Business model innovation
A key factor in determining whether firms sink or swim in the cut-throat competition of the modern economy is how capable they are in creating and exploiting the intangibles to reinvent their business models. Innovative business models allow firms to create, deliver and capture value in new ways, with or without a pioneering technological innovation. No business model can last forever; periodic reinvention and renewal are necessary. Those that obstinately cling on to traditional, time-tested practices and business models often find their competitive advantage slip away.
The digital revolution, advances in life sciences and the challenge of greener living have all given rise to many disruptive technologies. Business models are constantly being reinvented as a result, while industries, markets and standards are undergoing radical transformation at an unprecedented pace. For instance, industries such as music and entertainment, the press and media, information services and publishing, and even retail can now operate largely through online platforms. This presents numerous challenges for companies as they seek to reinvent their business models so as to ensure that joining the digital bandwagon can be financially rewarding – something that has eluded many e-business firms. Other industries such as pharmaceuticals, airlines, IT and professional services, too, have experienced game-changing disruptions that have conspired to drive firms to innovate their business models. In saturated markets where there is no shortage of rival products or services based mostly on the same core technologies, business model innovation can become a critical source of differentiation as well as a means for organisations to create new markets altogether.
Our research seeks to examine how changes in the external environment have affected business models, what companies need to consider when seeking to innovate their business models in response to those changes, and the role of policy and the state in creating facilitating conditions for business model innovation.
- What is business model innovation, and why is it important for competitive advantage?
- How has the digital economy, and the internet in particular, affected firms’ business models? What are other key factors shaping tomorrow’s business models?
- What are some of the emerging, but perhaps less well understood, business models in the modern economy?
- How will increasing ‘servitisation’ of traditional manufacturing affect business models?
- What are some innovative service business models that can potentially harness the potential of big data?
- What are the implications of machine-to-machine, TV white space and internet-of-things technologies on business models?
- Is business model innovation necessarily reactive or proactive, and emergent or planned? How does it differ among industries, what does it imply for firms?
- How should policy respond to better facilitate innovation and the growth of new business models?