What specific challenges do you foresee in developing new (innovative) business models in your indus

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RES/710 ED

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Business

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May 3, 2024

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docx

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What specific challenges do you foresee in developing new (innovative) business models in your industry? Designing and implementing a new business model can be challenging. Factors which can get in the way of a successful future range from resistance to change to unforeseen market dynamics. However, leaders who recognize these obstacles as opportunities for growth and innovation can change the course of their organizations. One of the first challenges the scholar foresees in developing new (innovative) business models is to define what is the new innovation and why does the organization need it. Many organizations confuse BMI with product innovation, strategy, or digital transformation. However, BMI is more than just adding new features, changing your vision, or adopting new technologies. New processes and technologies often present challenges in the form of resistance to change from tenured employees who feel there is nothing wrong with how they’re currently doing things. For new software implementations, organizations must provide comprehensive onboarding training and continuous employee performance support to help employees become productive and proficient with a tool quickly, allowing them to understand the value of these new processes (Chesbrough, 2019). Secondly, businesses often struggle with change management when implementing new business plans. Oftentimes, there is resistance from employees because change is uncomfortable. Leaders must therefore regard change as a process and not an event. Another challenge when implementing a new business model, businesses should really nail the product-market fit. Experiment quickly with a minimum viable product to drill down on the initial sweet spot niche in the market. Validate that the pricing, profitability, and resources all work. When this is dialed in, the successes really help gain buy-in from stakeholders who are resistant to change Identifying the return on investment (ROI) Return on Investment for digital transformation projects can be difficult, as the benefits may not be immediately apparent or quantifiable. This challenge can lead to skepticism and reluctance to invest in future digital initiatives, slowing down progress. Unlike traditional investments, the success of digital transformation projects may not be immediately apparent or quantifiable. Moreover, the value derived from digital initiatives often extends beyond financial metrics and includes improvements in customer experience, employee productivity, and business agility (Chesbrough, 2019). This difficulty in accurately determining ROI can lead to skepticism and reluctance to invest in future digital initiatives, thus slowing down the progress of digital transformation efforts. Overcoming digital transformation challenges is crucial for organizations who want to remain competitive and innovative in today’s rapidly evolving digital landscape. Organizations must address a variety of challenges, including technological barriers, organizational obstacles, and operational complexities.
References Bouncken, R. B., Kraus, S., & Roig-Tierno, N. (2021). Knowledge-and innovation-based business models for future growth: Digitalized business models and portfolio considerations. Review of Managerial Science, 15(1), 1-14. Chesbrough, H. (2019). Business model innovation: opportunities and barriers. Long range planning, 43(2-3), 354-363. What specific challenges do you foresee in developing new (innovative) business models in your industry? https://www.forbes.com/sites/forbesbusinesscouncil/2024/02/15/20-hurdles-organizations-face- when-implementing-a-new-business-model/?sh=7e419e14680f
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