This PPT slide, part of the 30-slide Business Model Innovation PowerPoint presentation, presents a focused inquiry into the conditions under which an existing business model can still be effective in addressing new market opportunities. It poses a critical question: when is it appropriate to rely on the old model rather than pursuing innovation? The answer is structured around three key criteria that must be met to justify using the existing framework.

First, the current profit formula must align with the new customer value proposition. This suggests that if the existing model can still generate acceptable margins while meeting customer needs, it remains viable. Second, the slide emphasizes the importance of leveraging existing resources and processes. If most of these can be utilized without significant alteration, it indicates that the old model retains relevance. Lastly, the continuity of core metrics, rules, and norms is highlighted. If the same performance indicators and operational guidelines can be applied, it reinforces the case for maintaining the old model.

The slide also includes a practical example, referencing Procter & Gamble, to illustrate scenarios where established business models have successfully adapted to new market demands without necessitating a complete overhaul. The cautionary note at the bottom underscores the complexity of business model innovation, advising that it should not be undertaken lightly. This insight is crucial for executives considering strategic pivots, as it encourages a thorough assessment of existing capabilities before committing to extensive changes. Overall, the slide serves as a guide for leaders to evaluate their current business models against emerging opportunities effectively.

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Innovation Management Business Model Innovation Business Model Design