Business Model Innovation

As a corporate innovation manager, you know that staying ahead of the competition requires constant innovation. But what if the problem isn’t your products or services, but rather your business model?

That’s where business model innovation comes in. By rethinking the way your company creates, delivers, and captures value, you can unlock new opportunities and drive growth. So what are the key problems that business model innovation solves for large corporations? Let’s take a look.

Problem #1: Disruptive Competition

One of the biggest challenges that large corporations face is disruptive competition. New startups and agile competitors can enter the market and disrupt the traditional ways of doing business, leaving large corporations struggling to keep up.

Business model innovation can help solve this problem by allowing large corporations to anticipate and respond to disruptive competition. By constantly evaluating and adapting their business models, large corporations can stay ahead of the curve and fend off disruptive competition.

Problem #2: Declining Margins

Another challenge that large corporations face is declining margins. As competition increases and markets become saturated, it can be difficult to maintain profitability and grow the business.

Business model innovation can help solve this problem by identifying new ways to create and capture value. By rethinking the company’s revenue streams, cost structures, and customer segments, large corporations can find new sources of revenue and improve profitability.

Problem #3: Slow Growth

Large corporations may also struggle with slow growth, particularly in mature industries. As markets become saturated and competition increases, it can be difficult to find new opportunities for growth.

Business model innovation can help solve this problem by identifying new growth opportunities. By exploring new customer segments, distribution channels, and product offerings, large corporations can find new avenues for growth and unlock new markets.

Problem #4: Lack of Agility

Large corporations may also struggle with a lack of agility. With complex organizational structures and layers of bureaucracy, it can be difficult to respond quickly to changing market conditions or customer needs.

Business model innovation can help solve this problem by promoting a culture of agility and adaptability. By encouraging experimentation and rapid prototyping, large corporations can test new ideas and respond quickly to changing market conditions.

Problem #5: Limited Innovation

Finally, large corporations may struggle with limited innovation. With established products, services, and business models, it can be difficult to find new opportunities for innovation.

Business model innovation can help solve this problem by promoting a culture of innovation and experimentation. By encouraging employees to think outside the box and explore new ideas, large corporations can unlock new opportunities for growth and drive innovation across the organization.

Conclusion

Business model innovation is a powerful tool for large corporations that are looking to stay ahead of the competition and drive growth. By rethinking the way your company creates, delivers, and captures value, you can unlock new opportunities and drive innovation across the organization.

If you’re a corporate innovation manager, consider exploring the benefits of business model innovation for your company. With the right approach, you can help your company stay ahead of the curve and drive growth in even the most challenging market conditions.

How do We Deliver?

We have developed a business model innovation methodology that builds upon the work done by Thomas Kuhn, Alexander Osterwalder, Christopher Zott, Raphael Amit and the University of St Gallen.

We help you identify anomalies in your industry’s existing business models and develop paradigm shifts that enable far more effective business models.