Reflective Statement on Business Innovation Model
In this reflective essay, I will introduce the main benefits and downturns of different approach to BMI (Business Model Innovation). Next, I will identify the benefits and downturns of business model designs, which has been identified in the workshop discussion. Also, I will identify the main question, which is the workshop achievement, the business model we consider and the one we retain and eliminate. The question also seeks to analyse new views on Microsoft’s business model task and identify how Microsoft’s tool can ben enhance. Lastly, the essay would look at team roles and further improvement of the team.
The main achievement in this workshop was analysing company that had the opportunity in the future innovation, which is Microsoft. According to (Rathbone, 2016), the company operates in a fast-technological area. Thus, it would suit how organisation can grow using BMI. Rathbone (2016) identify that the main model for Microsoft evolution are manufacturing, licensing and sell software computer. Since, it is the latest version, the group notice that Window 10 has transform over continuous innovation. The other accomplishment was using Windows 10 as the main model during the workshop.
The Main Component of Business model Design that was considered
Linking to the study of Osivevskyy and Dewald (2015), the team has mutually agreed with each other that BM (Business Model) compositions create certain values to the company and the shareholders. Also, the design of business model creates routine economic value to stakeholders in an orgnaisation as well. The main design that we have consider as a group are as followings which are business model canvas, business model innovation, analogical reasoning and the modularity concept. As stated by Joyce & Paquin (2016), the use of BMC or (Business Model Canvas) are the main common template that most companies use, in order to assist them on the current and new progress they achieved. This tool is very versatile, simple to develop instantly and it can stimulate current business strategy which has been implemented (Teece, 2010). As well as, being suitable with certain detailed, the study of (Baden-Fuller and Mangematin 2013) identify that BMC or (Business Model Canvas) are more likely to be suitable with certain large group. Yet, while using the BMC users must establish certain version of the template. This is because the version of the canvas might not fully represent the full element of the business model (Teece, 2010).
Martins, Rindova & Greenbaum (2015), illustrate that BM or (Business Model) has its based on mental perspective and further knowledge background from other setting. According to the business model outline, new ideas of BM enables format sources of information to be directly aimed at. The main concept of business model design also involves comparing the original layout with the business model criteria, duplicating some tools from other places and then blend certain elements available (Martins, Rindova & Greenbaum, 2015). In the analogical reasoning business model, there are certain sub-category underly beneath it which are close and far analogies. As Rumble and Minto (2017) research explain, close analogies look at model which are relatively correlated, while far analogies look at something completely different. The examples might be companies which are in a relatively close field could share certain information with each other. For instance, Dell and HP are focusing in a similar product range, therefore they can share insight among them. While, for far analogy firm can combine other insight from different industries. Such as, using satellite industry information to blend with mobile industry information.
The other main business model I consider is the modularity model. According to (Barrett, 2015) he views that modularity as the split of activities that tasks are performed differently from the other parts of the module. For instance, developers of web and software application are dissected into sub systems, in order to provide certain area of a business. The main benefits of modularity contain product variation and the ability to enhanced efficiency, by breaking down of division of labour ( Aversa et al. 2015: Barrett, 2015).
The final model that we considered as group are BMI. From the study of (Baden-Fuller and Mangematin 2013) defines BMI as a competitive edge process and value creation. Furthermore, it associates with making adaptation to the value proposition of customers to the organisation and its main operating model. In order to ensure success and survival, organisation must always adapt their model over certain period of time ( Mikhalkin and Cabantous, 2015)
The approach that was discarded are BMC and analytical reasoning. From the research of (Toro-Jarrín, Ponce-Jaramillo & Güemes-Castorena, 2016) BMC focus on the main four concepts of an organisation: finance, offer, customer and infrastructure. None the less, (O’Neill, 2015) indicates that BMC fails to cover certain considerations for business success including level of competition. Yet, to become successful certain business must have the knowledge to confront competition (Gawer & Cusumano, 2008). In fact, based on the RPV (Rational-Positioning-View), a company can change its core operation model to a proactive measure to balance out, because of economic downturn and to defend from external threats (Martins, Rindova & Greenbaum, 2015). The external threats that competitors provide, for instance Apple and Samsung Company, are the abilities to forced Microsoft to provide premium service in Window10. However, the BMC are not able to capture the role of change in competitors, causing it to be discarded.
Furthermore, analogical reasoning model was discarded. As mentioned, business model idea, mainly use ideas from other industries and unrelated areas, during the development. Correspondingly, firms employ the near and the far analogies. However, the model for developing Windows 10, has been combined by existed near and far industries, the concept involved were only unique to the firm. Especially, the company combined features from two previous operating systems, Windows 7 and 8, into a new OS. As a result, the analogical reasoning approach was not suitable in developing Window 10.
