Business model innovation is the art of enhancing advantage and value creation by making simultaneous — and mutually supportive — changes both to an organization’s value proposition to customers and to its underlying operating model.
Business model innovation is the art of enhancing advantage and value creation by making simultaneous — and mutually supportive — changes both to an organization’s value proposition to customers and to its underlying operating model.Tags: Music AssignmentQuaid E Azam In Urdu EssaysThesis Statement On The Pursuit Of HappinessShow Me How To Solve This Math ProblemEasy Scholarships No Essay 2012Literature Review In ReportPaper For Writing Poetry
The purpose of business model innovation is to address the choice of target segment, product or service offering, and revenue model.
At the operating model level, the focus is on driving profitability, competitive advantage, and value creation.
As already mentioned, your innovation strategy should help supporting your business objectives and vice versa.
An example of a good strategic approach introduced in is Olay.
It sets boundaries to your innovation performance expectations by simplifying and structuring your innovation work to achieve the best possible outcome.
Before moving forward, it’s important to mention that your innovation goals shouldn’t be separated from your overall business objectives as having a unified vision and common goals for innovation will help fight the and increase your operational efficiency.Olay's winning aspiration is to become a leading skincare brand that wins convincingly in their chosen markets and channels.Along with hair care, it will help establish a key pillar in the Procter & Gamble beauty-care business.To be able to innovate and to respond to your customers’ needs, you should listen and understand what your customers really want and remove the rest.To be able to do that, knowing what happens in the market is essential.As opposed to the business model innovation, the strategic focus with organizations that leverage existing business model is on improving the core business rather than building new business models to create new value.Based on these two approaches to innovation, we can identify three innovator archetypes: The second step in the strategy choice cascade is defining the right playing field, as in, the market you’re operating in and the customer segment you’re offering value for.It's likely that your approach to innovation will be something different.Typically, there are two different approaches to innovation strategy: business model innovation and leveraging existing business model.Innovation is about creating new value people are willing to use and pay for, whereas strategy is the plan for harnessing for example marketing, operations, finance and R&D to support achieving the competitive goal.To clarify, innovation strategy isn’t about innovation tactics, such as setting up an idea challenge, but more about mapping organization’s mission, vision and value proposition for defined customer markets.