A business model is nothing more than a model-like, holistic description of the logical relationships between how a company generates benefit or value for its customers and itself. The detailed mapping of this logic makes the business model visible, assessable and subsequently changeable.
The business model of a company is therefore suitable as an analysis unit to systematically find starting points for innovations, i.e. companies can change parts of their business model and thus create an advantage over their competitors.
A business model innovation is therefore the conscious change of an existing business model or the creation of a new business model that satisfies the needs of customers better than existing business models.