The development of Business model innovation facilitates the growth of businesses following the implementation of new strategies supporting the financial viability of an organization. The main objective of innovative business models is to realize new sources of revenue by improving the value of products and customers services. Although the government policies and demographic factors are held constant, the business organization still encounters challenges to thrive in customers’ changing demands and preferences and maintain a skilled workforce (Bouncken, 2021, pg. 24). Therefore, companies deploy innovative strategies targeting to undergo business growth, although the success depends on the ability of management to compete in the market.
Technology has immensely influenced the business sector by facilitating ease of operation, especially the digital age upon which ideas are being invented. The availability of essential resources and knowledge of searching potential sources of income lifecycles of business models enhanced appropriate financial success through new business ideas. Most businesses rely on technological advancement to improve their operations by choosing cost-effective input sources and general firm expenses to thrive in the competitive market. The strategies for business growth include manufacturing processes as well as marketing schemes (Manninen, 2018, pg. 104) Due to technology innovation, business organizations experience expansions and increased profit accumulation, thus motivating the owners to invest more. The increase in the number of returns collected from the business signifies positive changes in the business influencing the growth. Also, technology attracts competitors in the business industries, causing standard costs of both input and outputs by reducing the monopolistic powers in the market.
The factors associated with business development are the Internet of things (IoT), which exploits the standard regulations and networking automation. Internet technology gradually facilitates continuous upgrading of business processes and employee engagement and their performance in executing assigned duties. Some industries have installed IoT programs that instruct systems to execute transactions in the distribution chain if certain conditions are attained automatically. The IoT grabs more opportunities for business by enhancing the quality of services and business modules, increasing business productivity by training employees on how to enhance their work efficiency, and avoiding skill inconsistency (Morkunas, 2019, pg. 66) Furthermore, the IoT enables the performance of the business at a relatively low cost by eliminating several employees who could be demanding salaries for activities that computerized systems perform faster than the manual workforce.
The methods to Business Model Innovation of companies deploy different tactics for achieving organizational growth. The tactics entail everything from recognizing the available opportunities to implementing a new model and harnessing essential resources (Morkunas, 2019, pg. 66).The models include; re-inventor approach, adaptor approach, the maverick approach, and the adventurer approach.
The approach of reinvention. It is deployed at the time business deteriorates slowly, and growth is uncertain. Reinventions involve intense responding to pressure by rethinking the weakness of existing operations and how they can solve. For example, the company reinvented its customer-value plans and restructured its operations to deliver new orders profitably.(Morkunas, 2019, pg. 66)The reinvention business model aims to rectify the type of products by inventing a more profitable commodity that can accelerate business growth regardless of existing limitations.
Secondly, the adapter approach adjusts existing models’ flexibility to adapt to changing business opportunities that involve fundamental disruptions that are unlikely to be combated by usually practiced measures. This approach aims to improve business conditions that the existing strategies are unable to restore. Finally, some amendments are done to the already made policies about operational guidelines to mark the recommendable business growth.
In addition, the maverick approach stimulates an ability to persistently evolve at the competitive edge or attain growth within a given time. Activities that appeal to people and inspire and simplify fun are considerably designed to motivate workers. It helps in building relationships and networks that ultimately create teamwork as an organization and as individuals. The business model innovation scales up the potential core business success factors. The industries are probably revolutionized, and new standards are implemented—the maverick business innovation model focuses on what organizations regularly ignore. The dormant competitors encourages attention to take advantage of the business chances and limited obstructions that remain among you and the client (Bouncken, 2021, pg. 54). The way to transform that benefit into esteem is frequently to interface with the client’s new ways. The proposed new methods should decrease the danger, burden, or intricacy of taking on the item or administration
Finally, the adventure approach involves formulating strategies that venture and explore new or adjacent business areas. It requires clear awareness of industry competitive strengths and risk-taking in markets with a positive attitude to succeed. The explorers should be careful about guaranteeing the organization safeguards a strong monetary establishment and secures its assets. A large number of these organizations use revaluating or collaborating to minimize capital ventures and risks. Moreover, business adventurers should build an extraordinarily durable and devoted development group to put down wagers in new spaces (Bouwman, 2019, pg. 77). Development for these organizations is undoubtedly not a one-time exertion. They set up a pipeline to produce new drives with very much tried directors in charge of that work. Along these lines, advancement endeavours are overseen independently from the business growth progress.
CONCLUSION
The innovators reveal that innovation can be an effective solution to significant challenges and a tool to accelerate business growth. The appraisals of whether your best opportunities reside within or adjacent to your core and regardless of whether you will gain from playing defense in existing business sectors or going on the offense in new ones ought to be viewed while choosing an appropriate business advancement model; this is by distinguishing elements like identifying the current item or offering and widening the business environment to accommodate partnerships if needed.
The innovative business models positively impact business growth by providing new ideas and strengthening the existing strategies. The innovative business approaches concentrate on the general improvement and growth of the business. Every business owner and management targets positive achievement upon their organization, thus stiff completion to retain their positions and the markets.
