Mapping Activity Systems for Business Model Innovation

Activity System Mapping for Business Model Innovation- a visual and collaborative process 

Porter's (1996) idea of activity systems provides a strong foundation for a collaborative and visual approach to Business Model Innovation. The mapping includes the following  process:

• Identify and categorize core and ancillary activities that underpin the organization's strategic positioning
• Recognize the cross-functional nature of activities, acknowledging contributions from diverse operational areas
• Establish and delineate interconnections between related activities
• Analyze and articulate strategic trade-offs inherent in activity selection
• Evaluate system coherence, identifying areas of strong alignment and potential discord
• Explore opportunities to enhance synergies and strengthen connections within the activity system
• Assess the system's resilience against competitive imitation, considering factors such as social complexity and path dependency
• Propose and evaluate potential new activities that could augment the overall system value
• Implement a systematic review process to refine and adapt the activity system in response to evolving industry dynamics and ecosystem changes

Figure I below shows an example of the outcome based on a mapping exercise that captured and evaluated Trader Joe's Business Model.

Figure I Example of Activity System Mapping for Business Model Innovation

 

 

Porter, M. E. "What is strategy?." 1996. HBR: 74-78