Exploring Business Model Innovation

This assignment examines the critical aspects of business model innovation. It analyzes the definition and significance of a business model, outlines various theories related to creativity and innovation, and investigates the process of scanning and understanding environmental factors influencing business models. The assignment emphasizes the importance of leadership and distributed leadership in driving innovation within organizations.

REFLECTIVE ESSAY FOR BUSINESS
CREATIVITY
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Table of Contents
Introduction on creativity.....................................................................................................................3
Main body ............................................................................................................................................3
Conclusion ...........................................................................................................................................6
References............................................................................................................................................8
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INTRODUCTION ON CREATIVITY
Creativity is an act of turning new and imaginative ideas into reality and it is also
characterised by the act of conceiving something unusual and different. Invention is the creation of
something that has never been made before. Innovations can be incremental and immoderate;
however, most of the time, improvements in business entities are incremental. Thus, regarding this
concept, present research study is showing different concepts of innovation and creativity and the
way it can be applied in business processes (Tschmuck, 2012). While working on this module, I
have learnt varied things regarding both the concepts and the way it should be used for growth and
success aspects. I have attended different training sessions and workshops and all the sessions have
helped me to gain knowledge about creativity and innovation. While accessing module, I came
across with the theories of innovation which helped me to analyse what assist organizational people
to become more creative and innovative in their roles and responsibilities (Stacey, 2016).
MAIN BODY
During my training session, I learned a few things about The Psychoanalytical Theory of
Creativity like people have become creative as a reaction to difficult circumstances which also
change their emotions and reactions. However, on the other side, theory fails to consider that people
are both biological and social beings. Regarding this, I would like to add that “The Six Thinking
Hat Model” was also useful for me in becoming more productive and focused towards different
activities (The Five Major Theories of Creativity. 2013). This seems to be very interesting as I
learned the concept of different colourful hats and the manner in which it assist individuals to
become more capable and innovative. In order to enhance my learning level through this module, I
reviewed the creative process as well which has four major stages and each stage shows how
innovation can be appropriately implemented in the business activities and areas (Spillane, 2012).
According to my understanding level, I can say that while introducing new processes and activities,
entrepreneurs have to recognize its need along with the ways of application. It not only generates
the opportunities of success; but also helps business entities to become different from that of other
organizations.
I have accessed several case studies through which I came to know about the use of business
canvas model (Selznick, 2011). Hence, stating about 'The Business Model Canvas', I can contend
that it is a lean start up template which has visual charts with numerous elements that describes
firm's infrastructure and its resource capabilities. Model has also assisted me to comprehend the
need of aligning organizational activities. Major components of business model help entity to
enhance customer satisfaction along with the customer base. For instance, at the time of brining
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innovative products and services at the market place, organizations have to emphasize on customer
segments and according to that, specific markets should be determined. Other vital component is
value proposition in which Quantitative and Qualitative attributes of creativity and innovation are
depicted. Similarly, channels of providing products should also be determined so that convenient
sources can be delivered to the respective customers (Schein, 2010). The model also specifies that
business entities should develop appropriate customer relations so that long term sustainability and
growth perspectives can be amended. At the same time, revenue streams are also required to be
applied so that business can follow proper methodology to sell the products and services. Revenue
can be generated from different purposes like asset sale, usage free and subscription fee as well as
through renting (Norman and Verganti, 2014).
The model also describes that key resources are the fundamental aspects of business through
which value can be given to the customers. Thus, I can say that while introducing innovation and
creativity, business has to make arrangement of different resources. Major part of business model
contends that organizational practices should be streamlined with numerous partners so as to reduce
all sorts of risks and uncertainties (SCANNING YOUR BUSINESS MODEL’S ENVIRONMENT.
2009). Concluding this, I can state that while adopting new practices, entrepreneurs should
breakdown all the activities in a prominent manner. While starting up of any new business entity, it
is essential to develop a good understanding of external and internal business environment. On the
basis of four major components (market forces, industry forces, driving trends and macro-
economic trends), business environment can be scanned. The analysis is imperative because
economic landscape of business entity is driven by growing complexity and market disruptions. The
entire concepts of business model have helped me to learn various things about creativity and
innovation (Johnston and Bate, 2013). I read about business model patterns as well and thus, I can
say that they are reusable components which can be utilized in generating a new business model.
