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Seizing the White Space: Business Model Innovation for Growth and Renewal Hardcover – February 22, 2010
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"Seizing the White Space provides top executives and innovation leaders with a comprehensive but user-friendly approach to making new-value creation a consistent, repeatable process." – A.G. Lafley, former Chairman and CEO, P&G (added by author)
"Can a young company make the Fortune 500 list? Business model innovation is now the most proven route, and Seizing the White Space is the bible on how your firm can do it." – Scott Cook, Founder & Chairman, Intuit (added by author)
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Top customer reviews
It explains a lot about how big companies are thinking and gave me some good ideas for how to speak to larger partners. Combine this book with the Business Model Generation Book, and you have a winner.
The author keeps it simple on how to work on a business model (a little too simple IMO for a startup) which is why I think the book Business Model Generation can really complement this book. However this book talks more about why and how to innovate the business model as compared to details and breaking down the business model in itself.
Another good point with this book is that it's current and covers topics post 2008 melt down. Many of the books I have read are not current enough to really cover this; leaving me wondering if the 2008 recession would change the author's opinion on things.
I appreciate that the author realizes that his audience for this book is educated and he specifically makes references to things that everyone already knows (e.g. MP3/iTunes/iPod), etc. It's obvious he does consulting for people like me for a living and seems super professional with the tact of the language.
For me this book is describing innovation and the balance between the startup and the large corporation trying to be a startup.
Last point is that this book is a fast read and to the point, no rambling or ego, which (if you're reading this review) you know that a lot of biz-dev books are filled with.
Johnson begins with a framework for analyzing and creating business models. The framework is composed of four boxes: the customer value proposition, the profit model, the processes, and resources of the business.
1) The customer value proposition delineates why the customer values the product.
2) The profit model encompasses all the crucial financial dimensions that determine viability, including the revenue model, cost structure, target margins, and velocity (i.e., cycle times).
3,4) The resources and processes boxes consist of what the business needs (people, technology, information, partnerships, etc.) and how the business delivers the CVP within the bounds of financial viability. Johnson uses this four-box definition of business models throughout the book to analyze different case examples and to illustrate a repeatable process of building new business models.
Next, Johnson presents a three-chapter section on three conditions that call for new business models. The conditions occur when 1) a company wants to transform an existing market, often due to changing competition 2) a company wishes to create new markets, such as in emerging market countries 3) industry or economic discontinuities appear. Johnson refers to these three situations as white space within, white space beyond, and whites pace between, respectively.
Finally, Johnson devotes a three-chapter section on the process of creating and implementing new business models. First, he delves into the process of designing a new business, emphasizing the customer value proposition. Second, he covers the implementation of a new business model and the process of incubation, acceleration, and reintegration of the new model back into the organization (if there is one). Third, Johnson addresses a crucial issue of business model innovation within existing organizations -- the challenge of innovation in the face of a dominant incumbent.
Johnson's overall point is that business models aren't arcane or serendipitous magic -- they can be intentionally developed and implemented as a repeatable process.
Throughout the book, Johnson uses dozens of interwoven case studies of varying lengths to illustrate his points. These examples include well-known management-book favorites (Amazon, iPod/iTunes, Dell, Southwest Airlines) as well as less-known examples (Lockheed-Martin, Better World, Hindustan Lever, Tata Motors, Hilti). His point in using these examples isn't to provide new business histories or reveal previously-untold best practices but to show how a wide range of businesses fit into his framework of the four-box business model and illustrate his process of seizing the white space.
Figures in the book also provide quick brainstorming fodder: 19 business model analogies, 14 levers on the customer value proposition, and 19 common dimensions of interference between incumbent and new business models.
Overall, the book will be most useful for executives thinking about changing their company's business model or expanding in radical new directions The in-depth discussions of business models can also aid entrepreneurs looking to build a business model. Finally, product innovators should consider this book if they think their innovations involve significant changes in customer value proposition, the profit formula, key resource, key processes. These changes, by definition, call for a new business model and the potential that the innovative product may need to be treated differently than the company's previous products.
For some additional ideas on how to implement the ideas in Johnson's book, see: [...]
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Few important business subjects offer less literature than business model innovation.Read more