Business school launch course on business model innovation
Ashridge Business School has launched the first UK course on business model innovation, designed to help managers create new businesses and transform existing businesses.
In launching the course, Ashridge will be the first school in the UK to focus specifically on business model innovation, a vital task in a low growth economy.
Participants will learn to challenge existing models and create new businesses. The course itself focuses on five aspects of an operating model. This includes:
- The assets and major activities that are central to operations: can any be changed significantly?
- The technology and business processes: can they be automated or digitised?
- The sourcing strategy and choice of business partners: can more be outsourced or insourced and with whom?
- The organisation design and people: can more be decentralised or centralised and who should be on the team?
- The source of revenues: which stakeholders will pay for the value we are delivering?
Andrew Campbell, course director and director of the Ashridge Strategic Management Centre, said: "Business model innovation is a new frontier in management. While many companies have processes and skills for developing new products and new markets, few have a well-honed capability for developing new business models.
"The problem is often over commitment to the existing business model. I cannot recall a single business review meeting or a strategic plan review I have attended where the business model was laid out for examination and challenged to see if there is a better way.
"Adapt or die is a trite statement. But many managers fail to adapt because they do not know how to create a new model to fit the new circumstances: they are held back by operating practices they do not know how to challenge. Woolworths failed because it was caught in the middle between small focused retailers and large grocers."