Industry Innovation Modeland Sustainable Business Development

Question: Discuss about the Industry Innovation Modeland Sustainable Business Development. Answer: Introduction: A Business model is defined as a fundamental processthat drives significant changes and insights in the business processes, systems, structures, and organizational policiesfor achieving the organizational mission,corporate goals, and long-term objectives. On the other hand, Disruption means innovation that creates value network and new market opportunities by disrupting/replacing the current industry/market opportunities and value network. Thedisruptive business models bring all business components or strategic business units together in order to create innovation and creativity to the industry/product/service. The disruptive business models are greatly focused on designing, creating, refining, disinter mediating, restructuring, optimizing, and reengineering the product/service/industry/function(Afuah, 2015). Both business model innovation(BMI) and disruption are interconnected and dependent on eachother for achieving thesustainable business growth by ensuring the attainment of organ izational goals andbusiness objectives. For this essay, Apple Inc. is selected as an industry that is the top innovative technological company in the world. Apple is known for incorporating the significant changes in its products and production process in order to attain the stainable competitive advantage in the highly competitive industry. Apple utilizes the technological breakthroughs, engineering, unique patents, and scientific experiments and inventions to produce the mobile phones, laptops and other technological products with the unique features and advanced configurations. Silicon Valley is the business model that is used by Apple to advance innovation, creativity, and modernization of the business processes, structures, and products (Harward Business School, 2010). Silicon Valley Business Modelis the best example of the disruptive business model innovation that is being used by Apple to drive innovation, creativity, and modesty to the products, services, industry structures, processes, and systems. This disruptive business model of innovation is fundamentally based on two business aspects including entrepreneurship and innovation. This business model of Disruption is gaining popularity because it not only focuses on generating revenues but also on creating value to the firm. This business Model innovation is composed of three elements including value proposition, innovation and operating model. Innovation is an important element of the SVB model that drives modifications, creativity, and innovation in the organization of applebytransforming the innovative ideas into thecustomers quality expectations and values.It creates extra value to the firm by distinguishing the products and services from the competitors products. Another element, Value Propositiondetermines the success of Apple in the high-tech industry by adding value to products and servicesof Apple in order to enhance the sustainable product performance in the marketplace(Osterwalderand Pigneur, 2013). This element targets the high potential customers by considering three focused dimensions- target segment (recognition of customers needs and expectations), customer satisfaction (through offering the valued products), and revenue model (generating revenues through products or service offering).The third element, operating model is associated with meeting the customers needs through offering the productsby ensuring th ree criteria- cost model, value chain,and organization. Industry Innovation Model(IIM) is the business model that was disrupted by Silicon Valley Model to attain the sustainable business performance in the competitive industry. The Industry Innovation Model was used by Apple to drive innovation and customer insights in the industry. This model was used by the firm to drive innovation to the industry vale chain of Apple by transforming the business processes, modifying the products, modernizing the systems, and moving into new sectors. This model was useful to develop new ideas as well as identifying/leveraging the unique assets of the company. The Industry Innovation Model (existing business model) can be differentiated from the Silicon Valley Business Model Innovation (new business model) on the basis of objectivity, acceptability, sustainability, and adaptability. The Silicon Valley business model drives flexibility,creativity and innovations to modernize the organizational processes, structures, and subsystem. It enables the organization to attain the high-growth success in the competitive environment by adapting the organization to the dynamic market changes and growing environmental obligations.While, on the other hand, the Industry Innovation model creates innovation but fails to deliver the sustainability and adaptability in response to the environmental complications and market forces. The Silicon Valley Model is more effective than the Industry Innovation Model because it is highly committed to deliver values rather than making money. While on the other hand, the Industry Innovation Model is more focused on genera ting revenue rather than creating value to the firm(Saebi and Foss, 2015). The IIM is a type of classic model based on scientific breakthrough and technological inventions to bring innovation in the industry. While, the Silicon model of business innovationis a mix of both classic and unconventional model that uses the technological and scientific breakthrough, incremental and adaptive approach to advance innovation in the organization. The Industry Innovation Model is the existing business model, disrupted by the Silicon Valley Business model to drive innovation, creativity and adaptability in the industry in response to the environmental changes and market dynamics. There are several reasons behind the Industry Innovation Model disrupted by the Silicon Valley Model. Firstly,the Silicon Valley model drives significant changes and innovation in the business planning and strategy of Apple for attaining the sustainable economic development and long-term growth of the business that is not in the case of Industry Innovation Model (IIM) because it drives innovation but not enable the organization adapt to attain sustainability in response to environmental fluctuations and market forces. The silicon business model enables the company to strive to attain the progressive business growth in the high-tech environment and to maximize liquidity by beating the competitors product planning and business strategy (Harward Business Press, 2013). It enables the firm to take advantage of both existing and future market opportunities by identify its production and financial strength, comparative understanding, market share and product positioning, resource capability and competences. The Silicon Valleys elite designers, engineers, financiers, developers, and programmers provide the operational effectiveness, production efficiency, and excellence in invention and discovery. This model delivers invention, discovery, and re-engineering to transform or modify the existing products and services into new products and services with the latest features and configurations. So, all these reasons prove the justification for the disruption of the Industry Innovation model by the Silicon Valley model. From the above discussions, it can be concluded that the disruptive business modelsare applied by the business industries to make significant changes in the product planning, business process, structures, and systems by ensuring the creativity, disruption, and innovation. The disruptive business models innovation are important for the business industries from the future perspective for the sustainable business development and long-term financial growth of the businesses by imposing new ideas and greater customer experiences.The disruptive business models are also important for the future business growth by enhancing the organizational effectiveness and efficiency after reducing the operating costs. Along with this, the disruptive model innovations are significant because these incorporate the new ways of re-investing and redesigning the value proposition and revenue model to respond to the market forces, environmental flexibilities, and changing customersdemands(Augeneder, 2014). The Silicon Valley is a good example of disruptive business model innovation, widely used by the business enterprises (small/large or logal/global) from the last two decades to drive sustainableeconomic development and long-term business growth by adapting changes in response to environmentalobligations and market forces. The Silicon Valley Model prepares the industry/product/service for the future challenges by driving significant changesand innovation for creating a coordinated proposition or balance fit between the organizational sustainable development and the competitive marketplace. This disruptive model of innovationprovides the firms new business opportunity and value creation by disrupting the existing market opportunity and value creation. References Afuah, A. (2015).Business Model Innovation: Concepts, Analysis, and Cases. UK: Routledge. Augeneder, H. (2014).Implementation Strategies of Business Model Innovations within Established Firms. UK: Herald Augeneder. Foss, J. N., and Saebi, T. (2015).Business Model Innovation: The Organizational Dimension. London: Oxford University Press. Harward Business Press (2013). Harvard Business Review on Business Model Innovation. New York: Harward Business School Pub. Harward Business School (2010).Business Model Innovation and Competitive Imitation: The Case of Sponsor-based Business Models. New York: Harward Business School Publication. Osterwalder, A., and Pigneur, Y. (2013).Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. USA: John Wiley Sons.