The role of innovation in the business model and in its enabling conditions

The interconnectivity of the features in the business model gives rise to shared learning process, capability building and hence evolvement of knowledge management as an innovation strategy at Irizar.  The role of innovation is encapsulated in the features or building blocks of the business model that captures real value to the customers and all other stakeholders in the network. The following statements below give a snapshot of the role of innovation in the network.

  • It builds a stronger culture through participatory decision processes, i.e. “project based on people” --> Creation of Knowledge


  • It converts individual or team tacit knowledge into explicit knowledge that can be stored, useful and add value to the entire network as a continuous learning process, within and outside of the organization.


  • It builds capabilities and abilities (i.e. core competencies) on which value proposition (i.e. mode of value delivery) is delivered

--> Storage of Knowledge

    • It conveys structured information giving rise to efficient processes and products along the customer lines


    • It also makes sure that the knowledge developed within the organization gets to the right people, at the right time, to improve the functioning of the organization

    --> Distribution of Knowledge


  • It develops competences through shared leadership, shared knowledge and team work to apply the knowledge as efficiently as possible.

-->Application of Knowledge

This together make up what is referred to as the KM cycle by Forcadell. F.J et al (2002), in their case study on the implementation of Knowledge Management Strategy Oriented to Innovation of Irizar.

Figure 5 below gives general roles and enabling conditions of innovation within the main features of Irizar’s Business Model.


Fig. 5: Roles of Innovation in Irizar’s Business Model.



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