Pivot, yes, but to where?
This week’s business conversations, en marge of an entre/intra-preneurship program I teach in Geneva, had mostly been about large incumbent pivot stories, either leveraging startups (aka “open innovation”), or creating your own (e.g. “venture building”). And some have been fascinating. For example, in Car Manufacturing, where the dominant story is that they less cars will be needed in the future (migration to larger cities, autonomous vehicle enabling car sharing, ..) the industry is looking for new revenue streams, as illustrated by VW moves into car sharing schemes, first via a partnership with ZipCar in the UK, and now building their own in Germany. In the Insurance sector as well, incumbent players are moving upstream, like in health insurance, by giving away an Apple iWatch if you do enough sports (i.e. enough “steps”, as recorded by the iwatch), in the hope to reduce your risk of health problems (and the insurance risk for paying for healthcare). Or even more boldly, by building dams to reduce the risk of floods, a story told by one of our advisors Now, who’s the 1st Pharmaceutical company who will move from selling drugs to people who are already sick (current business model), to creating a new revenue model, that will prevent people to get sick in the 1st instance? Take type 2 diabetes, a condition that consensus place into the “lifestyle driven” bucket: I would see a pharma certifying a program, distributed via your local pharmacy, to help people at risk to get into a better diet and lifestyle, and make money from keeping people in good health (prevention program) instead of selling them drugs to curb the symptoms once they are sick. If you are a long time Founder Basecamper, that may remind you the work done by Sybille, Kavita, Xavier and Juan Antonio about the Insurance company for self driving cars ;D Anyways, hit reply if you want to work on this one, and one of our advisors will give you a helping hand.
K̶e̶e̶p̶ ̶t̶h̶i̶n̶k̶i̶n̶g̶, Start doing.