Business Model Innovation

This chapter takes another step into the digital strategy framework and introduces the concept of business model innovation (BMI). This chapter defines a business model and business model innovation, which differ from strategy development. We discuss the importance of business models and why BMI has become an integral part of corporate strategies. The chapter then delves into the type of business model innovations possible in existing and new companies and industries. In the final section of the chapter, we discuss the key building blocks of a business model and how they come together. We introduce two popular frameworks, Business Model Canvas and Lean Canvas.