What is Business Model Innovation
Business Model Innovation is simply the process of defining or modifying a firm's business model, which involves making specific choices in each one of the nine core elements. Business Model Innovation does not focus on the definition of the product or service offered; it focuses on how the value the product offers is delivered to the customer, and/or how the firm appropriates value from the customer offering. This include what internal resources and processes are used, what external partnerships are required, how the customer is reached, what type of customer relationships are established, and how that overall process is monetized.
Business Model Innovation has emerged as a new category of innovation, distinct and separate from other established and well know innovation types.
Business model design or modification can be applied to a firm's business model on multiple levels: it can be applied to the entire business, or just to an individual product or service offering. Design changes can involve a single element such as the value proposition, value creation and delivery, and value capture elements, or it can involve the alignment between these elements.