Obstacles to Business Model Innovation

At each of my workshops we usually discuss what the obstacles to business model innovation are in companies. I thought it could be interesting to open up this discussion to the Web through my blog. Please share your experience rather than just an opinion.

Some of the most frequent points mentioned were:

  • current success - it prevents companies from asking themselves how their business model could be replaced
  • risk avoidance - people are often unwilling to take risks on a personal level, but also as an organization. It is easier to stick with the status quo.
  • organizational structures - because they are not designed for new business models to emerge. They sustain the status quo.
  • lack of customer understanding - of course organizations understand their customers, but not good enough to design new business models that address their emerging needs.
  • required size of innovations - in big companies a potential new business model must immediately demonstrate an opporunity of millions of additional revenue.

These were just some few points to kick-off the discussion. Please share your EXPERIENCE!

You may also want to share your experience from a start-up perspective. What is preventing start-ups from more business model innovation (though many innovative BMs come from that universe...).