Short answer
When developing new products or services, actively consider and design the supporting business model to maximize the potential for disruptive impact.
- Field
- Innovation & Design
- Source
- International Journal of Innovation (2015)
- Method
- Case study analysis
- Evidence
- Strong effect
A well-defined and strategically chosen business model is a critical enabler for organizations aiming to introduce disruptive innovations. This innovation & design research insight is drawn from a 2015 study published in International Journal of Innovation. Using Case study analysis, researchers explored how this design variable affects real-world outcomes. The key design takeaway: When developing new products or services, actively consider and design the supporting business model to maximize the potential for disruptive impact.
Business Model Innovation Drives Disruptive Market Entry
A well-defined and strategically chosen business model is a critical enabler for organizations aiming to introduce disruptive innovations.
International Journal of Innovation · 2015
Key Findings
- 01The success of disruptive innovation is strongly linked to the business model adopted by an organization.
- 02Specific business model choices can significantly leverage and facilitate innovation processes.
- 03Two of the analyzed business model frameworks demonstrated strong adherence to the Gol Airlines case.
Application
Design takeaway
When developing new products or services, actively consider and design the supporting business model to maximize the potential for disruptive impact.
How to apply
Before launching a new product, map out its potential business model and assess how it might disrupt existing markets. Consider how the model's components (value proposition, customer segments, channels, revenue streams) support the innovation.
Project actions
- 01When defining your product, also define how you will make money from it and deliver it to customers.
- 02Research different business models to see which might best support your innovative idea.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Focuses on the critical link between business strategy and innovation outcomes.
- +Uses a real-world case study for practical illustration.
Limitations
The specific business models analyzed might not be universally applicable to all industries or innovation types.
Reliability & validity
The validity of the findings relies heavily on the accurate interpretation of the Gol Airlines case and the applicability of the chosen business model frameworks. Reliability would be enhanced by replicating the analysis across multiple disruptive innovations.
Think critically
How might a business model itself be considered a form of design, and what are the implications for designers working on product innovation?
Design Principles
"Business model innovation is a prerequisite for product innovation to achieve disruptive market effects."
Understanding how business models influence innovation is crucial for designers and strategists. It highlights that innovation isn't solely about product features but also about how value is created, delivered, and captured.
What This Means for Your Design
Choosing the right way to run a business (the business model) can help a new idea really shake up a market.
How to use in your project
- 1.Use this research to justify how your chosen business model supports the disruptive potential of your design concept.
Add to My Project
Quick Cite
Paragraph starter
The success of disruptive innovations is intrinsically linked to the strategic choices made in the business model. By analyzing the case of Gol Airlines, this study demonstrates that a well-defined business model can act as a powerful catalyst for innovation, enabling companies to effectively leverage new ideas and challenge established markets. Therefore, for any design project aiming for disruptive impact, careful consideration and design of the supporting business model are paramount.
Source
International Journal of Innovation
Business Model as an Inducer of Disruptive Innovations: The Case of Gol Airlines
journal · 2015
View sourceQuestions About This Research
- What does the research say about business model innovation drives disruptive market entry?
- When developing new products or services, actively consider and design the supporting business model to maximize the potential for disruptive impact. Evidence: International Journal of Innovation (2015).
- Why does "Business Model Innovation Drives Disruptive Market Entry" matter for design?
- Understanding how business models influence innovation is crucial for designers and strategists. It highlights that innovation isn't solely about product features but also about how value is created, delivered, and captured.
- How can designers apply this research?
- When developing new products or services, actively consider and design the supporting business model to maximize the potential for disruptive impact.
- What were the main findings?
- The success of disruptive innovation is strongly linked to the business model adopted by an organization.. Specific business model choices can significantly leverage and facilitate innovation processes.. Two of the analyzed business model frameworks demonstrated strong adherence to the Gol Airlines case.
- What research method was used?
- Case study analysis.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2015 journal from International Journal of Innovation.
- What should I do differently in my next project?
- Before launching a new product, map out its potential business model and assess how it might disrupt existing markets. Consider how the model's components (value proposition, customer segments, channels, revenue streams) support the innovation.
- What are the limitations?
- The study is based on a single case, limiting the generalizability of findings to other industries or companies without similar characteristics.