Systemizing Business Model Innovation (BMI)

The Apple story is misleading. From the iPod to the iWatch it suggests business success is all about inventing killer gadgets – a depressing thought. In fact Apple’s most profound innovation was the iTunes store – not a product at all but a game-changing new business model.

In our fast changing world, the innovation of new business models is key to creating customer value; and the great thing about business model innovation (BMI) is that it does not involve specialist designers or creative geniuses but can and should involve people from across the whole company as a continual adaptive process, a core part of the culture.

An important new program run by St Gallen Executive School in conjunction with Stanford University aims to teach the theoretical basis and offer methodical tools for BMI and to assist companies develop an innovative business model prototype that can to significantly drive business performance. In this short (8 minute) video, course leader, Professor Dr Oliver Gassmann explains the principles behind BMI:

The Business Model Innovation Certificate program, for senior executives or entrepreneurs is largely run from St Gallen, in Switzerland, but includes hands-on sessions at Silicon Valley with one of design thinking’s most accomplished pioneers Professor Dr Larry Leifer from Stanford University, where it also provides a chance to visit ultra-innovative companies such as Apple, Google and Tesla.

The key topics covered by the program are:

• How can companies systematically innovate business models?
• How to position the company in a competitive environment in which sole product innovation does not guarantee sustainable competitive advantage anymore?
• How to transform product and process innovations into holistic business model innovations?
• What role does digital transformation play in BMI? And how can the potential of the ‘Internet of Things’ and Industry 4.0 be leveraged?
• How can the success of BMI be measured?

Read IEDP’s review of The Business Model Navigator - Prof Oliver Gassmann’s new book

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