Business model innovation is the most powerful form of innovation, both in terms of in terms of sustainability and of growth/profitability. The concept refers to creating different ways of enabling an organization to create, deliver and capture value.
While not a new approach, certainly these days the number and speed at which these innovative business models are changing the industry landscape is unprecedented. Some powerful examples include iTunes, Skype, ZipCar, Nespresso or Daily Maersk, to name just a few.
Our engagement is based on working collaboratively with our clients to get a clear and common understanding of the existing business model. The main areas of the business to analyze are customers, offer, infrastructure and financial viability. This is followed by a creative step where we investigate how additional value could be created, delivered and captured, by looking across all the building blocks of a business model and the relationship among them. The former include value proposition, customer segments, channels, relationship, revenue streams, key resources, activities, partnerships and cost structure.
The whole process involves several stages, from understanding, ideation, to strategy formulation, prototyping and implementation.