Assessing General Motors’ innovation strategy over three decades using the “Three Box Solution”

2019 ◽  
Vol 47 (2) ◽  
pp. 34-42 ◽  
Author(s):  
Vincent Barabba
Keyword(s):  
Business Model ◽  
Decision Makers ◽  
General Motors ◽  
Strategy Development ◽  
Content Type ◽  
Business Innovation ◽  
The Core ◽  
Potential Market ◽  
New Business ◽  
Practical Implications

Purpose Professor Vijay Govindarajan’s “Three Box Solution” framework provides a useful way of looking at a transformative business innovation initiative started at General Motors almost three decades ago and now being further developed by its current CEO Mary Barra. Design/methodology/approach Drawing on 18 years of experience at GM the author offers insights into how the company used the “Three Box” aproach: 10;•9;Box 1: Strengthen the core. 10;•9;Box 2: Let go of the practices that drive the core business but hinder the new one. 10;•9;Box 3: Invented a new business model. 10; Findings GM management found creative ways to enable the current business to thrive while exploring the potential market for a visionary business model. Practical implications %2010%3BThe%20paper%20provides%20new%20insight%20into%20how%20General%20Motors%20has%20changed%20and%20how%20it%20is%20continuing%20to%20adapt%20%20emerging%20future%20markets.. Originality/value Based on actual experience of participating in strategy development this paper should help decision makers address their current actions and future strategies simultaneously.

EHBH Pvt. Ltd – a step towards creation of a unique business model

2013 ◽  
Vol 3 (6) ◽  
pp. 1-14
Author(s):  
Syeedun Nisa ◽  
Abdullah Bin Junaid
Keyword(s):  
Learning Outcomes ◽  
Business Model ◽  
Food Industry ◽  
Subject Area ◽  
New Venture ◽  
Educational Institutions ◽  
Motivating Factors ◽  
Content Type ◽  
The Core ◽  
New Business

Subject area Entrepreneurship. Study level/applicability Postgraduate/graduate management programmes. Case overview EHBH is a Delhi-based healthy food and snacks company offering an effective, efficient and reliable service in the beverage/catering segment. The company has opened outlets in corporate offices and educational institutions in Delhi/NCR. Driven by quality and hygiene standards, the company's aim is to keep customer satisfaction at the core of its operations. The case on EHBH describes the entrepreneurial journey of the founder and MD, Mr Furkan Khan. The case discusses the motivation to start a new venture. The thrust of the case lies in learning how to develop and operate unique business model. The case is written at the time when the company is in its establishment stage. The case elucidates the potential in the food industry especially fruit juices. Expected learning outcomes To demonstrate specific motivating factors to enter into a new venture, to understand various entrepreneurial models and their applicability in the present case, to highlight overview, trends and the various challenges associated with Indian juice food industry, to understand the conception and implementation of new business model. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Servitization as reinforcement, not transformation

2017 ◽  
Vol 28 (4) ◽  
pp. 662-686 ◽  
Author(s):  
Anna Salonen ◽  
Onur Saglam ◽  
Fredrik Hacklin
Keyword(s):  
Business Model ◽  
Design Methodology ◽  
Alternative Explanation ◽  
Decision Makers ◽  
Related Services ◽  
Basic Product ◽  
Content Type ◽  
Empirical Basis ◽  
Practical Implications

Purpose The purpose of this paper is to explain why product-centric manufacturers utilize advanced services not as vehicles of transformation, but of reinforcement, to strengthen their established business model logic based on selling products and basic product-related services. Design/methodology/approach The empirical basis of this study relies on an in-depth case study of a globally operating manufacturer of industrial pumps and related services. The data includes 31 interviews conducted over several years of in-depth collaboration with the studied firm. Findings Product-centric manufacturers utilize advanced services as engagement platforms to facilitate the external and internal engagement of the actors and the resources controlled by them. Externally, advanced services facilitate access to customer decision makers and insights into their latent needs. Internally, advanced services help the manufacturer to more effectively leverage resources that reside within its different organizational units. Ultimately, in leveraging advanced services as engagement platforms, the manufacturer seeks to boost activities with the greatest immediate impact on its market performance: the sale of products and basic product-related services. Practical implications The study explains why managers should invest into development of advanced services even if such services contribute only marginally to the manufacturer’s direct revenues and profits. Originality/value This study contributes to development of an alternative explanation of servitization that departs from the current paradigmatic assumptions in the field.

