Why does Innovation often Requires Changes in the Business Model?




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Anneke Zwart
Student (University), Netherlands

Why does Innovation often Requires Changes in the Business Model?

In cases of major product/technical/process innovation, it is often necessary for organizations to also adapt or reinvent their business model. Why is the reinvention of a business model in case of innovation often necessary? MAXIMIZING REACH AND SUPPORT: Usually the innovation will already spark disruption, but changing the business model is necessary so as to expand the reach of this innovation and to develop a comprehensive value network so as to maximize the support of the innovation. ALIGNMENT: In order for innovations to be efficiently designed, implemented and/or launched, the innovation needs to align with the organizationís strategy and its business process, and this requires the reinvention of the business model. An innovation without a business model that aligns with the innovation often leads to cases in which the innovation completely misses its target. Thus, rethinking your business model in cases of product, process or other types of innovation is necessary, as...
 
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Derek Lark
CEO, Australia
 

Is Business Model Change a Necessity in Innovation?

These are really broad statements. Generally they could be considered as firm factual requirements, ...

   

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