The transformation of a business is a very complex operation, but it is even more difficult when it involves a change of business model. Let’s look at why, with a simple example, that of Microsoft Office for its transition from a model of license sale to a model of selling subscriptions.
We hear a lot about “disruptive technologies,” but what makes an innovation disruptive is usually not its technical dimension, and the distinction often made between radical and incremental innovation is not so relevant. What matters is the disruptive nature of the business model created for the new technology.(more…)
One of my favorite questions when I teach innovation is to ask participants how long it took for Nestlé to succeed with their Nespresso coffee machine. So what’s your answer? One year? Five year? Well no. The answer is 21 years! Based on a technology licensed from the Battelle Institute by Nestlé in… 1974, Nespresso only became profitable in 1995 after much ups and downs. 21 years were needed to make a success of the Nespresso innovation.(more…)