Business model innovation: it's not just about technology anymore

Abstract

Purpose: To innovate the company business model, executives must first understand what it is, and then examine what paths exist for them to improve on it. This article aims to examine this issue. Design/methodology/approach: The article provides a practical definition of business models and offers a Business Model Framework (BMF) that illuminates the opportunities for business model innovation. Findings: The article finds that BMF sequences possible business models from very basic (and not very valuable) models to far more advanced (and very valuable) models. Using the BMF, companies can assess where their current business model stands in relation to its potential and then define appropriate next steps for the further advancement of it. Practical implications: An organization must give a senior manager the resources and authority to define and launch business‐model experiments. Originality/value: The article provides a cogent model for assessing the potential for new business model innovation, a framework for carrying it out and a management plan for decision making.