Andy Mulholland claims, “Innovation is hitting the top of the Hype cycle.” In a somewhat meandering article, Andy asserts that despite reports that 75% of people claim to be innovating, if you are not innovating your business model using SOA and Web 2.0 technology then you aren’t really innovating.
What a load of hooey!
There is no doubt that business model innovation is an interesting and important strategic element for companies to consider. But, let get real! SOA and Web 2.0 are technologies, not strategies. The assertion that these are fundamental to innovation is unsubstantiated. The fact that some companies have experienced success following this path only shows that success is possible, not that the path is necessary to achieve success as the article claims. SOA and Web 2.0 are interesting. But they are by no means the answer to every situation.
Business model innovation begins with understanding the needs of the business, not with a popular technology. By understanding how the needs of the business and customers intersect within the business’ opportunity space, companies can begin to map out innovative business model change.
Let’s also not fall into the trap of thinking that business model innovation is the only way to effect game changing innovation. Product is still where much of the core value delivery is embodied. This is true whether your product is a toothbrush or banking services. Find a new way to deliver new and substantive proprietary value through your product and you can change the rules of the game without tearing up the business model.
In short, innovation is an open field, and there are many different pages in the play book that can be use to tremendous effect. Your task as an innovation practitioner is to study the situation and pick the right innovation best practices from the play book to win the game.
What do you think?
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