This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
Editor Summary
Business Model Innovation (BMI) is a 27-slide PowerPoint from LearnPPT Consulting that presents a framework for driving core growth by changing business models.
Read moreIt defines 6 business model elements (Product/Service Offering, Target Segment, Revenue Model, Value Chain, Organization, Cost Model) and describes 9 common BMI solutions organized into 3 groupings (value-proposition shifts; operating-model support; margin redesign). Additional topics include Traditional Growth Levers, Growth Pitfalls, Customer Value Proposition, Product Innovations, and Pricing Strategy. Sold as a digital download on Flevy with immediate download.
Use this deck when traditional product or volume-based levers are no longer delivering growth and leadership needs alternatives to expand the core business. Typical users include:
Strategy executives evaluating moves from product to service or outcome-based offerings and mapping implications for revenue models.
Business unit leaders redesigning cost structures and differentiation to protect or expand margins.
Product and commercial teams testing shifts to experience or outcome propositions and new pricing approaches.
Consultants preparing client recommendations on capability build, partner models, or customer interactions.
The three-group approach—redefine value proposition, align operating model, redesign margin capture—follows a structured consulting problem-solving logic.
As core markets become saturated with new entrants and products, we find it more and more difficult to grow the core. We find traditional approaches that have successfully driven growth historically are also reaching points of diminishing returns.
Business Model Innovation (BMI) is a powerful, yet underleveraged tool that can drive breakout growth within an organization's core business. There are 6 key business model elements at play through BMI:
1. Product or Service Offering
2. Target Segment
3. Revenue Model
4. Value Chain
5. Organization
6. Cost Model
Leveraging these elements in a coordinated manner, we arrive at 9 common BMI solutions to drive Core Growth, which can be categorized into 3 groupings
1. Redefine the Value Proposition
— Shift from Product to Service
— Shift from Product to Experience
— Shift from Product to Outcome
2. Support the Value Proposition with a New Operating Model
— Build New Capabilities
— Leverage External Partners
— Redefine Interactions with Customers
3. Redesign the Model to Capture Margins
— Redefine the Basis of Differentiation
— Develop a New Cost Model
— Find New Ways to Monetize
Leading organizations leverage BMI to move beyond product innovation and redefine the basis of competition.
Additional topics include Traditional Growth Levers, Growth Pitfalls, Customer Value Proposition, Product Innovations, Pricing Strategy, among others. This deck also includes slide templates for you to use in your own business presentations.
This presentation delves into the intricacies of Business Model Innovation (BMI) and its pivotal role in driving core growth. It highlights the challenges of traditional growth levers and offers strategic solutions to overcome common pitfalls like incremental changes, leap of faith, and volume chasing. The PPT provides a comprehensive framework for redefining the value proposition, supporting it with a new operating model, and redesigning the business model to capture margins. It includes practical templates and actionable insights, making it an indispensable tool for executives aiming to achieve sustainable growth.
What are the core elements to analyze in a business model innovation effort?
A standard BMI analysis examines 6 core elements: Product or Service Offering, Target Segment, Revenue Model, Value Chain, Organization, and Cost Model. These 6 elements form the primary dimensions used to diagnose and redesign a business model.
What common types of business model changes should companies consider?
Companies commonly pursue nine BMI solutions grouped into 3 categories: redefine the value proposition (product→service/experience/outcome), support the proposition with a new operating model (capabilities, partners, customer interactions), and redesign to capture margins (basis of differentiation, cost model, monetization). There are nine common solutions across 3 groupings.
How does business model innovation differ from product innovation?
Product innovation focuses on new or improved offerings, while BMI rethinks how value is delivered, monetized, and supported operationally across the 6 model elements. BMI therefore extends beyond product changes to include revenue, cost, organization, and value-chain shifts tied to those 6 elements.
What growth pitfalls does BMI aim to address?
