Business model innovation can disrupt markets over a short period. It can expand markets, reduce costs and even change the competition landscape.
Examples of business model innovation tends to be around clever bundling, pricing, consumer financing and sales channels. However, the purpose of this post is to highlight how emerging technologies have enabled business model innovation.
Examples of business model innovation tends to be around clever bundling, pricing, consumer financing and sales channels. However, the purpose of this post is to highlight how emerging technologies have enabled business model innovation.
- A good case in point is Insurance. Connected Vehicle technologies have allowed insurers to provide custom insurance solutions based on vehicle usage and driving patterns/behaviour.
- IoT (Internet of Things) and Data Analytics are driving Product to Service model. Companies are now connecting to their product remotely and selling the service delivered by the product. For example, iBot Inc (www.iamibot.com/) is working with water purifier makers to sell pure drinking water.
- The traditional manufacturing business model of scale and specialisation is bound to lose its competitive edge to 3D printing. 3D printing technologies can manufacture far more intricate and variety of shapes (Eg: bionic designs), and allow manufacturing to be more decentralised, democratized and viable at small scale.
- Recently, many technologies have emerged to reduce the size of video and CAD files without compromising the quality. These lightweight media technologies can now enable more cloud hosted and remote delivery business models. For example, specialized training (involving virtual simulation and walk-through) can move out from specially equipped facilities to remote portable devices.
- Emerging mobile technologies are disrupting the website based business models. Today consumers spend far more time on their smartphones and apps. But that's not the only reason why e-commerce companies are betting on mobile platforms. Mobile platforms bring more engaging technologies like searching that coveted dress with just its picture, indoor navigation and assistance in a store, virtual reality based envisioning tools and others.
R&D and Engg. tend to focus more on product and process innovation. Business model innovation is more strategic and needs top leadership commitment. Hence, new entrants and small companies are often ahead in implementing it while large players struggle with internal approvals and bureaucracy.
