The Role of Business Model Innovation in Organizational Sustainability

Business Model Innovation (BMI) is pivotal in driving organizational sustainability by fostering adaptability and long-term viability. By leveraging insights from Carayannis et al. (2015), this analysis explores how BMI integrates dynamic capabilities and green growth strategies to enhance organizational performance and contribute to sustainable development. The discussion emphasizes the role of co-innovation, as outlined by Lee et al. (2012), in creating value through collaborative ecosystems. Furthermore, it considers the implications of these innovations for economic growth, referencing Kogan et al. (2017). Ultimately, this assignment underscores the necessity of transforming innovation practices to achieve sustainability goals, aligning with Jänicke's (2012) perspective on transitioning towards a sustainable economy.

Running head: INNOVATION
Innovation
Name of the Student
Name of the University
Author Note

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Introduction
Innovation is one of the most integral parts in the global business in the modern times.
This innovation process has become an inseparable part of the organizations to apply within their
domain. The importance lies in the fact that the business environment is very much dynamic in
the modern business context and the organizations are thriving for betterment every time. The
innovation strategies have become quite popular in the recent times as most of the organizations
are thriving for applying these innovation strategies so that they can gain the organizational
success and gaining the competitive advantage. This paper focuses on discussing the several
facts about the organization that has to be chosen in context of this paper. Apple has been chosen
as the focal organization to discuss this paper as they have achieved a good position in the global
market regarding the telecommunications and manufacturing mobiles, tablets and other
telecommunications gadgets ("Apple", 2017).
Various things have to be discussed in this paper like the significance of innovation in the
21st Century, discussing about the meaning of innovation including hidden innovation,
innovation imperative, dimensions of the innovation space, challenges that the organization
might face in developing these innovation strategies. Some of the innovation methods will have
to be selected in this context and these methods will have to be applied on Apple on how these
innovation methods could be applied within the enterprises of Apple ("Apple", 2017). The
selected organization has chosen to be more innovative to be in this 21st century since the number
of telecommunications gadgets users are increasing gradually. They have to keep their customers
under their disposal so they can increase their customer base at a steady rate.
1. Significance of innovation in the 21st century

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As the number of human beings in the whole world grows in the modern world and the
economic growth as well as the GDP of the countries is decreasing, some steps are needed to be
taken in this context. Basically there are two needs for the innovation process in the global
business context (Drucker, 2014). One is improving the technology and business strategies and
use the latest technologies for the growth of the organizations and the other is to focus on the
improving the human standards of living in the modern era by encouraging an economic growth
(Lewis, 2013). The ancient history teaches the world that the world needs to go through a change
at regular intervals and they need to adapt to the natural changes as well.
Apart from these natural changes, most of the things are in the hands of the human
beings. They should relate these things and then apply the boons of science and technology that
is progressing at a regular speed. The organizations need to apply these innovation strategies so
that they can reach their customers faster and take care of their employees in a better way
(Pisano, 2015). This will help them to play the roles of corporate social responsibility and
strengthen their roles in the society. The organizations have a responsibility to fight against the
poverty, education and health care in the society and improve the conditions. Besides, they have
to cater to the needs of the customers and fulfill their desires. So they have to implement these
innovative strategies for their good as well (Pisano, 2015).
a) The meaning of innovation
Innovation is the process that can translate an idea or the invention process for a good
service that creates a good value for the customers to pay a good value (Öberg, 2012). The needs
of the customers have to be fulfilled by the manufacturers and they have to innovate certain
communication channels for it. The manufacturers must have the initiative to drive the

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imagination and information systems to add to the values of the customers. Apple has done the
same things as well as they have introduced certain new products in the market that will cater to
the needs of the customers (Manning et al., 2015). The various new products being launched in
the past few years Are iPhone 7, iPhone 7s, iPhone 8, iPhone X, iPad and many more ("Apple",
2017). The iTunes have gained a good deal of customer value because these products have some
added features that their predecessors did not have.
Hidden innovation
Hidden innovation is considered to be as one of the most important types of innovations
that cannot be tracked by everyone. In other words,, these innovation processes cannot be caught
by the radar. Research and Development (R&D) technology is one of the most important
technologies in this scenario since it is a traditional indicator in the innovation process of the
organizations (Wang et al., 2013). The hidden innovation means the facts that are not within the
science and technology sectors. These are the factors that are responsible for the betterment of
the organizations.
The technological innovations are often done in the telecommunications industry but
these innovations are not included because innovating mere strategies for gaining customers do
not fall in the category of technological innovation (Baden-Fuller & Haefliger, 2013). Social
innovation is also an important part of the innovation where the organizations thrive to
communicate and connect themselves with their customers. This assures about the aspect that
Apple has introduced some strategies for communicating with their customers that will make
them more acceptable to the people. This does not fall in the traditional technological innovation
but in connecting with the customers of the organization (Baden-Fuller & Haefliger, 2013).

