Christensen on Business Model Innovation

I found reading this short interview on business model innovation with Clayton Christensen, the renowned Harvard professor and author, quite worthwhile. He offers some trenchant advice on business model innovation. Even more important: It shows how hot the topic currently is. I saw Christensen speak at a conference a few years ago and he certainly isn't a person who jumps on a topic just because of the buzz.

The most interesting part is Christensen's answer to the question if the creation of new business models are substantially different from the innovation of new products or services. His answer:

Yes. Most new products and technologies can be sold through the existing business models. In fact, the corporation will reject process or resource allocations that don't fit its business model.

A powerful reason why companies aren’t good at business-model innovation is because the kind of products that are required to be the seed of a new model can’t get through the resource allocation process.

This is food for thought, particularly for successfull companies...

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