By changing what decisions are made in the business model, when they are made, who makes them, and why they are made, you will be able to come up with business models that better manage information and incentive risks and, as a result, outperform existing business models, disrupt established ways of doing business, and lead to a sustainable competitive advantage, according to Karan Girotra and Serguei Netessine in their book The Risk-Driven Business Model: Four Questions That Will Define Your Company.
Traditionally, in order to find significant new growth in a business it has been necessary to come up with a breakthrough product or process innovation. But those sorts of innovations are difficult to invent and there is a lot of uncertainty involved in commercialisation. According to the authors, it is possible to produce significant new growth while delivering existing products based on existing technologies to existing markets, by innovating with respect to the business model.
How exactly do you go about innovating with a business model? The authors suggest that you can innovate with any of these factors:
I found this to be the type of book which prompts the reader to think about many new possibilities for his or her own business situation. In my opinion the book, and particularly the business model innovation matrix which it provides, is likely to be a very useful resource for any business strategist.