The Evolution of Business Model Innovation at Xerox: A Closer Look
Xerox, a leading technology company known for its iconic office copiers, has come a long way in terms of its business model innovation. In this article, we take a closer look at the steps taken by the company to evolve its business model and remain competitive in a fast-paced industry.
Introduction
Xerox started as a simple photographic paper manufacturer in 1906 and evolved into an innovation giant in the technology industry. With technological advancements, Xerox had to change its business model to remain relevant, and that changed its business trajectory. Today, Xerox is more than just photocopiers, as it has diversified its product lines to include software and services.
The Shift to Services
With the internationalization of its market, Xerox had to adopt a new business model in the early 2000s to remain relevant. The shift towards a services-oriented business model enabled the company to differentiate itself from the competition and provide customer-specific solutions. Xerox started providing a range of services that catered to each customer’s unique print and document management needs.
The Benefits of Business Model Innovation at Xerox
The shift to a services-based approach had several benefits for Xerox. It enabled the company to differentiate itself from the competition and added another revenue stream. Consequently, the company’s margins increased, and the intended target audience expanded not restricting itself to a specific market niche.
The Challenges of Business Model Innovation at Xerox
In an Industry as competitive as the technology Industry, changing a business model can be risky, so innovative organizations can expect an outburst of criticism. Xerox was no exception to this. They faced opposition from the photocopier industry, which didn’t perceive the shift as an excellent investment as the services market was still a grey area. Business transformation unequivocally took time, resources, and budget.
Conclusion
Xerox’s history showcases the extent of innovation a company needs to integrate its business model with the changing customer preferences and market trends. Business Model Innovation is a challenging and exciting process that can decide an organization’s future as it provides more dimensions for growth and development. Xerox’s progress shows that business model innovation is a never-ending process that needs constant attention, but it ultimately pays off in numerous ways in the short and long term.
