Overcoming Incumbent Challenges: How to Knock Down Organizational Barriers to Pursue New Directions

By: Mark W. Johnson

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Synopsis: Companies innovate all the time: products, marketing efforts, efficiency. But rarely do incumbent companies make the leap to reinvent their existing business model or create new ones in response to opportunities in the white space-the range of potential activities outside a company's core and beyond its adjacencies. The prevailing business model is essential for managing and executing operations and innovation efforts focused on growing the core or pursuing adjacencies. But it can be poison to new business models. In this chapter, strategic innovation expert Mark Johnson shows how, using the four-box business model framework-customer value proposition (CVP), profit formula, key resources, and key processes-leaders can make plans for seizing transformational growth by setting expectations that are convincing and realistic in the larger corporate context. Johnson cites numerous company examples that illustrate the pitfalls that can stymie transformation efforts-and uses the example of Hilti to show how to get it right. This chapter was originally published as Chapter 8 of "Seizing the White Space: Business Model Innovation for Growth and Renewal."