Post by account_disabled on Dec 26, 2023 8:56:54 GMT
Leadership role that business executives can play in promoting organizational innovation by supporting the creation of multiple profit formulas and integrating these different businesses into the business model mix. Leverage M&A to disrupt and update internal business models. Finally, while we focus most of our attention on organic activity, M&A plays a very valuable role in the business growth engine. 13 Although in extreme cases this approach may lead to quasi-bloc structures, history has proven that such structures are ineffective, but there are exceptions. Hopkinton, Mass.-based EMC took this approach and created its alliance structure in 2007 when it took VMware Inc., which it acquired three years earlier, as a publicly traded subsidiary.
Many mergers and acquisitions aimed at changing existing business models fail because it is implemented for the wrong reasons and managed in the wrong way, often resulting in the consolidation of units that should remain autonomous. In contrast, EMC's alliance structure allows each Job Function Email List business to pursue its own goals while coordinating activities across the entire company. This embedded capability to identify and invest in new markets while developing existing markets enables EMC to expand its traditional memory business into machine security.
Top Innovation Risks Executives sometimes prefer to invest in existing businesses because these investments appear to be less risky than trying to create entirely new businesses. But our understanding of the business model journey allows us to see that, over the long term, the biggest innovation risk a company can take is deciding not to create a new business, thereby decoupling the company's future from the future of its current business units. We have high hopes for the insights into business model innovation and corporate renewal explored in this article—not because we believe business units can escape or escape the journey we describe, but because we believe the corporate units that own them can. There is still much to learn about enterprise renewal and the business model journey.
Many mergers and acquisitions aimed at changing existing business models fail because it is implemented for the wrong reasons and managed in the wrong way, often resulting in the consolidation of units that should remain autonomous. In contrast, EMC's alliance structure allows each Job Function Email List business to pursue its own goals while coordinating activities across the entire company. This embedded capability to identify and invest in new markets while developing existing markets enables EMC to expand its traditional memory business into machine security.
Top Innovation Risks Executives sometimes prefer to invest in existing businesses because these investments appear to be less risky than trying to create entirely new businesses. But our understanding of the business model journey allows us to see that, over the long term, the biggest innovation risk a company can take is deciding not to create a new business, thereby decoupling the company's future from the future of its current business units. We have high hopes for the insights into business model innovation and corporate renewal explored in this article—not because we believe business units can escape or escape the journey we describe, but because we believe the corporate units that own them can. There is still much to learn about enterprise renewal and the business model journey.