Business Model Innovation: Industry’s Latest Fad or a Useful Approach to Strategy?

The many highly successful business model innovations (BMIs) recently enabled by digital technology have made BMI a hot topic. In this case, the hype is largely justified: BMI is a major driver of corporate growth and profitability. However, BMI is often defined in a nebulous manner that makes it difficult to use. To overcome this, Lux offers two simple but robust tools to help identify, discuss, and promote BMI. The Lux BMI Framework is based on a formal analysis of traditional product and market innovation, revenue model innovation, and other nontraditional forms of innovation. The Lux Narrow BMI checklist is based on learnings gleaned from digital-enabled BMI. This report also includes expert commentary from the Industrial Research Institute’s New Business Development Network.