Seizing the White Space: Business Model Innovation for Growth and Renewal

Mark Johnson, chairman of Innosight, wrote Seizing the White Space to help companies understand whether they have the opportunity (or the necessity) to innovate their business model. Johnson defines white space as "the range of potential activities not defined or addressed by the company's current business model." In Johnson's model, white space resides beyond product extensions, lateral growth in the customer base, or incremental product innovation. Instead, he focuses on innovations that really change the way a company does business.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: [...]

The best business books provide fresh thinking on a relevant topic - and add practical action plans for how to implement those ideas. As a strategic marketeer in a Silicon Valley venture-capital backed startup, I find that content in Seizing the White Space. It will occupy space on my bookshelf next to "Crossing the Chasm".The first third of the book discusses a framework for evaluating a business, breaking it into boxes to aid in exploring the fit of an idea. Fairly pedandic stuff, b-school 101, but useful to force one into fundamental and disciplined introspection.The latter parts of the book are where the real value emerges. Three critical lenses emerge - (1) how do you evaluate a novel concept (which, for me, offered thoughts on how to find a new concept to begin with - not a core mission of the book), (2) how do you appropriately construct a business model to support that innovative idea, and (3) how to launch and test that plan. Tons of case studies examine how businesses have gotten the business innovation right, then have either succeeded or failed in lining up a winning business model to make it run.There's a fair amount of discussion about how to protect innovation from the incumbencies within a large organization. This is to be expected, given Mark's decade in collaboration with Clay Christensen of "Innovator's Dilemma" fame, which examines in part how corporations smother internal innovation and lose their technology leadership to emerging businesses. I would expect that to be of high relevance for corporate types, though us startup guys have escaped those bureaucratic hurdles

We are a VC backed startup, and as the CEO I loved this book.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.

The "white Space" is the area in which there are no competitors; the first into it, defines it and sets the pace.Successful examples include JaguarLandRover's range Rover Evoque, which created the sports car SUV and Nissan's Qashqai, which created and defined Crossovers. Blackberry created the Smartphone but it lost control of the space.This book expands on the idea of the 'white space' and gives ideas on how to preserve an advantage, once created. With the spread of 'pirating' and failures of IP protection in important markets, the way to stay ahead will be innovation; stealing a march on the competition and moving on before they fully catch up. Failure to identify, create and exploit 'white spaces' will condemn businesses to also-ran status.

Having read a little over half the book I can say that it has already got to be one of my favourites - just because it is so well written.Not only does does the author cover all the major points of business model innovation well, he has also provided many insightful case-studies to prove quite convincingly the points that he is trying to get across.Within the pages there are little bits of wisdom and knowledge that you just can't seem to get anywhere else and the transfer of this knowledge is effective.There currently isn't another book like it in this field and if you're interested in business model innovation - GET THIS BOOK!Great book, thank you Mr Mark Johnson.

very efficient delibery and the quality of this bookis quite good enough.

Already in the first few chapters I've learned some useful insights. Some of it seems to be a different arrangement of Business Model Generation, and while I wish Johnson would make sure to point out where credit is due, the lessons are valuable all the same.

Dieses Buch ist eine "obligatorische" Klassiker aus Soziologen, Politologen, Ökonomen und Politiker! Ein Buch, dass, wenn die Politiker es gelesen hatte - wie "Die wirtschaftlichen Folgen des Friedens" von John Maynard Keynes, nebenbei bemerkt und das Buch "The City" der Chicago School von 1928 noch moderner Justizpolitik sein könnte.- hatte viele aktuelle Probleme auftreten können. Aber die Politiker haben eine Politik Fenster von nur vier Jahren.