Many people are skeptical that business model innovation

Many people are skeptical that business model innovation can revolutionize any business. Perhaps if you consider an example from a tradition-bound business, you'll be persuaded that the barriers have all MBT Boost Shoes fallen for creating more powerful business models.

Let's consider the impact of business model innovation on the geological thinking behind underground gold mining, an industry that has had one of the most stable business models in the world. Based on archeological records, it is estimated that that business has been around for thousands of years.

Until the industrial revolution, when power and explosives could be applied in the mines and stratigraphic maps were created, the business model and methods used were essentially unchanged. You put more effort into wherever you found some gold.

You drilled lots of exploratory holes to see what you could find, and made three dimensional maps of what you learned to suggest where the gold might be found by extending the strata you knew to be gold bearing. Then you drilled some more.

Until recently, the only innovation since then was the development of futures markets for gold, so that miners could sell their MBT Staka Sandals,future production and inventories when they wanted to reduce uncertainty or risk.

In March 2000, the gold-finding part of the business model was laid to rest for all time by Goldcorp Inc. The company issued a challenge to all of the world's geologists to find more gold in its Red Lake Mine. That mine was already tapping into one of the world's richest, highest-grade gold deposits.