Making Business Model Innovation

The business model is a conceptual framework that defines a company's processes to create and deliver value. It is a schematic representation of what and how the company offers to whom and how it makes money. Business model innovation, on the other hand, is the name given to creating brand new ways of doing business, fundamentally different from existing ways, or strategic diversification of your business in a way that it will be valued by customers and earn you more money.

 

Business model innovation, if done right, brings innovation in multiple dimensions of the business model. This ensures that the value you offer to the customer is not easily decoded by competitors, and even if defined, it cannot be easily copied. It creates a sustainable competitive advantage opportunity in a world where everything is imitated quickly.