Business Model Innovation

Here is an interesting article:
The Three Most Innovative Companies of 2013 logo1
“Business model innovation is the ticket to explosive growth”

In a world where 1,000 new patents are granted every day in US alone, I see gross over-emphasis on the physical aspect of innovation  with scant regard to the business model innovation. Indeed, Intellectual Property Rights are viewed as a key to the riches by investors, executives, and entrepreneurs alike. However, in the ever-shifting (and rapidly shifting) sands of  technology, the state-of-art quickly becomes “irrelevant” unless accompanied by business model innovation. This applies to businesses irrespective of their size or age. Look around and you would see plenty of examples of extinction due to lack of business model innovation – Polaroid, Blockbuster, Kodak, Blackberry, Nokia, Yahoo, Dell and many more!

Challenge to innovate business model is equally pertinent to new and established ventures. Technology companies need to be alert and agile in inspecting their proposed business model on the basis of market feedback. In fact, one needs to proactively seek critic of the business plan in order to search for cracks that may develop due to shifts in underlying assumptions.

In case of a start-up, source of its power to disrupt industries dominated by large players lies in the ability to be quick on its feet. But many lose this power due to adamant attachment to a predetermined business model. In case of a corporate entrepreneur, this rigidity can come from organizational inertia – especially when the corporate objectives are to do same things better than doing better things!

Is your business model in need if a Business Model Innovation?

I welcome your views/ questions ...

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