Innovation and Business Model at Commonwealth Bank, Australia

Running Head: Innovation and Sustainable Business Development
Commonwealth Bank
Innovation and Sustainable Business Development

Innovation and Sustainable Business Development 1
Innovation and Business Model at Commonwealth Bank, Australia
The most crucial elements of organizational life are disruption and business model. Business
model acts as the structure for a business that includes sundry aspects for an organization. All
these aspects consists key capabilities and resources which plays crucial role in terms of overall
environment of a business enterprise. The main aim of an organization is to gain competitive
advantage and attaining sustainable growth and development. In relation with this, it is necessary
to adopt an effective and sustainable business model. Environment of business and its resources
are crucial elements for an organizational success and it also plays crucial role in terms of
reaching to the desired destination (Paetz, 2014).
With regards to the determination of significance of business model, this report will focus over
the two crucial aspects of Commonwealth Bank Australia (Commonwealth Bank, 2018). These
two crucial aspects are disruption and business model. Apart from this, this report will also focus
over the innovation at Commonwealth Bank under which some smart-connected products will be
discussed. With regards to this, opportunities and threats linked with the smart-connected
products and the business model canvas of Commonwealth Bank will be discussed along with
the capabilities, resources and value propositions (Porter & Heppelmann, 2014).
Business model describes the structure of business and this term is being used in the business
formats since last few years. Business model describes the structure of a business enterprise but
in order to compete with the other companies in the dynamic and competitive business
environment, most of the organizations seem to alter, modify or adopt innovation in their
business model. Main aim behind this is to gain competitive advantage. Business model
framework includes all crucial components of a business which plays crucial role in terms of
enhancing the efficiency and competency of a business enterprise. In relation to this, business
model canvas is the essential element and significant concept of strategic management which all
are necessary to develop effective business models (Porter & Heppelmann, 2015).
It acts as a visual structure which includes customers, resources, value propositions of products
of company, finance and other components. Dealing with external business environmental
challenges becomes quite easy task for companies with the help of business model canvas as it

Innovation and Sustainable Business Development 2
leads to develop an effective business model. This has also been considered as the vital element
for raising funds for the organization as well as to enhance the productivity. Along with this, this
also acts as the mediator between strategy and the processes of an organization and reduces the
gaps amongst to make organizational practices effective and efficient. This process is also
effective in terms of managing the organizational functionalities so as to provide adequate
benefits to the consumers. This also includes various types of resources and key findings which
help the company to tackle the situation in the appropriate manner and it also plays crucial role
in approaching the target audience (Christensen, Raynor & McDonald, 2015).
Implementation of disruption has been a common practice nowadays as it plays crucial role in
performing effective functions in the competitive industry. Disruptive innovation is a term which
indicates the field of business administration. It refers to an innovation which creates new
markets or modifies existing products of the organization to acquire an effective position in the
existing market. Thus, disruptive innovation takes place in order to develop new markets and for
enhancing customer base. Innovators are considered as crucial part of an organization and it has
also been considered that all disruptors are innovators but all innovators cannot be disruptors.
Disruptive technique enhances entrepreneur’s thinking in order to perform organizational
functionalities in an effective manner. This enhances the success and growth of the organization
and in terms of increasing productivity, disruptive innovation leads to generate various new
methods. Value dimensions are also developed with the help of disruptive technique. Dimensions
which are created with the help of disruption are lower prices, accessibility, simplicity,
convenience to customers, etc. In relevance to this, organization could improve its brand value,
productivity, and reliability amongst the target audience which are necessary elements to gain
competitive advantage in the target market. Disruptive technology has allowed the companies to
practice smart-connected devices in relation with increasing the effectiveness of their operations.
Smart connected devices are helpful for businesses as it acts as a medium of information
exchange between the business organizations to its users. Some of the smart connected assets
and products are sensors, software, etc. Using smart connected devices in the business operations
are leading the companies to enhance its efficiency along with the development of an effective
image in the market. Opportunities increases for the companies with the help of smart connected