What is Business Model Innovation?

Business model innovation is the practice of changing or adding to an organization’s corre business model to create new revenue streams, address new market opportunities, or better utilize existing resources. It is adapting an organization’s way of doing business to meet changing needs.

The goal of business model innovation is to create a more sustainable and competitive business model that meets the changing needs of customers and the market. Companies that want to stand out from their competitors and gain a sustained competitive edge need to engage in this type of innovation.

Some characteristics of business model innovation include:

• Applying new ideas commercially
• Introducing something new to the business to improve or replace processes
• Developing new and improved products and services

Examples of Business Model Innovation

• Amazon: the Prime subscription model generated more consistent and predictable revenue
• Airbnb: Access to thousands of inventory units without owning or managing any of them
• Netflix: Used mail then streaming delivery to disrupt industries

What We Do

We work with organizations to identify and develop new business opportunities that generate additional revenue - think: earned income revenue - and reduce the dependency on grants and donations. This allows organizations to sustain and scale more predictably, and increase the level of impact.