A business model maturity model is a framework for assessing and evolving a company’s business model, and evaluating its maturity in areas like innovation, value proposition, revenue streams, and customer segments. It provides a progression of maturity levels that allow companies to benchmark their current business model and identify opportunities to optimize it for greater success and sustainability.
The Core Tenets of Business Model Maturity Model
- Focuses on the business model, not just products and services
- Evaluates business model maturity in key areas like value proposition and revenue generation
- Provides standard maturity levels to benchmark against
- Identifies strengths, weaknesses, and opportunities for improvement
- Supports evolution and innovation of the business model over time
Why Business Model Maturity Models are Important to Business Consultants
Business model maturity models provide consultants with a structured framework to evaluate and advise clients on optimizing their business models. Assessing maturity allows gaps and risks to be identified, along with untapped opportunities for creating value. The maturity model enables progress to be benchmarked over time as changes are implemented. This allows consultants to track improvements and demonstrate concrete results. Maturity models also facilitate comparison between companies to highlight lessons that can be shared across organizations. A business model focus is critical, since even great products and services can fail without an effective overarching model. Helping clients boost their business model maturity with an optimized value proposition, customer experience, and revenue streams leads to sustainable growth and resilience.
Examples of Business Model Maturity Models in Use
- A healthcare startup has a sound product but flat growth. A consultant uses a business model maturity model to show the CEO that their value proposition and customer segments are too narrow. They jointly develop strategies to expand into adjacent markets with a broader offering, leading to a growth spurt.
- A retail chain is struggling with declining foot traffic. A consultant evaluates their business model maturity and sees space to add digital channels and evolve the in-store experience. Omnichannel personalization lifts revenues and brand loyalty.
- A manufacturing firm wants to shift from selling products to services. A consultant uses a business model maturity model to stress-test this change and highlight risks. This leads to a phased transition approach and revised value proposition.
Business Model Maturity Model Synonyms
- Business model assessment framework: A structured approach to evaluating and analyzing a company’s business model.
- Business model evaluation model: A model that allows organized assessment and review of a business model.
- Business model optimization tool: A tool that helps identify opportunities to improve and evolve a company’s business model.
- Business model progress map: A framework that sets out stages of evolution for a company’s business model.
Business Model Maturity Model Antonyms
- Unstructured business model review: An ad-hoc or unsystematic approach to assessing a company’s business model.
- Business model stagnation: Lack of innovation or evolution in a company’s business model over time.
- Narrow business model focus: Evaluating only a limited part of the business model without a holistic view.
- Reactive business model change: Making business model changes reactively in response to external pressure.
Other Closely Related Terms
- Business model canvas: A visual chart categorizing key elements of a business model like value proposition, channels, revenue streams.
- Value proposition: The unique value a company promises to deliver to customers at a given price point.
- Business model pivoting: Making major strategic changes to a company’s underlying business model.
- Business model disruption: Radical business model innovation that displaces established players.