There are different factors and resources that could create high value for the customer. These are used to support the business to achieve high sustainability. The resources can be categorized as follows:
- Physical resources refer to the inputs of a business model such as raw material, buildings, vehicles, transportation, storage facility, machines and factory of the business house.
- Human resources refer to the manpower of a business organization that converts raw material into final goods. This resource is knowledge-intensive and has the creativity to convert the raw materials into final goods effectively and efficiently.
- Intellectual resources of the business organization provide more efficiency and build market rapport of an organization in the market. The resources such as brand name, patents, copyrights, partnerships, and customer database.
- Financial resources that are necessary to operate day to day operations of the company. The resources are cash and credit acquired etc.
Innovation refers to a new idea, creative thoughts, new imaginations and devices or methods to be applied for better solutions and meet the updated requirements, unarticulated needs of the existing market. business organizations acquire new innovations to provide added value to the customer. It will provide more efficiency, productivity, quality, competitiveness, and market share of the company.
Incremental Innovation is a process of adding small improvements and upgrades in the business processes, products and services offered and methods of converting raw material into final goods. The major purpose of the implementation of this innovation to differentiate from other competitors of the market. characteristics of incremental improvement are as follows:
- It utilizes the existing competencies and capabilities and enhances it for better results.
- This innovation requires modest changes in the technology of the existing business model, products and services.
- The innovation is acquired after identifying the customer needs.
- The incremental innovation provides assistance to the company for continued growth at very low risk.
Radical or disruptive innovation is the process that terminates or displaces the existing model of business with a new innovative model to perform better. The innovation involves the changes in design, process and overall business model. Radical Innovation can be implemented at three levels, which are as follows:
- It breakthrough the innovation to deliver creative products and radical solutions to the problems faced by an organization.
- This type of innovation creates a new niche for the company and develop a new market.
- This is actually a game-changing innovation that implements changes in the market and society.
The innovation provides high-level rewards to bear a high-risk level to transform an organization. Through radical innovation, a business firm can stand out from the competition to grow rapidly and earn a high rate of return on its investments.
Organizational blockages refer to the barriers which hinder the performance of an organization. The type of blockages are as follows:
- Perceptual blockage refers to the obstacles that restrain the problem solver in understanding the actual problem and solve it. The problem solver conceives the problem in a different way and unable to solve it properly. The types of perceptual blocks are as follows:
- Restraining the problem
- Saturation of information.
- Process blockage refers to the hindrance created by the process and regulations formulated by business management. The rigidness in the process will create problems in the performance of business projects. Thus, it is required that a business model must be flexible to accept the change and perform accordingly.
The environmental blockage is the distraction that affects the concentration of employees of an organization. though working in an atmosphere which is pleasant and supportive and his ability to improve the ability and productivity of the problem solver.