Business Model Innovation is the process of developing new, unique concepts to support an organization’s financial viability, including its mission, and the processes for bringing those concepts to fruition. The primary goal of business model innovation is to identify new revenue sources by improving product value and how products are delivered to customers. Technology has dramatically changed how companies operate and deliver services to customers. This digital disruption has shortened business model lifecycles and made innovation key to financial success.
The global marketplace has further driven the need for business model innovations, as companies must react to stiffer international competition and the increased potential for systemic risk. These factors are forcing companies to turn to business model innovation to stay competitive and foster growth in the competitive global marketplace. Successful business model innovation in the digital age requires an alignment of IT and business objectives, with the ultimate goal being to improve processes throughout the organization. As a result, IT plays a big role in maximizing business model innovation success.