Learning for everyone Principles of Business Unit 5
Learning for everyone… Principles of Business Unit 5 – Learning Outcome 2 Understand Business Innovation and Growth
Learning for everyone… Define Innovation “I am innovative. ” - “My company is innovative. ” What does that mean? – • That they stand still and are happy to hang on to what they currently have and hopefully survive in business”? • Or does it mean that they are pro-active in their market place. • They seek out and develop new opportunities, that they move with the times and sometimes
Learning for everyone… Business Models - Innovation Too often, companies define their businesses in terms of what they make or sell. This thinking limits their ability to avoid being linked to singular commodities, fend off disruptive competitive threats or enter new markets successfully. Achieving transformational growth often means changing how you engage with
Learning for everyone… Business Models Business model innovation is about fundamentally rethinking your business around a clear—though not always obvious—customer need, then realigning your resources, processes and profit formula with this new value proposition. It's not easy and can take decision makers out of their comfort zones. But the results can be dramatic.
Learning for everyone… Key Element of a Business Model Customer Requirements and External Realities What you Sell and Internal Activities How to make Profit £££ Your Company Goals And Financial targets
Learning for everyone… Innovative or not? Apple: Started in 1976 Now worth over $700 BILLION Dollars
Learning for everyone… Innovative or not? Google: Started in 1985 Now worth over $100 BILLION Dollars and growing
Learning for everyone… Innovative or not? Woolworths: Started in 1909 Posted profits of £ 7. 5 million in 1975 Closed last British Store in 2009
Learning for everyone… Support and Guidance Innovation Support and guidance can come from within your company. • Shop floor ideas can sometimes be the best ideas • Advice can come from Banks and Financial Lenders to ensure financial viability for new projects/expansion • Guidance can come from the study of Market Trends • Innovation can come from meeting customers
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