BMI is intended to counter common growth pitfalls such as over-reliance on incremental change, placing untested “leap of faith” bets, and chasing volume without profitable economics. The framework highlights these 3 pitfalls as reasons to reconsider the business model.
What should I look for when selecting a BMI toolkit for internal strategy work?
Seek a toolkit that maps the 6 business model elements, presents solution options across the 3 BMI groupings, and includes practical templates for executive presentations and pricing discussions. For example, Flevy’s Business Model Innovation (BMI) deck maps these elements in a 27-slide PPT.
How do slide templates and frameworks in a BMI pack save time for teams?
Ready templates codify the analytical flow—elements, solution groupings, and implications for operating model and monetization—so teams avoid recreating slides and can focus on strategy synthesis. The referenced resource includes slide templates packaged in a 27-slide PowerPoint.
If my market is saturated, which BMI moves typically offer the best starting point?
In saturated markets, starting moves often include shifting the value proposition from product to service, experience, or outcome, then aligning operating model changes (build capabilities or partner) and exploring monetization or cost-model redesign. These are organized as nine common solutions in 3 groupings.
What specific levers help redesign a business model to improve margins?
Margin-focused levers include redefining the basis of differentiation, developing a new cost model, and finding new ways to monetize existing assets or services. These 3 approaches comprise the “redesign the model to capture margins” grouping within BMI.
This PPT slide outlines nine Business Model Innovation (BMI) solutions targeting 3 primary growth pitfalls: Incremental Changes, Leap of Faith, and Volume Chasing. For Incremental Changes, solutions include redefining the value proposition and transitioning to service-oriented models to enhance customer engagement. The Leap of Faith category stresses the alignment of operational capabilities with value propositions, highlighting the importance of building new capabilities and leveraging external partners. In addressing Volume Chasing, the slide recommends redesigning the business model to improve margins through differentiation and innovative revenue streams. These BMI strategies provide pathways for organizations to overcome growth challenges and achieve sustainable core growth.
This PPT slide outlines 3 traditional growth levers: Product Enhancements, New Product Introductions, and Pricing Strategies, including promotions and discounts. While these levers drive growth, they carry risks of diminishing returns when overused. Excessive application can lead to pitfalls such as Incremental Changes, which involve minor adjustments lacking significant impact; Leap of Faith, where companies invest heavily in untested ideas without validation; and Volume Chasing, focusing on sales volume at the expense of profitability or brand integrity. Companies must recognize these pitfalls and consider alternative strategies or innovations to sustain robust growth.
This PPT slide presents a framework for Business Model Innovation (BMI), which facilitates comprehensive changes across multiple business dimensions. Unlike traditional growth strategies focused on single aspects like product enhancements or pricing adjustments, BMI enables organizations to explore Product or Service Offering, Target Segment, Revenue Model, Value Chain, Organization, and Cost Model simultaneously. By strategically altering these components, organizations can navigate growth challenges and enhance their value proposition while aligning operational models to meet market demands. This integrated approach encourages a cohesive strategy for sustainable growth and resilience, empowering executives to make informed decisions that drive innovation and long-term success.
This PPT slide discusses the alignment of product innovations with a robust operating model to prevent failures often caused by inadequate operational frameworks. Established companies frequently apply outdated capabilities to new innovations. Upgrading the operating model is essential for breakthrough value creation and should reflect insights driving business model redesign. A shift in the operating model typically leads to one of 3 business model innovation solutions: building new capabilities, leveraging external partners, and redefining customer interactions. These areas are crucial for creating a supportive ecosystem that enhances the value proposition, highlighting the interconnectedness of operating models and innovation strategies for sustainable growth.
Source: Best Practices in Strategy Development, Innovation, Pricing Strategy, Value Proposition, Business Model Innovation PowerPoint Slides: Business Model Innovation (BMI) PowerPoint (PPT) Presentation Slide Deck, LearnPPT Consulting
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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