Business Model innovation
A business model is simply a framework to explain and visualize how all the ‘moving parts’ of the business work together to serve customers and create revenue. It’s like an artist rendering of a complex building. You don’t see all the details, but you get a sense of all the important features. The benefit of using a business model is that it forces you to focus on the big picture.
Business Model = Customer + Operations + Product
A business model summarizes information such as vision, ideal customers, value proposition, internal expertise, sales channels, strategic partners, expense drivers, and sources or revenue—basically the key topics that executives are talking about every time they think about strategy.
Strategy starts here
Just about everything in business is bound to face change eventually, but things such as customer expectations and technology seem to change at mock speed. Business models become outdated as internal and external factors change. Your company may not need to reinvent itself, but your strategy to win customers and be relevant needs to be fresh.
Business models need to anticipate the future
Looking at the business model as a snapshot of what’s going on in the business is a good way of quickly identifying areas that lack focus or are too narrowly focused on one approach. This evaluation starts the process of identifying a new strategy.
To get started, use Align’s Business Model Blueprint to capture the current story about how your business operates and engages customers. Then evaluate the overall strength and sustainability of this approach today and for the future.