How to Get Paid Twice for Everything You Do (Goran Ross)

Critique and Analysis
Student’s Name
Institutional Affiliation
Course Name and Number
Lecturer’s Name
Assignment Due Date
Critique and Analysis
           This review discusses Goran Roos's article, how to get paid twice for everything you do, part 2: Value-appropriating innovations. I shall agree with the author that business-model innovation (BMI) can have a far more profound impact on value appropriation and profitability. The author argues that value appropriation innovation is a stepping stone for achieving the objective of being paid twice for everything one does. Therefore, companies should extend their coverage of business models to access the multiple profit pools. The author's argument suggests that business model innovation is an alternative for managers and entrepreneurs to appropriate value, particularly during financial adjustment. 
           The article follows the premise that a company should strive to be part of many profit pools instead of relying on a single profit pool. This is achievable through a business model innovation that has proven to be a source of a firm's value appropriation, profitability and growth. It explains why business model innovation has become part of most companies' top agenda. BMI falls under value appropriating innovation as either independent modernism or an essential supplement to value-creating innovations (Roos, 2011). Its increasing relevance can be observed in domains such as airlines and retailing, where new business models have increased their shares over the last decades (Amit & Zott, 2012). This resonates with an IBM study cited in the article that business model innovation can have a more influential impact on profitability than almost all innovations. 
According to the article, the reason for this impact is that business model innovation can be both an improvement in the appropriation of any value created and an additional increase in the value created (Roos, 2011). Apple, one of the tech giants, is consistently cited as among the companies that have benefited from business model innovation in appropriating value and increasing profitability. With its iPhone business model, the company generates the largest share of the industry's profit pool in a short time (Roos, 2011). A similar observation has been made with the fashion retailer Inditex, a fast-growing Spanish firm making a killing through its innovative business model, which relies on standard resources and off-the-shelf technologies (Amit & Zott, 2012). The two examples demonstrate that the business model is a competing ground for firms; hence, a company with superior innovation gains a competitive advantage. 
Roos's argument is further supported by a well-researched piece by Nunes & Russo (2019). According to Nunes & Russo (2019), the business mod...