How to Innovate Your Business Model?

How do you innovate from a business model perspective? Business model innovation is especially relevant in our current global health economic climate. At the InnoDays Training, we had the privilege of hearing from Michel D’Ausillio from Enel X and Claus von Riegen from SAP on this topic. Enel X is the innovation arm of Enel — one of the world’s largest energy companies — while SAP is a broadly global software provider. Both Enel X and SAP strive to provide smart and sustainable new business solutions. In this blog post, we summarize the key insights from our interview with Claus and Michel.

What is business model innovation?

Business model innovation is one of the most important mechanisms to differentiate and stay competitive in new markets. It creates additional value for customers by using different business levers. It is collaborative; interaction with other players (like startups or customers) is important and it happens neither solely inside nor solely outside the company. It is about changing the way you do business in order to stay competitive and to realize sustainable change.

Why do large companies need to stay competitive?

For any given index of large companies, after 20 years a majority of the largest companies are no longer the largest. Smaller companies grow faster; they are more agile which can make them better at competing and taking market share. For large companies, it is especially crucial to focus on renewal and innovation to ensure good business in the future. You need to listen to customers, understand their pain points, and find mechanisms to build repeatable products in this space. However, it is not enough to just listen to customers; you also need to study industry trends. Customers can help you learn what is relevant for them now, but they might not tell you what they expect the day after tomorrow.

Core tenets of business model innovation

There are 3 main principles of business model innovation:

How Enel X implements the core tenets of business model innovation
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