BMI begins by assessing the company’s current context, the needs of its customers, and the models of its competitors. These steps should be completed with sufficient clarity and honesty to reveal what is currently working, what is not, and what might constitute a better value proposition. To that end, we offer the following questions for executives and managers seeking to create a shared awareness of threats and opportunities.
- What compromises does our current business model force customers to make?
- Why are nonusers or defectors dissatisfied with our offering?
- Do we offer customers a better value proposition than that of the competition?
- What alternative models are gaining share at the edges of our industry?
- If we were an industry outsider, what would we do to take advantage of the gaps or weaknesses in our business model?
- Do we have a plan for identifying potential business models, implementing them, and embedding BMI capabilities within the organization?
- What do we need to change in our organization and operations to implement a new business model?
- What information would we need to make a commitment to a new business model?
- How urgent is the perceived need for change in our organization?
- How should our ideas be championed?
Source: Business Model Innovation: When the Game Gets Tough, Change the Game by Zhenya Lindgardt, Martin Reeves, George Stalk, and Michael S. Deimler | Boston Consulting Group (BCG), December 2009