Essay About Global Ceo And Ibm Global Ceo Study

Sieze Advantage
Sieze Advantage
In todays increasingly complex and fast-changing environment, business
model innovation is critical to success. Yet few understand when to make a change, or –
more importantly – how to execute. Based on a follow-up to our IBM Global CEO
Study 2008 and an analysis of 28 successful business model innovators, we gained
insight into when and how to innovate the business model.1,2 Organizations can
determine the right timing based on the economic environment, their own state of
industry transformation and a set of internal factors that includes the degree of product
and service innovation, and available financial resources. To increase execution success,
organizations must build a set of capabilities we call the Three As: organizations need
to be aligned with customer value, analytical to gain insight from differentiated
intelligence, and enabled by an adaptable operating model.
From the IBM Global CEO Study 2008, we learned that So how do companies take advantage of change? CEOs told us
CEOs expected more turbulent change than ever before. But that innovating their business model is one of the most
few would have anticipated the severity and depth of the prominent strategies. In fact, seven out of ten companies
economic downturn that started in the second half of 2008 and pursue business model innovation to a large extent, and an
created a new economic environment. The CEO Study shows incredible 98 percent are adapting their business models to
that financial outperformers are able to leverage change to some degree (see sidebar, “There is growing agreement on
their advantage. Indeed, they proactively seek to disrupt what elements define a business model”).3
competitors, redefine industries and gain share.
2 Seizing the advantage
There is growing agreement on what elements
define a business model:4
• What value is delivered to customers: Customer
segments, the value proposition, the specific “job
to be done,” what is sold and how it is sold
• How revenue is generated: the pricing model and
forms of monetization
• How the company positions itself in the industry:
the companys role and relationships across the
value chain
• How the value is delivered: Key internal resources
and processes as well as external partnerships.
With unprecedented change upon us and business model
innovation becoming pervasive, two questions can help
companies develop their strategy and transformation approach
for the new economic environment:
• Under what conditions should companies innovate their
business model?
• What capabilities and characteristics support the design and
execution of successful business model innovation?
Building on ongoing IBM research into business model
innovation and a broad set of data available from our Global
CEO Studies, we explore these two questions. Here, we
provide practical guidance to help organizations define their
strategic agendas for business model innovation.
Our follow-up research to the IBM Global
CEO Study 2008 seeks to answer: When
should organizations innovate their business
models, and how?
IBM Global Business Services 3