During the INSEAD Best of Management at World Knowledge Forum 2011, professor Karan Girotra gave an interesting introduction to "business model innovation". While nearly everyone will think that new technologies are the heart of most innovations, business model innovation is more important than technological innovation in term of generated growth. To give you a taste of this theory, some of the examples he takes to illustrate are:
- Dell has produced tremendous growth and disrupted the PC industry by creating a new business model: selling customized products before building them.
- Better Place, an Israeli start up solved through a business model innovation two problems of current electric cars: the low autonomy and the high acquisition price.
- Zara achieved the same growth as Apple with "only" an impressive business model innovation.
Later, Karan illustrates that these kind of business model can be transposed from one industry to the other, opening huge perspectives.