Business Model Innovation | october 2015

Business strategy may not be a science, but using the right method with the right materials in the right place at the right time can create explosive results. We've gathered some examples of the most successful business models that have gone on to make lasting impacts on industry, consumers and the world at large.

10) Name your price:  

Vendors bid to meet the prices customers set for hotel stays and air tickets.
 

9) Offer Aggregation:

eBay has made offer aggregation and price comparisons a major part of its online auctions and buy-it-now sales.

It’s worth comparing the innovation models of each to find out. 

1. Samsung
Samsung originates in a highly deferential culture and has built its innovation model around five elements, the first of which allows them to redefine hierarchy way from traditional status:

• Developing a creative elite within the company based on innovation training
• Pursuing and circumventing patents of competitors
• Consistent, replicable company-wide innovation methodology
• Relying on external expertise for fundamental breakthrough science
• A conglomerate approach

2. Apple

Apple’s innovation strategy had changed the way we all think about the post-industrial enterprise. Apple’s platform strategy goes back as far as the first iTunes platform, which integrated external content with an Apple product (the Nano).

Companies hoping to drive growth through business model innovation face a number of critical questions: How broad should the scope of the effort be? What is the appropriate level of risk to take? Is it a onetime exercise, or does it call for an ongoing capability? How can a company discern which new business model is the most attractive? And what differentiates those companies able to transform their business models from those that might run a pilot but fail to fundamentally change the company’s trajectory?
To answer those questions, it is important to realize that not all efforts toward business model innovation are alike. Understanding four distinct approaches can help executives make effective choices in designing the path to growth.
 
Four Approaches to Business Model Innovation: