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Four Paths to Business Model Innovation

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Summary

This article presents a framework for business model innovation that views innovation as changes to key decisions that determine a business' revenue, costs, and risks. It outlines four questions that can help companies make their innovation processes more systematic and open, allowing for continual reinvention and maximum profitability. The article also provides an example of how such an innovation process can work in practice.

Q&As

What are the four paths to business model innovation?
The four paths to business model innovation are deciding what products or services to offer, when to make decisions, who should make them, and why the decision makers choose as they do.

How can companies make business model innovation a continual, inclusive process?
Companies can make business model innovation a continual, inclusive process by making their innovation processes more systematic and open.

What is the purpose of the framework presented by the authors?
The purpose of the framework presented by the authors is to help managers take business model innovation to the level of a reliable and improvable discipline.

What are the benefits of business model innovation?
The benefits of business model innovation include delivering existing products that are produced by existing technologies to existing markets, and bringing advantages that are hard to copy.

How can the authors' framework help companies improve their profitability and productivity?
The authors' framework can help companies improve their profitability and productivity by providing a systematic and open framework for exploring opportunities and making business model innovation a continual, inclusive process.

AI Comments

👍 This article provides an excellent framework to help managers become more systematic and open in their business model innovation.

👎 This article does not provide enough concrete examples of successful business model innovation.

AI Discussion

Me: It's about how to approach business model innovation in a more systematic and open way. The authors present four paths to business model innovation: deciding what products or services to offer, when to make decisions, who should make them, and why the decision makers choose as they do.

Friend: That sounds really interesting. What are the implications of this article?

Me: Well, the implications are that businesses should be more open and systematic when it comes to their innovation process. The article also suggests that businesses should be more aware of the decisions that they are making and how those decisions can affect their business model. Finally, the article suggests that businesses should be open to making changes to their business model to increase profitability and productivity.

Action items

Research existing business models and identify areas for improvement.
Develop a framework for exploring opportunities for business model innovation.
Create a team to brainstorm ideas for new business models and develop a plan for implementation.

Technical terms

Business Model: A business model is a set of key decisions that collectively determine how a business earns its revenue, incurs its costs, and manages its risks.
Risk Management: Risk management is the process of identifying, assessing, and controlling risks that may have an impact on an organization.
R&D: Research and development (R&D) is the process of creating new products, services, or processes through the use of scientific and technological knowledge.
Decision Making: Decision making is the process of making choices among alternative courses of action.
Problem Solving: Problem solving is the process of identifying and solving problems in order to achieve a desired outcome.