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Epicenters of Business Model Innovation

Ideas for business model innovation can come from Each of the four epicenters can serve as the starting point
anywhere, and each of the nine business model building for a major business model change, and each can have
blocks can be a starting point. Transformative business a powerful impact on the other eight building blocks.
model innovations affect multiple building blocks. Sometimes, business model innovation can emerge from
We can distinguish four epicenters of business model several epicenters. Also, change often originates in areas
IDEATION innovation: resource-driven, offer-driven, customer-driven, identifi ed through a SWOT analysis: an investigation of a
and fi nance-driven.
business model’s strengths, weaknesses, opportunities,
and threats (see p. 216).
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DESIGN

Resource-Driven Offer-Driven
Resource-driven innovations originate from Offer-driven innovations create new value
an organization’s existing infrastructure propositions that affect other business
or partnerships to expand or transform the model building blocks.
business model.

Example: Amazon Web Services was built on top of Example: When Cemex, a Mexican cement maker,
Amazon.com’s retail infrastructure to offer server promised to deliver poured cement to job sites within
capacity and data storage space to other companies. four hours rather than the 48 hour industry standard,
it had to transform its business model. This innovation
helped change Cemex from a regional Mexican player
into the world’s second largest cement producer.

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