Based on an article in Harvard Business Review by Roger Martin
Strategy is sometimes made out to be much more complex than it actually is. This is usually because of too much focus on complex-sounding tools like environmental scans, SWOT analysis, PEST analysis, financial modeling etc. Another issue seems to be that strategy is thought to be about some conceptual and deep into the future stuff. Building a strategy does not have to be a complex approach. We can simplify strategy by thinking of it as a set of answers to 5 interlinked questions in a specific sequence…
Business model innovation is about identifying new ideas to create and deliver additional value to clients. There are many ways of course but here are the five most common strategies. 
There are different ways an organization can innovate. Essentially, there are three types of innovation: product innovation, process innovation and business model innovation. These types of innovation can include breakthrough innovation (very rare) or incremental innovation(much more common). To stay relevant, all organizations big or small need to consider each of thesetypes of innovation at some stage.
Remember the strategic planning process with you and a lot of other executives working furiously during an intense 3-day huddle to come out with a 5-year plan that would help the organization navigate through an uncertain future? Or you might recall the 40-page long business plan complete with spreadsheet projections for the next 30 months and pie-charts about the potential market share for your latest offering. If you are like many other people today, including former advocates of the strategic and business planning process, you are probably thinking it would have saved everyone a lot of pain if you could have just dumped those plans into the nearest dustbin the moment these were produced…
Ask CEO’s and senior management of large companies in any sector and it will become apparent that many of them – in fact the vast majority – are not satisfied that their strategic planning process is working. There seems to be a belief that these processes are essentially a waste of time and distract the organization away from focusing on core issues. This belief incidentally is not just restricted to large organizations – it is an even bigger concern for not so large companies with limited resources….
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