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Extra resources for Business Model Design
The idea of a novel business model sometimes leads to the creation of a start-up. Some new business models need to gain critical mass to become successful. For example, Google based its business model on a massive or even global use of their services (Tsai et al. 2011). Internet platforms (both providing their products and purchasing them) need many users to break even and to generate profits for their operators. Gaining the “critical mass” requires – apart from winning customers – to build up the core processes and amass enough resources to make the business model sustainable.
This is not the end. In this paper, we have managed to link the (useful) theories of learning to the field of strategic innovation. However, a lot of work needs to be done in terms of formulating the managerial issues of strategic innovation in terms of organisational learning, formulating hypotheses and research questions of this managerial work in practice, and testing the latter. We are in the process of doing this and look forward to presenting some of the results soon. Sum-up questions for chapter 3 • Discuss the definition and outline the concept of strategic innovation • Give examples of how Strategic innovation can be understood as a proactive repositioning of an organisation • Give examples of how Strategic innovation can be understood as the creative thinking process leading to a proactive repositioning • Why has Strategic innovation risen to the top of the agenda of top managers and academia in recent years?
Radically new ideas emerged over the course of time, either through existing technological capabilities (case 1, case 2), as a reaction to emerging competitors’ technologies (case 3), and/or simply to reduce cost (case 1). Furthermore, the failure of case 3 made the management team even more aware of the need to better understand customer demands as a basis for selecting innovation ideas. Company Beta, too, follows a stage gate model for moving new product and business concepts through a process roadmap and development process.