BUSINESS MODEL INNOVATION AND VALUE CREATION

Abstract

The creation and delivery of value through innovation has become the rule for contemporary companies in the context of the market, driven mostly by two forces, complexity and the rate of change.

Business models are at the heart of innovation in distinctive ways. First, new technologies create opportunities for new business models. Second, appropriate business models are necessary to translate technical success into commercial success. Third, business models themselves are subject to innovation involving discontinuous changes in the paradigm used by firms to go to market. In this sense, the ability to analyze what consumers really want, and to satisfy consumers’ needs, is perhaps the most important driver of business model innovation.