Learn how you can apply innovation principles to the rigors of developing new market business models within a traditional ecosystem.

1. Innovating Business Models for New
Opportunity
a presentation by Kevin Riley
to the 7th Annual Global Innovations in New Product Development &
Market Strategy, 2011: A Frost & Sullivan Executive MindXchange
November 2011

2. Learning objectives
How can Innovation principles apply to the rigors of developing
new market business models within a traditional ecosystem?
Learn how Blue Cross Blue Shield of Florida has applied these
principles to:
1) define market opportunities, and
2) make them a realization during a time of significant shift in market
dynamics.
Take Aways
Guide to the application of Disruptive Innovation principles in creating
new products/models in a conservative industry.
How you can use Service Blueprinting in understanding value-based
consumer product design.

3. About Blue Cross and Blue Shield of Florida
Blue Cross and Blue Shield of Florida
(BCBSF) is a leader in Florida’s health
industry.
Since 1944, the company has been
dedicated to meeting the diverse
needs of members by offering an
array of choices. BCBSF is a not-for-
profit, policyholder-owned, tax-paying
mutual company.
Headquartered in Jacksonville, Fla.,
BCBSF is an independent licensee of
the Blue Cross and Blue Shield
Association, an association of
independent Blue Cross and Blue
Shield companies. For more
information concerning BCBSF,
please visit www.bcbsfl.com.

4. Who needs Innovation?
"Innovation is the specific instrument of
entrepreneurship. The act that endows resources with a
new capacity to create wealth."
Peter F. Drucker
Health Health
insurance solutions

5. Innovation at BCBSF
BCBSF has a comprehensive Innovation practice and
platform aimed at:
systemically seeking out market opportunities aligned with the BIG
mission and vision;
receiving and responding to idea challenges from the Enterprise;
utilizing the defined Innovation Process to assess, develop and
prioritize new business opportunities;
presenting recommendations to Enterprise champions for
advancement; and
navigating qualified Ideas from concept through launch as required.

6. Application of disruptive
innovation principles in
creating new
products/models in
conservative industries

7. Innovation for the Enterprise
3
The Invention Process The Innovation Process
• Comprised of new concepts (products/service • Leverages existing marketplace products
do not currently exist) through a new or existing distribution channel
• Generates new revenue streams in support of • Expands current customer base for both supplier
diversified domains and Enterprise
• Resolves/addresses current barriers to • Generates new revenue stream through
consumption partnership/alliance model
• Identifies key criteria: characteristics, jobs to be • Aligns product selections with targeted consumer
done, circumstances (C-J-C) segments and diversified domains
• Thinks expansively about business model and • Prioritizes options through financial modeling and
innovation levers Enterprise value acceleration
• Breaks “traditional” rules about consumption • Generates revenue through sales margins
Processes align to Enterprise product/business
development for evaluation and delivery ownership

8. Innovation as Opportunity

9. Innovation as Experimentation
BCBSF Innovation Lab
http://www.biginnovationlab.com
The Innovation lab allows us to innovate and experiment using a
hands-on approach so we can create new processes and products
that promote The Pursuit of Health.
The Lab is understanding:
new frontier devices and products for use by our stakeholders
new “models” for adoption/absorption into the existing systems

10. Innovation Experiment Process
Think! Try
Again
Hypothesis is False or
Partially True
Do Test with Analyze
Ask Construct
Background an results/draw Report Results
Question Hypothesis
Research Experiment Conclusion
Hypothesis is True
Experiment Artifact
What, How, Who & Where - Make an educated Test your Review your data State whether your Experiment
ask around and consult guess about how hypothesis and summarize results support or Final Report
authoritative sources this will work and your results contradict your
create a material hypothesis
list of business
outcomes

11. Some Successes

12. Florida Blue
A revolutionary way to connect with consumers in
person about their health and health plan.
Did you ever imagine a retail setting for an
insurance company where you can:
Talk with a nurse about your doctor’s treatment
options
Find out how your benefit plan will cover a service
Learn how a health savings plan can save you
money
Shop for a health care plan that fits you & your
budget
Compare costs on health care services &
prescriptions
Research doctors & hospitals
Check your health with a personal health
assessment?
You can learn more by clicking here - http://www.floridablue.com/tour/

13. Florida Blue locations
Jacksonville
Pensacola Tallahassee
Winter Park
Tampa
We have expanded the ways
Floridians access and interact Palm Beach
with us
Fort Myers Sunrise
Miami
* Planned to open in 2011

14. GuideWell - Happier Healthier Simplified
GuideWell is a new direct to consumer online health and
wellness retail company from the BCBSF Diversified
Business Unit that just launched. The mission at GuideWell
is to make having a healthier lifestyle simple - and put you
on the path to a healthier you.
www.guidewell.com
You can learn more by clicking here - http://www.youtube.com/watch?v=PcjQ0GSY1DE

15. Thank You!