We have been developing our Business Model Portfolio Map for our new book, The Invincible Company. Like all of our tools, we have found that the Portfolio Map is a great storytelling tool. It can be used to show the evolution of a company’s business model over its lifecycle by measuring risk vs return.
In the image above, we outline a company’s journey from start-up to established company by combining Clay Christensen’s explanations of the lifecycle of a Business Model with our Portfolio Map.
In the Explore portfolio, even if it’s a search (iterative) process, we see the following four stages:
The shift from innovation to implementation, from the explore portfolio to the exploit portfolio is the Transfer stage.
In the Exploit portfolio, or the map of an existing business, we see the following six steps:
One interesting example of this business model journey is Hilti - a manufacturer that builds and sells machine tools for builders.