Innovate your way toward growth using practical, research-backed frameworks
The Art of Opportunity offers a path toward new growth, providing the perspective and methods you need to make innovation happen. Written by a team of experts with both academic and industry experience-and a client roster composed of some of the world's leading companies-this book provides you with the necessary tools to help you capture growth instead of chasing it.
The visual frameworks and research-based methodology presented in The Art of Opportunity merge business design thinking and strategic innovation to help you change your growth paradigm. You'll learn creative and practical methods for exploring growth opportunities and employ a new approach for identifying what "opportunity" looks like in the first place. Put aside the old school way of focusing on new products and new markets, to instead applying value creation to find your new opportunity, craft your offering, design your strategy and build new growth ventures.
The changing business ecosystem is increasingly pushing traditional thinking out to pasture. New consumers and the new marketplace are demanding a profound adjustment to the way companies plan and execute growth strategies. This book gives you the tools to create your roadmap toward the new state of growth, and gain invaluable insight into a new way of thinking.
The Art of Opportunity will help you to:
Start looking at business growth from a new perspective
Create value for the customers, company and ecosystem
Innovate strategically and design new business models
Develop a new active business design thinking approach to innovation
Your company's goal is to grow, and to turn non-customers into customers. The old ways are becoming less tenable and less cost-effective. The Art of Opportunity outlines the new growth paradigm and gives you a solid framework for putting new ideas into practice.
1 ARTFUL INNOVATION
x Foreword
xii Acknowledgments
xv Introduction
xvi Reader's Journey
4 WHAT IS STRATEGIC INNOVATION?
5 Traditional Strategic Management
6 Strategic Innovation
8 Where to Play: Find Your Opportunity
8 How to Play: Craft Your Strategy
9 How to Win: Create Value
10 WHAT IS BUSINESS DESIGN THINKING?
10 The Five Principles of Business Design Thinking
12 Getting Started
2 DISCOVER YOUR NEW GROWTH OPPORTUNITY
18 UNDERSTAND YOUR CUSTOMER AND NONCUSTOMER
20 Customer and Noncustomer
24 Understand Customer Needs, Expectations, and Choice
29 Identify Barriers to Consumption and Hurdles to Satisfaction
32 Inspiration: Cardinal Health
33 Inspiration: Klinik Hirslanden
34 How to Understand Your Customer and Noncustomer
34 Gather Information
35 Make Observations and Create Themes
35 Transform Findings into Insights
36 Inspiration: Ripple Effect Group
38 Activity: Persona Mapping
40 Activity: Create an Interview Guide
42 Activity: Customer Journey Mapping
44 Activity: Reveal Observation Headlines
46 UNDERSTAND YOUR FIRM
48 Resources and Capabilities
50 Inspiration: Caesars Palace
52 Resource Sparks: The Four Dimensions for Mapping and Assessing Resources
54 Methods to Understand Your Firm
56 Activity: Map Your Resources
58 Activity: Map Your Ecosystem
60 FRAME YOUR GROWTH INITIATIVE
62 Art of Opportunity Growth Types
62 Evolutionary Growth
63 Adjacent Growth
64 Breakthrough Growth
65 The Breakthrough Question
66 FRAME YOUR GROWTH OPPORTUNITY
66 Decision Making
67 Kinds of Decision-Making Strategies
68 Decision-Making Process
70 Activity: Create Your Growth Initiative Brief
72 Activity: Explore Your Opportunity Insights
74 Activity: Select Your Opportunity
76 VISUALIZE YOUR OPPORTUNITY
78 Employ Storytelling and Visual Frameworks
82 Activity: Visualize Your Opportunity
3 CRAFT YOUR STRATEGY
88 THE ELEMENTS OF YOUR STRATEGY
90 Design Your Offering
90 Products
91 Services
91 Customer Experiences
92 Inspiration: Hilti
94 Offering Sparks: 10 Ways to Design a New Offering
106 Activity: Offering Brainstorm
108 Activity: Design Your Offering
111 Shape Your Business Model
112 The Static Perspective
112 The Dynamic Perspective
113 The Strategic Perspective
113 The Operational Perspective
113 Our Definition of a Business Model
114 Business Model Components
114 Activities
116 Resources
117 Sequence
118 Roles
120 Business Model in Practice
122 Inspiration: Eden McCallum
124 Inspiration: Klinik Hirslanden
126 Business Model Sparks: 8 Ways to Design a New Business Model
136 Activity: Visualize Your Current Business Model
138 Activity: Design Your New Business Model
140 Activity: Flip Your Business Model Assumptions
143 Structure Your Revenue Model
144 Revenue Streams
146 Pricing Mechanisms
148 Payment Mechanisms
150 Inspiration: ProSiebenSat.1
152 Inspiration: Fahrenheit 212
153 Inspiration: 826 Valencia
154 Revenue Model Sparks to Consider
156 Activity: Revenue Model Card Sort
158 SET YOUR STRATEGY: CREATING VALUE
161 Creating Value
162 Customer Value
164 Firm Value
166 Ecosystem Value
168 Inspiration Summary: Value Propositions by Company
170 Activity: Set Your Strategy
172 VISUALIZE YOUR STRATEGY
173 Final Note on Crafting Your Strategy
174 Activity: Visualize Your Strategy
4 LAUNCH YOUR NEW GROWTH BUSINESS
182 THE THREE PHASES OF A NEW GROWTH BUSINESS
185 The Inception Phase: Validating Your Opportunity And Piloting Your Strategy
186 Three Steps for Validation and Piloting
192 How to Validate Your Pilot
192 Activities for Presenting Your Validation Data
192 In-House Observations
192 Field Observations
193 Simulation
193 Interviews
194 Research
194 Small-Scale Experimentation
194 Additional Resources to Explore
196 Activity: What to Test
198 Activity: How to Test
200 Learning from Your Pilot
200 Achieving Success
201 Encountering Challenges
201 Gaining Insights
202 The Evolution Phase: Adapting Your Strategy
204 Inspiration: ProSiebenSat.1
206 Inspiration: Fahrenheit 212
210 Activity: Start, Stop, Change, Continue
212 Activity: Design Next Steps
214 Visualize Your Growth Plan
216 Activity: Visualize Your Growth Plan
218 The Diffusion Phase: Scaling Up Your Business
220 Operational Challenges
222 Establish Clear Roles and Responsibilities
222 Build an Organizational Culture of Sharing, Listening, Collaboration, Experimentation, and Support
223 Take a Holistic, Systems Approach to Planning and Executing the Scaling-up Process
223 Build a Plan and Employ a Process of Regular and Rigorous Review and Adjustment
223 Create a Clear and Simple Way to Track and Measure Your Progress
5 MASTERING THE ART: BUSINESS DESIGN THINKING
228 WHAT IS BUSINESS DESIGN THINKING?
229 Foundation of Business Design Thinking
230 Process and Methodology
232 PRINCIPLES OF BUSINESS DESIGN THINKING
232 1. Keep a Human-Centered Focus
234 2. Think Visually and Tell Stories
235 3. Work and Co-Create Collaboratively
236 4. Evolve through Active Iteration
237 5. Maintain a Holistic Perspective
238 Inspiration: Oracle
240 Inspiration: ExactTarget
242 A NEW WAY OF WORKING
244 Inspiration: Microsoft
254 Notes
256 About the Authors
259 Index