Lean Startup, Agile Methodologies and Customer Development for business model innovation

2019 ◽  
Vol 26 (4) ◽  
pp. 595-628 ◽  
Author(s):  
Diego Souza Silva ◽  
Antonio Ghezzi ◽  
Rafael Barbosa de Aguiar ◽  
Marcelo Nogueira Cortimiglia ◽  
Carla Schwengber ten Caten
Keyword(s):  
Business Model ◽  
Business Model Innovation ◽  
Content Type ◽  
Agile Methodologies ◽  
New Business ◽  
Structured Analysis ◽  
The Subject ◽  
Practical Implications ◽  
Customer Development ◽  
Lean Startup

Purpose Startups have attracted increased attention over the past years. While entrepreneurs develop startups to capture new business opportunities, also large companies are turning to these fast-growing organizations in efforts to become more agile. However, managing business model innovation and validation is challenging. A number of methodologies, like the Lean Startup (LS), emerged to reduce uncertainties concerning innovation-based projects, and to contribute to business model validation. Despite its popularity, the literature on the LS and its key underpinnings (Agile Methodologies and Customer Development) is sparse, lacking an integrated and structured analysis of their impacts and potentialities. The paper aims to discuss this issue. Design/methodology/approach The authors conducted a comprehensive systematic literature review on the topic fully analyzing a final set of 71 papers. Findings There is a turning point in the research stream’s maturity with publications in conferences and major journals, with the predominance of empirical investigations in the European region. Articles on the topic are on the rise in several technology fields. However, the literature on the subject falls short on providing guidance to assist practitioners and scholars on the adoption and investigation of these methodologies. Practical implications The paper provides guidance for practice by presenting a staircase roadmap for the LS implementation drawing from the final set of papers reviewed. Originality/value The study categorizes the current literature through a concept map, and offers a structured research agenda beyond the categories from the thematic analysis.

Sustainable life cycle offers through cooperation

2015 ◽  
Vol 4 (1) ◽  
pp. 4-24 ◽  
Author(s):  
Julia Selberherr
Keyword(s):  
Sustainable Development ◽  
Life Cycle ◽  
Business Model ◽  
Value Creation ◽  
Business Models ◽  
Service Providers ◽  
Construction Sector ◽  
Content Type ◽  
New Business ◽  
Societal Level

Purpose – Sustainable buildings bear enormous potential benefits for clients, service providers, and our society. To release this potential a change in business models is required. The purpose of this paper is to develop a new business model with the objective of proactively contributing to sustainable development on the societal level and thereby improving the economic position of the service providers in the construction sector. Design/methodology/approach – The modeling process comprises two steps, the formal structuring and the contextual configuration. In the formal structuring systems theory is used and two levels are analytically separated. The outside view concerns the business model’s interaction with the environment and its impact on sustainability. The inside view focusses on efficient value creation for securing sustainability. The logically deductively developed business model is subsequently theory-led substantiated with Giddens’ structuration theory. Findings – The relevant mechanisms for the development of a new service offer, which creates a perceivable surplus value to the client and contributes to sustainable development on the societal level, are identified. The requirements for an efficient value creation process with the objective of optimizing the service providers’ competitive position are outlined. Research limitations/implications – The model is developed logically deductively based on literature and embedded in a theoretical framework. It has not yet been empirically tested. Practical implications – Guidelines for the practical implementation of more sustainable business models for the provision of life cycle service offers are developed. Social implications – The construction industry’s impact requires it to contribute proactively to a more sustainable development of the society. Originality/value – This paper analyzes the role for the players in the construction sector in proactively contributing to sustainable development on the societal level. One feasible strategy is proposed with a new business model, which aims at cooperatively optimizing buildings and infrastructures and taking the responsibility for the operating phase via guarantees.

Size does matter – span of control in hospitals

2017 ◽  
Vol 31 (2) ◽  
pp. 192-206 ◽  
Author(s):  
Christina Holm-Petersen ◽  
Sussanne Østergaard ◽  
Per Bo Noergaard Andersen
Keyword(s):  
Design Methodology ◽  
Hospital Staff ◽  
Leadership Capacity ◽  
Decision Makers ◽  
Span Of Control ◽  
Content Type ◽  
Frontline Leaders ◽  
Practical Implications

Purpose Centralization, mergers and cost reductions have generally led to increasing levels of span of control (SOC), and thus potentially to lower leadership capacity. The purpose of this paper is to explore how a large SOC impacts hospital staff and their leaders. Design/methodology/approach The study is based on a qualitative explorative case study of three large inpatient wards. Findings The study finds that the nursing staff and their frontline leaders experience challenges in regard to visibility and role of the leader, e.g., in creating overview, coordination, setting-up clear goals, following up and being in touch. However, large wards also provide flexibility and development possibilities. Practical implications The authors discuss the implications of these findings for decision makers in deciding future SOC and for future SOC research. Originality/value Only few studies have qualitatively explored the consequences of large SOC in hospitals.

