Innovate your way toward growth using practical, research-backed frameworksThe Art of Opportunity offers a path toward new growth, providing the perspective and methods you need to make innovation happen. Written by a team of experts with both academic and industry experience--and a client roster composed of some of the world's leading companies--this book provides you with the necessary tools to help you capture growth instead of chasing it.The visual frameworks and research-based methodology presented in The Art of Opportunity merge business design thinking and strategic innovation to help you change your growth paradigm. You'll learn creative and practical methods for exploring growth opportunities and employ a new approach for identifying what "opportunity" looks like in the first place. Put aside the old school way of focusing on new products and new markets, to instead applying value creation to find your new opportunity, craft your offering, design your strategy and build new growth ventures.The changing business ecosystem is increasingly pushing traditional thinking out to pasture. New consumers and the new marketplace are demanding a profound adjustment to the way companies plan and execute growth strategies. This book gives you the tools to create your roadmap toward the new state of growth, and gain invaluable insight into a new way of thinking.The Art of Opportunity will help you to:* Start looking at business growth from a new perspective* Create value for the customers, company and ecosystem* Innovate strategically and design new business models* Develop a new active business design thinking approach to innovationYour company's goal is to grow, and to turn non-customers into customers. The old ways are becoming less tenable and less cost-effective. The Art of Opportunity outlines the new growth paradigm and gives you a solid framework for putting new ideas into practice.

x Forewordxii Acknowledgmentsxv Introductionxvi Reader's Journey4 WHAT IS STRATEGIC INNOVATION?5 Traditional Strategic Management6 Strategic Innovation8 Where to Play: Find Your Opportunity8 How to Play: Craft Your Strategy9 How to Win: Create Value10 WHAT IS BUSINESS DESIGN THINKING?10 The Five Principles of Business Design Thinking12 Getting StartedDISCOVER YOUR NEW GROWTH OPPORTUNITY18 UNDERSTAND YOUR CUSTOMER AND NONCUSTOMER20 Customer and Noncustomer24 Understand Customer Needs, Expectations, and Choice29 Identify Barriers to Consumption and Hurdles to Satisfaction32 Inspiration: Cardinal Health33 Inspiration: Klinik Hirslanden34 How to Understand Your Customer and Noncustomer34 Gather Information35 Make Observations and Create Themes35 Transform Findings into Insights36 Inspiration: Ripple Effect Group38 Activity: Persona Mapping40 Activity: Create an Interview Guide42 Activity: Customer Journey Mapping44 Activity: Reveal Observation Headlines46 UNDERSTAND YOUR FIRM48 Resources and Capabilities50 Inspiration: Caesars Palace52 Resource Sparks: The Four Dimensions for Mapping and Assessing Resources54 Methods to Understand Your Firm56 Activity: Map Your Resources58 Activity: Map Your Ecosystem60 FRAME YOUR GROWTH INITIATIVE62 Art of Opportunity Growth Types62 Evolutionary Growth63 Adjacent Growth64 Breakthrough Growth65 The Breakthrough Question66 FRAME YOUR GROWTH OPPORTUNITY66 Decision Making67 Kinds of Decision-Making Strategies68 Decision-Making Process70 Activity: Create Your Growth Initiative Brief72 Activity: Explore Your Opportunity Insights74 Activity: Select Your Opportunity76 VISUALIZE YOUR OPPORTUNITY78 Employ Storytelling and Visual Frameworks82 Activity: Visualize Your OpportunityCRAFT YOUR STRATEGY88 THE ELEMENTS OF YOUR STRATEGY90 Design Your Offering90 Products91 Services91 Customer Experiences92 Inspiration: Hilti94 Offering Sparks: 10 Ways to Design a New Offering106 Activity: Offering Brainstorm108 Activity: Design Your Offering111 Shape Your Business Model112 The Static Perspective112 The Dynamic Perspective113 The Strategic Perspective113 The Operational Perspective113 Our Definition of a Business Model114 Business Model Components114 Activities116 Resources117 Sequence118 Roles120 Business Model in Practice122 Inspiration: Eden McCallum124 Inspiration: Klinik Hirslanden126 Business Model Sparks: 8 Ways to Design a New Business Model136 Activity: Visualize Your Current Business Model138 Activity: Design Your New Business Model140 Activity: Flip Your Business Model Assumptions143 Structure Your Revenue Model144 Revenue Streams146 Pricing Mechanisms148 Payment Mechanisms150 Inspiration: ProSiebenSat.1152 Inspiration: Fahrenheit 212153 Inspiration: 826 Valencia154 Revenue Model Sparks to Consider156 Activity: Revenue Model Card Sort158 SET YOUR STRATEGY: CREATING VALUE161 Creating Value162 Customer Value164 Firm Value166 Ecosystem Value168 Inspiration Summary: Value Propositions by Company170 Activity: Set Your Strategy172 VISUALIZE YOUR STRATEGY173 Final Note on Crafting Your Strategy174 Activity: Visualize Your StrategyLAUNCH YOUR NEW GROWTH BUSINESS182 THE THREE PHASES OF A NEW GROWTH BUSINESS185 The Inception Phase: Validating Your Opportunity And Piloting Your Strategy186 Three Steps for Validation and Piloting192 How to Validate Your Pilot192 Activities for Presenting Your Validation Data192 In-House Observations192 Field Observations193 Simulation193 Interviews194 Research194 Small-Scale Experimentation194 Additional Resources to Explore196 Activity: What to Test198 Activity: How to Test200 Learning from Your Pilot200 Achieving Success201 Encountering Challenges201 Gaining Insights202 The Evolution Phase: Adapting Your Strategy204 Inspiration: ProSiebenSat.1206 Inspiration: Fahrenheit 212210 Activity: Start, Stop, Change, Continue212 Activity: Design Next Steps214 Visualize Your Growth Plan216 Activity: Visualize Your Growth Plan218 The Diffusion Phase: Scaling Up Your Business220 Operational Challenges222 Establish Clear Roles and Responsibilities222 Build an Organizational Culture of Sharing, Listening, Collaboration, Experimentation, and Support223 Take a Holistic, Systems Approach to Planning and Executing the Scaling-up Process223 Build a Plan and Employ a Process of Regular and Rigorous Review and Adjustment223 Create a Clear and Simple Way to Track and Measure Your ProgressMASTERING THE ART: BUSINESS DESIGN THINKING228 WHAT IS BUSINESS DESIGN THINKING?229 Foundation of Business Design Thinking230 Process and Methodology232 PRINCIPLES OF BUSINESS DESIGN THINKING232 1. Keep a Human-Centered Focus234 2. Think Visually and Tell Stories235 3. Work and Co-Create Collaboratively236 4. Evolve through Active Iteration237 5. Maintain a Holistic Perspective238 Inspiration: Oracle240 Inspiration: Exact Target242 A NEW WAY OF WORKING244 Inspiration: Microsoft254 Notes256 About the Authors259 Index