When people hear “innovation,” they think of a new gadget or breakthrough technology. But some of the biggest companies in the world innovated something else entirely: their business model. As Mr. Jay Sudani, CEO of PIERC, explained at the Young Entrepreneur Exchange Program (YEEP) 2026 at Parul University, changing how you run a business can turn an ordinary idea into a giant one, no new invention required.
A business model is evolving since its inception. It has no end, as every stage has to go through some or the other change to adapt itself over time. This is the first lesson one should learn. From day one, the plan is not going to be perfect; it will take months, years, to revise and adjust prices, find new partners, and learn from buyers and potential users so that the model can reach an expected level. Treating it as a fixed document is a mistake; treating it as a living, dynamic system you keep refining is how strong businesses are built.
Multiple Models, One Idea
When a product is planned and made, it should be tested in different business models, and the choice dramatically changes the outcome. Let’s think of an example: take two ways to sell the same digital service: subscription-based on a timeline, where customers can pay a fixed amount for a period and use the service according to their needs; another way is usage-based, where the buyer can buy credits, which will decrease with each use. The product stays the same, but the way to sell changes, and with it the revenue model, cash flow, and customer behaviour also change. Choosing the right model for the product and market is one of the most important decisions a founder should make.
Business Model Innovation: Owning Nothing, Leading Everything
The business model explanation was illustrated by Mr. Sudani, using some of the famous examples to explain the concept of how companies can dominate the market without owning core assets:
- Airbnb: One of the largest companies that works in accommodation during travel, but they don’t have hotels or rooms of their own.
- Uber: The largest taxi service company that now offers rentals too but doesn’t own a taxi.
- Meta: Provides a platform where created content is posted, regulated, etc., and it is one of the largest media companies, yet doesn’t produce content.
As one can see from the above examples, innovation was the model: finding the gap and filling it with the right delivery, without creating a product, a platform connecting supply and demand.
This is what business model innovation looks like: rethinking how to create value, disseminate it, hold it and capture it.
Common Business Model Patterns
When the models are already established, founders or new beginners can use the existing model; they don’t have to create one from scratch. They can use the existing one, combine it with proven patterns and accommodate it according to their business requirements. The common patterns include:
- Subscription model: where users have to pay a recurring fee/ amount for ongoing access.
- Freemium: initial free usage with offering a paid version for premium or adavanced services/ features.
- Marketplace or platform: here the business can connect the buyers and sellers, where a certain fee goes to the business/ take a cut, without actually having or owning the inventory.
- Per-Per-Use: Customers/buyers can pay for what they consume.
- Razor and blades: work on selling the product, then work on reaching repeat sales/ consumption.
How Parul University and PIERC Help Founders Build Models That Work
PIERC is a startup and entrepreneurship cell at Parul University that not only supports the founders but also the process. Founders study the business models; they build and test them. PIERC has supported 300+ startups generating over Rs. 60 Cr. in revenue and 1600+ jobs. Through this cell and study, students learn to filter business models with mentors and how to get funding, from pre-seed to scale.
Jay Sudani also cautioned that models must fit their market: India is vast and diverse, so a model that works in one region may need rethinking in another. Students learn these patterns in management and entrepreneurship programmes and apply them through PIERC.
Also Read: Value Proposition Canvas and How it is Important for Product Positioning.
FAQs
What is business model innovation?
Business model innovation is a process of fundamentally changing how a company creates, delivers and captures value, instead of just launching a new product. This process can turn a simple idea into a market-leading product, like Airbnb, Uber and Meta. Where there was no invention but innovation, filling the gap- innovation was the platform model.
What are common business model patterns?
Common patterns include subscription (recurring fees), freemium (free tier plus paid upgrades), marketplace or platform (connecting buyers and sellers for a cut), pay-per-use (paying for what you consume), and razor-and-blades (cheap core product, profitable consumables). Founders often combine and adapt these rather than inventing from scratch.
What is the difference between a business model and a revenue model?
A business model is the whole system of how a company operates and creates value; a revenue model is one part of it, specifically how the company earns money (for example, subscription versus pay-per-use). The same product can use different revenue models, which is a key lever of business model innovation.
How does Parul University support startup founders?
Through PIERC, Parul University helps founders design, test, and refine business models with mentors, prototyping facilities, and staged funding from pre-seed to scale. Its ecosystem has supported 300+ startups generating Rs 60 crore-plus in revenue and 1,600-plus jobs, and is open to students and external founders across India.
