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Innovative business models can reshape industries and drive tremendous growth. However, many organization find business model innovation difficult. The framework outlined in this presentation is based on the HBR article "Reinventing Your Business Model," authored by Clayton Christensen, Mark Johnson, and Henning Kagermann.
A successful business model has 3 key components:
*Customer Value Proposition. The model helps customers perform a specific "job," which alternative offerings don't effectively address.
*Profit Formula. The model generates value for your organization through such factors as revenue model, cost structure, margins, and inventory turnover.
*Key Resources and Processes. Your organization has the people, technology, products, equipment, facilities, and brand required to deliver the defined value proposition to the target customers. It also must have the processes to leverage these resources.
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