Navigation Links
Fresh Thinking: Harvard Business Review Article Explores When and How Companies Must Reinvent Their Businesses

WATERTOWN, Mass., Dec. 8 /PRNewswire/ -- One secret to maintaining a thriving business is recognizing when it needs fundamental change. Given the potentially permanent disruptions and seismic shifts currently affecting many markets -- from autos to media -- creating a new business model has become a matter of survival. Mark Johnson, co-founder and chairman of Innosight LLC, an innovation strategy consulting firm, and co-authors, Clay Christensen, the Robert and Jane Cizik Professor of Business Administration at Harvard Business School, and Henning Kagermann, co-CEO of SAP AG, describe how companies can identify when and how to reinvent their business models in the lead article of the December issue of Harvard Business Reviewentitled "Reinventing Your Business Model."

"Most companies don't fully understand the constraints of their current business model," says Johnson. "Chances are the model has been in place for years and has calcified into a set of unchallenged assumptions that often define a company's strategic options instead of the strategy dictating the model."

Great business models can reshape industries and drive spectacular growth. Think Apple and the iPod/iTunes combination. Apple was not the first to bring digital music to the masses. However, it was the first to innovate its business model, making digital music easy and convenient to download -- all to the tune of becoming a $10 billion product in just three years.

In fact, a 2005 survey by The Economist Intelligence Unit reported that two-thirds of corporate CEOs believe their organizations require extensive changes to their business models. But how does a company know if it is time for reinvention? To determine whether a firm should seek to innovate its business model, Johnson, Christensen and Kagermann advise these steps:

  • Articulate what makes your existing model successful. For example, what customer problem does it solve? How does it make money for your firm?
  • Watch for signals that your model needs changing, such as tough new competitors on the horizon.
  • Decide whether reinventing your model is worth the effort. The answer is yes only if the new model changes the industry or market.

"Reinventing Your Business Model" is available online at Harvard Business Review. To learn more about this concept, please visit

About Innosight LLC

Founded in 2000 by Mark Johnson and Harvard Business School Professor and author, Clayton Christensen, Innosight is a consulting firm focused exclusively on enabling companies to achieve repeatable growth through innovation. Building off of the theories of disruptive innovation outlined in Christensen's bestselling books - The Innovator's Dilemma and The Innovator's Solution, Innosight combines proprietary tools and processes with pattern recognition skills and judgment to develop high-potential ideas for new growth businesses. Using well-structured, market-tested frameworks and models allows Innosight to have substantial impact in a short period of time, and facilitates knowledge transfer and skill building. The company has the privilege of collaborating with many of today's leading companies as they seek to create and respond to market disruptions including Johnson & Johnson, Procter & Gamble, General Motors, Scripps Newspapers, Pepsi, Unilever, and Covidien. Innosight is headquartered in Watertown, Mass. More information is available at

    Contact: Hillary Blum
    Stern + Associates (PR for Innosight)
    (908) 276-4344, ext. 227

SOURCE Innosight LLC
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. JavaFit, Distributors of Vitamin Infused Fresh Roasted Coffee, Announces Partnership With CLR Roasters
2. Fresh Transfusions Improve Odds for Cancer Patients After Surgery
3. Adapts As The Online Recruiting Market Heats Up
4. Coromega Unveils New Healthy Heart and CoQ10 Supplements : Revolutionary Omega-3 Supplement Company Introduces Two Fresh Takes on Heart Health and Antioxidants
5. New Health Retreat Gives a Fresh Attitude Towards Disease Prevention
6. RTI Biologics Sees Expanded Surgeon User Base of Fresh OC Allografts
7. PRN Funding Refreshes Website Experience
8. Santa Monica School Unveils Fresh Fruit & Vegetable Snack Program to Combat Obesity
9. Coromega Hits Store Shelves with Fresh New Look : One-of-a-Kind Omega-3 Squeeze Packet Offers Same Superior Absorption with Mouth-Watering New Packaging Design
10. College Freshmen See Rx Drug Misuse More Risky Than Alcohol, Pot
11. Fresh Medical Industry News Reveals Earnings & Productivity Changes For Physicians
Post Your Comments:
(Date:6/27/2016)... ... June 27, 2016 , ... "FCPX editors can now reveal ... Final Cut Pro X," said Christina Austin - CEO of Pixel Film Studios. ... Cut Pro X users can now reveal the media of their split screens ...
(Date:6/27/2016)... ... June 27, 2016 , ... ePAY ... partnership with Connance, a healthcare industry leader providing predictive analytics to optimize ... combine to provide health systems, hospitals and ambulatory surgical centers with dramatic ...
(Date:6/27/2016)... ... June 27, 2016 , ... recently awarded their highest five-star rating ... Millions of individuals in the United States and Canada wear eyeglasses. Once considered to ... correct vision and make a fashion statement. Even celebrities use glasses as a way ...
(Date:6/26/2016)... ... June 26, 2016 , ... On June 10-11, 2016, ... the 2016 Cereal Festival and World’s Longest Breakfast Table in Battle Creek, MI, where ... city’s history as home to some of the world’s leading providers of cereal and ...
(Date:6/26/2016)... ... ... PawPaws brand pet supplements owned by Whole Health Supply is ... of felines. The formula is all-natural and is made from Chinese herbs that have ... Kidney Support Supplement Soft Chews are Astragalus Root Extract and Rehmannia Root Extract ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... Research and Markets has announced the addition of the ... to their offering. ... World Market for Companion Diagnostics covers the world market for ... report includes the following: , World IVD ... (N. America, EU, ROW), 2015-2020 , World IVD Companion ...
(Date:6/24/2016)... , June 24, 2016   Pulmatrix, Inc ... company developing innovative inhaled drugs, announced today that it ... Russell Investments reconstituted its comprehensive set of U.S. ... "This is an important milestone for Pulmatrix," said ... increase shareholder awareness of our progress in developing drugs ...
(Date:6/24/2016)... 24, 2016  Arkis BioSciences, a leading innovator ... more durable cerebrospinal fluid treatments, today announced it ... funding is led by Innova Memphis, followed by ... private investors.  Arkis, new financing will accelerate the ... market release of its in-licensed Endexo® technology. ...
Breaking Medicine Technology: