Developing and implementing new business models is both difficult and risky but it is often the key to capturing value from innovation within corporations.
This article, Business Model Innovation in Practice, published in Research Technology Management, by Jim Euchner and Abhijit Ganguly from Goodyear, explains how a systematic approach to business model innovation can help capture value and reduce risks. It draws from literature on parts of the process as well as their own company’s experience of developing and implementing new business models.
The authors report that successful innovation inside corporations requires not only developing an appropriate business model but also sustaining that model in an environment that can be resistant to change.
Goodyear has created and tested a six-step business model innovation process:
1. Demonstrate value creation;
2. Generate business model options;
3. Identify risks for each option;
4. Prioritise risks;
5. Reduce risk through business experiments;
6. Organise for incubation.
The purpose of the step-by-step approach is to reduce the risks through learning before incubating the business in the market. A similar learning process then continues during incubation. Each stage of the process draws on work others have undertaken in defining and benchmarking particular aspects of the innovation.
Read the full paper:
Business Model Innovation in Practice, Jim Euchner and Abhijit Ganguly, Research Technology Management, 2014
Recommended by Anita Friis Sommer, post by R&D Today admin