Archive

Posts Tagged ‘business model innovation’

Digital Economy and IP

January 22, 2014 Leave a comment

Over the past few months, I had several opportunities to engage in the conversation about the role of Intellectual Property (IP) in the new world of Digital, and in so doing, I’ve managed to tease out certain key questions and concerns surrounding this topic, e.g.: What challenges and opportunities does IP bring to the Digital feast? How does the ‘sharing’ economy affect established notions of IP, and how effective are current efforts to update and harmonise IP in the digital age? The answers are slowly revealing themselves, but the following observation points will hopefully highlight the way.

What is Digital?

The term “Digital” means different things to different people, (including those that consider it an extremely irritating term for something old repackaged as a new ‘buzzword’). In my opinion, the term Digital can be used to describe various new and emerging products / services / processes / user behaviours etc., that are enabled by digital technology. It works equally well in describing innovative, disruptive trends (e.g. big data and predictive analytics) and / or re-imagination of pre-existing technologies (e.g. Cloud).

How does IP figure into it?

Intellectual property is the concept and mechanism through which creators and owners of “works of the mind” may derive economic benefits from their works (e.g.: inventions, designs, works of art, and trademarks). By its very nature, IP is constantly challenged by those self same things for which it was designed – e.g. printing press, audio-visual capture, playback and distribution technologies, and even this new fangled 3D printing. The Digital world merely amplifies an age old problem which reappears with alarming regularity with each new shift or breakthrough in technology.  However, this particular incarnation also begs the question of whether the concept of IP is intrinsically flawed in a digital universe

Key Trends in society / technology / business

In any discussion on this topic (i.e. IP and the digital economy), you’ll invariably pick upon certain trends as key catalysts for change, which typically fall into any of following groups: socio-economic trends, technology trends and business trends. If you don’t believe me, then go ahead and give it a try with any of the following trends e.g.: social media, aging population, real-time dynamic pricing, predictive analytics, digital transformation, 3D printing, and even “sharing economy”. Such trends are redefining how we live and do business in a digital world, but are they all merely symptoms of the same phenomenon?

How will law and regulation keep up?

Not very well, I’m afraid. How can we best apply governance to emerging phenomena such as Digital? To say it is very difficult would be an understatement, considering that these changes also affect the law, and law makers, too. This is a perfect example of what city planners and business school professors consider to be a “wicked problem”. Existing rules of society and international law struggle to encompass the global reach and impact of digital technologies whereby information can spread, at the speed of light, to all corners of the world heralding the lofty dawn of unified global thought, sentiment and action, or anarchy. In order to remain relevant and useful, the concept of IP needs a major rethink and rework to align with a dynamic digital landscape. However, this is not the preserve of a few sovereign governments, and more needs to be done (at an international, collaborative level) to even begin nursing any hope of having an impact on Digital and human cultural evolution.

Digital transformation and business model innovation

In my opinion, the future of business lies in the ability to reinvent itself and take best advantage of the constantly emerging game-changing  technologies, products, services, and usage paradigms. One such avenue is via business model innovation – a technique that makes use of a simple business model canvas to articulate any business model, in a fast and dynamic way. Technology is no longer a barrier to entry, therefore the true measure of fitness must have to do with a business model’s flexibility and adaptability (for competitive advantage) in the digital universe.

In summary, and regardless of where I’ve held these conversations (e.g. at the Copyright and Technology Conference, or Digital Economy and Law Conference, and even at the BCS, Chartered Institute for IT), these same questions and concerns have become a recurring theme.

======

Ps. I will look to delve into these topics at my next speaking event, on the 22nd of January 2014, and hope to provide further insight and provocative questions on digital economy and IP. Also, we’ll get to hear a speaker from one of the world’s foremost organisations at the forefront of Digital. Don’t miss it (or at least come by and say hello), if you happen to be in London on that day.

Advertisements

How to implement innovative business models

August 9, 2013 2 comments

Back in 2011, I wrote a post about business model innovation in which I waxed lyrical about how a simple, straightforward business model canvas could be the perfect tool for any organisation to use in tackling the complexities of today’s business environment. So what has changed since then?

