Business Model Innovation
Business model innovation is the adaptation of a business model to implement a fundamental change in how a company delivers value to its customers. This may be necessary in response to external drivers, or may be driven by the company. Either way, customers change their perception of the value they derive from the price, quality or convenience of a product or service and its delivery channel. Successful business model innovation will realise new revenue and reduce costs through improved productivity. It is important for investors to have comparative data within any sector to assess where anyone firm stands relative to its peers in the relative levels of resources devoted to innovation and the degree to which innovations result in successful adoption of new practices and processes.