The core of the company is the business model. While the business model receives a lot of attention during the startup stages of a company, it is often ignored once the organization is established. Attention turns to products, sales, and budgets, with little sustained focus on the core of the company. Does your team find itself competing against business model innovation competitors primarily on product specifications and pricing? If so, then you have a huge opportunity to leverage strategic thinking and differentiate yourself through business model innovation.
Research shows that companies that continue to develop and innovate their business models achieve total shareholder returns that are 7% higher than their industry peers over three years. as fortune magazine Editor Jeff Colvin writes: “Business model innovation is the new fundamental capability. It’s hard. It will differentiate tomorrow’s winners from losers.
A business model is how your team creates, delivers and captures value. When we look at business models from this perspective, we can clearly see how this framework extends to business units, functional areas, and complete teams. Think about your team: How are you currently creating, delivering and capturing value for the internal or external customers you serve?
