Business Model Innovation
Why do companies lose their competitive edge?
Does it depend on their ability to create innovative business models?
Companies focus on developing excellent, technologically sophisticated products. This ability to innovate never fails to impress us. If so, why do companies lose their competitive advantage?
Today, a company’s long-term competitive success depends upon its ability to create an innovative business model. Countless innovative business models are emerging. Entirely new industries are forming as old ones crumble. New innovation startups are challenging the old ones, some of whom are struggling to reinvent themselves.
Business Model Innovation isn’t new. When the founders of Diners Club introduced the credit card in 1950, they were practising business model innovation. The same goes for Xerox when they introduced photocopier leasing and per copy payment system in 1959. The scale and speed at which innovative business models are transforming industry landscapes today are unprecedented. For entrepreneurs and executives, it’s critical to understand the impact of this extraordinary evolution. Now is the time to understand and methodically address the challenge of business model innovation.
Business Model Innovation is about creating value, for companies, customers and society. It is about replacing outdated models. With its iPod digital media player and iTunes online store, Apple created an innovative new business model that transformed the company into the dominant force in online music. Skype brought us cheap global calling rates and free Skype-to-Skype calls with an innovative business model built on peer-to-peer technology. It is now the world’s largest carrier of international voice traffic. Grameen bank is helping alleviate poverty through an innovative business model that popularised microlending to the poor. It’s a business model response to emerging user needs and pressing environmental concerns.
Business models are designed and executed in specific environments. Developing a good understanding of your organisation’s environment helps you to conceive stronger, more competitive business models. Continuous environment scanning is more important than ever because of the growing complexity of the economic landscape, greater uncertainty and severe market disruptions.
Understand the basic components of a business model and explore the process of business model innovation and experimentation
Learn how you can systematically invent, design and implement these powerful new business models
Learn how to introduce a new product or service. How you can turn visionary ideas into game changing business models that challenge the establishment or rejuvenate it, if you are the incumbent
Learn to evaluate the environment you operate in to develop stronger, more competitive business models