Innovate Vancouver

In order for business’ to grow profitably they must devise ways for scaling existing business processes. The mechanisms for supporting growth are relatively known. However, the tools available to systematically identify, design, and execute such growth initiatives are still ‘in development.’ A Scaling Model Canvas can help business’ build the needed processes, competencies, and infrastructures needed to support continued growth.

Scaling processes & business methods helps to decrease costs, expand market reach, and strengthen the business’ position in the sector. These savings can be used to focus on core competencies. They strengthen the business’ competitive advantage. Alternatively, savings can be passed on by way of reduced prices to the customer. These savings can help expand the business’s future product and service offerings. They can also enhance research and development efforts.

The Scaling Model Canvas

The following Scaling Model Canvas is grouped into the following sections:

• Offerings & Configuration: Represents the core products & services offered by the business.
• Diversification: Represents the scope & breadth of the different products & services lines (or combination) offered by the business.
• Outsourcing: Represents the “non-core” areas outsourced by the business in order to improve profitability, efficiency, and productivity.

An example includes the industry of Business Consulting. Scaling in this industry is often completed through:

• Standardization of service offerings
• Standardization of methods and practices
• Standardization of procedures
• Standardizing processes for developing Innovation
• Standardizing methods for evaluating performance

Scaling can also be achieved by offering additional products or services. These should be based on the core competencies and strengths of the organization. The diversification of shared products & service offerings strengthens the organization’s profit margin and improves efficiency. It also creates more opportunities for productivity. Consultants are able to work on extra projects. Examples of more products & services that support scaling include the following:

• Training & Workshops
• Software & Automation Tools
• Publications & Reports
• Installation & Setup Assistance

Outsourcing “Non-Core” areas is key to the business’ competitive advantage. It can also help the business scale. This allows the focus on areas that generate more business, profit, and customer retention.

Areas that businesses (in the consulting and other areas) often outsource include the following:

Scaling can help respond to changes in the business, industry, and supply chain. This is possible if the team has the data and insights necessary to evaluate these changes. The team must also understand their implications and adjust accordingly. Scaling can also be challenging, and costly, if constraints and value drives are inadequately managed.

What is insource or outsourced can change over time. Standards and specifications can also change over time as new products, services, and features are offered in the market. Evaluating opportunities across the business model, value chain, and supply chain remains ongoing if efficiencies are to be sustained. Strengthening the company’s innovation opportunity chain can help remain nimble and adaptive in industries that continue to change.

The Innovation Opportunity Chain

Opportunities to improve scalability, efficiency, effectiveness, sustainability, and satisfaction exist throughout the business product/service lifecycle. From ideation, through production, and up through use and replacement there remain opportunities to exceed customer expectations. The business that is able to identify and build upon these opportunities will have a competitive advantage.

The usability of your business products & services is crucial. The customer’s experience throughout the product/service life-cycle is influenced by every component in your innovation stack. The customer’s experience throughout the product/service life-cycle is influenced by every component in your innovation stack.

Selecting the right competencies, technologies, and services requires insight into your customer’s needs. You also need to understand the industry and leading best practices. Additionally, having a vision of what is needed for future success is essential. 

Designing an effective Innovation Opportunity Chain is interdependent and relies on the organization’s commitment to building the necessary competencies to lead the future:

• Learning & Knowledge Management, 
• Skill Deployment and Continuous Improvement, and
• The Acquisition of New Competencies and Physical Assets in order to be Sustainable and Effective.

Building upon previous platforms, learning and knowledge grow. These added competencies become a competitive advantage for designing and delivering outstanding products & services.

Leveraging opportunities for innovation includes internal, external, and overlapping inter-dependencies. Several models have been promoted in the business literature over the past few decades.

• The Value Chain emphasizes the organization’s internal processes & procedures as executed by specialized areas and functions of the business.
• The Supply Chain highlights the organization’s product & service delivery network. It complements and builds upon the business’ internal value chain.
• An additional model is the 10-types of innovation. It was developed by Walters, Pickel, & Quinn in 2013. This model represents an Innovation Opportunity Chain. It builds upon the existing models and adds the customer journey map.

The literature on UX, or the User Experience, has long recognized the competitive advantage. This advantage is acquired by businesses that focus on the user experience when designing products & services. Lean processes and the customer development model similarly place customer feedback in the front of iterative product & service design. When all three of these models are contrasted, the business case opportunities are strengthened. These opportunities help to build, integrate, and deliver new innovative products, services, and processes.

Scaling Model Canvas Interactive Planning Tool

When identifying opportunities for scaling and outsourcing it is crucial that non-core areas are identified. Core competencies provide the business with a competitive advantage. They also clarify why the customer chooses your business over the competitor.

The following interactive planning tool can help you start reviewing your company’s existing business model, products, and services. It also allows you to assess the competencies and tools that both manage and deliver them. Use the goals tab to identify strategies to strengthen these areas and maintain your company’s competitive advantage.