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b) The innovation imperative
Innovation imperative is one of the most crucial aspects to grow the productivity of the
organization and cater for the economic growth of the country (Christensen & Horn, 2013). The
term innovation imperative signifies the facts relating to the increase in the productivity of the
goods that can be provided by the organizations. The different topics that are related with the
innovation process of the organizations are social and global challenges, demographic issues,
threats of different diseases, scarcity of resources and changes in climate (Leach et al., 2012).
The countries and the organizations must be working together to strengthen the innovation
challenges that will cater to the betterment of the conditions in the workplaces as well as in the
social sphere. This is a fundamental challenge for the companies and the countries as well. The
organizations must take up some policies that will be needed for the long-tem betterment of the
society and these strategies and policies will ensure the green growth for the organization. These
policies are beyond the research and technology policies (Jänicke, 2012).
There are some areas for which the organizations must take up some certain policies.
These areas are 1) Innovation lies in the expertise of the skilled workforce who can invent and
implement new technologies in the workplaces,. The workforce might also engage in promote
inclusive growth by technological and structural changes (Sørensen & Torfing, 2012). 2) A
sound business environment is required for investing in the technology and knowledge-based
capital in the organizations. Only thus, innovation will be welcome in the organizations. 3) A
strong and efficient knowledge creation is needed by the organization so that innovation process
can be encouraged 4) Some certain innovation policies are needed by the organization tackle the
barriers and challenges in the innovation process (Malhotra & Majchrzak, 2014).

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Apple is considered as the world’s most valuable company so the employees need
to be feeling more initiated to launch some exclusive products with the brands and features that
the customers have been waiting for a long time. The innovation imperative for the launching of
one of their premium products, iPhone 5 went to such a high that sales of the product in the
fourth quarter made 20% of the growth and this outdid the entire product portfolio of IBM. The
expectations were so high from the launching of this product that could gain a profit of $US30 in
the last three months of that particular year. Apple has geared up to cater to the social needs of
their customers too. This has proved to be the innovation imperative for the organization. (Lee,
Olson & Trimi, 2012).
c) The dimensions of innovation space
Innovation space is also a very significant process in the organization’s success and the
innovation procedure because there are generally four dimensions in the innovation space
(Pancholi, Yigitcanlar & Guaralda, 2014). These are called as 4Ps. These Ps signify Paradigm,
Product, Position and Process.
Product innovation
The concept of product innovation relates to the fact of the things that the organization
offers to the customers. The various industries deliver various kinds of things to the customers
and the quality of the products and services should always be convincing to the needs of the
customers (Pancholi, Yigitcanlar & Guaralda, 2014). Most people are aware of the term
innovation and the innovation has to be in the modes of the products being launched with some
added benefits and features. Likewise, Apple has to make sure that their products are innovative
and customers always get new things out of their repertoire.

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Process innovation
The process innovation describes about the new and innovative ways by which the
products can be delivered to the customers (Becker & Egger, 2013). It is an important part of the
companies to serve the customers in a better way. The organizations should always focus on the
customers and Apple is no exception. The potential interest has to be aroused in the minds of the
customers and new ways of delivering the services or products have to be found. Similarly,
Apple should try to dispatch the favorite products of the customers to them in a safer and faster
way through online delivery (Becker & Egger, 2013).
Position innovation
The position innovation discusses about focusing and communicating with the products
and services of the company. The process innovation looks at the products on how they are
perceived by the users or customers (Storsul & Krumsvik, 2013). The ways of using the
products are also highlighted by the ways in which the products or services are used. Apple has
to manipulate their customers accordingly so that they can learn on how they should be using
those products. The products they manufacture are very costly products so the customers should
handle them carefully and the position of the products can be guessed from those products sales
and how long they can survive in the market (Storsul & Krumsvik, 2013).
Paradigm innovation
The paradigm innovation refers to the fact that the companies change the basic mental
models of the products. The companies can put emphasis on the responsibilities, leadership
styles and local ownerships from the parent companies (Sveiby, Gripenberg & Segercrantz,
2012). In this case, Apple should fulfill their responsibilities towards the people and they should

7INNOVATION
also make sure that the leadership style of theirs suits the customers’ best and they are treated
well.
d) Challenges in developing innovative strategy
It is obvious that the companies and the big organizations should face some difficulties
when they will be implementing some strategies for the benefits of the organization. These
challenges and barriers ultimately help the organizations to thrive in the competitive business
environment. These innovative strategies have to be applied within the organization and they
must work according to the strategies (Johnson et al., 2013).
Apple is considered to be one of the most innovative organizations in the world. So, they
should experiment with changes in strategies and make new strategies work to foster the changes
in the organization. There is a group of people who are as the innovation leaders in the company.
They always push the management for making new innovative strategies (Johnson et al., 2013).
These game changing innovations have led Apple to launch products like iPod, iTunes, iPad and
iPhones. Their motivation is that they want to produce the best products within the industry.
Apple always attempt to create new market niches and move into new business spaces. The best
strength of Apple is when their competitors try to chase them for their latest product and see
themselves lagging behind when they see they have already launched a new product in the
market. Still they face some of the challenges within their innovation process (Johnson et al.,
2013).
Technology challenge

