Growth and productivity remain major challenges in the global economy. A significant body of industrial and academic insights has long been advocating the power of business models in acting as the bridge between technology and the ability to deliver a compelling customer value proposition.
In the present era of an unprecedented pace of technological innovation and a resultant increase in the rate of digitalisation of the economy, new ways of doing business, such as through additive manufacturing and the Internet of Things (IoT), require new models for coping with novel forms of stakeholder and customer value, as well as revenue streams.
The power of disruptive business models in current hypercompetitive markets is already evident in the rise of companies such as Uber, Airbnb and the emergence of Apple Pay, and importantly how they are able to frame how value can be realised from existing assets, how value can be created and how it can be captured from new applications. Equally, in order to attract investment and commercialise the opportunity, start-ups are a case in point in the evolution of viable business models to create competitive advantage while contributing to productivity and growth. Creation of innovative business models also provides the opportunity to explore the impact and value of applying technologies from one domain to another.
However, business model innovation is not without its challenges. The innovation of business models requires a multidisciplinary effort given that modern ways of doing business go beyond the traditional concepts of business change.
Ultimately, the key to a successful realisation of innovations lies in utilising business models with a view of facilitating identification of routes to impact, ability to convert discovery into real value, increased productivity and wealth generating activity.