Business model, innovation changing

New commercial business model Radical change/innovation in the value proposition and delivery system. 

Maturity Business model innovation carried out bv the CEO that changes the value proposition (Gillette s focus on blades, not razors), or the company s role in the value chain, or both Structural innovation — also carried out bv the CEO — that capitalizes on disruptions in mature markets such as deregulation in the airline and banking industries... 

This can be an innovation opportunity, product, service, system, process, or business model. It can be anything you want to change or challenge. For our example, the goal is to create a type of credit that is easy to use but virtually impossible for identity thieves to steal. 

Mostly product innovations High rates of product change Can change o Business model for producers ° Use patterns for customers New startup companies Mostly process innovations Constrained product change Reinforces extant business models Established companies... 

Significant innovations occur rarely in the lower left quadrant and tend to concentrate in the manufacturing process rather than the product. When these innovations change the business model as well as the technology, they tend to be brought to market by outsiders rather than industry incumbents. When the business model remains unchanged, insiders tend to dominate the innovation. 

One of the major drivers for this change is fierce competition from emerging countries, vrhere large quantity production is cheaper and potentially more fiexible. New competitive business models should be thus based on novel manufacturing technologies and a holistic approach to process development, vhere sustainability through chemistry, safety and respect of the environment are the driver for innovation and not the elements slowing do vn the development, the cultural model that has often dominated the business in the past. 

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