Business Model Innovation: Historic Example

Xerox invents subscription model

Xerox invented and innovative exponential business model and revenue model to bring its innovative product to market successfully. As a result, Xerox sustained a compound annual growth rate of 41% over a 12 year period.

Without this business model, Xerox might not have been successful in commercializing the innovation.

New Environment-friendly Technology

In pursuit of sustainable development and cleaner production, Xerox used in its Model 914 the relatively new environment-friendly electrophotography process, which is a dry process that avoids the use of wet chemicals.

Business Model Innovation "under the gun"

In seeking potential marketing partners, the company repeatedly was turned down by the likes of Kodak, GE, and IBM, who had concluded that there was no future in the technology as seen through the lens of the then-prevalent business model.

Xerox then decided to market the new product itself and developed a new business model to do so. The new model leased the equipment to the customer at a relatively low cost and then charged a per copy fee for copies in excess of 2000 copies per month.

Growth 10+

7Ss of Growth 10+

10 Driving Forces behind Modern Business Models

Epicenter

To accelerate its production printing services business, Fuji Xerox opened "epicenter“ in 2004. The epicenter provides highly professional services to innovate the digital printing business. It incorporates a collection of Fuji Xerox's digital printing systems to replicate various production applications, serves as a new business model, and acts as a collaboration space with outside business partners.

The name, Epicenter, conveys the tectonic change that the Company is offering through the new added values of digital printing, to cultivate the new publishing business era.

Value Innovation

10 Tips

Service Innovation