FOUR PATHS TO BUSINESS

MODEL INNOVATION

MISB – GROUP 4
 The article offers a framework to innovate the business models by making changes to key decisions
There are four ways to innovate the business model in an inexpensive way that will increase both profitability
and productivity

What Mix of
Products or • Focus Narrowly (Amazon with Quidsi and When Should • Postpone the Decision (American Airlines and
Services Should
Zappos
• Commonality across products (VW and
You Make UBER)
You Offer– Three Amazon) Your Key • Changing Order of Decisions (LiveOps)
• Split up Key Decision (BBureau)
options within this
are :
• Hedged Portfolio (LAN Airlines)
Decisions–

Who Are The Best Decision Makers

–
Pass the decision risk to
Appoint a better-informed the party that can best Select the decision maker
decision maker (Walmart manage consequences with most to gain
– P&G) (Amazon – Book (Netafim)
Business)

Why Do the Key Decision Maker Choose As They Do?

• Change the Revenue Stream (US DOD -Aircraft)
• Synchronize the time horizons (Li & Fung)
• Integrate the incentives (Quad/Graphics)