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Business Models, Business Strategy and Innovation

Whenever a business enterprise is established, it either explicitly or implicitly employs a particular business model that describes the design or architecture of the value creation, delivery, and capture mechanisms it employs. The essence of a business model is in defining the manner by which the enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit.

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A framework for Strategic Innovation

Strategic Innovation is the creation of growth strategies, new product categories, services or business models that change the game and generate significant new value for consumers, customers and the corporation.

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Innovation-Driven Strategy: A Recipe for Business Success after Recession

For organisations that intend to effectively compete in the global landscape, they need to devise a tactical way of improving their overall efficiency through the use of innovative processes. Studies have shown that the chances of survival for companies that understand their market trends and devise creative methods of improving operational efficiency through innovation are significantly higher. EasyJet, London’s foremost airline, identified inefficiencies caused by lack of appropriate internet based technology and acted to take advantage of the opportunity by relocating about 90% of its operations to its online portal. This strategic move went a long way in improving its operations and despite soaring fuel costs, its profits rose by 10% to 68million pounds and passenger numbers increased by 21% to 29.6million in 2005.

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