© copyright 2005 by innovationlabs business model innovation why the british empire no longer rules...

© Copyright 2005By InnovationLabs Business Model Innovation

Why the British Empire no longer rules the world.


CDFI

byLangdon Morris

InnovationAn Industry Searching for

a new Business Model?

Part Deux


“This ‘telephone’ has too many shortcomings to be seriously considered as a means of

communications. The device is inherently of no value to us.”

Western Union, 1876

“Everything that can be invented has been invented.”

C.H. Duell, US Commissioner of Patents, 1899

“There is no reason anyone would want a computer in their home.”

Ken Olsen, FounderDigital Equipment Corp., 1977

Predications …


Cellular Phone market, USA, forecast vs. realityForecast by McKinsey & Co. for ATT

mil

lio

ns

of

un

its

1

5

10

15

1983 20001994

forecast:900,000 units

reality:17 million units

… are dangerous.


Cellular Phone market, USA, forecast vs. realityForecast by McKinsey & Co. for ATT

mil

lio

ns

of

un

its

1

5

10

15

1983 20001994

forecast:900,000 units

reality:17 million units

End of the Line For Ma BellMother of All Telecoms Losing Independence

By Griff Witte and Yuki NoguchiWashington Post Staff WritersTuesday, February 1, 2005; Page E01

The $16 billion deal agreed upon yesterday that would bring AT&T Corp. into the fold of rival SBC Communications Inc. represents a final humbling for what was once the preeminent telecommunications company in the world.


Where are you?Where do you want to go?

Your organization’s name:

Your name:

Where do you draw the line between your existing market and your future market?

What are the biggest obstacles you face:

Does the chasm exist for you?

Please put any other comments on the other side.

Questionnaire


Location of Respondents

Questionnaire

• Wisconsin

• Ohio

• New Jersey

• Oklahoma

• Colorado

• Illinois

• California

• and others


Where do you draw the line between your existing market and your future market?

Questionnaire

• Existing market is small and getting smaller. We need to decide if we are willing to move into markets that we consider to be outside of our defined client base of CDCs.

• Once the line was drawn based on income level of population served. Now the ‘line’ is increasingly not drawn as we move into larger ‘target’ market.

• We aspire to develop deep, long term relationships with clients that will enable them to meet long-term financial goals. BUT we currently deliver one-time, discrete, episodic commodity services.

• More subsidy can mean reach and deeper impact, while standardization drives us to safer markets and irrelevance.

• Existing market: those without a choice. Target market: those with a choice.


Questionnaire

• Attracting good people• Capable people• Capacity (people)• Employee turnover (because

of uncertain funding)

• How to offer high cost products in low volume business.

• Capital• Capital for product• Capital for operations• Right kind of capital• Questionable funding every year• Time and money to do the

research• R&D capital• Appropriate form of capital to

move into ‘target’ market to cross subsidize ‘unserved existing’. And explaining this.

• Affordable capital.

People Capital

What are the biggest obstacles you face?


Questionnaire

• How to offer high cost products in low volume business.

• Creating standardized underwriting model

• Sustainability of corporate intent to serve the complete market

• Risk pricing• Infrastructure

• Product delivery channels• Reaching borrowers with

services• Ability to gain true

understanding of “profitable” and growth market opportunities in new target markets

• Mortgage brokers highyl incented to push

Operations Markets



Questionnaire

• Lack of clearly articulated vision / mission / strategy

• Lack of clarity on “where” CAP is, or what it is

• No internal planning / leadership development process or resources

• Leadership open to new ideas

Leadership



Does the chasm exist for you?

Questionnaire

• Absolutely• Sure• Sure• Yes• Hell yeah!• Of course• Yes• Banks ready to move into our market• It’s huge!• Yes• Yes• Yes• Yes


The Unlearning Curve

commitment

exploration

the moment of truth

resistance

denial

unlearning learning

Afte

r Ja

ffe &

Sco

tt


OneSTRATEGIC

PLAN

now

one futurereality


s t r

a t

e g

i cp

o r

t f o

l i o

now

many options for

many futures

many futures

many futuresmany futuresm

any f

utur

es

many futures

many futuresmany futures

reality

because the

future isrational

only in

hindsight


Innovation Strategy

CollaborationOrganizationalPerformance


the current situationfaced by the CDFI industry

is an opportunity forcollaboration,

innovation,strategy design,

and execution.

And now … my nomination for the award for “Understatement of the Year”

© copyright 2005 by innovationlabs business model innovation why the british empire no longer rules...

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