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Business Renaissance

Because we live so long within the same box, when we want to solve a problem or provide something new and amazing, we can see that we used to think without having confidence in divergent opinions, especially those that arise out of the box.

But we can combine the two forms, both inside and outside the box and build a new without box or with a system of communicating vessels to ensure the flow of ideas and provide the collisions of internal and external points of view.

This new way of thinking, makes shine communication, increases confidence and highlights common attributes and points of interest, such as comprehension, allowing an overall view of the problem.

Organizations that believe in innovation and verify that within its walls there is no capacity to respond to the challenges posed to them do not have another exit, to survive, but to seek abroad the inspiration for their new business model.

This demand however will require an extra effort of understanding the problem and its resolution forms and will require the construction of a new mental model, which often requires the abandonment of some old beliefs, certain assumptions or implies even unlearn.

A mental model is a representation of a situation that involves our vision of that situation and frames our thinking, perception and action. It is a set of beliefs about a given situation.

For example, the expression “business is an art” represents a mental model that implies that the activities of the business move as an inspiration for creative work and not as a preparation for a competition many times without rules or ethics.

Companies today are called to a new challenge which translates into thinking innovation every day and to turn this thought into a new business model.

Gary Hamel argues that, to achieve this level of continuous innovation “it will need, new values, new processes for innovation, a greater adaptability, the infusion of passion in the workplace and a new belief system or ideology”.

We need to travel from times where questioning hierarchies was bad and the costs were the dominant emphasis (traditional business model), for the times when questioning is a fundamental need to develop critical thinking in order to impregnate significance when creating value through a collaborative work.

This way people reach simplicity, durability and sustainability of a spirit of innovation, and reinforce themselves continuously!

Despite all appeals in the world of management, a new mindset and find what really matters can take time because managers have accommodated themselves to the old “principles” and analytical assumptions and think that creativity is just to decorate the offices.

So what matters now?

Values:

As trust has waned, the regulatory burden on business has grown. Reversing these trends will require nothing less than a moral renaissance in business.

Innovation:

Successful products and strategies are quickly copied. Without relentless innovation, success is fleeting. …there’s not one company in a hundred that has made innovation everyone’s job, every day. In most organizations, innovation still happens “despite the system” rather than because of it. …innovation is the only sustainable strategy for creating long-term value.

Adaptability:

Problem is, deep change is almost always crisis-driven; it’s tardy, traumatic and expensive. In most organizations, there are too many things that perpetuate the past and too few that encourage proactive change. The “party of the past” is usually more powerful than the “party of the future.” In a world where industry leaders can become laggards overnight, the only way to sustain success is to reinvent it.

Passion:

The average workplace is a buzz killer. Petty rules, pedestrian goals, and pyramidal structures drain the emotional vitality out of work. Maybe that didn’t matter in the knowledge economy, but it matters enormously in the creative economy. The problem is not a lack of competence, but a lack of ardor.

Ideology:

Whatever the rhetoric to the contrary, control is the principal preoccupation of most managers and management

What creates value today is the unexpectedly brilliant product, the wonderfully weird media campaign, and the entirely novel customer experience.”

This true reinvention of our way of being when we are facing business models has already some places for reflection.

There seems to be no doubt that some companies (Ex: Apple-one in a hundred) realized that innovation in products, services and business models is the only strategy to create long-term value.

Some companies have also found that there are little things that conspire together to truly make a product exceptional, i.e. products that work intuitively, reliable and without secrets.

 

What do you think of this?

 

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Working and integrating variables

Tim Kastelle in a recent article “Eight Models of Business Models, & Why They’re Important” says, to refer to business models, that “They are an important tool that can be used to augment product and service innovations, to link innovation to strategy, to co-ordinate activities within an organization, and they can be a source of innovation as well.”.

With those eight models possibly many leaders seek to verify which of them will be the one that best fits their organization in order to create value for its clients and to retain a portion for themselves as an organization.

We can choose between various models or we can try a business model and work its variables, or we can do this not choosing one, but building a new model.

The experimentation of business model is a way to explore alternative approaches to creating value quickly, with low cost and wherever possible through “thought experiments”.

“Systematically exploring alternative approaches to value creation can allow companies to find new opportunities for growth.

… by treating the business model as a variable and not a constant — can serve as a critical enabler of growth, allowing executives to anticipate, adjust to and capitalize on new technologies or customer insights… At a conceptual level, a business model includes all aspects of a company’s approach to developing a profitable offering and delivering it to its target customers.”- MITSloan

A company that has questions about new business opportunities will need to confront its current model with a new and verify what the possible alternative answers that there is.

This article by Joseph v. Sinfield and …, points to an interesting path for the creation of new business models through the treatment of some variables before considered constants.

It becomes a path even more interesting if we go for this trip equipped with a new way of seeing the world.

Let us imagine that we have ahead of us, two opposite models and that eventually are useful for solving a problem.

We have the ability to create positively, even in situations of anxiety generated by doubt, alternative solutions when faced with these opposing models. Then instead of choosing one over the other we generate a new model that contains elements of each of the templates available, but the end result is better than each one of the parties (models).

“Integrative thinkers build models rather than choose between them. Their models include consideration of numerous variables — customers, employees, competitors, capabilities, cost structures, industry evolution, and regulatory environment — not just a subset of the above. Their models capture the complicated, multi-faceted and multidirectional causal relationships between the key variables in any problem. Integrative thinkers consider the problem as a whole, rather than breaking it down and farming out the parts. Finally, they creatively resolve tensions without making costly trade-offs, turning challenges into opportunities.” – Roger Martin

In fact we have the ability to create positively, however, the biggest challenge is, when taking decisions,  we are faced with the possible consequences. We are not alone and our attitude has implications in other individuals, groups or organizations.

To make a decision, we can proceed through four phases or steps, beginning with one that Roger Martin calls “salience”. Here we seek to know what types of information or what variables are relevant to making a choice.

This first step requires courage to not deal with situations of tension with the relief of factors that may be relevant.

In a second step, “causality”, we should seek to identify what types of relationships may exist between the various variables. It is useful to create a mental map of causality and establishing links between the various variables. When we established critical relations we do stand out saliencies found on the first step.

In the third step, called “sequencing”, it is time to create a global mental model, based on the choices we made from the first two steps. We decide where and when cut inside the issue, bearing in mind the wealth of connections between each component of the problem. This is bringing some parts of the problem to the surface and taking other backwards.

Finally, after identifying the relevant variables, build the causal map and establish the sequence of actions, we are confronted with the most difficult step, the “resolution”. It is difficult because they were many headed back, but it is not possible to work with all the variables of the problem.

This challenge has to be seen as a tension to be creative and to be able to manage flexibly. This requires a lot of tolerance to ambiguity and uncertainty and an attitude of openness to continuous improvement.

Don’t forget: “Experimenting is a critical innovation skill.” Tim Kastelle

The experiences of thought accelerate results and reduce costs!

What do you think of this?

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