We have categorized 4 documents as BMI. All documents are displayed on this page.

"Diversification is key to growth. However, success lies not just in expanding, but also in pruning your portfolio to strategic advantage," states Mark Wietecha, CEO of Partnership for Medicaid. In the flux and flow of industries and markets, Business Model Innovation (BMI) presents the critical pivot point for growth-oriented businesses. For a progressive executive such as yourself, BMI provides an indispensable framework to challenge industry norms and redirect your company towards novel, sustainable value creation pathways. Learn more about BMI.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.


Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab




Read Customer Testimonials

  •  
    "[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it give me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."

    – Royston Knowles, Executive with 50+ Years of Board Level Experience
  •  
    "I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."

    – Cynthia Howard RN, PhD, Executive Coach at Ei Leadership
  •  
    "Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.

    Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.

    In today's environment where there are so "

    – Omar Hernán Montes Parra, CEO at Quantum SFE
  •  
    "FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."

    – David Harris, Managing Director at Futures Strategy
  •  
    "As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor "

    – Michael Duff, Managing Director at Change Strategy (UK)
  •  
    "I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact "

    – Roberto Pelliccia, Senior Executive in International Hospitality
  •  
    "If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

    – Debbi Saffo, President at The NiKhar Group
  •  
    "My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me "

    – Bill Branson, Founder at Strategic Business Architects



Flevy Management Insights: BMI

"Diversification is key to growth. However, success lies not just in expanding, but also in pruning your portfolio to strategic advantage," states Mark Wietecha, CEO of Partnership for Medicaid. In the flux and flow of industries and markets, Business Model Innovation (BMI) presents the critical pivot point for growth-oriented businesses. For a progressive executive such as yourself, BMI provides an indispensable framework to challenge industry norms and redirect your company towards novel, sustainable value creation pathways.

Business Model Innovation, distinct from product, process, and organizational innovation, involves transforming the way a company creates, delivers, and captures value. More than a buzzword in today's business lexicon, it's becoming the new norm for competitive advantage. In the pursuit of Operational Excellence, BMI gives you the tools to explore outside the familiar while capitalizing on your core competencies.

For effective implementation, take a look at these BMI best practices:

Explore related management topics: Operational Excellence Competitive Advantage Core Competencies Value Creation Business Model Innovation Innovation

The Increasing Relevance of Business Model Innovation

In the era of Digital Transformation, BMI has gained rapid momentum. Look at Amazon's business model shift from online bookstore to 'The Everything Store' and beyond, linking retail, technology, and logistics. The pace of change is accelerating, and companies not reshaping their strategies risk falling behind. Adapting, revisiting, and revamping your business model has become an integral part of Strategic Planning.

Explore related management topics: Digital Transformation Strategic Planning Logistics

Business Model Innovation and Value Proposition

How does your company bring value to its customers? This question remains central to BMI. One major factor is “value proposition” where you promise consumers something they perceive as valuable, a key element in Revenue Model, a part of BMI. It's not limited to price—what about convenience, accessibility, or quality? Reevaluating your company's value proposition can redirect your strategy, leading to product or market diversification, cost reduction, or resource utilization optimization.

Explore related management topics: Value Proposition Cost Reduction

Key Principles of Business Model Innovation

A crucial first step is understanding your existing business model. Without this baseline, it's impossible to accurately measure deviations resulting from BMI. Focus on the nine building blocks outlined by the Business Model Canvas: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure.

Next, keep an eye on threats and opportunities that might emerge from non-traditional competitors. Disruptions often arise from unlikely quarters, consider the impact of Uber on traditional taxi services, or Airbnb's shakeup of the hospitality industry.

Explore related management topics: Business Model Canvas

Implementing Business Model Innovation

Implementing BMI goes beyond a single "eureka" moment. It requires consideration of potential ramifications across your operations and strategic alliances, requiring involvement and input from multiple stakeholders. To successfully implement BMI:

  • Begin with a top-down approach, ensuring commitment from C-level executives and involvement from cross-functional teams.
  • Test and revisit your hypotheses constantly. This agile approach helps prototype and refine innovative models faster.
  • Make data-driven decisions. Leverage advanced analytics to continuously track real-time changes and outcomes, ensuring performance alignment with business goals.

Explore related management topics: Agile Analytics

Overcoming Challenges in Business Model Innovation

Going down the path of BMI does come with its share of trials. Resistance to change can come both from within your organization and from external stakeholders. To mitigate, communicate clearly, regularly, and effectively about the necessity and benefits of embracing BMI. Another complication is the "innovator's dilemma" where companies struggle to innovate while sustaining their current profitable business. Successful BMI requires a careful balance of exploiting existing business models while exploring new ones.

Leading the Way in Business Model Innovation

Top-tier companies like Google, Apple, and Tesla have set the precedent, demonstrating that continuous BMI can drive innovation and profitability. In this context, as an executive at the helm of a Fortune 500 company, you have the onus and the opportunity to not only steer your company in this paradigm shift but also reshape your industry's future.

Through Business Model Innovation, you can propel your organization beyond the realm of incremental advances, infusing it with a pioneering spirit that demolishes market restrictions and unleashes uncharted paths of growth and success.

BMI FAQs

Here are our top-ranked questions that relate to BMI.

What role does customer feedback play in the iterative process of business model innovation?
Customer feedback is crucial in Business Model Innovation, driving market alignment, product/service refinement, strategic decision-making, competitive advantage, and risk management by ensuring customer-centricity and market relevance. [Read full explanation]
How can businesses ensure alignment between new business models and existing organizational structures and processes?
Ensuring alignment between new business models and existing structures necessitates Strategic Planning, Change Management, Culture transformation, and a focus on Operational Excellence and Continuous Improvement for sustainable growth and competitiveness. [Read full explanation]
What are the emerging trends in Business Model Innovation for 2023 and beyond?
Emerging trends in Business Model Innovation include Digital Transformation to improve Value Propositions, integrating Sustainability and Circular Economy principles, and focusing on Customization and Personalization for growth. [Read full explanation]
How can resistance to change, inherent in BMI implementation, be effectively managed within an organization?
Effective management of resistance to Business Model Innovation involves understanding its roots, strategic communication, fostering a culture of Continuous Improvement, and leveraging Change Agents. [Read full explanation]

Recommended Documents

Related Case Studies

AeroTech Business Model Innovation for Commercial Aerospace Vertical

Scenario: The organization in question operates within the commercial aerospace sector, facing the challenge of adapting its business model to the rapidly changing technological landscape and increasing competitive pressures.

Read Full Case Study

AgriTech Innovation Strategy for Precision Farming in Sustainable Agriculture

Scenario: A leading AgriTech organization specializing in precision farming solutions is at a crossroads requiring business model innovation to stay ahead.

Read Full Case Study

Retail Digital Transformation for Boutique Clothing Chain

Scenario: The organization is a boutique clothing chain specializing in sustainable fashion, facing stagnation in a highly competitive market.

Read Full Case Study

Business Model Revitalization for Specialty Retailer in Competitive Market

Scenario: A specialty retailer in the competitive apparel market is struggling to differentiate itself in the face of online retail giants and changing consumer preferences.

Read Full Case Study

Customer Experience Strategy for Boutique Hotel Chain in Hospitality

Scenario: The boutique hotel chain is at a critical juncture, requiring Business Model Innovation to stay competitive.

Read Full Case Study

Retail Business Model Innovation for Specialty Apparel Market

Scenario: The company is a specialty apparel retailer facing stagnation in a highly competitive market.

Read Full Case Study

Explore all Flevy Management Case Studies




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more.