Rita McGrath

Finding Opportunities in Business Model Innovation

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Abstract:
It is a truism in organizations that it is often easier to punish sins of commission than of omission. Proactive actions that lead to disappointment are punished, while simply doing nothing and keeping the wheels of business turning is in many organizations a safer route to success. One unfortunate consequence is that people in companies cling to existing business models when the conditions that made them successful have changed. Failing to shift resources into new models quickly has been many a firm's undoing. Even when companies do change, it is often a result of unpleasant near-death experiences. Xerox, IBM and Nokia are all firms that nearly went bust before the imperative to do something new overcame the inertia of clinging to the familiar. The pity is that often embracing new business models is an established organization?s best hope to re-ignite its growth engine.

Exact Citation:
McGrath, Rita. "Finding Opportunities in Business Model Innovation." The European Financial Review (June 2011): 14-17.
Volume: N/A
Pages: 14-17
Date: 6 2011