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Business Model Innovation |
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Business Model or Management Innovation is a
marked departure from traditional principles, processes, and practices
that significantly alters the work of management. Management innovation
changes how managers do what they do, which typically includes:
- Setting goals and laying out plans
- Motivating and aligning effort
- Coordinating and controlling activities
- Accumulating and allocating resources
- Acquiring and applying knowledge
- Building and nurturing relationships
- Identifying and developing talent
- Understanding and balancing the demands of outside constituencies
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In The Why, What and How of Management Innovation Gary Hamel says Innovation in management principles and processes can create long-lasting advantage and produce dramatic shifts in competitive position. Over the past 100 years, management innovation, more than any other kind of innovation, has allowed companies to cross new performance thresholds.
Yet strangely enough, few companies have a well-honed process for continuous management innovation. As we look at most innovative organisations we tend to find traditional management methods, most of which are based on 100 year old principles.
The Business Model Innovation that has taken place was usually done to take advantage of new technology (Google, EBay), or the idiosyncrasies of the leader (Branson at Virgin and Semler at Semco).
There would seem to be many good reasons to take a deliberate approach to Management Innovation, and yet it is clearly challenging for even the most successful companies. Mindwerx works with organisations seeking change, and creatively challenging the pervading business model would seem to be a valuable starting point.
Mindwerx. Inspiring Creativity & Innovation
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