During the workshop there are two main business models that Windows 10 can be adapted into, which are the modularity option. During the group discussion, I think that, in order to target certain group of customers Microsoft Company could use modularity to breakdown its system into different modules and it also help with product diversity. The main example is, the sub development system of the glass idea, Windows C, Windows 10 S and (Robotic-Operating-System) or ROS. From (Foley, 2018) the use of ROS for example, grant designers to use existing functions like cloud services and Visual plus, for instance Azure Cognitive to create robots. In addition, BMI was the main concept used on how new OS was transformed in class. Even though, Microsoft tries to develop its product line, like Window 10, but the main intention of the latest version was to broaden the core business of software improvement. As a result, the use of BMI is the best option for software improvement for Microsoft. The main model was being used, due to the fact that the main benefit of software transforms the market via Window 10. After the development of software, the company has expanded other product line, such as, Window 10C and vehicle infotainment OS.
Visioning Microsoft’s BM through the Workshop Lens
According to the previous workshop discussion, I learnt that BMI must not contain purely fiction theory (Chesbrough and Rosenbloom, 2002). But, in fact I notice that there are a blend of current ones or other business models. Therefore, from the study of (Bott, 2016) it shows that Window 10 has been transformed by comparing and blending both (Windows 7 and 8) into creating a new OS. Which therefore, I realised that Window 10 is just an add on of predecessor OS.
For Microsoft’s model, I think that networking effect plays an important role. As (Eisenmann, Parker & Van Alstyne, 2006) state that the network effect values on demand aspect because as suppliers provide more services, the number of users also increase as well. By looking at Microsoft BMI, I noticed that by using the network effect would prevent rivals from taking software companies margin and it create opportunity for winners to take all the possible market as well (Eisenmann, Parker & Van Alstyne, 2006). During the workshop, I notice that as Windows 10 becomes more popular between users, it is now possible to adopt it into certain systems. For instance, car infotainment systems, Window glasses and other robotic ideas etc. Likewise, I learnt that Microsoft can reach out with its customers through online and actual stores. By interacting through these channels, firm can gain monetization via sale of keys and licenses over company’s online and physical stores.
Advantages of the Tool
According to (Gawer & Cusummano, 2008), I realized during class that by strengthening value proposition with BMI would, therefore create better value than the existing one. In order, to attract profit and extensive range of users. The new system has been used to minimise and adopt the issues face with Window 8 to become a better version, in order to attract customers. Furthermore, from the study of (Macauley, 2018) the new system has blend Window 7 appearance to make it easier for users to use. As a result, this current system has an active user over half a billion devices around the world (Macauley, 2018). As Macaulay (2018) stated the value of shareholders of new Microsoft system has a market share of 42.78%, while Window 7 has a market share of 41.86%. Besides, MacOS can only be used within their products line, Windows 10 are able to tackle broad range of products, such as tablets, notebooks and Personal Computer (Rathbone, 2016).
Disadvantages of the Tool
The main customers of Microsoft’s are Corporates, currently the business tries to minimise the cost. However, new innovation system have to cope with high costs, due to the fact of its complexity nature (Macaulay, 2018). For example, in order to make the full use of Windows 7,8 and 10 aspects in training cost comes in, which therefore create a downturn for organization to buy in new OS.
Improving the Tool
During several meetings, we discuss that Windows 10 should create more sub categories of the operating systems. Therefore, Microsoft should emphasise on developing the future OS to become more efficient by focusing on the solution model. For instance, users now currently favor Google as their main internet browser. Consequently, Microsoft must consider the opportunity to integrate the interface of Explorer business model to become better. According to the network approach, (Positive-Network-Effect) or PNE is the main area of competitive edge for business platform. On the other side, as more rivals tackle these paths, the value of the service falls, the amount of services rise and the price of service decline. Thus, the best way that I learnt from this is improving the product and service bundle of new Windows. By using solution model it would be easier to interact with customers through intelligent solution and research data, such as empirical data that customers identify Storbacka (2011). Essentially, the company can use its software and technologies like robotics and IoT (Internet-of-Things) on other product lines.
The group usually have five members, but three members did not attend the meeting, due to the fact of cultural and religious errands. Hence, this can be link to the study of (Salas et al, 2015), where cultural diversity has certain effect towards the team. For instance, satisfaction and miscommunication among members etc. In order to minimise certain pains, the group have now established a team coordinator to be in charge of the group work between certain members, like creating Facebook polls for suitable group meetings time. Thus, this would prevent participant from missing their group meeting session because of religious affair. Likewise, by being a part of a team helps everybody to agree on the same goals they are aiming at. On the flip side, my team lacks coherent among individual members of the team. For example, it is challenging for me and my team to spot the needs because of different ideas and interest. Nevertheless, team leader must encourage and persuade individual to agree on certain final decision making. Also, during the project period I found out that certain members have majors’ problems with punctuality. By eliminating this issue, the team coordinator must constantly notify a message to every member about the meeting regularly.
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