What is the significance of business model innovation?

Innovative business model is what many people are talking about now. What is the significance of this business model innovation? I brought you some knowledge about the innovative significance of business model, which you may need.

Significance of business model innovation

1, break through the growth ceiling and make rapid progress.

A company that has worked for many years has little change in sales. The reason is definitely not the management mode. It is often because the business model and capital model are not in place. Because of the limitation of business model, enterprises can only do so much. If the business model does not change, they can't do higher things. Only when the business model changes can enterprises achieve leap-forward development.

2. A sharp weapon to cut into high-profit areas

For any enterprise, there is a value chain. Because the value of the value chain itself is different, every dollar invested in different links of the value chain and everyone hired will definitely produce different returns, so the business model will help enterprises cut into high-profit links.

3. Reduce the cost of selection and trial and error.

Waste is more terrible than corruption, because only a few people are corrupt and everyone can waste it, but decision-making mistakes are more terrible than waste. Every entrepreneur and investor has to face many decisions every day. A decision-making mistake can make all the capital gone forever, and a management mistake may be redeemed. Therefore, the business model can point out the direction for decision-making and reduce decision-making mistakes.

4. Maximize the role of resources.

Companies with heavy assets are most vulnerable to the financial crisis, such as steel, automobiles, airplanes and other industries. Because asset-oriented companies have low resource utilization, such as Lenovo Group, which was founded in 1984, now has more than 20,000 people, with sales exceeding 100 billion, but its market value is only 20 billion RMB, while Jin Feng Technology was founded in19980 billion RMB. The market value of Jin Feng Technology is more than twice that of Lenovo, because its resource utilization rate is higher, not higher assets and higher sales, but higher resource utilization rate and utilization level. Business model design is to help enterprises improve resource efficiency and enhance enterprise value.

5, the power of the lever through the power of the model with small strokes.

As we all know, fingers can't pierce the bottle, but if you hold a gun, your fingers can break the bottle. A pistol is a model that can amplify the power of resources.

6. Change is predictable

There are many products in China, such as Shangtong, Shanzhai, Beijiajia, etc., which have earned a lot of money in a few years, but their model itself doomed the products to go far. When you see a model, you will know the future development of this enterprise.

7. Innovative mode with mode

Only by continuous development, evolution, innovation and improvement of the model can enterprises develop continuously for a long time.

Importance of business model innovation

1. What is a business model?

Many people have their own understanding of the business model. Some people say that the business model is a profit model, how to make money. It has also been said that the business model is the operation model, how to run a product well, how to give users better service and so on. Some people will say that the current B2C model, B2B model, online and offline are all business models. Business models include strategic model, operation model and profit model.

So what is the core of the business model? I think the core of business model is to break the rules and break the rules.

Second, the difference between business model and strategic model?

As I said before, some people will think that the strategic model is actually a business model. But there is a difference between the two. The difference is that the business model is innovative and integrated thinking from the perspective of industry, and the strategic model is competitive thinking from the perspective of enterprise.

Third, when making products, we should make market positioning according to the business model!

The business model is like a highway intersection. The right business model will determine that we are going in the right direction. So our market positioning in this process is based on the business model, including our user positioning and so on.

Four modes of business model innovation

1, profit model innovation;

2. Innovation of operation mode;

3. Innovation of industrial chain mode;

4. Value innovation

The newly introduced business model may not only be different from the existing business model in terms of components,

It may also be different from the existing business model in terms of factor relationship or dynamic mechanism. However, it is the driving force and source of enterprise growth, so enterprises must constantly innovate and be brave in innovation in order to be invincible in the ever-changing business environment!

Characteristics of business model innovation

The concept of innovation can be traced back to Schumpeter, who proposed that innovation refers to the introduction of new combinations of production factors and production conditions into the production system. There are five forms: developing new products, introducing new production methods, exploring new markets, obtaining new sources of raw materials and adopting new forms of industrial organization. Compared with these traditional types of innovations,

First, business model innovation pays more attention to the behavior of design enterprises from the customer's point of view, and the perspective is more open and outward, paying more attention to and involving the economic factors of enterprises. The starting point of business model innovation is how to fundamentally create added value for customers. Therefore, the starting point of its logical thinking is the customer's demand, and how to effectively meet it according to the customer's demand is obviously different from many technological innovations. A technology can have multiple uses. From the perspective of technological innovation, it is often from the characteristics and functions of technology to see what it can be used to do and find its potential market use. Even if business model innovation involves technology, it is mostly related to economic factors, economic value and feasibility of technology, rather than purely technical characteristics.

Second, business model innovation is more systematic and fundamental, not a single factor change. It often involves many major changes in the business model at the same time, which requires a major strategic adjustment of the enterprise organization and is an integrated innovation. Business model innovation is often accompanied by product, process or organization innovation, otherwise, it may not be enough to constitute business model innovation. If new products or new production processes are developed, it is generally considered as technological innovation. Technological innovation is usually to produce tangible products. But now is the era of service. For example, the proportion of service industry in the United States in 2006 was as high as 68. 1%. For traditional manufacturing enterprises, service is far more important than before. Therefore, business model innovation is often reflected in service innovation, which is manifested in innovative changes in service content, methods and organizational forms.

Thirdly, from the performance point of view, if business model innovation provides brand-new products or services, it may open up a brand-new profitable industry field, even if it provides existing products or services, it will bring more lasting profitability and greater competitive advantage to enterprises. Traditional forms of innovation can improve local internal efficiency and reduce the cost of enterprises, and it is easy to be imitated by other enterprises in a short time. Business model innovation, although also manifested as enterprise efficiency improvement and cost reduction, is more systematic and fundamental, involving multiple factors changing at the same time. Therefore, competitors are more difficult to imitate, which often brings strategic competitive advantage to enterprises, and this advantage can often last for several years.

Development trend of business model innovation

In recent years, business model innovation has attracted unprecedented attention in China, not only in the business community, but also in academic institutions and some government departments. For example, business model innovation is an important research content of the Innovation and Development Research Center of Chinese Academy of Sciences. In February 2007, with the support of the Development and Reform Commission and China Academy of Sciences, the Innovation and Development Research Center of China Academy of Sciences was established, and the business model innovation research was included in the key work of the center. Qiao Weiguo, a postdoctoral fellow in the center, undertook the research work on the theory and practice of business model innovation, and systematically combed the theoretical research achievements and important business model innovation practices at home and abroad for many years. Business Model Innovation was published by Shanghai Far East Publishing House in May 2009.

Innovation and entrepreneurship is one of the main themes of China's economic and social development in the coming decades. Business model innovation is its high-end form and an important force to change the industrial competition pattern. The practice of business model innovation has gone beyond the traditional enterprises whose main purpose is profit, and extended to social enterprises, non-governmental organizations and government departments. Business model innovation is not only needed by traditional for-profit enterprises, but also by social enterprises, NGOs and government departments. In short, business model innovation will be more important in China.

In Hangzhou, business model innovation enterprises can be rated as high-tech enterprises and enjoy corresponding government policies. In the context of deepening regional competition, other local governments are also introducing or planning to introduce similar policies. Institutions such as the Innovation and Development Center of the Chinese Academy of Sciences are also studying government policies at the seminar level. Therefore, we have reason to believe that business model innovation enterprises will soon get more and more powerful support and promotion from the government.