Business model innovation
Doing Something New with Something Old
Using Business Model Innovation to Reinvent the Core
The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-forprofit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises.
Our customized approach combines deep in ight s into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve i sustainable compettive advantage, build more capable organizations, and secure lasting results.
Founded in 1963, BCG is a private company with
81 offices in 45 countries. For more information, please visit bcg.com.
Doing Something New with Something Old
Using Business Model Innovation to Reinvent the Core
Zhenya Lindgardt and Charles Hendren
March 2014
AT A GLANCE
Improving Core Growth
Core growth is a critical driver of performance. As markets become saturated and new competitors emerge, however, traditional approaches that have driven growth successfully for years are reaching the point of diminishing returns. Business model innovation (BMI) is a powerful but underleveraged tool that can drive breakout growth in a company’s core business.
The BMI Opportunity: Same Goal, Different Results
The ability to change multiple elements simultaneously—and in a coordinated manner—is what allows BMI to offer the same advantage as traditional growth levers but avoid the accompanying pitfalls. Leading companies have used BMI to move beyond product innovation and redefine the basis of competition. They have combined new products with new pricing strategies, partnerships, cost models, and a multitude of other changes to their businesses—achieving impressive results. For the 50 to 70 percent of companies with
Using Business Model Innovation to Reinvent the Core
The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-forprofit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises.
Our customized approach combines deep in ight s into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve i sustainable compettive advantage, build more capable organizations, and secure lasting results.
Founded in 1963, BCG is a private company with
81 offices in 45 countries. For more information, please visit bcg.com.
Doing Something New with Something Old
Using Business Model Innovation to Reinvent the Core
Zhenya Lindgardt and Charles Hendren
March 2014
AT A GLANCE
Improving Core Growth
Core growth is a critical driver of performance. As markets become saturated and new competitors emerge, however, traditional approaches that have driven growth successfully for years are reaching the point of diminishing returns. Business model innovation (BMI) is a powerful but underleveraged tool that can drive breakout growth in a company’s core business.
The BMI Opportunity: Same Goal, Different Results
The ability to change multiple elements simultaneously—and in a coordinated manner—is what allows BMI to offer the same advantage as traditional growth levers but avoid the accompanying pitfalls. Leading companies have used BMI to move beyond product innovation and redefine the basis of competition. They have combined new products with new pricing strategies, partnerships, cost models, and a multitude of other changes to their businesses—achieving impressive results. For the 50 to 70 percent of companies with