Saul J. Berman, Richard Christner and Ragna Bell
The purpose of this paper is to make suggestions as to how an organization successfully manage uncertainty and complexity and, ultimately, foster growth in the wake of the recent…
Abstract
Purpose
The purpose of this paper is to make suggestions as to how an organization successfully manage uncertainty and complexity and, ultimately, foster growth in the wake of the recent economic crisis.
Design/methodology/approach
The paper recommends three main goals that organizations should concentrate their actions around.
Findings
The paper finds that as organizations prepare for a future ripe with uncertainty, there is urgency for companies to take actions to prepare for the key opportunities presented in this post‐crisis environment. Business leaders should start by developing clear scenarios for their industry and the overall situation that can help identify which strategies and business models will best position their organization to succeed across the range of possible future outcomes. By combining an understanding of their current position with a clear set of future scenarios, they can select decisive moves across the three recommendations identified in this study
Originality/value
The paper presents useful information on action an organization can make in order to manage uncertainty and complexity and, ultimately, foster growth.
Details
Keywords
Edward Giesen, Saul J. Berman, Ragna Bell and Amy Blitz
The purpose of this paper is to find out what exactly the term business model innovation encompasses and what type yields the best results.
Abstract
Purpose
The purpose of this paper is to find out what exactly the term business model innovation encompasses and what type yields the best results.
Design/methodology/approach
IBM Consulting researchers first identified the main types of business model innovation, which can be used alone or in combination. They then compared these three types of business model innovation across 35 best practice cases.
Findings
The study found that all new business models can be classified into three types: innovations in industry models; in revenue models and in enterprise models. A key finding was that each type of business model innovation, with the right strategy and strong execution can generate success.
Practical implications
Researchers found that while network plays are being used by diverse companies in different industries and regions and of varying age, size and other characteristics, this tactic has been a particularly useful strategy for older companies.
Originality/value
The study found that best business model innovation strategies provide a strong fit between the competitive landscape for a particular industry and the organization's strengths, shortcomings and characteristics such as age and size.
Details
Keywords
Edward Giesen, Eric Riddleberger, Richard Christner and Ragna Bell
Business‐model innovation is critical to success in today's increasingly complex and fast‐changing environment. So corporate leaders need to understand when to adapt the business…
Abstract
Purpose
Business‐model innovation is critical to success in today's increasingly complex and fast‐changing environment. So corporate leaders need to understand when to adapt the business model and how to execute the change. This paper aims to address this issue.
Design/methodology/approach
Data from IBM's Global CEO Study 2008 and an analysis of 28 successful business‐model innovators, produced insights into both the best timing and process for business model innovation.
Findings
The IBM researchers identified a set of characteristics that strong business‐model innovators demonstrate consistently.
Practical implications
A set of characteristics, which the IBM researchers call the “Three A's,” are critical to the successful design and execution of business‐model innovation: Aligned – Leverage core capabilities and design consistency across all dimensions of the business model, both internally and externally, that build customer value; Analytical – Use information strategically to create foresight, and prioritize actions while measuring and tracking for rapid course correction; and Adaptable – Link innovative leadership with the ability to effect change and institutionalize operational flexibility.
Originality/value
The paper answers two questions that can help companies develop their innovation strategy and transformation approach for the new economic environment: Under what conditions should companies adapt their business model?; and What capabilities and characteristics support the design and execution of successful business‐model innovation?
Details
Keywords
Threats from low cost competitors are a fact of markets, a trend likely not just to continue in coming years but to accelerate. The fundamental strategic question the authors…
Abstract
Purpose
Threats from low cost competitors are a fact of markets, a trend likely not just to continue in coming years but to accelerate. The fundamental strategic question the authors consider is how best to compete when competing on price alone is not a realistic option.
Design/methodology/approach
This case details how Korea’s POSCO steel company has successfully pivoted from competing on price to competing on innovation.
Findings
POSCO introduced new revenue-generating offerings as well as innovative cost-saving processes while also improving its environmental footprint.
Practical implications
POSCO began sending engineers to work directly with customers to identify areas of opportunity for specialized, differentiated, high value added steel products.
Originality/value
This case shows how POSCO managed to identify and address a host of unmet customer needs, introducing new revenue-generating offerings as well as cost-saving new processes while also improving the company’s environmental footprint, making it a desirable partner for customers concerned about having a socially responsible supply chain.
Details
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Sir Raymond Streat, C.B.E., Director of The Cotton Board, Manchester, accompanied by Lady Streat. A Vice‐President: F. C. Francis, M.A., F.S.A., Keeper of the Department of…
Abstract
Sir Raymond Streat, C.B.E., Director of The Cotton Board, Manchester, accompanied by Lady Streat. A Vice‐President: F. C. Francis, M.A., F.S.A., Keeper of the Department of Printed Books, British Museum. Honorary Treasurer: J.E.Wright. Honorary Secretary: Mrs. J. Lancaster‐Jones, B.Sc., Science Librarian, British Council. Chairman of Council: Miss Barbara Kyle, Research Worker, Social Sciences Documentation. Director: Leslie Wilson, M.A.