The Business Model Of Innovation

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The current business climate is a constantly changing and evolving beyond predictability; adaptation and cohesion are now the bare minimum that businesses must do to survive. Innovation is now a requirement for any successful corporation to not only sustain but to thrive. The manifestation of innovation often is viewed as the newest technology that enables consumers to use a product more efficiently. However, the true use and definition of innovation is commonly found in a business model in partnership with new technologies. (Teece, 2010) Recognizing the value in both halves of this equation is a characteristic found in all top competitors in the modern economy. It is required for current functionality as well as the longevity of the…show more content…
It is found, perhaps more commonly, in new ways to create value and operate rather than a new line of products. (Rigby, Christenson, & Johnson, 2002) The true definition of innovation lies in the cooperation and association of technology and business. The areas of overlap between the two show business leaders the most economizing actions and help them learn. Innovation can take many forms, from a new technology to a new product line to applying new concepts in the business model to maximize efficiency. (Teece, 2010) A lack of understanding what innovation is in both technology and business can hinder certain companies which is why it is such a crucial concept for any business to understand, accept and apply. (Nelson, 1993) For example, the mobile phone market is largely driven by technological advancements with new phones constantly being manufactured and marketed. However, a furniture store will not be involved in such technologically driven market and therefore must apply the business side of innovation in order to make larger strides. Many companies in similar markets often subscribe to the misconception that copying a business model will result in equal success, when in reality that is not up to par anymore and it is paramount that they modify and upgrade their business model constantly. Innovation is now a requirement for success in the business world and the only way to develop a competitive advantage whether it be through
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