'Business leader of business model innovation need to embrace uncertainty, come to the work with a sense of curiosity and patience, and take the time to unpack the learning from what they are seeing around them.' Brief t

The Nine Design Principles for Exponential Transformation (Designing Successful Business Models) There are nine design principles, each tied to one of the boxes on the Business Model Canvas, that business leaders should embrace for successful business model innovation: Customer Segments: Solve a problem for the masses: Technology enables organizations to reach entirely new markets in massive and viral ways. Companies with exponential business models can help close the gap between our growing population and the resources they need. They often start with a core offering to serve one need and then expand services to meet other needs (e.g., Uber expanding to UberEATS). Value Proposition: Information-based services: As companies digitize their products and services, they create new market places. They explore how and what to digitize in their existing value proposition to not only serve existing customers better but to potentially open up foundationally new exchanges of value (e.g., Airbnb reimagining short-term accommodations, Slack digitizing collaboration). Relationships: Build a community of fans: To achieve an exponential solution, businesses need to build their customers into a fan base and then collaborate with them. User-empowered customization and mashup functionality allow users to create unique content and share it, acting as a viral distribution and marketing channel (e.g., Instagram filters, Musical.ly). Channels: Multi-modal and Social: Many exponential businesses use social collaboration to connect physical and multiple digital outlets to enhance the value of their core offering. This user-generated content amplified through network externalities makes the service more valuable as more people contribute (e.g., Waze combining GPS data with real-time traffic input from users). Key Activities: Ultra scalable processes: Technology can help analyze and automate routine activities to disrupt traditional manufacturing or delivery methods. Companies use robots and automation to stock, retrieve, and deliver products, and leverage cloud and data storage as a valuable resource for others (e.g., Amazon's use of robots and AWS). Key Activities: Lean Approach: Businesses adopt a lean approach for all core functions, emphasizing rapid cycles of experimentation and learning. By instituting lean processes, people can take risks, and the business gains data to study and learn from (e.g., GE adopting lean principles). Key Activities, Resource and Partners: Algorithm to the core: Companies are built on algorithms that are then augmented by machine learning. Algorithms drive nearly every part of the business, from ranking websites to managing retail operations (e.g., Google's search algorithm, Stitch Fix's use of data scientists and algorithms). Key Resources: Self managed teams: Employees must work in networked ways to socialize and share real-time insights and experiences. Giving employees autonomy decentralizes and speeds up decision-making, enabling an exponential business model. This involves eliminating traditional management positions and empowering workers (e.g., Zappos' 'holocracy' culture, Microsoft's social software for collaboration). Partners: Build uncommon relationships: Many exponential business models stem from 'uncommon partners' – different types of companies from different industries that work together to benefit from integrated value. This involves creating integrated delivery solutions by combining expertise from diverse sectors (e.g., Matternet and Mercedes-Benz partnering for drone delivery). Concluding the above discussion it can be said that business leaders of business model innovation need to embrace uncertainty, come to the work with a sense of curiosity and patience, and take the time to unpack the learning from what they are seeing around them.