Innovation and Sustainable Business Development

This article reflects on the impact of smart connected products on the existing business model of Commonwealth bank Australia. It defines the business model and disruption, analyzes opportunities and threats, and evaluates the value proposition and capabilities and resources. The article provides a comprehensive overview of the innovative and sustainable business model of Commonwealth bank Australia.

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

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Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Contents
Introduction................................................................................................................................2
Company overview....................................................................................................................2
Definition of Business model and Disruption............................................................................2
Opportunities Developed...........................................................................................................3
Threats Recognized....................................................................................................................3
Value Proposition analysis.........................................................................................................3
Analysis of capabilities and resources.......................................................................................4
Conclusion..................................................................................................................................4
References..................................................................................................................................5

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Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Introduction
 It is focused on the defining the business model and disruption.
 It is reflecting on the analysis of the opportunities as well the threats due to the
implementation of the smart connected products.
 It is based on the impact of smart connected products on the existing business model
of Commonwealth bank Australia.
 It is also reflecting on the analysis of the two business perspectives involving the
value proposition and the set of capabilities and resources
Company overview
 It is the largest bank in Australia providing financial services which provides help for
the customers.
 It has its operations in the countries like Indonesia, North America, New Zealand and
Europe as well.
 The company provides huge and diverse portfolio of services like the personal loans,
home loans, insurance, credit cards and other services as well.
 This is the most trusted and reliable bank providing their best of the services in
Australia.
Definition of Business model and Disruption
 This is the strategic tool useful for the development and maintenance of the
operations.
 The business model is not fixed and it should be changed from time to time.
 The business model is needed to change in order to make it effective and innovative.

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Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
 This is a by far considered as the revenue model which should be highlighting and
assessing that how profitability should be measured and identified.
 It is represented by the business model canvas where these nine blocks will be
developed and pictorially represented.
 The disruption in the business model takes place sometimes due to the changing
environment.
Nine blocks of business model concept
 Key partners
 Key activities
 Key resources
 Key customer segments
 Customer relationships
 Value propositions
 Channels
 Cost structure
 Revenue streams
Opportunities Developed
 Streamlining and flexibility in the operations for the existing business model.
 Greater stability in the existing business model.
 Innovation to be done for the business model.
 Reliability and higher effectiveness of the business model takes place due to the smart
connected products to be implemented.

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Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Threats Recognized
 There is disruption in the existing business model took place if the smart connected
products are not feasible to make the changes.
 Chances of not understanding of the business model objectives by the staffs of
Commonwealth bank Australia.
 Changes in the functionalities of the business model
Value Proposition analysis
 Excellent quality services to be delivered to the customers.
 Providing diverse portfolio of services.
 Revenue generating business model
 Highly effective and innovative business model of Commonwealth bank Australia.
 Strong working environment.
Analysis of capabilities and resources
 Expansion of services in Asian banking sector.
 Talented and skilled staffs working in different branches.
 High Safety and security to the customers.
Conclusion
 The business model is innovative.
 The future of business is encouraging and stable for Commonwealth bank Australia.
 The business model brings in flexibility in the operations and providing sustainability
in the future.

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Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT

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Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
References
De Reuver, M., Bouwman, H., & Haaker, T. (2013). Business model roadmapping: A
practical approach to come from an existing to a desired business
model. International Journal of Innovation Management, 17(01), 1340006.
Euchner, J. (2016). Business Model Innovation. Research Technology Management, 59(3),
10.
Gobble, M. M. (2014). Business model innovation. Research-Technology
Management, 57(6), 58-61.
Kindström, D., Kowalkowski, C., & Sandberg, E. (2013). Enabling service innovation: A
dynamic capabilities approach. Journal of business research, 66(8), 1063-1073.