On this episode of the Digitally Human podcast, Alexander Osterwalder, creator of the Business Model Canvas and co-founder of Strategyzer, argues that most companies are solving the wrong problem when they focus on their product.

He walks through two contrasting stories, Oura versus Whoop and the failed launch of the original Nespresso machine, to show why a strong business model beats a strong product every time. He also explains why over 90% of AI initiatives inside large companies fail, why he thinks the term "innovation" should be retired, and the dual operating system, explore and exploit, that keeps companies like Amazon reinventing themselves while they're still winning.

Alexander also opens up about the PhD dissertation that became a global business tool, the comic book he wrote with his own children to teach them entrepreneurship, and which company's stock he'd short because of its people-based business model.

In this episode:

• Why business models beat products, every time
• The explore and exploit system behind lasting companies
• Where AI creates a real competitive moat
• What he got wrong before Strategyzer got it right
• Rapid fire: the books, beliefs and advice he's abandoned

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🔍 Inside the Episode:

0:00 – Introduction

1:20 – The PhD thesis that became a global business tool

5:45 – What actually separates great entrepreneurs from good ones

9:44 – Is entrepreneurship something you're born with?

15:55 – Teaching his own kids entrepreneurship through a comic book

23:00 – Oura vs Whoop: why the business model wins

26:38 – The Nespresso failure that became a multi-billion pound business

30:22 – The dual operating system top founders swear by

39:02 – Why he says the word "innovation" is dead

43:00 – Where AI actually creates a business moat

58:11 – Rapid fire: books, regrets, and abandoned beliefs

Join us for an inspiring conversation with Harry Pearce from Pentagram. He takes us through his creative journey and shares the influences that shaped him from childhood, the powerful bond with his father, and the experiences that have defined his work.

Discover the unique structure of Pentagram, the importance of debate and generosity in the workplace, and how design can be a universal language for connection. Pearce offers his thoughts on AI’s role in creativity, the future of human values in design, and the significance of finding one’s inner spark.

Hear about his impactful work with Witness, a human rights organization, and how design choices can influence personal growth to global events like elections. This episode is rich with insights on creativity, legacy, and the power of ideas without boundaries.