How Business-Model Innovation Is Becoming King

To develop effective new habits and expand your horizons in thinking and planning around business-model innovation, you need to ask yourself three important questions. Learn what those questions are in the highlights from a recent gathering hosted by our partners at the ILO Institute.

U+, in partnership with the ILO Institute, is excited to bring you highlights from ILO’s Weekly Virtual Gatherings. We recently had the opportunity to attend a major international bank executive’s presentation on business-model innovation.

Not long ago ILO Founder Peter Temes sat at the table in London and heard the head of growth at a major global bank talk about artificial intelligence. “We know that a major part of our income will come from AI. Our CEO, and our board, have figured that out. But they don’t know, and I don’t know, what the business models are that will get us there. Business models are a lot of what we talk about today.”

Fifteen years of research at ILO have led us to the firm conclusion that business-model innovation is all about how companies get paid—how much, by whom, and when.

These three questions help clear out the old habits and limitations in thinking and planning around business-model innovation:

  1. What do we get paid for that we could give away for free? (And: What do we give away for free that we might charge for?)
  2. What are we paid for through transactions that we could be paid for by subscription? (And: What do we get paid for by subscription that we could be paid for through transactions?)
  3. What gets paid for by our users that could be paid for by third-parties? (And: What gets paid for by third parties that could be paid for by users?)

Wharton’s Raffi Amit, along with Christopher Zott from the University of Navarra in Spain, offer their own take on business-model change here—well worth exploring: Business Model Innovation Matters More Than Ever - Knowledge@Wharton (

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Launched in 2005, ILO is a membership organization for large companies, government agencies and not-for-profits, bringing senior executives leading innovation together for knowledge sharing and community building. ILO has completed more than 300 best-practice research reports, focusing on emerging challenges and opportunities. To learn more about ILO, membership benefits, and how to join, visit

Check back next week as we’ll be releasing new insights from weekly events with leading innovators from across the globe.

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