This article is part of THNK VIEWS. We bridge theory and practice on organizing imagination and innovation by extracting key implications and offering new insights to innovation practitioners from a rich database of research papers. This article is based on the research paper Business Model Innovation: Propositions on the Appropriateness of Different Learning Approaches by Petra Andries and Koenraad Debackere and looks at business model commitment and experimentation.
Successful business model innovations (BMI) can disrupt entire industries and change the rules of the game. While most companies actively look to bring new products and services to the market, business model innovations are usually left to startups that have yet to find their ideal value proposition, customers, or overall success formula —incumbents prefer business as usual. Understandably so: expanding products or service lines is easier than changing a firm’s entire strategy and logic. BMI requires changes be made to the systems, processes, and visions underlying your products and services. Why change a strong formula? For one, chances are outside conditions are changing, causing you to lose out on business in the long haul. This is what a new study suggests.