What is Business Model Innovation?
Business Model Innovation is defined as an innovative way to create, capture and deliver value for the company and its customers with the improvement or reinvention of various aspects of a business models.
Revenue Model Innovation
Revenue model innovation is achieved through creating differentiation of the product or service through innovative sales and marketing. Innovation can also be achieved through creating a differentiated value proposition in the customer’s mind.
Innovation in Revenue Model
Companies that demonstrated innovation in the way they have re-invented/modified their existing revenue model.
Innovation in Marketing
Companies which are able to market their products differently as compared with the existing marketing strategies followed in the industry.
Innovation in Selling
Companies that have demonstrated innovation in the way they sell an existing product differently.
Customer Model Innovation
Customer model innovation is achieved by organisations through changing the rules of the game for new customer acquisition.
Innovation in Customer Segments
Companies which are able to distinguish their product or service from others to make it more attractive to a specific target segment. This also involves differentiating it from competitor’s products or services as well as the firm’s own products.
Innovation in Customer Engagement
Companies that have demonstrated innovation in the way they engage with customers and incorporate customer feedback into their product/service offerings.
Innovation in Channels to Customer
Companies that have demonstrated innovation in the way they have re-organized or changed their supply chain ecosystem.
Organisational Model Innovation
Organisational model innovation is achieved by leveraging the resources of the organization. This can be done through an effective organizational culture or innovative changes to its cost structure. It includes effective partnerships and collaborations.
Innovation in Company cost structure
Companies which are able to rethink the way they have operated and adopt new operational processes and strategies to stay relevant in the changing industry landscape.
Innovation in Organizational culture
Companies which reinvent and keep themselves relevant to the changing times by fostering the culture of innovation within the organization. We look at companies that have done this through cross functional collaboration among the various divisions of an organization – technology/product design, marketing, sales, etc.