executives should establish a clear strategic

mandate and set realistic success metrics.

Then these executives should ollow a model

set by venture capitalists or how they interact

with project leaders. Venture capitalists use

requent board meetings o their portoliocompanies to ocus on solving problems, not

reviewing presentations. They expect rms

to discover many unknowns, and early on

they measure progress in terms o risk mitiga-

tion rather than rapid revenue growth. They

prize fexibility. Moreover, they concentrate

companies on just a small handul o issues

at a time, which minimizes the downside o

ast change while maximizing the impact

o lessons learned rom the marketplace.

Reasons abound or employees to resist al-

tering the way the company operates. But

with the right amount o rabid pull rom

deep customer insight, supported by illustra-

tive analogies and deliberate process, every

company can take advantage o this source

o competitive advantage. This is not a drill.

Most companies ace competitive threatsrom upstarts or aster-moving competitors.

The time or Business Model Innovation is

now, beore one o them orces your hand or

steals the customers you thought you had.

THREE BUSINESS MODELS TO WATCH

SkypeforBusiness Leveraging the Freemium business model, Skype provides users with free voice and

video calls made within its network. For businesses whose employees frequently Skype, the company has begun

to sell premium services that integrate Skype into the central PBX phone system, allow easy distribution of credit

to individual accounts for calls made to non-Skype phones, and facilitate both instant messaging and file sharing.

VirginHealthMiles Challenging the Pay for Performance business model orthodoxy, Richard Bransons Virgin

Group has created a model it calls Pay for Prevention. Virgin HealthMiles backs corporate wellness programs

through engaging employees in measurable activities such as pedometer wearing and biometric monitoring. The

firms pay some participants reward points based on how effectively they are meeting fitness goals.

AmazonWebServices Pity the poor businesses that fork out big money for computing power, bandwidth and

other infrastructure which they then under-use. Amazon is using its vast IT resources to provide companies with

Metered Use cloud-based technology such as servers, storage and database services.


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MONITOR

PERSPECTIVES

About

MONITOR GROUP

Monitor works with the worlds leading corporations, governments and

social sector organizations to drive growth in ways that are most important

to them. Monitor Group offers a range of servicesadvisory, capability-

building and capital servicesdesigned to unlock the challenges of

achieving sustained growth.

Monitors innovation practice brings together an entrepreneurial, global

team with exper tise in a broad spectrum of disciplines. It includes in-

novation specialists at Doblin as well as a proprietary network of external

technology and industry exper ts that suppor ts our clients around the globe.

About Geoff Tuff Geoff Tuff is a Senior Partner at Monitor and a leader of the firms Innovationand Sustainability practices. He has been at the firm since the early 1990s.

Geoff has worked in a wide range of industries including pharmaceuticals,

medical devices, consumer products, beverages, information services,

financial services, telecommunications, metals, and both commodity and

specialty chemicals. His work is focused entirely on helping companies

grow organically through innovation and commercial excellence. Throughout

his career, he has been instrumental in developing some of Monitors core

methodologies related to driving top-line growth for clients, and he is cur-

rently an account manager for several of the firms leading clients. His writing

frequently appears in the Monitor Perspectives series and has been published

in journals such asMarketing Management. Geoff received his B.A. with

honors from Dartmouth College, and also holds an MBA from Harvard Busi-

ness School. He is based in the firms office in Cambridge, Massachusetts,

and can be reached via e-mail at [email protected].

C i ht 2009 2010 M it C G Li it d P t hi All i ht d

About Stephen Wunker Stephen Wunker is Managing Director of New Markets Advisors. As aspecialist in building innovation capabilities and creating new markets, he

has focused on the healthcare, financial services, and telecom industries. He

has published articles on innovation in a wide array of industry and general

business publications, includingForbes andBusinessWeek. Steve has four

patent filings for business model innovations. In addition to his consultingcareer, he has been a successful entrepreneur and corporate venturer in

both developed and emerging markets. Steve received his B.A. with honors

from Princeton University, a Masters in Public Administration from Columbia

University, and an MBA from Harvard Business School. He can be reached

via e-mail at [email protected].

The authors wish to acknowledge the contributions of

David Shear in the preparation of this article.

Monitor Business Model Innovation 22 Nov

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