How often do you think companies reinvent their business models?
Surprisingly, it’s quite rare despite enormous pressures for established firms to grow, create value, stay ahead of competition, avoid disruption, and adapt to ever-changing business conditions.
Apart from product or service leaps, can innovation in the way a company conducts business give it a leg up? Research from Wharton management professor Raffi Amit and co-author Christoph Zott, a professor at IESE Business School in Barcelona, Spain, suggests that it can. In this Knowledge@Wharton interview, Amit covers the highlights of a research paper titled, “Business Model Innovation: Creating Value in Times of Change.” The authors note: “Business model innovation … relies on recombining the existing resources of a firm and its partners, and it does not require significant investments in R&D.”
Watch Raffi Amit discuss what his research has discovered.