How “The Three Rules” guide strategy and investment decisions at Deloitte Consulting LLP

2015 ◽  
Vol 43 (3) ◽  
pp. 7-14 ◽  
Author(s):  
Jim Moffatt
Keyword(s):  
Design Methodology ◽  
Large Scale ◽  
Investment Decisions ◽  
Decision Makers ◽  
Research Project ◽  
Content Type ◽  
First Case ◽  
Practical Implications ◽  
Thought Leadership

Purpose – This case example looks at how Deloitte Consulting applies the Three Rules synthesized by Michael Raynor and Mumtaz Ahmed based on their large-scale research project that identified patterns in the way exceptional companies think. Design/methodology/approach – The Three Rules concept is a key piece of Deloitte Consulting’s thought leadership program. So how are the three rules helping the organization perform? Now that research has shown how exceptional companies think, CEO Jim Moffatt could address the question, “Does Deloitte think like an exceptional company?” Findings – Deloitte has had success with an approach that promotes a bias towards non-price value over price and revenue over costs. Practical implications – It’s critical that all decision makers in an organization understand how decisions that are consistent with the three rules have contributed to past success as well as how they can apply the rules to difficult challenges they face today. Originality/value – This is the first case study written from a CEO’s perspective that looks at how the Three Rules approach of Michael Raynor and Mumtaz Ahmed can foster a firm’s growth and exceptional performance.

The new retail model: global reach demands omni-channels

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guillaume Do Vale ◽  
Isabelle Collin-Lachaud ◽  
Xavier Lecocq
Keyword(s):  
Business Model ◽  
Business Strategy ◽  
Academic Research ◽  
Transformation Process ◽  
Content Type ◽  
New Business ◽  
Business Cases ◽  
Established Firms ◽  
New Consumer ◽  
Global Reach

Purpose To cope with online competitors and new consumer behaviors, retailers need to hybrid digital and physical offerings to implement an omni-channel business model. This constitutes a digital transformation of the traditional business model. However, business cases on how traditional retailers are shifting from multi-channel to omni-channel retailing are lacking. This paper aims to explore the different issues and organizational paths during the transformation of a business model. Design/methodology/approach This study is based on a qualitative multiple case study of five retailers with a global reach currently implementing an omni-channel business model. Findings This research sheds light on three main issues encountered by retailers and the different underlying decisions when moving toward an omni-channel business model. The first relates to revenue attribution across channels, which involves rethinking traditional key performance indicators to give incentives to stores when promoting digital offers. The second issue concerns the supply chain decisions associated with cross-channel operations. The third issue relates to the delicate balance between global reach (digital channel) and local reach (specific store) for communication on social media and marketing decisions on pricing. This study provides empirical evidence about the variety of choices that retailers make to cope with the issues during the implementation of an omni-channel business model. Originality/value This work explores the issues faced by established firms when moving toward a new business model that is the hybridization of two existing business model managed separately. It provides comprehensive and clear illustration of how to manage such a business model transformation process that can be used by both business strategy practice and academic research.

Who’s making the decisions? How managers can harness artificial intelligence and remain in charge

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pooya Tabesh
Keyword(s):  
Artificial Intelligence ◽  
Machine Learning ◽  
Decision Making ◽  
Big Data ◽  
Digital Transformation ◽  
Decision Processes ◽  
Decision Makers ◽  
Content Type ◽  
Human Decision ◽  
Practical Implications

