Business model innovation is very important businesses concept at almost every level. There are many business strategists that have approached business model innovation management from a vision-centric standpoint. The business model is a representation of a more complex reality.
Nowadays it has become important to execute a strategic design in the model during strategy development.
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The list that should be considered while constructing a new business model innovation is given below:
It is important to consider which customer you are going to target and serve. There are some questions that you should think about in order to give direction to the project.
Value Capture Model
This model tells about the profit extraction from the products and services that you offer in the market.
Differentiation and Strategic Control
For making effective strategic marketing system effective, relevant differentiation is very important. In spite of differentiation and branding, it is important that your business design must have profit-protection.
Scope of Offerings
The subsequent profitability is connected with the scope of offerings that your company provides and segments where it operates.
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Purchasing and Cost Systems
It is important to have well-integrated, long-term relationships with vendors and suppliers to have good implications for the business model used by manufacturers.
It is also important to determine whether the compensation and incentive system unique.
Execution Culture and Structures
Determine whether the organizational communication system has monitoring, reporting and accountability cycles. You can click here to know more about innovation.
What is your hiring strategy? Does your innovation model attract the best talent?
The organizational structure should be such that it should flow from the core processes.
Market Channel Mechanism
The organization is generally customer-centric. This model is largely determined by customer realities and preferences. Companies have various choices ranging from a direct sales force, to direct marketing, internet and mass media channels.