BMID … Whose Job Is It Anyway?
Julie Fleischer c/o Innovation Ecosystem points out a big problem in corporate business model innovation, namely that it has no real homebase in organizations: Whose Job Is It Anyway?
Referring to an article by Henry Chesbrough in the WSJ she collects some of the reasons companies are unable to create new business models:
they have entrenched infrastructures and a vested interest in maintaining them, they struggle to see the world as it could be vs as it is, they are risk averse, insular and myopic. They are fat and happy.
Chesbrough also firmly lays out the case that firms need more innovation with regard to business models:
In most companies, innovation is the responsibility of the technical side of the organization. The research and development staff is supposed to come up with the cool new technologies, and the rest of the company takes them to market.
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This is the next wave in innovation: to innovate the business model that commercializes promising new ideas and technologies. Doing so is, for the most part, a simple process of trial and error.
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One problem is an organizational gap in most companies: Who is responsible for business-model innovation? It can’t be left to the chief technology officer and his or her staff alone; business-model innovation clearly requires leadership from the business side of the organization. Yet who within the company short of the CEO is responsible for the way the business creates value in its products and services and captures that value in the form of revenue from its customers?
Yet more to read …