Purpose While it is evident that the introduction of machine learning and the availability of big data have revolutionized various organizational operations and processes, existing academic and practitioner research within decision process literature has mostly ignored the nuances of these influences on human decision-making. Building on existing research in this area, this paper aims to define these concepts from a decision-making perspective and elaborates on the influences of these emerging technologies on human analytical and intuitive decision-making processes. Design/methodology/approach The authors first provide a holistic understanding of important drivers of digital transformation. The authors then conceptualize the impact that analytics tools built on artificial intelligence (AI) and big data have on intuitive and analytical human decision processes in organizations. Findings The authors discuss similarities and differences between machine learning and two human decision processes, namely, analysis and intuition. While it is difficult to jump to any conclusions about the future of machine learning, human decision-makers seem to continue to monopolize the majority of intuitive decision tasks, which will help them keep the upper hand (vis-à-vis machines), at least in the near future. Research limitations/implications The work contributes to research on rational (analytical) and intuitive processes of decision-making at the individual, group and organization levels by theorizing about the way these processes are influenced by advanced AI algorithms such as machine learning. Practical implications Decisions are building blocks of organizational success. Therefore, a better understanding of the way human decision processes can be impacted by advanced technologies will prepare managers to better use these technologies and make better decisions. By clarifying the boundaries/overlaps among concepts such as AI, machine learning and big data, the authors contribute to their successful adoption by business practitioners. Social implications The work suggests that human decision-makers will not be replaced by machines if they continue to invest in what they do best: critical thinking, intuitive analysis and creative problem-solving. Originality/value The work elaborates on important drivers of digital transformation from a decision-making perspective and discusses their practical implications for managers.

Building a new resilience

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peter Buell Hirsch
Keyword(s):  
Cyber Security ◽  
Design Methodology ◽  
Business Leaders ◽  
Human Potential ◽  
Global Business ◽  
Content Type ◽  
Business System ◽  
New Business ◽  
Practical Implications

Purpose The purpose of the viewpoint is to examine the various ways in which the pandemic has exposed structural vulnerabilities in global business infrastructures that have long existed and been long ignored. It urges business leaders not to return to a “new normal” but make fundamental changes to ensure that their businesses are truly resilient and can withstand future threats more effectively. Design/methodology/approach The viewpoint looks at the various kinds of vulnerability to which businesses are exposed – such as supply chain, human capital, cyber security and climate change – and proposes ways to ensure that businesses, as well as shareholders and government entities work together to build true resilience. Findings At its core, the viewpoint exposes the various ways in which businesses have turned a blind eye to vulnerabilities that have always lurked just below the surface and suggests. The argument is that to secure the long-term future of our global business system, we can no longer remain oblivious to fundamental weaknesses in our infrastructures. Research limitations/implications The viewpoint looks selectively at the available data and is, therefore, by definition, subjective and non-comprehensive. Practical implications If businesses and shareholders truly take the recommendations of this viewpoint to heart, we can build a more resilient future through long-term investments in risk management infrastructures of all kinds that will secure a more prosperous and stable future. Social implications Developing a more resilient and stable global business infrastructure will help reduce the business volatility deriving from last minute responses to predictable threats. This will, in turn, help provide more stable, fulfilling employment, especially in developing countries that will act as a fly wheel for the secure development of human potential around the world. Originality/value While there has been much speculation of what the “new business normal” will look like once the pandemic has been conquered, this is, the author believes, the first piece to look concretely on how we can not only “build back better” but build back more soundly for the long term.

The future of the Internet of Things: toward heterarchical ecosystems and service business models

2018 ◽  
Vol 33 (6) ◽  
pp. 749-767 ◽  
Author(s):  
Seppo Leminen ◽  
Mervi Rajahonka ◽  
Mika Westerlund ◽  
Robert Wendelin
Keyword(s):  
Internet Of Things ◽  
Business Model ◽  
Value Chain ◽  
Large Scale ◽  
Business Models ◽  
The Internet ◽  
Content Type ◽  
Industry Collaboration ◽  
New Business ◽  
The Internet Of Things

Purpose This study aims to understand their emergence and types of business models in the Internet of Things (IoT) ecosystems. Design/methodology/approach The paper builds upon a systematic literature review of IoT ecosystems and business models to construct a conceptual framework on IoT business models, and uses qualitative research methods to analyze seven industry cases. Findings The study identifies four types of IoT business models: value chain efficiency, industry collaboration, horizontal market and platform. Moreover, it discusses three evolutionary paths of new business model emergence: opening up the ecosystem for industry collaboration, replicating the solution in multiple services and return to closed ecosystem as technology matures. Research limitations/implications Identifying business models in rapidly evolving fields such as the IoT based on a small number of case studies may result in biased findings compared to large-scale surveys and globally distributed samples. However, it provides more thorough interpretations. Practical implications The study provides a framework for analyzing the types and emergence of IoT business models, and forwards the concept of “value design” as an ecosystem business model. Originality/value This paper identifies four archetypical IoT business models based on a novel framework that is independent of any specific industry, and argues that IoT business models follow an evolutionary path from closed to open, and reversely to closed ecosystems, and the value created in the networks of organizations and things will be shareable value rather than exchange value.

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