I need a response to the below Statement:
Business Model Innovation in Practice discusses an approach to developing new innovative ideas to new business models and sets guidelines that identify risks when experiencing new innovative processes (Euchner, & Ganguly 2014). Euchner and Ganuly noted the five-step approach that includes the four management functions of planning, organization, leading, and controlling. The first step is the business model, which requires the innovator to see how the innovation will bring value and how will consumers approach the product. (Euchner, & Ganguly 2014), define a business model as the ability to create margins and growth is dependent on what competitors are doing to create margins and growth for themselves. A business model must fit the needs of an organization and several things must be considered when developing a business model. Innovators must be aware of the risk factors that during and after the development process. Innovators must also, determine how the development of the new process will create value for the organization, this could be monetary, increase production, and overall increases profits. The planning process requires an initial plan which is the blueprint for the goal achievement, Daft ( 2013).
Managers develop the plan by using the organization’s goals, mission statement, and company level goals, Daft (2013). Lower management conducts operational goals, meanwhile, middle management is responsible for tactical goals, and senior management checks strategic goals, all work toward the same mission statement, Daft (2013). In the planning process, specific tasks and resources will be needed and noted.
During the organization management function, the goal is to accomplish the plan by assigning tasks, delegating authority, and allocating resources (Daft (2014). The third step is to identify the risk and outweigh the risk vs. the results, (Euchner, & Ganguly 2014). The fourth step of prioritizing and reducing risks of the business model represents three management functions, organization, leading, and controlling. Prioritizing risks and ranking them is the organization’s management function (Euchner & Ganguly, 2014). Reducing risk can involve business experiments and creating prototypes along the way.
Success in creating and or developing a business model can be a team effort. However, once the business model is created and in practice, the team must sustain the model and adapt it to changes, it must also be resistant to change, (Euchner, & Ganguly 2014). In addition, having control measures will enhance a success rate.
Daft, R. L. (2013). Management (11th ed.). Mason, OH: South-Western Cengage Learning. ISBN-13: 9781285068657