Business Model Innovation Research Technology

Question: Discuss about the Business Model Innovation Research Technology. Answer: Introduction: As mentioned by Hill et al. (2014) an effective business strategy typically involves three basic ideas, those are, the area of competition (the target market segmentation), the competitive techniques (depending on the resources) and the way of implementing those techniques. As mentioned by Eden and Ackermann (2013) for identifying the market opportunity or the most potential target segment, the organizations need to identify the external variables those are influential to the organizational operation (the competitors analysis and the industry analysis and evaluation). For identifying the resources, internal analysis of the organization can be utilized. As mentioned by Harrison and John (2013) by identifying the resources base, the company becomes able to address the external opportunities or threats. On the other hand, for strategy implementation, the organization needs to identify the incentive and compensation policies, the control systems and the organizational structures. As opin ed by Hill et al. (2014) this may include the employee base or skills, motivation and leadership. All these three factors typically support the strategic management of an organization. While creating a strategy for obtaining competitive advantage, the organizations need to focus on all of these three factors simultaneously (Eden and Ackermann 2013). In the empirical cases, the organizations like Foodworks can opt for utilizing this three-faced strategic approach. For identifying the best market opportunity the company can make an external analysis. The company is facing huge competition from the organizations like Coles or Woolworths (FoodWorks Supermarkets | Grocery Specials This Week 2016). However, with the changes in the sociological and demographic pattern the company has an opportunity to attract the customers of Australia as well as the developing economies. Now, for utilizing this market opportunity, the company needs to have the resources. According to the organizational website, it is financially and technologically strong enough for expanding its business, but doesnt have enough employees. However, the financial strength will be helpful in decreasing the price level and attract more customers to the brand. This technique will also be helpful in creating a penetrative pricing policy in the new market segments. Now, imp lement the strategy of expanding the business, the company needs to develop an efficient and motivated employee base. Moreover, for a successful cross-culture management, the organization will need an effective leadership or management base. Thus, Foodworks will be able to attract more customers in the domestic market and successfully execute business in the new geographic segment. Business Model Innovation As mentioned by Leih et al. (2014) the modern business world is significantly volatile that needs quick address to every possible market opportunities. Hence, the business organizations need to concentrate on the innovative strategies. However, innovation does not necessarily involve a whole new idea or the integration of new technologies. As mentioned by Gobble (2014) most of the successful companies have utilized pre-used innovative business models by initiating pragmatic alterations suitable to their own product or service offerings. It has helped them to address the future market opportunity and be a sustainable market player. As discussed by Amit and Zott (2012) innovation helps in increasing the customer value or in reducing the organizational cost and thus gives a competitive advantage to the companies. Hence, the innovation of the business model is crucial for organizational success. For introducing innovation in the business model, the companies need to identify their own bu siness model by categorizing the customer base, the product offerings, the value proposition and the revenue model. The business model innovation needs to change at least two of these dimensions. As discussed by Leih et al. (2014) there are a number of business model pattern those are responsible for all kind of business model innovation. Now, to integrate them an organization needs to follow four steps of initiation, ideation, integration and implementation. In initiation, the current business model needs to be reviewed and by the ideation, it needs to be confronted with various innovative business models. In the integration phase, the consistency of the business model needs to be examined (Amit and Zott 2012). Finally, in the implementation stage, the innovative model can be implemented. However, it is needed to implement in a pilot basis initiate changes according to the challenges. Here, soft factors like managerial failure or industrial resistance needs to be addressed (Gobble 2014). For successful innovation, an organization needs to implement one model at a time, communicate effectively the need of innovation to the stakeholders, setting long-term and flexible KPIs and ensure top management commitment. Thus, the companies can initiate innovative business models and become valid in the future business world. The Australian company Pauls can introduce innovative business models for obtaining competitive advantage. Though the company is successfully operating in the Australian dairy market, business model innovation will help them to collect new customer base by providing increased value proposition (Pauls.com 2016). For implementing new innovative business model, the company needs to identify its current customer base (the Australian market, no defined demographic segment), the product offerings (milk, cream, custard etc.), the value proposition (high quality and fresh product) and the revenue model (selling of the product). In the ideation phase, the company can introduce the e-commerce strategy (mobile app) for the organization. It will be able to address an extended range of customers with new value proposition (easy to buy). By identifying the consistency of the model, the company can opt for implementing it to a small range of products. However, to initiate innovative the business mo del, the company needs to communicate with the stakeholders and ensure managerial commitment (Amit and Zott 2012). The innovative business model will provide the company a product differentiation, which would be helpful for the company to obtain competitive advantage. With a new business model, the company will be able to provide a new range of value proposition to the customers that will be helpful for addressing an extended range of consumers than before (Leih et al. 2014). Moreover, it will help the company to reduce the organizational cost (by narrowing the supply chain) and validating it to the future market (web availability). References: Amit, R. and Zott, C., 2012. Creating value through business model innovation. MIT Sloan Management Review, 53(3), p.41. Eden, C. and Ackermann, F., 2013.Making strategy: The journey of strategic management. Sage. FoodWorks.com 2016. FoodWorks Supermarkets | Grocery Specials This Week. [online] Foodworks.com.au. Available at: https://www.foodworks.com.au/ [Accessed 15 Dec. 2016]. Gobble, M.M., 2014. Business model innovation.Research-Technology Management,57(6), pp.58-61. Harrison, J.S. and John, C.H.S., 2013.Foundations in strategic management. Cengage Learning. Hill, C.W., Jones, G.R. and Schilling, M.A., 2014.Strategic management: theory: an integrated approach. Cengage Learning. Leih, S., Linden, G. and Teece, D., 2014. Business model innovation and organizational design: a dynamic capabilities perspective. Pauls.com 2016. Pauls - Home. [online] Pauls. Available at: https://www.pauls.com.au/ [Accessed 15 Dec. 2016].