Note on Business Model Innovation: It Can Be as Critical to New-Business Success as Technology Innovation

by: James D. Price

Publication Date: February 27, 2009
Length: 7 pages
Product ID#: 1-428-784

Core Disciplines: Entrepreneurship & Innovation

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Teaching Note

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Surprisingly, the dominant competitor that eventually surfaces in many industries does not garner its sustainable competitive advantage through the expected paths of either technological or product innovation, on the one hand, or dominant spending to buy market share, on the other. Rather, the winners in surprising number of large markets establish dominance by creatively innovating around their industry’s established business models. This note examines how this has worked for companies in a number of widely varied industries, and how business model innovation can be applied effectively by executives in any industry or market. This note examines the secrets to Bright Horizon’s success, and walks students through the process of incorporating innovation into their own business models.

Teaching Objectives

After reading and discussing the material, students should:

  • work through the process of incorporating innovation into their own business models.