Absolutely nothing, and I still stand by what I said. If anything, ample proof exists in the growing number of user communities and tools (e.g. here and here) that employ this amazing technique to simplify and facilitate business model innovations. However, the one missing piece for me was how to easily translate valuable insights gleaned from using the business model canvas into something tangible, practical and immediately applicable to the actual work of business transformation. That problem appears to have been solved with the introduction of tools that can automate and facilitate the execution part of business model innovation.

Image

Figure – The missing piece: executing business model innovation 

Don’t get me wrong, the above missing piece is achievable by manually translating business model changes into the enterprise architecture (EA) and business process (BPM) landscape, but this implies hefty overheads in terms of people and effort required to implement even a simple change. Also, the evolving nature of the role played by EA and BPM functions, (within a dynamic and fast changing business environment), demands a more seamless interface with changing business models. Thankfully, the afore-mentioned tools should help to automate and provide such seamless linkage.

A couple of weeks ago, I attended a vendor webinar which actually prompted this blog post, because they described how their software suite was designed to deliver this capability, and below are some of my impressions from that event, including:

  1. The promise of business model canvas as the right approach to address the challenge of a Volatile, Uncertain, Complex and Ambiguous (aka VUCA) world.
  2. The shift away from products to business models as key differentiators
  3. Seven applications of the Business Model Canvas, including various business model innovation journeys and perspectives (e.g. offer / customer / revenue driven models)
  4. Business Model Mountain was the term used to describe how business model innovation falls over halfway between ideation and execution, (see diagram below).

Image

Figure – Business Model Mountain (source: BizzDesign Webinar Slides)

According to the presenter, their software suite provide a more compelling way to engage business stakeholders with the end-to-end transformation process, by using business model canvas as the reference model for communication between business, process and technology stakeholders. It was also great to see a demo of the software suite, which allayed some of my fears about tools that attempt to do too much, by featuring different aspects (i.e. business model canvas, EA and BPM) as distinct tools that work well in their own right, but which can be combined to deliver end-to-end translation of the business model into real system components and processes.

Health Warning: Not having used this tool yet, (due to very busy day job, believe it or not), I’m unable to say more about real hands-on capabilities, but in terms of its potential to help realise the huge promise and benefits of business model innovation, this is certainly a step in the right direction, in my humble opinion.

==========

Note: this is another post in the innovation topic series, and more specifically, “tools for innovation”. Watch out for more on this and related topics, over the next few months.

Some relevant links:

  1. Blogpost: “The Innovative Art of Business Model Generation” – https://www.capgemini.com/blog/capping-it-off/2011/07/the-innovative-art-of-business-model-generation
  2. BizzDesign Webinar: “Business Model Innovation Webinar” – http://www.bizzdesign.com/blog/serviceline/business-model-management
  3. Bright talk Webinar: “Innovation and EA”-  https://www.brighttalk.com/webcast/679/32551
  4. Blogpost: “Developing a tradition for change” – http://www.bcs.org/content/conBlogPost/2204
  5. Blogpost: “Capabilities for Sustainable Innovation” – https://www.capgemini.com/blog/capping-it-off/2013/08/capabilities-for-sustainable-innovation

How will owners of Intellectual Property cope with the era of big and open data?

November 11, 2012 1 comment

The concept of Intellectual Property (IP) is well proven as a powerful incentive that drives creativity and innovation, but it is increasingly being challenged by a highly connected world, particularly in all aspects of digital information and content life-cycle  To further complicate matters, rapid changes in the enabling technology / triggers are only likely to increase or accelerate, and according to Gartner, some of these developments, (e.g. Big Data, Cloud, Mobile & Social) have combined to produce a paradigm shift in the way we do business.  Such worrisome trends are only exacerbated by the fact that IP sits right in the middle of it all.

