Critical Steps in Business Model Innovation Framework PPT

This PPT slide, part of the 23-slide 4 Areas of Business Model Innovation (BMI) PowerPoint presentation, outlines a structured approach to Business Model Innovation (BMI) by emphasizing 3 critical steps. The first step, "Identify Existing Business Model," focuses on recognizing the prevailing business model within the industry. This involves understanding the entrenched beliefs regarding value creation, particularly in sectors like financial services where scale is often deemed essential for profitability.

Next, the slide discusses "Determine Foundational Beliefs." This step requires a deep dive into the assumptions that underpin the existing model, such as customer expectations, technological advancements, cost structures, and operational methodologies. For instance, financial service providers may operate under the belief that customers prefer cost-effective, scalable automated interfaces, which is tied to the perceived benefits of IT scalability.

The final step, "Challenge Underlying Beliefs," encourages organizations to rethink and question established norms. An example provided is Philips Lighting, which questioned the traditional belief that the lighting industry could not evolve beyond its current model. This step is about fostering radical new ideas that challenge the status quo, such as reimagining the minimum scale requirements for financial service operators by leveraging cloud technology.

Overall, the slide emphasizes the necessity of critically evaluating existing beliefs and models to drive innovation. It suggests that reframing these beliefs can lead to transformative ideas that may redefine industry standards. This approach is essential for organizations looking to adapt and thrive in a rapidly changing business environment.

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Business Model Innovation Business Model Design Value Creation Cloud Innovation