Paths to Success: Three Ways to Innovate Your Business Model
In today's ever-changing times,innovation in business models is a success differentiator for CEOs,as we learned from the IBM 2006 Global CEO Study. But what is business model innovation and what can we learn from successful business model innovators?Based on our experience,an extensive literature review and an analysis of 35 best practice cases,we first developed a framework for understanding business model innovation. Here,we identified three main types of business model innovations: those in industry models,revenue models and enterprise models. We then compared these three types of business model innovation across the 35 best practice cases and found that each type of business model innovation,used either alone or in combination and with the right strategy and strong execution,can generate success. Among the three types,enterprise model innovation emphasizing external collaboration and partnerships is the most common.