Introduction
Our client, XYZ, has designed a radically innovative smartphone yet its current business model is ill suited for its commercialisation. A firm's Business Model (BM) is the articulation of the processes through which resources are leveraged to create and deliver value to stakeholders allowing the firm to generate a profit (Chesbrough,i2010). XYZ must therefore undergo a fundamental overhaul of its BM to successfully bring to market its new smartphone.
The smartphone industry is characterised by high competition especially amongst manufacturers with Samsung (30%) and Apple (13%) dominating the market (Gartner). It recently experienced a disruptive shift with the success of Google's Open Source Operating Software (OS), Android, which many manufacturers now use rather than their own proprietary OS. Thus XYZ must not only compete with manufacturing titans but also find innovative solutions to develop software able to compete with Android and iOS.
Open Innovation (OI) theory, introduced by Henry Chesbrough (2003), has gained significant attention from firms seeking to use external agents to increase the efficiency of their R&D. This report will outline how XYZ can use OI tools to design an innovative BM allowing it to bring to market a product ecosystem set around its phone.
A first part will outline the implications of BM Innovation. It will argue that XYZ must promote coupled processes with partners and leverage Outside-in dynamics to increase its market potential. Secondly, it will focus on the app creation process showing that XYZ must release parts of its Intellectual Property (IP) either through licensing or Open Source depending on the necessity of proprietary OS relative to value capture if it wishes to develo...
... middle of paper ...
...m House.
Johnson, M.W., Christensen, C.M., Kagermann, H., 2008. Reinventing Your Business Model.
Lakhani, K., Boudreau, K., 2009. How to Manage Outside Innovation. MIT Sloan Manag. Rev.
Satzger, G., Jetter, M., 2010. Technological Innovation and Its Impact on Business Model, Organization and Corporate Culture – IBM’s Transformation into a Globally Integrated, Service-Oriented Enterprise. Bus. Inf. Syst. Eng. 1, 37–45.
Shoemaker, P.J., Vos, T., 2009. Gatekeeping theory. Routledge.
Simcoe, T., 2007. Intellectual property and compatibility standards: A primer. First Monday 12.
Stringer, R., 2000. How to manage radical innovation. Calif. Manage. Rev. 42, 70–88.
Teece, D.J., 2010. Business Models, Business Strategy and Innovation. Long Range Plann., Business Models 43, 172–194. doi:10.1016/j.lrp.2009.07.003
Willis, N., 2008. The iPhone SDK and free software: not a match.
The ability to capture values along the Technology Adoption Lifecycle determines not just how successful a firm will be, but whether it will create competitive advantage through technology. Businesses with large fixed costs, capital-intensive business plans, and specialized asset bases will face the challenge to maintain its strategic continuity because it is generally prohibitively expensive to change direction to response to any conceivable structural change.
Sigurdson, J. (2004), ‘The Sony-Ericsson Endeavour: Part 1’, Institute of Innovation Research of Hitotsubashi Unniversity, Working Paper, (Tokyo: Japan).
Before discussing the business model of Takeda, it is essential to understand the concept of the term ‘business model’, and develop a framework with key components for analysis. This term first showed up in 1975 (Ghaziana and Ventresca, 2005), and after that year, many scholars, consultants, and other business institutions added various kinds of ideas and methods to explore and interpret the concept of ‘business model’. Some indicate that what business model provide is the construct mediating the value creation process between the technical inputs and economic outputs (Chesbrough and Rosenbloom, 2002), whereas other perceive business model as a system that is made up of components, linkages between the components, and dynamics (Afuah and Tucci, 2000).
Zott, C., Amit, R. And Massa, L. (2011) ‘The Business Model: Recent Developments and Future Research’, Journal of Management, vol.37, no.4 pp.1019-42 [Online]. Available at http://jom.sagepub.com/content/37/4/1019 [Accessed 24th November 2013]
Innovation has rapidly assumed a position of prominence in world competition on a global scale. To compete in this environment, organizations need a level of innovation. As competition becomes more global and time-based, organizations must develop and deliver new and superior products or services in less time. The challenge for modern organizations is to revitalize them so they can successfully and continuously develop newer products and enhance business development.
...ustomer base that Blackberry has a good and long relationship with. Therefore, such solutions will gain competitive advantage from its link with Blackberry since there is a clear “economies of scope” or “synergies” among the multiple business activities.
