Definition of BMI (Business Model Innovation)

Business Model Innovation (BMI) involves transforming fundamental business elements or creating entirely new operational approaches. According to research, "Content, structure, and governance are the three design elements that characterise a company's business model."

Organisations pursuing BMI typically demonstrate superior performance metrics compared to competitors, including improved operating margins and shareholder returns. BMI "is considered a key driver of competitive advantage," making it a strategic focus for many enterprises seeking differentiation in their industries.

The three core design elements include:

• Content: What activities are performed
• Structure: How these activities are linked and sequenced
• Governance: Who performs the activities

Effective BMI requires organisations to continuously reassess these elements in response to market changes, technological disruption, and evolving customer expectations.