Business Model Innovation: It's Not Just About Technology Anymore

There was a time when ''Innovation'' meant that companies needed to invest in extensive internal research laboratories, hire the most brilliant people they could find, and wait for novel products to emerge. Not anymore. The costs of creating, developing, and shipping these novel products have risen tremendously. Worse, shortening product lives mean that even great technologies no longer can be relied upon to earn a satisfactory profit before they become commoditized. Today, innovation must include business models, rather than just technology and R&D. A better business model often will beat a better idea or technology. But business models are not all the same. To innovate a business model, one must first understand what it is, and examine what paths exist to improve upon it.