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Business Model Innovation

BMi – Beyond the Canvas

Business Model

What is a Business Model?

A business model is defined as "the rationale of how an organization creates, delivers and captures value." 

The Business Model Canvas, explained below, is a good tool to map out business models conceptually. 

The Business Model Canvas was designed by Alex Osterwalder, and is a tool to help reshape the way we look at a business and identify the key components for building a sustainable business model. 

What is Business Model Innovation?

Business Model Innovation (BMi) is about developing new ways to bring existing product and services to existing markets. It doesn’t require deep technological change, although technology itself is radically reshaping business models at the core.

One of the key advantages of BMi is that most of the innovation happens beneath the surface, making it difficult to understand and replicate. 

BMi produces sustainable, long-term, competitive advantages. 

Beyond the Canvas

We have conceptualized a new model to better capture the variables that shape the Business Model. If you were to think about a business (the Micro) in the context of the Macro, then the Canvas would need to be enhanced to capture variables related to:

  • Macro trends, whether economic, political, social or cultural
  • Opportunities in the Ecosystem that create openings for new models
  • Who the People are that can come in and execute on the model

This a conceptual, non-scientific model that could be coupled with a robust Financial Model to better identify the path towards BMi and the key variables that need to be controlled. This new model is explained here:

Lumos-Model-s

Vision. Model. Prototype