How does innovation arise in a business model?

Innovation in the business model can occur in three different ways:

1.- Adding innovative activities such as progressive or regressive integration . By this I mean that we innovate through a business model as a new "content" of a system of activities.

2.- Linking the activities in a novel way . This would be to innovate the business model as a new "structure" of a system of activities.

3.- Modifying one or more parties that perform any of the activities. It would be to innovate the business model as a new "governability" of a system of activities.

Content , structure and govern ability are the three design elements characteristic of a company's business model. Changing enough one or more of these three elements will have changed the business model.

How can we increase in the company the probability of innovating the design of the right business model for its situation?

1.- Capturing the degree of innovation of the business model represented by the activity system.

2.- Lock-in are those activities of the business model that generate costs for changing supplier or service.

3.- The complementarities are the effect of power the value of the interdependencies between the activities of the business model.

4.- The efficiency is the cost savings through the interconnections of the activity system.

Each of these four points is established as a significant value driver with which we intensify the potential to generate value in our business model. In addition to generating significant synergies among the creators of value in our company. Complementarities can be much more valuable when they are backed by a novel design in our business model.