Alright, let's move on to the fourth area for innovation in an organization, which is business model innovation. Now what is the business model? A business model describes how an organization creates, delivers and captures value. And an organization's business model comprises of a number of different elements. And these include customers and markets, value propositions and channels, revenue streams and resources, processes and partnerships and financial structure and the source for this should you be interested in further study. It's the book Business Model Generation by Osterwalder and pick near published by Wiley in 2010. business model innovation involves testing alternatives to the way an organization is structured or operates in terms of customers and markets.

The sort of questions that we should be asking of our business model are what issues are Driving market and customer change? What are our main market segments? And which are showing the best growth? What new market segments are emerging? What are customers really willing to pay for? What do our customers hate about us?

And what society and cultural trends might affect our business products or markets? In terms of value propositions and channels, the questions that we might ask, include, who are our competitors? What do they offer? And how do they serve the market? Who are the new players in the market? And how are they different?

What new channels are emerging? What products and services could replace ours? Why do customers switch to competitors? And what are the trends in the supply chain? In terms of our revenue streams and resources? We might ask the following questions.

What socio economic trends might affect our products and markets? What is the state of the commodities resources market? And where is it likely to head? how engaged are our people in Improvement and Innovation? How we can we develop a more varied and innovative workplace? In terms of processes and partnerships?

How efficient are our processes? And how do we know that? What are the major technological trends? How might they impact on our markets or customers? What regulatory trends and political influences could affect our organization? What changes and trends in the global and national economy could affect our business?

What partnership models might be possible and what are our competitors using? Finally we might review our financial structure with the following questions. What is our financial structure compared to others in our industry, or markets? What are the strengths and weaknesses of our Current capital structure. What is the state of the capital markets? And what are the emergent issues?

What governmental or political issues might affect us in the future? infrastructure education, legislation, health, population changes, etc? And how might stakeholders influence our organization or plans? What changes to your current business model might improve performance? The challenges to review your current business model? Look at these questions in terms of the different elements of business models, and see what you might change what you might innovate to improve performance.