While profits from semiconductor sales are keeping stakeholders happy, Samsung is pursuing a differentiation strategy in the smartphone market. The managers are committing more resources to researching something they think will revolutionize phones. author name writes, “All smartphone makers face the issue of stagnancy in hardware innovation. Samsung is currently working on developing a smartphone with foldable displays…” (Tanner). There has not been a ground-breaking development in smart phones in the last few years, so the managers believe
When searching for the latest device you have a choice between apple, and android. These two are similar but very different. Infact these both have two different operating systems. For instance Apple uses IOS 9, apple phones can use this software. On android the software 5.0 is used. All these phones run different programs, you need to make sure that is the right phone for you. There are many different features and styles of phones you can get. Also these all come at a price. This paper will talk about all these topics to make sure you have an idea on what device you would like to buy.
When an individual decides to venture out on their own and become an entrepreneur they are taking a huge risk, one of the tools that can make the difference between being successful or failing is the Business Model Canvas (BMC). Osterwalder invented the BMC because he believed that a company’s first business plan always failed the minute it reached the customers, leaving the owners discouraged and deflated and feeling that they had wasted time, energy and money; so he wanted to create a more flexible business plan that owners can edit and make the changes needed to reach the customers needs "One Tool Startups Need to Brainstorm, Test and Win | First Round Review," n.d.). The canvas consists of nine elements or building blocks that create a visual template spelling out the business’s value proposition, infrastructure, customers and the finances (White, 2012). Breaking down the key elements that are vital to taking customers needs, wants or problems into a fruitful company
For instance, Harley Davidson may be forced to change their marketing strategy due to the entrance of a new competitor into the market. Second, Harley Davidson has to learn new skills and technologies quickly. For example, technologies are changing rapidly, so it is crucial for Harley Davidson’s business plan to change or alter in order to keep up with innovation. Third, this organization has to effectively leverage its core competencies while competing with its competitors. This is, Flexibility is required for Harley Davidson to learn how to use primary value-chain activities and support functions in the way that allow the organization to produce their products at a lower cost with differentiated features compare to their competitors in the market
When the buzzword of business model was very active and reactive during the internet boom, many individuals did not understand the concept of the proper business model for the proper business (Magretta, 2002). When not utilizing the right type of model for the organization, the model will be misused and distorted (Magretta, 2002). Understanding the traditional organization and learning organization, will allow an organization to determine which time of organization they desire the most.
Under the circumstance that the mobile phone industry entered the 3rd generation, Nokia faced competition from both macro level and industry level. For the macro level, the government encouraged competition among the operators and handset manufacturers by giving digital licenses to new entrants. As a result, the mobile phones became more sophisticated, for example, the cameras and the games in the mobile phone. For the industry level, which can be analyzed by the Porter’s Five Forces, (lecture )Nokia was facing threat of new entrants, competitive rivalry and the bargaining power of buyers is increasing as well. As the government encourage completion between the handset manufacturers, there are several new entrants from different countries enter this industry, such as Apple from USA, Samsung from Korea. These new entrants compete with Nokia in both smartphone segment and basic phone segment. Some of them even constructed “ecosystems”, which they could integrate the services and applications quickly, in order to produce the phone in just two days. For the bargaining power of buyers’ aspect, they do not need to rely on the only operating system Symbian. They can choose Windows mobile launched by Microsoft, Android launched by Google and Ios launched by Apple, in addition, basically all of them are better than Symbian (Amiya, 2010). The buyers could choose any
Kelley,T. (2005, Oct.). The 10 faces of innovation. Fast Company, 74-77. Retrieved 6th March’ 2014 from http://web.ebscohost.com/ehost/detail?vid=9&sid=1d6a17b7-c5f7-4f00-bea4 db1d84cbef55%40sessionmgr10&hid=28&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#db=bth&AN=18386009
By definition, there are at least three types of actors involved in disruption, the applicants, the officials and the customers. A business model approach to innovation considers all aspects of innovation processes and business activities for developing or responding to disruptive innovation, as opposed to a technology solution alone.
Over the past five years, RIM has changed its corporate name to BlackBerry, been purchased by private equity firm Fairfax Financial, written down over $1 billion in assets and unsold inventory, and laid off more than 40% of its workforce (Connors). BlackBerry’s fall from market leadership and financial success is the result of a corporate structure that failed to foster individual employee creativity and company-wide innovation. Financial distress, upper-management turnover, and loss of strategic direction are symptoms of BlackBerry’s problem: a failure to innovate and remain competitive in the smartphone market. Recent attempts to regain foothold in the smartphone market include the unsuccessful launches of the PlayBook tablet in 2011 and Z10 and Q10 phones in 2013. These attempts to dismantle the iPhone and Android market power have resulted in BlackBerry trying to mimic its competitors rather than producing cutting-edge products that create value for its customers.