- Item type
- Periodical
- Language
- English
- Source
- MIT Sloan Management Review. Spring2012, Vol. 53 Issue 3, p41-49. 9p. 3 Color Photographs, 1 Diagram, 2 Graphs.
- Publication date
- 01/03/2012
- ISSN
- 15329194
The article discusses changing business models as a strategy for corporate innovation that does not rely on improving products or processes. Surveys show that business model innovation is a growing priority for many corporate leaders. The authors explain the different ways value can be created through changing business models. They point to consumer electronics company Apple, which dramatically altered its business model when it created the music download service iTunes in conjunction with its mp3 player iPod. As a result, Apple gets revenue not only when an iPod is bought, but throughout its life, and incorporates its customers into a system they will be unlikely to leave even if another firm developed superior hardware.
