Yuliya Snihur, Associate Professor of Entrepreneurship at IESE, discusses the evolving landscape of business innovation, emphasizing the balance between groundbreaking ambitions and realistic goals. Discover how Business Model Innovation (BMI) is pivotal in driving sustainable business practices and ethical entrepreneurship.
The digital era has witnessed the rise of companies promising groundbreaking disruptions and advancements. This ambition, encapsulated by Mark Zuckerberg’s “move fast and break things” mantra, has defined a generation of entrepreneurs.
However, this relentless pursuit of disruption now faces scrutiny. There’s a growing call for greater integrity and realistic goals. Business Model Innovation (BMI) is a key tool in this shift.
Business Model Innovation is the process of making fundamental changes to how a business creates value. This can involve altering the company’s core offerings, its value proposition to customers, or the way it interacts with its market. BMI should aim to create synergies with other forms of innovation.
BMI aims to secure a competitive edge, enter new markets, or adapt to changes in demand, technology, or competition. The conversation around BMI is prominent at business schools like IESE Business School, where Associate Professor of Entrepreneurship Yuliya Snihur shares valuable insights.
Prof. Snihur highlights the critical balance entrepreneurs must maintain between aspiration and realism. “In the last 10 years, we have seen a trend of a lot of companies promising very disruptive innovations of moving fast, breaking things, and there can be a slippery slope for entrepreneurs,” she remarks. The challenge lies in “navigating this thin line between fabrication versus achievable goals,” which is crucial for building a company’s legitimacy and engaging others in its vision. (01:03)
As the conversation around sustainability and ethical business practices grows louder, the role of Business Model Innovation as a catalyst for positive change becomes increasingly crucial. Prof. Snihur published a paper in Long Range Planning on how BMI can be used to foster sustainable and responsible businesses.
The paper encourages a deeper exploration of how companies’ innovations affect broader business ecosystems and the planet. By aligning business models with the principles of sustainability and ethical practice, companies can develop a more resilient global economy.
For those looking to immerse themselves in a progressive approach to business, IESE Business School offers a prime opportunity through its Master’s in Management (MiM) program. It’s an opportunity to learn from leading practitioners at the cutting edge of strategic management and sustainable business practices.
IESE’s commitment is clear. It aims to shape leaders who can navigate the modern business world’s complexities. This is evident in its innovative teaching approach. Students are taught to aim high with their visions but also to remain practical.
IESE adopts a design-thinking approach to BMI, inspired by the methodologies of design firm IDEO. This five-stage process includes Observation, Synthesis, Generation, Refinement, and Implementation. This process fosters a deep understanding of all stakeholders involved and promotes systematic and thoughtful innovation at the system level.
In the new era of Business Model Innovation, the message is clear: success lies not just in breaking things and moving fast but in moving thoughtfully. innovation demands a keen awareness of the broader implications of each change. It’s about understanding the impact on society, the environment, and the global economy and striving for advancements that are responsible and sustainable.
For individuals inspired to lead in this thoughtful era of innovation, IESE Business School offers an exceptional pathway through its master’s degree programs. Studying at IESE provides an opportunity to engage with like-minded peers and faculty in one of the world’s best study destinations.
Interested in learning more about IESE? Check out the school’s profile and read our insightful articles based on interviews with IESE graduates.