There are diverse patterns in the model and all can be used to create a new business model.
Apart from this, creativity can be introduced appropriately in the organization through
Business Model Design Process which is integrated with different stages and phases. It is an
apparent aspect that prior implementing business model, objectives should be determined so that the
purpose of facilitating innovation can be specified (The Key Components of a Business Model.
2016). I have analysed that existing business entities can also facilitate innovation in the practices.
However, flexibility is required to be implemented in the business activities so that future
sustainability of business can be defined. While accessing diverse case studies, I came to know that
business always faces challenges and issues at the time of introducing innovation and creativity
(Herrmann and Herrmann-Nehdi, 2015). Market forces are uncertain; therefore, every business
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entity should identify the scope of executing innovative and creative practices. Regarding this,
employees of the organization also play a major role in this area. Here, entrepreneurs have to ensure
that business products and services are introduced according to the recent trends and market
conditions.
In order to manage creativity, business entities emphasize on external and internal
environmental analysis which gives exact idea about organizational work aspects. I have seen so
many cases in which organization uses strategic models for the purpose of adopting new strategies
and practices (Guide to business model design process. 2015). I wish to specify certain things about
SWOT analysis and environmental analysis as that helped me to grab knowledge about
organizational internal strengths and weaknesses. SWOT analysis is a chief tool which helps the
business entity to analyse own skills and potential and how it assists in managing diverse business
activities (Grissemann, Plank and Brunner-Sperdin, 2013). While applying the business model, it is
essential for the organization to determine own competency and capability. For every business
entity, strategic formulation is essential as through that only, creativity can be developed. SWOT
analysis is regarded as a useful tool since it assists in specifying affirmative as well as pessimistic
aspects for any business entity. It is also one of the most renowned tools for audit. The tool also
analyses the overall strategic position of the business and its environment. I have observed that
business entities uses SWOT model for the purpose of identifying the strategies that can enhance
existing business capabilities and competencies (Dugan, 2011).
SWOT analysis is beneficial for strategic planning and also for analysing the opportunities
of competitive growth. With the help of this model, success aspects can be analysed and according
to that, organizational resources can be maximized for longer time span. Most of the business
organizations use this model for the purpose of identifying the upcoming challenges that can affect
the business aspects (Crevani, Lindgren and Packendorff, 2010). Thus, similarly new trends can be
adopted by the business firms regarding innovation and creativity. The framework provides
information that assist in synchronizing the firm's resources and capabilities with competitive
environment in which the firm operates. However, on the other hand, SWOT analysis insufficiently
emphasizes on research and development aspects. Further, it does not provide mechanism to rank
the significance of one factor that is integrated in the list (Carayannis and Campbell, 2012). In
addition to this, SWOT analysis can also become outdated fairly and as a result, it can impact
business aspects and practices.
In this regard, I have also learned that in order to become more competitive, organizations
have to develop various strategies that can help in creating competitive edge over the rivalries. Blue
Ocean Strategy is useful for cut throat competition in which business entities have to emphasize on
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different models and strategies so as to survive in the same market place. All the business
organizations compete with each other so as to acquire greater market share (Baden-Fuller and
Haefliger, 2013). The competition is often so intense that some firms cannot sustain themselves
with existing business operations. Hence, according to my research, I can say that in order to avoid
costly competition, firms can innovate and expand business through blue ocean strategy. A blue
ocean strategy exists where no firms currently operate and it also leaves the company to expand
without competition. Besides this, I have also reviewed journals about Jay Galbraith’s star model
which consists of a series of design policies that can be controlled and managed (Norman and
Verganti, 2014). Further, the framework has direct impact on employee behaviour. The policies are
the tools through which management can enhance efficiency level. This is also vital to shape
organizational decisions. There are basically five dimensions included in the model such as strategic
facets that determines firm's directions; structure which is useful for enhancing decision-making
capability; processes that manages flow of information; rewards that provides motivation and lastly
selection of right people that encourages or maximizes organizational efficiency through playing
diversified roles (Johnston and Bate, 2013).
