Innovation and Sustainable Business Development

Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Innovation and Sustainable Business Development
Name of Student
Name of University
Author Note

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Introduction
The essay highlights the importance of business innovation and the manner in which a
business model can be implemented. The essay focuses on the Commonwealth Bank of
Australia one of the wealthiest and most popular banks in the country. Commonwealth Bank
of Australia was set up in 1911 and the bank was made into a public company in 1991. It has
1100 branches in New Zealand and Australia (Commbank.com.au, 2018). The existing
business model that is faced by the company is analysed in the essay. Moreover, the
importance of gaining profits along with maintaining the opportunities and threats are
analysed in this particular essay.
Discussion
The business model can help an organisation to make strategic decisions that are
beneficial for a company. According to Chesbrough (2010), effective decisions on the
operations of an organisation need to be maintained so that the strategic decision can be
effectively imposed. Companies operating in different sectors need to remain aware of the
internal and external factors that help in the dominance of the market. In the case of the
Commonwealth Bank of Australia, the company can lay the foundation for the assessment
and the review of the revenue that is generated. The application of the business model can
help the bank to continue with its operations and ensure that competitors such as ANZ do not
get an advantage with the people.
In this regard, the term disruption can be used to understand the business model.
According to de Jong and van Dijk (2015), disruption refers to the dissemination of business
models mainly due to the changes in the external and internal pressure in organisations. The
effects of globalisation on organisations lead managers to take such decisions that may help
in the development of the business market. Commonwealth Bank of Australia, have adopted

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
the globalisation and the rapid development of technology so that the company can maintain
its reputation in the market of Australia. As stated by Bock et al. (2012) most of the changes
in business organisations are mainly due to the involvement of technology.
Most organisations try to develop new and positive ideas so that it can maintain
operations in the competitive market. Therefore, Commonwealth Bank of Australia also aims
to develop innovative business practices so that the disruption changes can be maintained in
the organisation. In this regard, Gobble (2014) stated that with the implementation of
functionalities owing to the problems that arise in business, it is necessary that
Commonwealth Bank of Australia need to be innovative and provide lucrative offer based on
the return on an investment made by the customers. In this case, it can be said that the
application of the business models is mainly to maintain the flexibility in an organisation
(Amit & Zott, 2012). The application of the disruption method can be made by
Commonwealth Bank to understand the internal and external factors of the business
environment.
The analysis of the smart connected products that are used by Commonwealth Bank
can help the company to have great influence on the existing business. De Reuver, Bouwman
and Haaker (2013) is of the opinion that smart connected products are considered as the
physical products that organisations need to consider Organisations adopting this particular
approach can maintain a positive note for its progress. This is considered as important
technological software that is developed in the modern world. In the case of Commonwealth
Bank, this can be useful for the development and improvement of the company. According to
Euchner (2016), the bank can use the smart connected products for developing sensory
software that can help in the development of the products of the bank.