At the core of a company is the business model. While the business model receives the white-hot spotlight of attention during a company’s start-up phase, it is typically ignored once the organization is launched. Attention turns to products, sales and budgets, with little ongoing regard for the heart of the company. Does your team find itself battling Business Model Innovation competitors primarily on product specifications and pricing? If so, then you have a tremendous opportunity to use strategic thinking to separate yourself from the pack through business model innovation.
Research has shown companies that continue to develop and innovate their business models outperform industry peers by 7 percent in total return to shareholders over a three-year period. As Fortune magazine editor Geoff Colvin writes, “Business model innovation is the new essential competency. It’s hard. It will separate tomorrow’s winners from the losers.”
A business model is how your group creates, delivers, and captures value. When we look at the business model through this lens, it’s clear to see how this framework can be extended to business units, functional areas, and intact teams. Consider your group: how do you currently create, deliver, and capture value, either for the internal or external customers you serve?