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Business Model Innovation Basics Series - Part 1: What is a Business Model?

The BMI Lab Blog

Magretta, 2002). WHO – Every business model serves a certain customer group (Chesbrough and Rosenbloom 2002; Hamel 2000). Magretta 2002). According to the degree of innovation, innovations can be divided into evolutionary and disruptive innovations. And what does the customer value?

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Customer Orientation Effects on Innovation

Integrative Innovation

For example, cordless telephones were a radical innovation relative to wired phones because they were based on a substantially new technology; however, their customer base was essentially the same. Disruptive innovation does not necessarily involve cutting-edge new technology, as radical innovation does.

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Spotting Innovation Opportunities

ITONICS

If a company focuses on incremental innovation and simple stage-gate ideation processes only, it won’t keep up in the long run. In addition to transforming a whole industry, disruptive business models also push and promote paradigm changes. Is there a pattern for disruption & breakthroughs?