They say they will focus their efforts on business model innovation in their organisations as the best means to achieve organic growth and profitability in the fast-changing global economy. Companies that put twice as much emphasis on this form of innovation experienced faster growing profit margins. T
he most common business model innovation is in structural changes, strategic partnerships and shared services (where back-office functions work together through internal IT networks). Other forms of innovation relating to products, services and processes remain important, but it is business model innovation that is expected to drive growth.
The survey revealed that most innovative ideas come from business partners, employees and customers. High-performing companies valued external sources the most. Not surprisingly, 75% of CEOs believed that collaboration between employees as well as with outside partners was important to innovation.
Expanding the innovation horizon: the global CEO study 2006
IBM Global Business Services