Business Model Innovation and Nonprofit Human Services Consolidation

In human services and other industries, senior executives are focused on disruptions when it is transformation that poses an existential threat to incumbents.  The transformation of human services, and indeed the global economy, will be driven by the implementation of 5G and its attendant technologies, including big data, artificial intelligence, augmented reality, machine learning, autonomous vehicles, among others.

While it is often supposed that new entrants deploy radical technological change to replace incumbent firms, incumbents with financial and management resources, complementary assets, and interfirm collaboration experience frequently succeed in commercializing the new technologies and ultimately integrate the innovators.  For incumbent nonprofit human services providers, this outcome is effectively foreclosed absent an ability to access the substantial investment capital that will be required.

As in other fragmented industries, expectations of future turmoil have given rise to entrepreneurs who believe their firms can thrive through strategies focused on industry consolidation.   To succeed aspiring nonprofit consolidators must overcome inertia and advance industry consolidation by adopting an alternative to the parent-subsidiary holding company business model adopted by their predecessors.

A new white paper, Business Model Innovation for Nonprofit Consolidators: The Practitioners' Perspective, argues this new business model must challenge the long-standing presumption that the firm is the relevant domain for strategic planning and replace it with a network-centric alternative. This paradigm shift is essential because in the emerging health and human services industry, large diversified systems of interdependent providers with different assets and competencies, that address different diseases and populations by offering distinct services, will compete with one another to create and capture value.

Co-authored by Angler West President Kevin Fee and Inperium, Inc. Board President and Founder, Ryan Smith, this white paper offers human services industry leaders a contrarian view of the challenges facing human services providers, along with recommendations for advancing provider's missions.

Click HERE to download your free copy of Business Model Innovation for Nonprofit Consolidators.

Share Article | Posted on Friday, August 2, 2019 at 10:47AM