Department of economics couse work from innovation economics theme: models of innovation processes

4. Innovation in business models and technological Innovation.

Innovation in Business Models. Business Model Innovation is a strategy in itself. As we know, the Business Model is the framework about how a company creates and delivers the needed value to customers. 

Business Model Innovation aims to drive competitive advantage, value creation, and profitability.  

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  The Reinventor Approach
  

The reinventor approach is followed during the slow growth of the business. It’s the best choice to go for when the market response is uncertain. The company should adopt this approach to reinvent its business model. Thus, ensuring alignment of activities to satisfy customer and market needs. 

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  The Adapter Approach
  

The approach is adopted when a business fails to face market challenges. Adapters should focus their model on persistent experimentation. In addition, this will help to find a successful path while surviving in the market. 

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  The Maverick Approach
  

As the name says, it follows an independent-minded approach. They select their successful core business to apply the innovation. Mavericks aim to disrupt the market. So, they seek to bring revolution in the industry and drive business growth. 

• 
  The Adventurer Approach
  

The approach insistently operates to expand its business territory & capture adjacent markets. The adventurer’s exploration is aspiring for breakthrough growth. So, they have to be careful in their game of exploring new markets. 

Here are some of the wonderful examples of Business Model Innovation:

1. 
   Zara’s secret sauce is they produce where the sale is made. They follow the tight supply chain right from designing to the final production of clothes. Thus, the lead times are shorter in length and sold-out merchandise gets filled up easily.
   
2. 
   IKEA follows an uncomplicated business model. It is owned by a charitable non-profit organization. Thus enjoying the benefits of reduced taxes & hostile takeover. This is their magic potion to produce inexpensive furniture.  
   
3. 
   Airbnb operates with zero inventory. The idea is to connect the world of sellers with the world of buyers. So, their focus is providing a good user interface and improving the usability with new upgrades. 
   

 Simplified Innovation Process Models

Simplified Model of an Innovation Process (Tidd, et al., 2005)

Process Based Model of Innovation (Chiesea et al., 1996)

Team Guide Innovation Model (TECNOLÓGICA, 1999)

Cooper Stage Gate Model (Cooper, 1990)