We acknowledge the financial support
Yet the future returns on these investments are always uncertain. Hesitant to make such big bets, more and more companies are now turning to business model innovation as an alternative to or in . A recent global survey of senior executives by the Economist Intelligence Unit found that most prefer new business models to new products and services as a source of future competitive advantage. The analysts concluded: The overall message is clear: How companies do business is often as important, if not more, than what they do. Conducting a similar global study in which more than 100 business and public sector leaders were interviewed on the topic of innovation.
researchers found that competitive pressures put business model innovation far higher than expected on CEO priorities. However, this level of interest may not be surprising, as the research also found that companies that have grown operating profits faster than their competitors over the past five years are twice as likely to emphasize business model innovation Job Function Email List rather than emphasizing business Model innovation. Product or process innovation. One CEO explained why his company is increasingly focusing on business model innovation: In the operational area, much of the innovation and cost savings that can be achieved has already been achieved. What we are most concerned about is business model innovation, which is where the greatest benefits lie. Simply changing product quality, delivery readiness or production scale is not enough.
It is important to innovate in areas where our competitors are not acting. About the Author Raphael Amit is Professor of Entrepreneurial Management at the Wharton School of the University of Pennsylvania in Philadelphia, Pennsylvania. is Professor of Entrepreneurship at Barcelona Business School, Spain. References The Year of Business: Meeting the Challenge of Change, White Paper, The Economist Intelligence Unit, New York, September, p. and, Annual Global Report: Business Model Innovation Matters, Strategy & Leadership, vol. ( ): . Show all references Acknowledgments Raphael Amit acknowledges the support of the Professor of Entrepreneurship at the Wharton School. (grant) from the Ministry of Research and the Spanish Ministry of Science and Innovation. The authors gratefully acknowledge the financial support of the INSEAD Global Research and Development Alliance. |
