BUS 430

Management of
Innovation
ASSIGNMENT 1
Name of Student

Student ID

Harmanpreet Sandhu

200106774

E-mail
harmanpreet.sandhu@student.ufv.ca

How to get paid for everything

twice: integrated innovation
management

Submitted to: Dr. Mike Ivanof

How to get paid for everything

twice
This review discusses Goran Rosss article How to get paid twice for
everything you do: integrated innovation management. I must agree
that this thoroughly researched article pertains to an exquisite fact,
which lays innovation as a key driver to increase the market value of
the company. The whole idea of this powerfully reviewed article relates
to how innovation creates value to the firm while also generates value
to the shareholders. The author discusses two types of innovation;
firstly,

technology,

design

and

efficiency

based

and

secondly,

innovation based on business model. Technology based innovation is

the most demanding aspect of the firm keeping in mind the quick
transition of fast growing technological changes in the environment.
The design-based technology is something, which a firm can create a
sustainable competitive advantage from. It has the power to develop
customer loyalty provided it satisfies all the customers needs.
However, the author focused strongly upon business model type of
innovation since it is ignored in most of the firms. Moreover, the article
is supported by Fortune magazines listing of companies based on
innovation indicating a direct correlation of innovation with shareholder
return.

I believe that Business model innovation is often the key to

capturing value from innovation within corporations. Business model

innovation is something unique in a way that it would be different for
every firm. Thus, it can create exceptional amount of value giving a
sustainable competitive advantage from its key competitors. A
meticulous approach to business model innovation could certainly
create a rapid path to market for ventures, in addition to increasing

chances of success. Business model innovation has gained increased

attention over the last five years, driven in large part by the tremendous returns generated by companies that have developed new
business modelsNetflix, Dell, and the Apple iTunes store are the most
frequently noted examples. (Euchner, J., & Ganguly, A)
On the other hand, the article talks about how during the 1980s, US
corporations wasted billions of dollars on failed attempts to innovate
and it takes about 3,000 ideas to produce one commercial success. I
would like to disagree with this point. The way I see it, the money that
has been used for the purpose of innovation has created success and
innovation has now become an integral part of a firm. It is with that
money and effort which was put in at early times, which led to a need
to constantly innovate, followed by an exceptional value creation. It
also talks about research which found that innovation projects that
focused on improving product performance had the lowest average
return, while the highest average return came from innovation projects
focusing on business models. I strongly believe that business model
innovation will overcome the technology based, design based and the
efficiency type of innovation and firms will focus more on business
model innovation over the period of time. An article supporting this
point talks about four business models that create value to the firm.
They are:
1.
2.
3.
4.

Asset builder
Service Provider
Technology creator, and
Network Orchestrators

It gives an idea how these four factors if put into a business model, can
create tremendous amount of value to the firm as well as to the
shareholders. A business model should consist of an updated
3

technology and a viable method to make it a successful business

model. (Deliotte)
Talking about design-based innovation, design is something, which
needs to be developed and updated according to the customer
preference. We can take an example of Blackberry Enterprise Services,
which has a strong and safe software design and the army of USA uses
the blackberry enterprise services. Despite of their several issues with
the consumer segment and a poor market reputation, BES has
remained one of its kind. Furthermore, efficiency based innovation has
everything to the with saving upon cost. Using the firms resources
optimally and working with an efficient environment in the firm is a
major requirement to be able to succeed.
To conclude, the experiments that has happened with innovation
during the past has now made innovation an integral part of most of
the firms globally. A well thought of and a disciplined method of
innovation needs to be developed within the corporations to be able to
make the most of it.

Bibliography
Deliotte. (n.d.). The Value Shift: Why CFOs Should Lead the Charge in
the Digital Age. Retrieved 01 10, 2014, from Wall Street Journal:
http://deloitte.wsj.com/cfo/2014/12/15/the-value-shift-why-cfos-shouldlead-the-charge-in-the-digital-age/?
KEYWORDS=business+model+innovation
Parmar, R., Mackenzie, I., Cohn, D., & Gann, D. (2014). The New Patterns of
Innovation. Harvard Business Review, 92(1/2), 86-95.
Euchner, J., & Ganguly, A. (2014). Business Model Innovation in Practice.
Research Technology Management, 57(6), 33-39.
doi:10.5437/08956308X5706013