4 - 594F11 - Global Innovation Management Global Innovation...

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Global Innovation Management Global Innovation Management Chapter 4: Business Models Global Innovation Management Why Business “Process” Models Matter “During the dot-com boom, ‘Business Model’ was a buzzword routinely invoked to glorify all manner of half-baked plans” -- Michael Lewis Global Innovation Management Why Business Models Matter • Telling a good story – Part of selling your strategy / investment • Tying Narrative to Numbers – Strategy becomes less philosophy – More performance and outcome • When business models don’t work • It’s because the fail either – The ‘Narrative’ test – Or the ‘Story’ test Global Innovation Management The Context of Business Models Global Innovation Management A business model is not strategy • It doesn’t describe external forces: – Competition – Environment – Scaling • It only depicts the systems that will be put into place to achieve a strategic objective • A good model is not enough – The boxes on the value map need to be understood in depth – In order to develop a good strategy R&D Customer Relationship Management Labor Customers Factory Work Production M a r k e t i n g N e e d s D e s i g n s Global Innovation Management Business Model vs. Strategies Out come s Processes Profit-maximi zing Eme rgent Deliberate Plural Classical Evo lutionary Systemic Processual 1 9 7 s 1 9 8 s 1 9 9 s C la s s ic a l M ilita r y S tr a te g y Global Innovation Management Classical (Porter) Strategy Outside the Firm (Markets) Global Innovation Management The Value Map • Firms create that deliver low-cost or differentiated products – By performing the activities – Of their value configuration – (i.e., value chain, value network, value shop, profit chain) • To perform these activities – A firm needs resources (assets): • Manpower, money, machines, methods, materials • Plants, equipment, patents, scientists, brand name recognition, geographic location, client relations, distribution channels, trade secrets Global Innovation Management Your Value Map builds a Process Model around Your Capabilities • A firm’s assets and competences together – Make up its capabilities • For example, – Intel • Capabilities = integrated circuit design & semiconductor manufacturing • Assets = patents, copyrights, installed base of PC’s (Intel inside), reputation, scientific expertise • Competences = protection of intellectual property, fast product time to market, compatibility of new products with prior genrations Global Innovation Management Graphing the Value Map • External competitive environment (supply & demand curves) • Internal strategies, competencies, knowledge, assets ‘owned’ • Value flows between owners and/or the external environment Global Innovation Management...
View Full Document

This note was uploaded on 11/02/2011 for the course IDS 594 taught by Professor Staff during the Fall '08 term at Ill. Chicago.

Page1 / 37

4 - 594F11 - Global Innovation Management Global Innovation...

This preview shows document pages 1 - 11. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online