Reaching For Innovation: Deconstructing The Formula For Business-Model Innovation
- Topics:
- Strategy Formulation
- Tags:
- Business Model,
- CMP Media,
- Innovation,
- Leadership,
- Management,
- Strategy
- Source:
- CMP Media
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Overview: The most popular boardroom game of the 1990s was creating new business models that would radically redefine industries. However, the new century clearly has brought sobering shifts in priorities. Businesses are battening down the hatches, scaling back R&D, winnowing product and service lines, and slashing payrolls. Cost-cutting and streamlining are back in senior executives' job descriptions. Successful business-model innovations focus on three core issues: 1. Context: the external factors and internal capabilities that can be exploited, 2. Innovation: redefining the basic dimensions of business--whom to serve, what to offer, and how to operate--in new and profitable ways, 3. Sustainability: creating a business model that is hard for competitors to imitate. This formula is a three-step approach to identify, evaluate, and implement promising new business models. Innovative companies also create new wealth, in part, by leveraging their existing resources, brand equity, and/or loyal customer bases. Innovators also created integrated solutions that expanded the industry-standard customer offering of their day, provided one-stop shopping solutions, and opened new channels.
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Format: HTML | Date: Feb 2002 | Pages: 4
