According to this article in the Harvard Business Review which I skimmed on my way back from Connecticut this weekend, there are 3 types of innovation and all business may face one or all three, or none, in their life span.
But I am only going to discuss Business Model Innovation. It seems that business model innovation is not an easy concept for even large established business to understand or implement effectively.
The objective of business is to make the customers happy, right? And to do that, a business owner must give the customer what the customer wants. Innovation has to do with figuring out how to make the customers happy while at the same time, making a profit for the business.
So the question with business model innovation is, how much do you have to change what you are doing now to accomplish the objective of making the customer happy? If what you are doing now is not making the customer happy, and change is required, that change is really a change in the model you are using. It is business model innovation.
But with any type of change, you have to be careful. It has to be change that makes sense for your business. It has to make sense to the customer. You cannot leave the customer wondering, "Huh?" The customer, instead, should be nodding and saying, "yes, this is exactly what I'm talking about."
3 years ago
