Saul J. Berman

Three ways to successfully innovate your business model

Purpose – The purpose of this paper is to find out what exactly the term business model innovation encompasses and what type yields the best results.Design/methodology/approach – IBM Consulting researchers first identified the main types of business model innovation, which can be used alone or in combination. They then compared these three types of business model innovation across 35 best practice cases.Findings – The study found that all new business models can be classified into three types: innovations in industry models; in revenue models and in enterprise models. A key finding was that each type of business model innovation, with the right strategy and strong execution can generate success.Practical implications – Researchers found that while network plays are being used by diverse companies in different industries and regions and of varying age, size and other characteristics, this tactic has been a particularly useful strategy for older companies.Originality/value – The study found that best busine...

Digital transformation: opportunities to create new business models

Purpose – According to IBM research, companies seeking opportunities in an era of constant customer connectivity focus on two complementary activities: reshaping customer value propositions and transforming their operations using digital technologies for greater customer interaction and collaboration. This paper aims to address this issue.Design/methodology/approach – The paper explains that businesses aiming to generate new customer value propositions or transform their operating models need to develop a new portfolio of capabilities for flexibility and responsiveness to fast‐changing customer requirements.Findings – The paper finds that engaging with customers at every point where value is created is what differentiates a customer‐centered business from one that simply targets customers well. Customer interaction in these areas often leads to open collaboration that accelerates innovation using online communities.Practical implications – Companies focused on fully reshaping the operating model optimize ...

New business models for the new media world

Purpose – The authors perform market trend analysis and to examine the clash between new and traditional media and explore future industry competitive scenarios.Design/methodology/approach – IBM conducted a comprehensive study that included interviews with leaders of media companies and an in‐depth analysis of the factors that are shaping the industry outlook. IBM conducted in‐person interviews with more than 75 senior media executives, industry analysts, economists and technology visionaries and also worked with the Economist Intelligence Unit to survey another 125 industry executives.Findings – IBM sees four primary business models emerging – traditional media, walled communities, content hyper‐syndication and new platform aggregation. The research also found evidence of another developing conflict that it calls the media divide. It could pit partner against partner in a struggle for growth.Practical implications – IBM proposes seven industry‐specific recommendations for incumbent media companies as the...

How cloud computing enables process and business model innovation

Purpose – Although cloud computing is widely recognized as a technology game changer because it offers anytime, anywhere services, its potential for driving business innovation remains virtually untapped. This article seeks to define that potential for generating new business models and disrupting industries.Design/methodology/approach – The authors show how cloud technology has the power to fundamentally shift competitive landscapes by providing a new platform for creating and delivering business value.Findings – IBM research suggests that organizations are just beginning to understand the power of cloud services to help drive business innovation.Research limitations/implications – To track how organizations use cloud tech today and how they plan to employ its power in the future, IBM surveyed 572 business and technology executives across.Practical implications – The survey found that companies worldwide are beginning to recognize clouds capabilities to generate new business models and promote sustainab...

New business models for emerging media and entertainment revenue opportunities

Purpose – As a growing share of consumer value shifts to new industry entrants, this paper seeks to suggest how long‐time leaders in many media and entertainment (M&E) market segments can replace declining traditional revenue with equivalent value from digital media.Design/methodology/approach – The paper suggests how established media and entertainment companies – newspapers, broadcasters, music labels and movie studios – can proactively address both their potential revenue challenge and find new business models.Findings – The paper finds that media companies need to “rethink” their business models and seek innovative ways to enhance the consumer experience and connect with consumers.Research limitations/implications – This is a 2010 IBM Institute for Business Value analysis.Practical implications – M&E companies will require the capabilities to build analytics and insights, develop consumer‐centric models and enable multiplatform delivery.Originality/value – Three strategies will likely help M&E leaders...

Succeeding in the new economic environment – three targets for leaders

Purpose – Companies are now struggling to cope with the most severe recession in more than half a century. This paper aims to study how leading companies have successfully reacted to the crisis.Design/methodology/approach – The researchers identified early winners in the current recession, beginning with large US‐listed companies whose stock appreciated by at least 5 percent in 2008, at a time when the SP exploit opportunities presented during downturns, including growing through low‐cost acquisitions and stock buy‐backs; and act quickly, with the agility to respond ahead of, or at least to keep pace with, rapid changes in the new econo...

Leading in the connected era

Purpose – Leaders are recognizing that the current connected era is fundamentally changing how customers, employees and partners engage, according to an IBM survey of CEOs and senior public sector leaders from around the globe. Design/methodology/approach – Between September 2011 and January 2012, IBM leaders met face to face with leaders worldwide to better understand their future plans and challenges in an increasingly connected economy. The CEOs surveyed lead organizations of different sizes in 64 countries and 18 industries The analysis also sought to understand differences between responses of CEOs in financially outperforming organizations and those in underperforming organizations. Findings – Key survey findings include: CEOs are creating more open and collaborative cultures – encouraging employees to connect, learn from each other and thrive in a world of rapid change; the emphasis on openness and collaboration is even higher among outperforming organizations; to engage customers as individuals, C...

The winning formula for growth: course, capability and conviction

Purpose – This study of the growth history and practices of 1,238 companies over a decade by the IBM Institute for Business Value found that top growth companies excel in three vital areas: course, capability and conviction. IBM calls this the “3Cs model.”Design/methodology/approach – The IBM research team developed a database of growth and shareholder return performance for companies included in the SP are iconoclasts who evolve their product‐market portfolio on an ongoing basis; sustain the growth que...

High‐tech 2005: the horizontal, hypercompetitive future

Profound and lasting changes are afoot in the high‐tech industry. Only those high‐tech companies that align their business models for the new horizontal and hypercompetitive future will succeed. The seven deadly signs of the new competitive environment are: (1) growing downward pressure on price with an ever‐increasing demand for greater performance; (2) greater complexity for customers as they face the unbundling of hardware options, integration choices, and multi‐company business coordination; (3) a new distribution of value: greater value to innovative component makers and solution integrators; less value for product design and assembly; (4) branding and customer relationships will differentiate commodity products; (5) collaborative networks will emerge; (6) global supply and global customers will mean global organizations; (7) competitors will encroach horizontally. Recommendation: proceed with a five‐step approach to develop a new winning strategy: (1) pick a horizontal space; (2) redefine and Web‐enable your value propositions; (3) assemble your collaborative networks; (4) integrate your internal operations globally; and (5) realign your organization and technology. Studies demonstrate that during downturns, advantage shifts to companies that continue to invest strategically.

The next digital transformation: from an individual-centered to an everyone-to-everyone economy

Purpose – Based on extensive interviews and analysis, the article aims to explain how the next digital transformation, which is already underway, will result in a paradigm shift from one that is customer-centricity to an everyone-to-everyone (E2E) economy. Design/methodology/approach – For the 2013 IBM Digital Reinvention Study that this article is based on, IBM researchers surveyed approximately 1,100 business and government executives and 5,000 consumers across 15 countries. Thirty leading futurists were also interviewed. Of those interviewed for the executive study, 42 percent are C-level executives, with Chief Executive Officers comprising 10 percent of that group. More than three-fourths of the consumer study participants are university graduates, with 68 percent between the ages of 25 and 54. Findings – E2E is characterized by hyper-connectedness and collaboration of consumers and organizations across the gamut of value chain activities: co-design, co-creation, co-production, co-marketing, co-distri...