Hello, I'm Hélène Musikas. And I'm Laurence Lehmann-Ortega. We're delighted to welcome you to this course about the Odyssey 3.14 approach to reinvent your business model. This course is about innovation, but a specific type of innovation: Business model innovation. Innovation has become over the years one of the most important concerns for CEOs all over the world. In this introductory video, we would like to go through the different types of innovations and to define what business model innovation really is. So first we would like you to think about what you consider as the most innovative company in the world. Think about it. You're probably thinking here about Apple, or Google, or Amazon, which are indeed considered as some of the most innovative companies in the world. Many rankings, such as BCG's or Fast Company magazines, confirm this intuition. This shows that very often, when we think about innovation we think about digital or high-tech industries. If we ask you to think about innovative products, you will probably think about one from this shortlist. So, innovation is very often linked to technology. But consider now another product: Danone's Actimel, the product that you should have at breakfast to feel really healthy. Is this innovation? Think about it. If so, it is not linked to technology. Well this is definitely innovation but not linked to technology. Innovation is not only about technology, it is much broader than just technology. Let's now consider another example. This picture represents a part of a float glass plant. Float glass is a process to manufacture thin sheets of glass of uniform and very flat surfaces. Was it an innovation in the 1950s when it was developed by Sir Pilkington, who also gave his name to this process? Sure, it was an innovation. So, we see that besides product innovation, there is also process innovation. And here comes another example: this is a Brazilian company called Semco that introduced over two decades ago a real democratic way of management. For example, employees decide on their own how much they should earn and discuss it with colleagues. They define their own targets and how they want to achieve them. Is this innovation? Sure, but here we have yet another type of innovation that we can call managerial innovation. So, this was about the nature of innovation: either product, process or managerial innovation. However we have to add another dimension: the depth of change introduced by the innovation. For example, in the 1990s, Kodak introduced the APS film, which was an innovation. However, what really changed in this decade is the advent of digital cameras, and this was a major breakthrough, radical innovation. So we can distinguish between incremental and radical innovation, also sometimes called disruptive innovation. And in fact this is a continuum. The two extremes are clear but there can be many situations in between. Some people even consider that only radical extreme change should be called an innovation, while others think that a slight change, doing something a little bit different from the way it was done before, should also be called innovation. If we combine the nature, managerial, process and product, with the degree of innovation, we get the following matrix. This is why innovation is such a polysemic word and why people don't always think about the same thing when talking about innovation. Yet, we are going to add another part to this matrix which is business model innovation. As we will see all along Odyssey 3.14, business model innovation is a specific form of innovation that is radical in its essence. In searching for business model innovation we might also find ideas for more incremental innovations. When we talk to executives in companies, they all agree that innovation is really key, but they don't really know how to make it happen, how to bring innovation alive, how to stimulate it. This is exactly why we have developed a new approach called Odyssey 3.14. This approach has emerged after over ten years of research, consulting and teaching, in particular at the HEC Paris Business School, in the field of innovation and strategy. We have analyzed over a hundred company cases that have been able to invent or reinvent their business model, at a given point in time. With Odyssey 3.14, we seek to encourage you to take an authentic journey combining innovation and strategy. Based on the three pillars making up the business model, this approach suggests fourteen directions to explore, to invent or to reinvent a business model. Innovation is like a journey, an adventure, an odyssey that we want to structure and bring alive. So here's what you can expect from this course. After this course, you will have developed a good understanding of: What a business model is and how it differs from a product or a process. How strategy relates but differs from business models. How to find new ideas to reinvent a business model. You will have discovered over fifty cases of business model reinvention. And finally, you will have invented or reinvented a business model on your own. So again, welcome to this course. We hope you will enjoy this odyssey with us.