If you want to keep up with the market pace, you need to learn to innovate at every step. Therefore, business model innovation involves the use of new technologies, different processes, unique ideas, and futuristic products. To know more details, visit us at : https://mitidinnovation.com/recreation/why-is-business-model-innovation-important/

1. Why is Business
Model Innovation
Important?
MITID Innovation

2. If you want to keep up with the market pace,
you need to learn to innovate at every step.
Therefore, these business model innovation
involves the use of new technologies, different
processes, unique ideas, and futuristic
products.

3. Digital transformation and Business
innovation go hand in hand with the
company's overall development and
market value. Successful implementation
of business innovation indicates higher
profits, greater revenue, increased
customer demand, and improved
reputation in the market. Some of the
examples of business innovation models
are:

4. • Power by the hour business model of
Rolls Royce.
• Sharing Economy model for Airbnb
Therefore, to make it more clear and to
highlight why Business Model Innovation
is important, we have mentioned the
following points -

5. Since the 21st century, monopoly is long
gone. No business company or organization
is having a monopoly over the market and
trade. Instead, digital transformation has
enabled the establishment of more and
more companies, therefore, increasing the
competition. To thrive in the competition
and maintain its stronghold in the market,
every company regularly updates its
business model, adopts new processes.
Thrive in Competition

6. Another one of the perks of Business Model
Innovation generates higher returns for the
organization. Business Model innovations are
5-8% more profitable than any other product
or process innovation. In these cases, the
Total shareholder Return percentage
exceeds that of the competition. Therefore,
stressing the importance of constant digital
transformation and business innovation to
outgrow in the market.
Higher Returns

7. Business Model Innovation is strongly
inter-related with other types of innovation,
namely technological and product
innovation. Once you have a superior
business model, you could easily make
your latest product or technology successful
in the market.
The Success of Technological
and Product Innovations

8. Everyone is evolving day by day, causing
a large possibility of potential disruption.
The customer demands and expectations
are continuously changed, leading to
fluctuating sales and the customer base.
To meet the demands of customers and
follow the latest market standards, the
incorporation of digital transformation is a
must-have option.
Changing Customer Demands

9. Innovations in technology, product, and
business design have to lead to
increased efficiency of the employees. It
has also promoted faster manufacturing
and made the production processes far
less hectic or time-consuming. Every kind
of digital transformation and business
innovation enhances the overall
performance and productivity of an
organization.
Higher Performance

10. These days people are more socially and
culturally aware of society and nature.
They tend to work in a sustainable
environment that offers the right
amenities and value for their talent.
Everyone wants to work in a socially
responsible company with higher rates of
employee satisfaction and recognition.
Talent Attraction

11. Therefore, business model innovation
paves a robust way towards success for
any company. As they keep on
upgrading regularly, they tend to stay
strong in the competition. A proper
business model innovation plan
generates higher production output,
higher returns, the company's market
success, and much more.

12. To understand these essentials of
innovation, you need a mentor who can
introduce you to the unknown dimensions
of the business world. So, if you are
looking for such an institution then, MIT
ID is one of the best institutes that will
help you imbibe these essentials of
innovation in your business ethics to
enamel the entrepreneur in you.

13. MIT ID Innovation Programme curates
knowledge and experiences that
challenge the very paradigm of evolution.
And that's why we have set out to define
the future of industries, communities,
cities and ecosystems. MIT ID Innovation
offers the best Courses in Innovation and
Design Thinking.
Conclusion

14. We’d love to
hear
from you.
MIT INSTITUTE OF DESIGN
Rajbaug,, Loni-Kalbhor, Pune-412201
innovation@mitid.edu.in
+91-7038982225 / +91 9834092369