Business Model Innovation Management

 Business Model Innovation Management is about shaping and adjusting the basic
structure of a business to create new and valuable offerings. The goal is to tap into fresh
market opportunities, gain a competitive edge, and find innovative ways to make money,
deliver products or services, and provide value to customers.
EXAMPLES

1. Netflix: They used to mail DVDs to people. Then they started letting people watch movies
and shows online instantly instead. This change helped them reach more customers and become a
big name in streaming.
2. Apple: They used to just sell computers. But then they made iPods, iPhones, iPads, and online
stores like iTunes. Now, they have a whole system where all their products work together. This
change made people stick with Apple products and brought in more money.
3. Airbnb: Instead of staying in hotels, Airbnb lets regular people rent out their homes or rooms
to travelers. It's like renting a place from a friend instead of a hotel. This idea made travel
cheaper and more personal for people, and it made Airbnb a big deal in the travel industry.

Service Innovation Management

 Service Innovation Management is all about enhancing products and services to better
meet customer needs. The focus is on identifying opportunities to improve how services
are delivered, enhancing the overall customer experience, and expanding service
offerings to provide extra value. In essence, service innovation aims to transform how
customers are served, creating value for them, and generating revenue for the company.
By introducing new service innovations, a company can boost revenue through increased
spending from existing customers, building a positive company image, and gaining
referrals.
 Service Innovation Management is like making your services better to make customers
happier. It means finding ways to improve how you provide services, making customers
like it more. When you do this, customers might spend more money, tell others about
your good service, and give your company a better image. It's all about making things
better for customers and the company.

EXAMPLES
1. Online Customer Support Chat: Instead of just having a phone number, companies started
using online chat to help customers. This made it easier and faster for people to get assistance.
2. Fast Food Drive-Thru: The introduction of drive-thru service in fast-food restaurants is a
service innovation. It allows customers to get their food quickly without leaving their cars,
making it more convenient.
3. E-books and Audiobooks: Instead of only selling physical books, companies like Amazon
innovated by offering electronic books and audiobooks. This made it more convenient for
readers who could instantly access their favorite titles.
4. Subscription Services (e.g., Netflix, Spotify): Companies moved from selling individual
products to offering subscription services. For a regular fee, customers get access to a variety of
movies, shows, or music, providing ongoing value.
5. Contactless Payments: The introduction of contactless payment methods, like using your
phone or a card without swiping, is a service innovation. It makes transactions quicker and more
efficient.

 An interesting thing about service innovations is that they are often combined with other
types of innovations. For example, if you are a customer of Tim Hortons then you may
have used their loyalty program. When you place a product order you gain points and
when you get enough points you can use those points to purchase a product. The app is a
service innovation for customers as it improves the customer experience and adds value
to their transactions. The app is also a technological innovation as well as a process
innovation for the company. When customers use the points program it changes the
payment process for staff and the technology integrates with the payment system which
allows the company to gather data about consumer purchases and preferences.

Organizational Innovation Management

 Organizational Innovation Management improves a company by reducing costs and

enhancing employee productivity. It focuses on cutting administrative, transaction, and
supply expenses, leading to overall savings. The approach also involves motivating
employees through incentives, creating a positive work environment. Fostering a culture
of innovation is vital, encouraging creative thinking, idea generation, and
experimentation. By promoting creativity and empowering employees, organizations can
create an environment where innovation thrives, contributing to ongoing success and
growth.

EXAMPLES

 In a call center, Organizational Innovation Management could involve implementing new

technologies and processes to enhance efficiency and customer satisfaction. For instance,
 introducing AI-powered chatbots to handle routine queries can reduce the workload on
human agents, allowing them to focus on more complex customer issues. Additionally,
creating a system for continuous employee training and development in customer service
skills can improve the overall quality of interactions. Recognizing and rewarding
outstanding performance can also incentivize call center agents, fostering a positive work
culture. Overall, these innovations contribute to cost savings, increased employee
productivity, and an improved customer experience in the call center.

 Imagine a company that traditionally followed manual and time-consuming processes in

its production line. Through Organizational Innovation Management, the company has
decided to invest in automation technology to streamline its manufacturing processes.
This innovation reduces administrative and labor costs, improving overall efficiency.

 Additionally, the company implements a reward system to encourage employees to

suggest and adopt new ideas. This not only boosts morale but also leads to innovative
solutions, such as improving product designs or finding more sustainable materials.

 By fostering a culture of innovation, the company continuously seeks ways to enhance its
operations. This may involve experimenting with new technologies, optimizing supply
chain processes, and empowering employees to contribute their creative insights. As a
result, the company not only achieves cost savings but also experiences ongoing growth
and success in a competitive market.