A business model is a blueprint of how a business intends to earn money with its unique customer base and product in a given economy. Business model innovation is important in today’s competitive marketplace.
At its foundation, a business model describes four things: revenue, customer base, profit margin.
Now here is the rub. You are not going to create your own business model innovation example because you want to do this the right way. You need to consult with someone else who is experienced in coming up with business model innovation concepts. This could be a venture capitalist, or someone from a law firm. A little bit of research online can also provide you with some great ideas on what has worked for others.
The current business models that we have are based on the following basic assumptions.
First, people buy goods and services at the places where they get them. Second, production needs are based on how much resources it takes to create the items or services to meet the demand. Third, different types of goods and services create different types of wealth.
The current business models encourage us to think about how to create value more efficiently. It tries to make money by using the best tools at our disposal. This is one way to keep our economy growing at a very healthy rate because we have competition in every sector but we also have plenty of opportunities to generate different types of wealth.
One thing that we do a lot of is how to create value more efficiently by getting more done in less time. How to do this?
By starting with a solid business model which focuses on providing multiple different types of services or products that solve a customer’s problem. By doing this you can make sure that you are always in front of your customers. They want what you have to offer and will pay for it.
You might be thinking, “Well then how do I create these multiple solutions?” This is easy. Just think about the following business model innovation:
Now, instead of doing the same old thing all the time, why not innovate and create something new? There are many companies that we all know about that have changed the face of how we do business. Just think about Apple versus Microsoft. There are countless examples of business model innovation that has spurred the economy forward. In fact, the whole economic structure of the world could be described using this framework.
It takes creativity and ingenuity to be able to implement this type of innovation.
Creativity and ingenuity also mean knowing what to change and how to change it to fit into the new business model innovation that is required by the current marketplace. In other words, it takes a well thought out and well implemented plan. You can hire a consultant or an innovation coach if you feel like you are not creative enough to come up with your own business model innovation.
There are many companies that we all know about that have changed the face of how we do business because they have innovated. Some of these companies were able to do it on their own, but many companies that changed the face of how we do business have used outside help. These innovative business models innovated when others did not and that is what makes them so successful. In fact, many companies that have changed the face of how we do business were given help by outside resources.
A great example of a business model innovation example is Microsoft.
When they came up with the idea of selling computers they needed to find a way to get the product out to the public. They decided that they should take the traditional methods of getting new products into the market and make them more user friendly. So, what Microsoft did was adapt their operating system so that it was easier to use and created the personal computer interface that we now call the Windows operating system.
Microsoft’s business model innovation example shows us a few things. First they found a better way to sell to the consumer. Second, they borrowed ideas from other companies to improve their designs. Third, they made their products easy to use so that the average person could not only use their product but also thrive on using the product. When you can do that you will have an amazing innovation.
Lean Innovation is just one of the examples of what lean manufacturing is all about.
The reason lean innovation works is because it shows how things can be done right the first time around instead of creating a brand new business model from scratch. Sometimes a company needs to adopt a certain business model to stay competitive. Sometimes, that model doesn’t work or it might just be more efficient for the company in question. So, when a company has an opportunity to adopt something they should, because it will create a sustainable advantage over their competition. Consider all this in 2021.