CONCLUSION
Hence, articulating my overall experience, I can state that my learning level has increased a
lot as I have studied many things regarding innovation and creativity. I have undergone with
different plans and procedures and that helped me to ascertain the value of time management in
organizational practices (Tschmuck, 2012). In some of the sections, I worked with number of people
and thus, I came to know that team management as well as organizing skills are highly useful when
an individual works in a team or group. The entire study has helped me to comprehend that
innovation and creativity is not as easy as it looks; but it is far complex and challenging. From
workplace context, employees have to emphasize more on critical and analytical thinking so that to
contribute in organizational work practices (Stacey, 2016). After completing the study, I came to
realize that I have developed various abilities and competencies which could assist me in future
perspectives. I have prepared a module on innovation and creativity and there in I have included
several models that helps the business entity to facilitate innovation in existing practices and
processes.
Apart from this, stating about my roles and responsibilities, I can say that I used to direct
other team players so that all can work in same directions as per the areas of requirements
(Grissemann, Plank and Brunner-Sperdin, 2013). After completing the entire session, I realized that
I need to develop various areas such as problem solving skills, leadership skills, management skills
and influencing skills. According to my career goals, it is my aim to work as a leader; therefore for
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such purpose I have to develop leadership skills so that I can direct others to work according to my
directions. It is also vital for me to emphasize on influencing ability for the purpose of getting the
things done through my team mates. For a leader, it is imperative to have suitable problem solving
skills so that grievances and conflicts among employees can be solved in prominent manner. I
should have to organize my work according to the plans and schedules so that I can reach up to my
career growth and opportunities (Dugan, 2011). Thus, concluding the entire research work, it can be
said that instead of attending diverse sessions, I have to develop numerous capabilities that could
assist me to make my career grow in this competitive scenario.
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REFERENCES
Baden-Fuller, C. and Haefliger, S., 2013. Business models and technological innovation. Long
range planning. 46(6). pp.419-426.
Carayannis, E. G. and Campbell, D. F., 2012. Mode 3 knowledge production in quadruple helix
innovation systems. In Mode 3 Knowledge Production in Quadruple Helix Innovation Systems
(pp. 1-63). Springer New York.
Crevani, L., Lindgren, M. and Packendorff, J., 2010. Leadership, not leaders: On the study of
leadership as practices and interactions. Scandinavian Journal of Management. 26(1).pp. 77-
86.
Dugan, J. P., 2011. Research on college student leadership development. The handbook for student
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Grissemann, U., Plank, A. and Brunner-Sperdin, A., 2013. Enhancing business performance of
hotels: The role of innovation and customer orientation. International Journal of Hospitality
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<https://www.cleverism.com/guide-to-business-model-design-process/>. [Accessed on 28th
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Power of Whole Brain Thinking in Organizations, Teams, and Individuals. McGraw Hill
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creativity and strategic planning to discover great business opportunities. AMACOM Div
American Mgmt Assn.
Norman, D. A. and Verganti, R., 2014. Incremental and radical innovation: Design research vs.
technology and meaning change. Design Issues. 30(1). pp.78-96.
SCANNING YOUR BUSINESS MODEL’S ENVIRONMENT. 2009. [Online] Available through:
<http://businessmodelalchemist.com/blog/2009/07/scanning-your-business-models.html>.
[Accessed on 28th June 2016].
Schein, E. H., 2010. Organizational culture and leadership. John Wiley & Sons.
Spillane, J. P., 2012. Distributed leadership. John Wiley & Sons.
Stacey, R. D., 2016. The chaos frontier: creative strategic control for business. Butterworth-
Heinemann.
The Five Major Theories of Creativity. 2013. [Online] Available through:
<http://www.ripperdesignandmultimedia.com/2013/03/26/the-five-major-theories-of-
creativity/>. [Accessed on 28th June 2016].
The Key Components of a Business Model. 2016. [Online] Available through:
<http://www.lumosforbusiness.com/blog/723>. [Accessed on 28th June 2016].
Tschmuck, P., 2012. Creativity and innovation in the music industry. In Creativity and Innovation in
the Music Industry (pp. 225-251). Springer Berlin Heidelberg.
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