Innovating an organization’s core offerings is one of the hardest tasks that an organization can complete. A need to innovate is largely due to an external force, such as increased competition or changes in the customer preferences, and these changes make the innovation crucial to future success. Why is innovation within organization so difficult to achieve?
Bâton Global’s clients have received sound guidance in developing strategic objectives that have created change throughout the organization. Changes, such as innovating current processes, cause difficulties to all stakeholders within the organization. What are some of the challenges that exist in innovating the existing business model?
It is easy to benchmark an existing organization’s existing business model against other organizations in the same industry. Organizations that are in need of innovation the most typically exist within industries where other organizations face the same challenge.
A thorough external analysis that looks into other industries or organizations that are innovative can help inspire creation of innovative strategies that revolutionize the existing model.
There has been great discussion regarding the innovation of specific process and product innovation, such as blockchain and the Internet of things, and their potential to transform organizations. These changes will most likely have a positive impact on an organization, but they won’t create fundamental business model innovation on their own. It has been determined that business model innovation occurs when changes keep both the customer and organization in mind. Bâton Global provides strategic planning that factors in organizational, customer, financial, and community impact.
Sound strategic planning that aligns with objectives and future goals benefiting both the customer and the organization assists in utilizing process and product innovation to create business model innovation. Organizations that create business model innovation do so by incorporating a process or product innovation with these objectives in mind.
In traditional organizations, a downfall is a lack of employee engagement and development. A strong hierarchical typically structure exists, and employee communication channels and interaction with decision makers are insufficient. In order to create fundamental business model innovation, employees need to be provided the tools and outlets to creatively think. Those who execute the objectives of an organization have close insight in the processes and systems that can evoke business model innovation.
Bâton Global has found that engaging and developing employees through community forums and the implementation of training programs at multiple levels of the organization lead to higher levels of critical thinking. By providing development opportunities, organizations promote innovative thinking, expression of opinion, and the fostering of more discussions around business model innovation.
Solutions to business model challenges can be applied through the implementation of a strategic management system. Bâton Global has established management systems for clients that are tailored to the continuous improvement goals of the organization. These systems assist in solving the challenges in seeking business model innovation, and solutions are implemented by the organization with guidance from Bâton Global.