How Voestalpine set up a new Business Incubator in two Months
Voestalpine wanted a repeatable way to turn steel know-how into new revenue. In a two-month project we trained the incubator team in Business Model Innovation tools and applied them to two live ideas. The process is now the standard path for every major innovation project inside the steel division.
The Challenge
The steel industry faces increasing challenges, from environmental pressures and global overcapacity to price volatility and stringent regulations. To navigate these complexities and secure long-term strategic growth, Voestalpine, a leading steel and technology group based in Linz, Austria, took a proactive approach. With 52,000 employees and €16.7 billion in revenue (2023/2024), the company recognized the need for a systematic innovation framework to drive new business opportunities.
In response, voestalpine launched its New Business Incubator (NBI) in 2020—a dedicated initiative designed to foster innovation, accelerate idea development, and create scalable business models that address the industry's evolving landscape.
Our Approach
To strengthen its incubator’s capabilities in business model development, voestalpine sought to enhance both the efficiency and impact of its innovation projects. To achieve this, we designed a structured training and coaching program centered around the Business Model Innovation (BMI) methodology.
The initiative began with a foundational workshop, equipping participants with essential knowledge and a shared framework for business model development. This was followed by a project-specific workshop, where two selected projects were further refined and advanced under the guidance of our BMI experts. By combining theory with hands-on application, the incubator not only gained valuable insights but also actively applied the methodology to real-world challenges, ensuring immediate relevance and learning by doing.
The two-month cooperation started in May 2023 with the first phase surrounding a foundational education workshop and was followed by a hands-on journey, detailing and further exploring two specific projects.
Phase 1: Laying the Foundations
The first phase focused on equipping the new business incubator team with a deep understanding of the structured approach behind the BMI methodology and its associated tools. Designed as an interactive and immersive experience, this two-day workshop brought together a selected group to explore the fundamentals of business model innovation.
The journey began with a comprehensive introduction to the theory, followed by a Customer Point of View session, helping participants step into their clients’ shoes to better understand their needs and pain points. Building on this foundation, they explored the 55+ business model patterns, learning how to generate innovative ideas systematically. To prioritize these ideas, they employed the Opportunity Map, ranking them along a 2x2 matrix before selecting the most promising concept for further development. The team then structured their chosen idea using the Idea Sheet, covering all four key dimensions of a business model.
On the second day, the focus shifted to articulation and validation. Participants refined their concepts into a Value Proposition Pitch, translating their ideas into compelling narratives. They then took their first steps in financial planning by creating a preliminary financial projection using the Reverse Financial Tool. As a final exercise, they identified the most critical assumptions underlying their business models and explored validation strategies using the Testing Cards and Testing Table.
By the end of this phase, the team had not only grasped the theoretical framework but had also applied it in a hands-on setting—ensuring that learning was both practical and immediately actionable.
Phase 2: Applying Knowledge to Real Projects
The second phase was dedicated to translating theory into practice by further developing the concepts of two selected incubator projects. This hands-on approach not only refined the projects themselves but also deepened participants' understanding, as they integrated the learned methodologies into their daily work.
Both project teams began with foundational market assessments, conducting a TAM-SAM-SOM analysis, a competitor analysis, and a review of insights from existing interviews. With these initial evaluations in place, each group then focused on the specific tools and frameworks most relevant to their project's current stage.
- Group 1 took a holistic approach, refining their overall business concept by shaping potential product and service packages. To better understand their HOW dimension, they visualized their target operating model and mapped out the value chain. Finally, they tackled the VALUE dimension by defining a revenue model and exploring pricing strategies using the 55+ business model patterns.
- Group 2 concentrated intensely on the VALUE dimension, focusing on revenue modeling and pricing structures. This formed the basis of their initial business case draft, laying a strong financial foundation for their project’s next steps.
By applying these tools and frameworks in real-time, both teams were able to refine their ideas with practical insights, ensuring that their concepts were not only innovative but also strategically and financially viable.
Der „new business incubator“ der voestalpine Steel Division wurde ins Leben gerufen, um neue Geschäftsideen in relativ kurzer Zeit technisch und kaufmännisch auf Markttauglichkeit zu überprüfen und umzusetzen. Der vom BMI Lab konzipierte Prozess der Geschäftsmodellentwicklung mit all seinen Tools hat sich dabei als extrem hilfreich erwiesen. De facto durchlaufen bei uns alle großen Innovationsprojekte diesen Prozess
Werner Dressler
Impact
By equipping the members of its new business incubator (NBI) with the Business Model Navigator methodology, Voestalpine has successfully implemented a structured approach to innovation. This framework enables teams to strategically develop new business ideas with speed and efficiency, ensuring a streamlined and systematic path from concept to execution.
Through the application of BMI methodologies, voestalpine has empowered its teams with the necessary tools and frameworks to critically assess, refine, and optimize their business ideas. This not only enhances the adaptability of NBI projects in their early stages but also ensures that new ventures are scalable, sustainable, and strategically sound.
As a result, Voestalpine can rapidly transform promising concepts into viable business opportunities, driving innovation and strengthening its competitive edge in the industry.
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Key Learnings & Next Steps
Teaching theory and practice together speeds uptake. Using live projects keeps learning relevant and shows quick wins. The incubator will next roll the process out to more teams and add advanced modules on scaling ventures.
Vera Konrad
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We share what shapes our work and creates pivotal seconds. Mostly through our scientific and entrepreneurial perspective.
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Science, entrepreneurship or consulting? Every innovation journey starts with a conversation. Pick the perspective that resonates - and let’s begin.
