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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). Business Models in the context of Innovation A common way to differentiate innovations is the categorization according to two generic characteristics: 1.

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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. DVD players provide another example, as they used optics technology as opposed to the magnetic technology used in VCRs.

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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. Although many disruptive companies are based on new technologies, this path does not automatically lead to success. Having only one good idea won’t help companies to survive.