Disrupting Energy And Transportation Why Business Model Innovation Matters

In 1918 one in thirteen American families owned a car. Eleven existence following 80% of American families owned one. The main logic the US car market went from first adopters to rationally whole permeation in righteous higher a decade was an reconstruction launched by Fashionable Motors. It was not a new engine, relocate, or come to a technology reconstruction.

In 1919 GM united with DuPont to form the Fashionable Motors Acceptance Corporation (GMAC) to application a new money-spinning innovation: customers car loans. (1)

Seven existence following 75% of all car buyers bought cars on report. It was a business portrait that prepared cars logical to the American mainstream buyer. In other script, it was a business portrait reconstruction that disrupted the transportation industry in the first 20th century.

FROM CAR LOANS TO Exorbitant LOANS

Efficient leave behind to the 21st century. In 2008 a company called SunEdison introduced the goal of solar-as-as-service. Industrial and commercial solar power buyers would no longer need to invest wealth in purchasing solar panels.

SunEdison approaching to finance, install, own and presume the solar panels on the rooftop of its consumers. Homeowners did not cleave to to comprise any technology, money-spinning, or cleaning risks. At the end of the (20-year) power, the buyer had a best quality of purchasing the fixtures at substantial discounts or having them smitten off the roof.

Honestly last SunEdison, new to the job Silicon Dispatch solar installer SolarCity [NASDAQ: SCTY] produced the SolarLease and the solar market exploded. The goal puzzled on and other Silicon Dispatch companies such as Sungevity and SunRun together SunEdison and SolarCity in at hand solar Leases' or solar PPAs'.

To some extent as a result of these money-spinning innovations, the solar market in America quadrupled higher the biased four existence. In this area 80% of built-up and commercial installations are now financed by third party-companies. In Colorado the specify is faster to 90%.

Gear reconstruction is agreeably hefty. Creation the source Significant Choices (whole product, positioning, product/market fit, etc) is agreeably hefty. But Company Structure reconstruction may be the key that unlocks a new market or disrupts an offer market.

Sources:

"Cars in the 1920's", Kim Kenney, Armed 101, http://suite101.com/article/cars-in-the-1920s-a90169

"Sunrun Closes 630M in Rooftop Exorbitant Bear out From JPMorgan, US Mound", GreentechMedia, June 26, 2013: http://www.greentechmedia.com/articles/read/Sunrun-Closes-630-Million-in-Rooftop-Solar-Funding-from-JPMorgan-US-Bank