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Business Innovation Reinventing Your Business and Competitive Rules |
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By: Vadim Kotelnikov, Inventor, Author, and Founder of:
Ten3 Business e-Coach – Inspiration and Innovation Unlimited, Fun4Biz.com – Entrepreneurial Creativity Paradise, VVV1 – Global Virtual Venture Valley #1
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"Change starts when someone sees the next step." – William Drayton |
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Focus Areas of Business Innovation
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Business Innovation Defined Business innovation involves a wide spectrum of original concepts, including development of new ways of doing business, new business models, business application of technology and communications, new management techniques, environmental efficiency, new forms of stakeholder participation, telecommunication, transport and finance. Business Model Innovation In some cases the innovation rests not in the technology or product or service, but in the business model itself. Business model is a broad-stroke picture of how an innovative concept will create economic value for the ultimate user, for the firm and its shareholders and partners. It considers the infrastructure required to move the product/service to the market in a manner that it both easy and convenient for customers and profitable for the firm.
The Growing Role of the Business Architect Today's companies need business architects who can take a systems view of a business and build synergies. Business architect is a person who initiates new business ventures or leads business innovation, designs a winning business model, and builds a sustainable balanced business system for a lasting success... MoreIn the new knowledge-driven economy, people have become your firm's most precious and underutilized resource. They are your firm's repository of knowledge and they are central to your company's competitive advantage. Well coached, and highly motivated people are critical to the development and execution of strategies, especially in today's faster-paced, more perplexing world, where top management alone can no longer assure your firm's competitiveness. Today, managerial work becomes increasingly a leadership task. Organizational capabilities are the basis of your competitive advantage. According to the new resource-based view of the company, sustainable competitive advantage is achieved by continuously developing existing and creating new resources and capabilities in response to rapidly changing market conditions. Among these resources and capabilities, in the new economy, knowledge represents the most important value-creating asset.
Customer Intimacy – a New Way of Doing Business Customer-intimate companies develop a new mindset - a new way of doing business - with new values, new vision, new strategies, new systems, and new structures. They are in the business of creating new value for their customers. They discover unsuspected problems, detect unrealized potential, and create a dynamic synergy with customers.
To decide which business innovation concept is appropriate to a company, the first thing to do is to ask whether the company is generally doing the right things (effectiveness), but just needs to do them better (efficiency), or whether it needs to do new things. It is important to consider whether both fast results and the scale of change are needed. It should first be asked whether the company is faced with an evolutionary or radical change in its industrial sector.2 It does not make much sense to pursue costly new opportunities if a company is neither effective nor efficient. Cost-cutting and restructuring measures should come first as a starting point of long-term fundamental transformation – “creative destruction” – that involves downsizing and simplifying, followed by regeneration of the organization and strategy.
Using Business Portfolio Analysis... Extended Enterprise: Virtual Integration... Systematic Approach to Innovation... Systems Thinking... Creative Leadership... Strategy Innovation... Value Innovation... E-ventures... Business Portfolio Analysis... BCG Growth-Share Matrix... GE Multifactor Business Portfolio Matrix... Bunsha - a Japanese Spin Off Model of Sustainable Business Growth... Harnessing the Creative Power of Your Employees...
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Bibliography:
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"Lateral Thinking Skills", Paul Sloane
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"Changing Strategic Direction", Peter Skat-Rørdam
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"Agenda", Michael Hammer
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"Modern Management", Ninth Edition, Samuel C. Certo