 

The IP Puzzle

The IP Puzzle

Surprisingly, not many decision makers appear to understand, or are willing to discuss, how such developments affect their business, particularly with regards to information assets and IP. Is it too early for any meaningful dialogue? Are the impacts unlikely to be anything major, (i.e. compared to the other trends), or are business leaders far too busy facing harsh economic realities to focus on this too? The respective answers are no, yes and probably. However, the impact will be anything but trivial, when you consider just how tightly IP is interwoven with all such developments. Some of the high-level intersections between IP and technology trends are:

IP and the Cloud – Key implications for IP, (aside from relevant cloud technology patents), are related to access and use of data held within the cloud, as well as the services they power.

IP and Social Media – Social media is the product of all interactions between individuals in a social network, including all information created, modified, exchanged and shared between the members. Such content, their usage, and user behaviours, have huge implications for IP.

IP and Mobility – Mobility is the ability to access to information and other resources, through a mobile device, without restriction of a fixed location. Key implications for IP include unauthorised access to / use of location dependent material (e.g. territorial rights over copyright content).

IP and Big Data / Open Data – Data and information arguably have the most implication for IP, especially since digital data is both raw material and output / enabler of the information age (e.g. all IP is ultimately reducible to digital data, including the often controversial software IP). Data permeates and binds all the other technology and behaviour trends mentioned above, and reflects all their IP implications.

IP and Litigation – Following the recent spate of patent lawsuits between several large technology companies, it has become clear that IP is now regarded as a crucial weapon by some. According to a recent BBC news article, serious attempts are being made to address “an unwelcome trend in today’s marketplace to use standard-essential patents to block markets”. The cost and impact of such ‘weaponised IP’ litigation is basically stifling innovation, and goes against the key sentiment and objective of IP.

 

Top 5 things enterprise decision makers need to keep in mind

  1. The motivations and interests of 5 key IP stakeholder groups (i.e. the creative, technology, commercial, legislative and consumer stakeholders). No group is completely independent of the others; therefore a balanced approach is required for all IP related decisions.
  2. Need to create and communicate clear enterprise policies for IP, Social Media, Cloud, Mobility and Data
  3. The much desired real-time enterprise requires certain key elements to be in place, including: self-service BI (e.g. data mashups), event driven architecture (incl. Complex Event Processing), analytics and data discovery, as well as contextual capabilities (incl. location based services), and cloud computing. In all cases, early consideration of IP implications is crucial.
  4. The key to digital transformation and architecture, in a fast moving dynamic environment, may be found in alignment with constant business model innovation. The architecture of such an organisation, (incl. process and technology), must become more dynamic if it is to provide any sustainable value.
  5. In the brave new world, the customer comes first, and IP becomes the ‘value’ centre of the enterprise (rather than the products or services it is used to drive), whilst the business model flexes and changes as needed to accommodate those dynamics.

In conclusion, digital trends appear to suggest that mere products and services will no longer be sufficient differentiators in a digital world with ever diminishing barriers to entry. It ultimately boils down to a question of how, and not what, you create and deliver to your customers. Either way, data / Information and IP will continue to play a fundamental role in the entire digital value system.

Note: The above post is adapted from an article which is submitted and due for publication by the BCS Chartered Institute for IT.

Innovation and Enterprise Architecture?

August 25, 2011 Leave a comment

You might be forgiven for thinking that these make rather strange bedfellows, especially considering as they don’t often appear together in the same sentence; at least not as frequently as Architecture and Governance, or perhaps Innovation and Start-ups. In my view, this sad state of affairs is all set to change.  

I recently did a BrightTalk Webcast on just this topic, and although the research for it was rather daunting at first, it eventually became clear, from talking to experts on both topics, that the key challenge was how to identify the best role, or sweet spot, for Enterprise Architecture (and all it can bring to the table) in a fluid and dynamic business context / environment. In my opinion, this sweet spot is nestled right between the more forward looking aspects of business model innovation and agile development.

When taken together, rapidly changing business models and agile development techniques do not necessarily make for the most robust, repeatable and best-governed business / technology processes or environment, and this is precisely where certain key aspects of Enterprise Architecture could bring much needed value. These and other issues were the focus for this webcast, and the slides can be found on the Slideshare website.  Enjoy…

Innovation and Enterprise Architecture

Innovation and Enterprise Architecture