Innovation and Sustainable Business Development: Business Models and Disruptions

Innovation and Sustainable Business
Development – ASSIGNMENT 1: Individual
essay and video: Business models
1 | P a g e

Contents
Business Model and Disruptions................................................................................................3
Opportunities and threats caused by the advances in smart-connected-product........................3
Opportunities..............................................................................................................................4
Threats........................................................................................................................................4
Illustration of findings using the Business model by Osterwalder & Pigneur...........................5
Business Model of Perspectives.................................................................................................6
Business Model as Value Proportion.........................................................................................6
Business model as a set of capabilities and resources................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................8
2 | P a g e

Business Model and Disruptions
In the assignment provided below the major theme of focus would be the business model of
an organisation which will be analysed such that the innovation in the practices can be
effectively defined and identified by the user. The business model of the company is the plan
of the company in which the description of the activities and major objectives of the company
is provided (Chesbrough, 2010). Using the business model, the company is able to plan for
revenue generations, making profits and targeting the selected markets. It should be noted
that each and every organisation irrespective of their scope of operations have a unique
business model which sets them apart from the competition and other companies in the
industry (Souto, 2015). In a good business model, it is essential for the owner and the BOD to
have the idea about value proportion of the business which helps in enhancing the business
plan of the company.
On the other hand, the term disruption can be defined as the interruption in the current and
constant practices in the industry or in a process. In this essay, the disruption is linked with
the innovation which has the potential to hamper the current technological processes and
working with other organisations (Jong & Djik, 2015). Thus disruptive innovation can be
defined as an act in which the current practices are altered and implementation of such
technology creates a new value network and a new market.
Opportunities and threats caused by the advances in smart-connected-product
In order to analyse the concept of smart connected products the company that has been
chosen for the same is Volvo which is one of the major car and truck manufacturers in the
world. The Sweden based company has been identified to be using various innovative
practices in its business models and products which have caused disruptions in the industry
on major levels (Porter & Heppelman, 2014). In order to get a competitive edge in the
industry, the smart connect technology used by the organisation is the Ericsson’s Cloud-
Connected Service which the company has taken from Ericsson technologies limited. The
technology has been installed in the cars and trucks manufactured by the organisation which
given the company an added advantage over its competitors. This technology has helped the
company in developing the future based solution in order to analyse the driver’s behavioural
expertise and know-how of the systems integration. It should be noted that the
3 | P a g e