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Cognitive Differentiation
Cognitive differentiation refers to the number of distinct dimensions of meaning or personal constructs. Several studies on Business Model Innovation (BMI) have demonstrated that cognition plays a crucial role in enabling or restricting such innovations (Egfjord & Sund, 2020). In this context, BMI is an effective method for addressing environmental challenges. BMI involves enhancing value and benefits innovation by making simultaneous and equally accommodating changes to both the company’s value proposition to customers and its core operating model.
The main advantage of BMI, whether applied to an existing business model or the development and implementation of a new one, is its ability to uncover new value propositions for generating revenue and discovering new ways to create and acquire value. Ontological humility is the concept that none of us perceives reality as it truly is. This concept accepts that there are multiple realities in ontology. A person practicing ontological humility elevates their perception of reality in a way that respects themselves (Munro, 2020), while also acknowledging that their understanding may involve misinformation that can alter their perspective.
Cognition
The concept of cognitive differentiation encompasses the number of different components of significance or individual constructs within a person’s system. In this context, BMI is a potent tool for managing environmental challenges. Cognitive differentiation is based on Kelly’s Role Construct Repertory Test (Cherry, 2020), which aims to elicit a representative sample of a person’s concepts and survey the authoritative properties of these developed dimensions.
Cognitive integration is associated with methods of knowledge generation. The use of this term highlights the importance of integrating both hidden and explicit aspects of scholarly activity and their consistency in creating new information, achieving new levels of understanding and self-awareness (Nurgaleeva, 2015). Cognition involves psychological processes related to acquiring knowledge and understanding, including reasoning, knowing, recalling, judging, and problem-solving. These higher-level brain functions encompass language, imagination, perception, and planning (Nurgaleeva, 2015).
In the article “Do You See,” perception is used to suggest that a business model can be viewed as a form of intellectual design (Egfjord & Sund, 2020). Various studies on BMI have indicated that comprehension plays a role in enabling or constraining such development. At the heart of BMI failure, there may be differences in insights that appear natural but are generally significant. There are three levels of intellectual achievement: system behavior, human behavior, and ambiguity. System behavior pertains to the interdependence of parts and systems (Egfjord & Sund, 2020). Human behavior refers to the interaction between diverse individuals and groups, while ambiguity involves the uncertainty of emerging issues and the lack of understanding and confusion. These concepts or levels of integration are crucial for managing BMI effectively; otherwise, it is likely to fail.
Business Model Innovation
Business model innovation involves enhancing and adding value by making simultaneous and equally supportive changes to both a company’s value proposition to customers and its fundamental operating model (Wirtz & Daiser, 2018). This is a significant topic in science and management. The primary advantage of BMI, whether it involves modifying an existing business model or creating and executing a new one, is its capacity to identify new value propositions for generating revenue and creating value (Wirtz & Daiser, 2018).
Assumption and Organization Redesign
One assumption I would make is whether the other business operates in the same industry as mine. Different industries must operate in specific ways, so the industry I am in may differ from theirs. This assumption is necessary because comparing Walmart’s business model to McDonald’s would be inappropriate; they are two distinct businesses in different industries. Should organizational redesign precede BMI? (Egfjord & Sund, 2020). I believe it should. An experimentation phase, which involves designing, evaluating, and testing different business models or options, is suggested. Since BMI is about improving and adding value, organizational redesign should precede BMI.
Accommodation of BMI
Is an organization already designed to accommodate future BMI more likely to succeed in implementing radical BMI ideas? (Egfjord & Sund, 2020). No, bec
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