Business Model Innovation - MIT ID Innovation
                     Why is Business 
Model Innovation
Important?
MITID Innovation
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. 
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:
• 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 -
Thrive in Competition
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.
Higher Returns
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.
The Success of 
Technological and Product 
Innovations
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.
Changing Customer 
Everyone is evoDlveingm dayn bdy dsay, 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. 
Higher Performance
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.
Talent Attraction
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.
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.
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. 
Conclusion
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.
We’d love to 
hear
from you.
MIT INSTITUTE OF DESIGN
Rajbaug,, Loni-Kalbhor, Pune-412201
+91-7038982225 / +91 
9834092369
[email protected]
.in