A brief 2+ minute explainer on Business Model Innovation.

(video script, simplified)

Technology Trends vs. Business Models

Generative AI, Blockchain & TikTok Shop are the talk of the town these days.

All of these are at the top of the ‘Technology Trends’ this year.

But next year at this time, there will be a different set of Technology Trends shaping the market.

Maybe it will be Augmented Reality, NFTs, or a new Social Network.

A lot of the narratives and buzz surrounding each market are driven by ‘Technology Innovation.’

So What is Business Model Innovation?

Historically, a lot of the value accrued from these eras of technological advancement come from new business models built on top of these new technologies.

This is the essence of what Business Model Innovation is …

Not the technology itself, but the types of businesses who create new models on the emerging technology or platform infrastructure.

Dominant Platforms vs. The Businesses Built on Top

Think about the dominant platforms across categories today – Meta, Google, NVIDIA, Apple, Amazon, and a host of others.

We can see now these ‘Category Kings’ have accrued $Trillions of dollars in Enterprise Value.

But those are the 1 in a Million type plays.

There are a ton of relatively simple business models built on top of these platforms since then.

Think about:

A decade ago, a lot of these ideas were considered ‘small,’ and now many of these entities are worth millions and billions of dollars.

Yet, they didn’t take on any of the real technology risk.

How Do We Create New Business Models?

As markets shift rapidly, as is occurring now, Business Model Innovation is the process to create new models or shift existing ones.

Frameworks like Customer Development Framework and the Business Model Canvas help template and test new models in the market.

Existing businesses need to assess the core capabilities of today, and map them towards where the company needs to move in the future.

Summarizing Business Model Innovation

With all the frenetic noise and daily news around technology trends, it’s important to still focus on the business model and the levers of value creation.

Today, and in the future.

Business Model Innovation is the process of unlocking new models on top of new or existing technologies.

Learn More