When and how to innovate your business model

Strategy and Leadership

Volumn 38, Issue 4, 2010, Pages 17-26

  Giesen, Edward ^a   Riddleberger, Eric ^a   Christner, Richard ^a   Bell, Ragna ^a  

^a IBM   (United States)

Author keywords

Business development; Forecasting; Innovation; Partnership; Pricing policy; Value added

Indexed keywords

EID: 77954233391     PISSN: 10878572     EISSN: None     Source Type: Journal    
DOI: 10.1108/10878571011059700     Document Type: Article

References (26)

1. IBM Corporation. "The enterprise of the future: IBM global CEO study," May 2008, www-935.ibm.com/services/us/gbs/bus/html/gbs-ceo-study-implications.html In a follow-up to the IBM Global CEO Study, a joint team from the Carnegie Mellon Tepper School of Business and IBM analyzed the 2007 and 2008 financial performance (revenue growth and operating margin expansion) of 194 business model innovators participating in the original study, for which a complete set of data was available.
2. The 28 best practice cases were selected from two key sources. We revisited the BusinessWeek listing of the most innovative companies in the context of their performance in the 2008 economic turmoil. "The world's most innovative companies," BusinessWeek, April 24, 2006, www.businessweek.com/magazine/content/06_17/b3981401.htm We then added strong business model innovators that were top performers during the economic downturn of 2008-2009.
3. See Berman, Saul, Steven Davidson, Sara Longworth and Amy Blitz, Succeeding in the New Economic Environment: Focus on Value, Opportunity and Speed, IBM Corporation. 2009.
4. The literature on business model innovation is increasingly aligned on definitions and core dimensions. See, for example: Osterwalder, A. and Y. Pigneur, Business Model Generation (OSF, 2009)
5. Johnson, Mark, Clayton M. Christensen and Henning Kagerman. "Reinventing your business model." Harvard Business Review. December 2008.
6. Li & Fung acquisitions during the economic downturn include Wear Me Apparel in the USA and the Miles Fashion Group in Germany. Inman, Daniel, "Li & Fung buys Wear Me Apparel for up to $402 million," FinanceAsia.com. October 21, 2009, www.financeasia.com/article.aspx?CIaNID=115106
7. IBM Corporation, The Enterprise of the Future: IBM Global CEO Study 2008, IBM Corporation. May 2008, www-935.ibm.com/services/us/gbs/bus/html/gbs-ceo-study-implications.html. See Note 1.
8. De la Merced, Michael J. "Blockbuster hires help to restructure its debt," The New York Times. March 3, 2009, www.nytimes.com/2009/03/04/business/media/04blockbuster.html
9. CBS News, "Blockbuster will close up to 960 stores," September 15, 2009, www.cbsnews.com/stories/2009/09/15/business/main5313438.shtml
10. Colvin, Geoff, The Upside of the Downturn: Ten Management Strategies to Prevail in the Recession and Thrive in the Aftermath. Portfolio, 2009. Hyundai also introduced a five-year warranty model and was able to boost sales for August 2009 by 47 percent over the previous year, as many US car manufacturers continued to struggle.
11. For selection of business model innovators, see Note 2. For a set of "counter-pairs," we analyzed companies that pursued business model innovation with limited success and compared them with strong innovators.
12. The literature on business model innovation is increasingly aligned on definitions and core dimensions. See, for example: Osterwalder, A. and Y. Pigneur. Business Model Generation. 2009
13. Johnson, Mark, Clayton M. Christensen and Henning Kagerman, "Reinventing your business model," Harvard Business Review, December 2008.
14. Maynard, Micheline, "More cuts as United grounds its low-cost carrier," The New York Times. June 5, 2008, www.nytimes.com/2008/06/05/business/05air.html
15. IBM Corporation. The Enterprise of the Future: IBM Global CEO Study 2008, IBM Corporation, May 2008, www-935.ibm.com/services/us/gbs/bus/html/gbs-ceo-study-implications.html
16. Saltmarsh, Matthew, "The sweet smell of success at Nestlé," The New York Times, February 19, 2009, www.nytimes.com/2009/02/19/business/worldbusiness/19iht-nestle.4.20317285.html.
17. Nestlé does not publish Nespresso profit separately, but provides revenue and revenue growth information: Nestlé press information, "The Avenches milestone in the Nespresso success story," www.nestle.com/Resource.axd?Id=CF489C89-60D4-4A6E-8590-091D6D5E0672
18. Interview with Dr William K. Fung, Group Managing Director, Li & Fung Ltd. IBM and 50 Lessons. 2009, www.preview20-935.events.ibm.com/services/us/gbs/bus/html/gbs-built-for-change.html
19. Johnson, Mark, Clayton M. Christensen and Henning Kagerman, "Reinventing your business model," Harvard Business Review, December 2008.
20. O'Reilly, Charles, and Michael Tushman, "Ambidexterity as a dynamic capability: resolving the innovator's dilemma," Research in Organizational Behavior, Volume 28 (2008), pp. 185-206. (Also Harvard Business School Working Paper, No. 07-088, 2007.)
21. Interview with Manoj Kohli, Chief Executive Officer and Managing Director, Bharti Airtel Limited. IBM and 50 Lessons. 2009, www.preview20-935.events.ibm.com/services/us/gbs/bus/html/gbs-built-for-change.html
22. Leahy, Joe, "Bharti boosts rural Indian subscriber base," Financial Times. July 23, 2009, www.ft.com/cms/s/0/78de7afc-77ac-11de-9713-00144feabdc0.html
23. Bharti Web site, www.bharti.com/136.html?&tx_ttnewspercent5Btt_newspercent5D=317&tx_ttnewspercent5BbackPidpercent5D=116&cHash=c9cb9d3479
24. Mullaney, Timothy, "Netflix - the mail-order movie house that clobbered Blockbuster," BusinessWeek, May 25, 2006, www.businessweek.com/smallbiz/content/may2006/sb20060525_268860.htm
25. Netflix Web site. http://ir.netflix.com/
26. Lubowe, Dave, Judith Cipollari, Patrick Antoine and Amy Blitz, The ROI of Globally Integrated Operations: Strategies for Enabling Global Integration, IBM Corporation, 2009.