Business Model Innovation as a Strategy
Business Model Innovation at its core is about the creation of value for your organisation, your stakeholders and ultimately your customers. Primarily its about replacing and/or substantially renewing outdated models. Business Model Innovation is a direct response to the changing and emerging needs of your customers, your stakeholders, your organisation and potentially your community and society. The drivers or ‘disruptions’ of the need for change and innovation in how a business thinks and plans, what products and services it offers, how it conducts its business operations, how it sells and promotes its offerings and ultimately who it does business with, are many and varied, but the one constant and consistent driving action core is a significant change in customer needs, preferences and behaviours. Irrelevant of the facilitator of change, whether it be new technologies, new or improved alternate products or services, or different or more effective ways of doing current activities, the material importance to or impact on a business or industry is only based upon the relevance and value to current or future customers (or stakeholders). A business can be the most innovative, creative and technologically savy on the planet and still cease to exist if it has no value or relevance to its customers.
Disruptive technologies are no doubt changing the world we live in very quickly and in ways we could never have imagined even just a few years ago, but the real dynamic behind disruption is the rise of new, innovative , customer centric business models. New ways to leverage and take advantage of change and create extraordinary value for internal and external stakeholders.
Core Concepts and Ideas – Reading and Materials
There are many well known examples of Business Model Innovation as a core strategy that have either totally transformed an organisation’s existing business model or often created a business model which is totally new and different. A few well known examples are: iTunes – created an innovative business model that transformed Apple into a dominant force in the music industry and strategically tied its customers and revenue streams into a highly profitable mix. Skype – created and innovative business model built on a demand for super cheap international telephone calls and face to face communications technology. GoGet – built a membership based innovative business model focused upon fulfilling an un-met market need of people living in urban areas and not owning a car, being able to have easy and convenient access to a car as required on an hourly basis. AirBnB – created an innovative business model which has rapidly become the largest accommodation provider globally by taking advantage of the emerging ‘sharing economy’ trend and providing easy access to peoples spare bedrooms and empty sleeping space in private homes across the world. There are hundreds examples of such innovative model design that has led to opening up new and profitable opportunities for businesses and organisations everywhere. Many of these models are being driven be rapid advances and innovations in technology, but at the core of every successful and profitable business model innovation is a deep understanding of the value in the un-met needs of current or potential customers.
Business Model Innovation Articles
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