Why Business Model Innovation trumps Product Innovation
I hear from clients facing intense competition in their businesses about the innovations they’re planning for their product set in order to combat the competition.
I get it, there is constant pressure to innovate. However, I highly recommend considering business model innovation as a means to differentiate. Business model innovation ensures longer-term success whereas product innovation is only short-term.
A more sustainable competitive advantage: Product innovations can be easily replicated or surpassed by competitors. By reimagining your value proposition, revenue streams, customer segments, and distribution channels, you can establish a differentiated business model that is difficult for competitors to copy.
Creating market disruption: Disruptive innovations often stem from new business models rather than revolutionary products. Companies like Uber and Airbnb revolutionised their industries by introducing innovative business models that disrupted traditional service delivery.
Understanding customer pain: Business model innovation requires you to truly understand customer pain points and how you can offer enhanced value, convenience, and personalisation. Creating an ideal customer journey fosters deeper customer relationships and builds loyalty.
Agility: Business model innovation allows you to build a flexible organisational structure that responds with cadence to changing customer preferences, market trends, and technological advancements. By continuously refining and iterating your business model, you stay ahead of the curve and capitalise on emerging opportunities.
An oldie-but-a-goodie book that I LOVE on this topic is Strategyzer Business Model Generation
https://www.strategyzer.com/books/business-model-generation.
Let’s chat
If your business needs strategic guidance, support, or execution, let’s chat.
I’m a strategic marketing manager helping your business grow. My services give you access to senior, strategic marketing expertise without the full-time employee expense.
Rachel Allen
Strategic Marketing Manager
+64 27 564 9292
hello@rachelallenmarketing.co.nz