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Their technological supremacy is not that much up to date at the moment after the
launching of iPhone 4s. These phones have not improved that much from their predecessor
phones.
Leadership challenge
Apple has been in the transition period in case of leadership. This is why their future is in
great doubt. Steve Jobs was their visionary leader he was well aware of the market conditions,
the pricing strategies, the technology and almost everything. The current leaders of Apple do not
possess such charisma (Black & Morrison, 2014).
Competition challenge
Apple has yet been unbeatable in their challenges put up by different companies like
Nokia, Research in Motion and Hewlett-Packard. Apple has been facing a lot of challenges from
their blockbuster products iPad and iPhone. In the tablet market, they have another strong
challenger as in the online selling platform Amazon.com. The astonishing challenging fact is that
the Android phones have dominated a 43 percent of market share whereas Apple iPhones only
have 28 percent (Black & Morrison, 2014).
Economy challenge
The company is facing some challenges in economy in spite of having a strong brand
presence among consumers. The sales of Apple are facing a down turn, especially in the
continent of Europe.
e) Importance of innovation in sustainability and adaptability of organizations

9INNOVATION
The importance of adopting a new strategy for the organizations for making new
innovations in their business territory is very essential. This guides them to gain the competitive
advantage over the other rivals of theirs. Market leadership is a very precarious concept that has
to be dealt with the competition in the market (Carayannis, Sindakis & Walter, 2015).
Profitability of the organization is a very important concept that is a point to which the
organization has sustained its success. Success may be achieved by an organization but they have
to keep up their success on a long term basis. This is when the organization will be deemed as a
market competent organization (Carayannis, Sindakis & Walter, 2015). Apple has been doing a
remarkable business in the world of telecommunications for a long time now. This proves the
fact that they have observed the market very closely and implemented their strategies perfectly
so that they can gain the competitive advantage. This fact can be further enhanced by the fact
that they have always stressed their focus on enabling new innovative technologies into their
working territories.
2. Generation and evaluation of opportunities for innovation
Innovation is one of the most important things for the organizations, Apple is no
exception of it and it has been one of the most pioneering organizations in this context
(Kindström, Kowalkowski & Sandberg, 2013). There are several methods of innovation in the
organizations to adapt for betterment. These approaches are:-
Understanding the resources to innovate
Every organization must have the mobility and the proper understanding on how to
innovate and realize if they have the proper resources to innovate. Apple has always thrived to
innovate products that will cater to the use of their customers. The beauty of their minimalist

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products has always attracted the customers in great ways. The soul of the organization, Steve
Jobs, had once exclaimed that design is the ‘fundamental soul’ of any product in the company so
they have always focused on providing beautiful designs for their company (Kogan et al., 2017).
The motto of the company has been to think different all the time that will be helpful for
providing something that the other organizations will take a long time to innovate. They do not
need to acknowledge the need for competition since their innovative power excels all the rivals.
The products had to undergo several costly overhauls just to include one simple detail into their
products.
Creating the proper infrastructure to innovate
It is of utmost importance for the organizations to create the proper infrastructure that
would help them to lead the innovation process. Apple has spread their offices to many places
around the world and in several cities because they want to expand its business. They have
outgrown their headquarters at 1, Infinite Loop in Cupertino, Calif. They want to expand their
business more so that they can serve more customers by launching newer products. Apple has the
tendency to lock the employees in the tight, stifling bureaucracies in such an innovative and
unique way that plays the advantage for the organization (Kim, Kumar & Kumar, 2012). There
are several challenges that are faced within Apple and they literally command their employees to
keep quiet about these matters. Apple generally uses this secrecy method as a double-edged
sword that helps to cut down the strategies of their fierce rivals and gives them the advantage.
Empowering the most valuable employees to complete the most amazing works
The employees in any organization are the heart of the organization and they are the key
elements for the companies who lead them to success. Apple has also built an organizational

11INNOVATION
structure that is stratified and values its employees in a great way. This organizational structure is
also segmented as well. The most valuable and productive employees are given special treatment
by the organization that motivates them in a huge way (Kim, Kumar & Kumar, 2012). The
Industrial Design Group of Apple provides them the distinctive and glossy look so they cater to
the huge success of the organizations. The IDG has their own world and they do not have much
connection with the outside world in the industry. The employees are given the proper freedom
that helps them to operate without any interactions from the outside business world (Kim, Kumar
& Kumar, 2012). Their creativity is well paid off by the company and they tend to increase the
reputation of Apple.
Conclusion
This paper can be concluded by saying that innovation has transformed the business
world into a new direction and it has enabled the organizations to view a new panorama of
success. The business environment is facing great competitiveness in the recent times and most
of the organizations have been struggling to find their way out from this riddle. The only way out
to survive in this world is to innovate new things in their organization. The new organizations
have found it really hard to compete in this updated business environment surrounded with the
technological advancement and the people are trying their best to cope up with it. Apple has
really done its best to improve their conditions in the business atmosphere and innovate new
ways to master the marketplace. Their innovative strategies have really helped in this process as
well because they are regarded as one of the finest, most competent and successful organizations
in the telecommunications industry.

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