Why is Business Model Innovation so important?
Most companies have teams dedicated to product innovation and corporate development. Few recognise that the vast majority of new wealth comes from new business models, rather than from new products within existing business models.
There is, of course, an overlap: product innovation often leads to new business models and vice versa. But, new business models are more important because they are harder to copy, and so provide more durable platforms for growth and profitability. A business model involves four elements:
- The Offer – The products and services you will provide
- The Target Customers – The customer segments you will target
- The Revenue Model – The way in which you will be paid for your work
- The Operating Model – How you will promote and deliver your offer
New business models, however, normally arise from experimenting with the last two of these elements – revenue models or operating models. As a result, this course focusses on helping manages innovate in these two areas. In particular the course examines five drivers of business model innovation – changes in the intensity of activities or assets, changes in the use of technology, changes in sourcing strategies or business partners, changes in organisation or people and changes in revenue model.
Every situation is unique; fortunately the tools of Business Model Innovation are not. If you are planning, directing or advising on growth, if you have been frustrated by a lack of rigour, excessive risk taking or set backs in creating durable value, then this course is for you. You will be provided with tools, case studies, action learning sessions and networking opportunities. You will raise your skills in an area that can transform your company’s growth and profitability.