The cambridge business model innovation process

Business Process Management and Systems
Reflection Report

Best Practice of BPI case study
Rupali Goyal

5-3-2020

Introduction

The reflection report contains analysis of the business process and models with specific emphasis on sustainable development concept. Paper also includes the outcomes associated with irresponsible business model and the design-implementation gap which can result in failure of the business model and business process; henceforth, depriving organization from achieving its short-term and long-term goals. There exists clear distinction between product/process innovation and business model innovation, whereas the former is less likely to succeed in achieving the organizational goals as compared to latter. Finally, Cambridge business process innovation model (CBPIM) is discussed and its effectiveness has placed greater importance to the model within research and practitioners’ community.

Analysis

Organizational competitiveness in domestic and international markets is based on customer satisfaction, and satisfying the constantly changing interests and needs of customers require business modelling that can serve the purpose. Tools and techniques are on constant innovation for the same purpose and the direct result of these innovations is economic development. People are expecting products and services with higher quality and the expectations are diversifying with each passing year due to development of business processes and business models. In a similar way, the socioeconomic, political and environmental repercussions of the innovation process are high, society is facing a serious threat from the innovative ways of doing business and production processes. Henceforth, taking into consideration the sustainable development phenomenon makes the whole process within the limits that are provided by nature to human beings.

Before getting into the debate of unstable development, design-implementation gape, and product/process innovation vs. model innovation, it is vital to understand the key difference between business process and business model. Business process is the series of steps required for a business to produce goods and services that has demand in the market, whereas business model is the way in which it creates ‘value,’ or in other words, creation of value within product or services. In a similar way, business modeling and business processing require tools of sustainability to ensure societal, ecological, political, and economic security. In the era of technological interaction, it is extremely important to understand the consequences of production and consumption that destroys environment; therefore, integrating aspect of sustainable development into business modelling and processing enhances the credibility of organization. In addition, models and processes based on sustainable development mean that the needs of organization are also met. The outcome of an irresponsible business model, that is, models that do not incorporate sustainable development elements into the modelling, is in the form of widening social and financial inequality, causing direct harm to environment, and misbalancing the ecology.

The major issue concerning business models that are sustainable in nature relates to design-implementation gape. Thinking of incorporating sustainability aspects is one thing, and ensuring their success during implementation process is another thing. Therefore, the failure of product in the market or impediments to implementing design strategies face organizations with catch-22 situation. The design-implementation gap requires proper assessment, and therefore the concepts of business process/product innovation and business model innovation are the center of attention. The primary difference between focusing on product/process innovation and model innovation is the way in which business view the problem of design-implementation gap. For example, the difficulty of remaining in-line with the concept of sustainable development and retaining market share that is dependent on introduction of new products or services indicate the need of focusing either on product/process innovation or on business model innovation. The focus of business model innovation is on ‘value’ creation through new tools and techniques. The method is rewarding for organizations to realize the goals within globally competitive world that focusses on incorporating sustainable development. On the other hand, value creation through innovation in business model is non-materialistic phenomenon and relying on developing products and services that are different then before are painstaking task.

The design-implementation became the center of attention for researchers and practitioners during first two decades of the twenty-first century; henceforth, the introduction of Cambridge Business Process Innovation Model (CBPIM) provided way-forward (Giessdoerfer, 2017). The new business model, that is CBPIM, focusses on the business model initial stage and carries it down to the last phase to understand the process and modelling in detailed practicality. The process of taking it down from the initial stage of conceptualization to the last phase of implementation requires tools and techniques that are sustainable, and meet the challenging needs of contemporary and competitive world. CBPIM is based on the business modelling literature and it accommodated for the weaknesses of existing models to provide a new model that could assist in achieving product/service diversity without compromising on sustainable development needs of today’s world. The focus of model remains on understanding the functionalities and attributes, coupled with research that is focused on one case at a time. The observed events provide discovery of new concepts that were not previously visible through old models, and enhancing the contextual and variable concepts through this method yield results. The method is divided into primary eight stages, that is, ideation, concept design, virtual prototyping, experimenting, detail design, piloting, launching, and adjustment and diversification (Martin Geissdoerfer, 2017).

Conclusion

In conclusion, CBPIM introduces ways of incorporating sustainable development tools and allows for practical ways in which business process innovation can occur. The important feature of CBMIP discussed in the literature is its nature of bridging tool in assisting design-implementation gap that is, providing avenues of business operations when there is deadlock in sustaining the business within sustainable development era. Apart from the effectiveness of CBPIM in achieving sustainability elements, framework enhances robustness within organization. The primary debate of whether integrating after identification of new technologies within traditional business models is more effective in comparison to the innovation of business model in first place requires years of research and experience of practitioners to conclude the comparison. Currently, CBMIP considers the business process as prescriptive and descriptive in nature. Last, but not the least, business model innovation remains a fruitful task for companies who can manage, as opposed to process/product innovation.

References

Martin Geissdoerfer, P. S. (2017). The Cambridge Business Model Innovation Process. Procedia Manufacturing, 262-269.

Naor, M., Druehl, C., & Bernardes, E. S. (2018). Servitized business model innovation for sustainable transportation: Case study of failure to bridge the design-implementation gap. Journal of Cleaner Production, 1219-1230.

Vegelin, J. G. (2016). Sustainable development goals and inclusive development. International Environmental Agreements: Politics, Law and Economics, 433-448.