Business Model Innovation
We are familiar with product innovation and with process innovation. They involve finding new offerings or new ways to do things. But how do we handle the biggest challenge of all - business model innovation? This is about discovering and trying an entirely new way for your organisation to operate.
There are some interesting tips and examples from Patrick Medley of IBM in this article in CIO Asia. He argues that business model innovation is the most important type of innovation to master. He divides it into three types - revenue model, industry model and enterprise model. His examples include Cirque du Soleil, Virgin, Bharti, Nokia and IBM. His conclusion is this, ‘business model innovation is to some extent about survival in long-term business. To survive, you need to be thinking about how you’re going to innovate your business model. Just changing your processes, just changing your products and services—that could just mean you’re going to struggle to survive in the long term. ‘
Paul Sloane