In “Business Model Innovation in Practice,\" Euchner and Ganguly (2014) discuss
ID: 370634 • Letter: I
Question
In “Business Model Innovation in Practice," Euchner and Ganguly (2014) discuss the challenge of implementing innovations within organizations that are naturally resistant to change. They present a systematic approach for integrating innovations to increase the likelihood of acceptance and success. Review their five-step approach and discuss how the four functions of management (planning, organizing, leading and controlling) can be leveraged within in their suggested approach to assist organizations in implementing successful innovations.
Explanation / Answer
“Business Model Innovation in Practice," Euchner and Ganguly (2014)
Challenge of implementing innovations within organizations that are naturally resistant to change are as follows:
They present a systematic approach for integrating innovations to increase the likelihood of acceptance and success. Their five-step approach is as follows:
1. Demonstrate value creation and generate business model options
2. Identify risks for each option;
3. Prioritize risks;
4. Reduce risk through business experiments;
5. Organizes for incubation.
They have worked on the Goodyear with business model innovative process.
The four functions of management (planning, organizing, leading and controlling) can be leveraged within in the suggested approach to assist organizations in implementing successful innovations on the basis of Business Model Innovation in Practice are as follows:
Planning- According to the Euchner and Ganguly, Planning is most vital step to start the innovation and leads it successfully. Mostly the organization do plan in advance and run the business according to the design in the planning. In order to made adjustment for the moving parts we need to create a small or very little space for the pants-of-these activities. The conclusion we made from the planning is that the 1st step of the business model cannot leads toward the other activities which are not relevant to the business. It may be complex activities and also time consuming too. The fear of the individual would be mitigated from this.
Organizing- The author of the business model Euchner and Ganguly, find out according to the model that a tool which capture value is a vital source for organizing the complex or large-scale changes. If the large-scale organization is divided into smaller subparts or groups then it would be easy to organize the organization, demonstrate value and mitigate the risk or find out the risk. With the results of this, the risks will be negligible. Author says it is a situation of “dry run”.
Leading- Leading, a direction maker, a kind of acceptance to the model with whatever we have and then plan and organizing it according take business to the high growth path. In the changing or agile environment, one should have to have an innovative cultural approach which will be gets benefit. As if you take the risk then the returns would be accordingly. As if risk is more then returns definitely would be more. But in order to take the business risks we need to prioritize it accordingly. This step is highly take into the action step as it may lead to the failure also if the team member didn’t work seriously or didn’t took it seriously. According to Euchner and Ganguly, prioritizing risks is a paramount process. Leadership should be there to ensure the team growth and the management of the team employees into the goal success.
Controlling- Leadership have the quality to manage or control the working of the team employee so we need an open minder who can think out of the box. Every time manager would not interfere the process of the business with the criteria’s which will leads toward the wrong direction. Rather than this, they should support the correct process. Leader should have to match the problems of the employees with the working process and have to find out the solution for it. This is called as “reduce risk through business experiments “. It would lead to the decision making of the new plan and risk analysis.