Innovation has always been the key to business success. More so in today's dynamic business environment characterized by uncertainty and radical change. Business model innovation can help companies to score over their competitors by identifying what customers want and meeting their requirements through innovative solutions.

Most businesses carry out incremental advances in existing businesses. They introduce new products and services and launch new initiatives all aimed at taking the organizational performance to higher levels. Though all these are crucial, there are always companies that compete in the same space selling similar products and services of comparable quality and at a similar price. As the competition increases, the margins tend to decline and the opportunities appear to be drying up. Competitors match the price, they hire some of the best people and match the technology. Such a situation requires companies to do something radically different. How do companies break out of the downward spiral? The answer lies in business model innovation. To put it in the words of Dr Patrick Stähler, Alumni of the Institute for Media and Communications Management, University of St. Gallen, Switzerland, "In order to be profitable, companies have to be differentiate themselves from their competitors. Either they can be cheaper because they have cheaper production resources, offer a superior product with a different value proposition, find better processes, and have a different revenue model that suits its customers better. Business model innovation is a way to differentiate yourself from your competitors and thus avoid strategic convergence, which leads to declining profits."

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