What is business model innovation? A business model is much more than a description of a particular product or service. In addition to describing the offering itself, it lays out the value proposition behind it (i.e., how it creates value for a defined set of customers). It also describes the capabilities and resources needed to execute that value proposition and how the organization will generate profits from doing so. The key stages of business model innovation are exploration, pattern-finding, concept development, prototyping, piloting, and scaling. This technical note examines each of the stages in more detail, with suggested techniques along the way. It includes worksheets for students on value chain analysis, concept development, and piloting. The note is meant to be used in conjunction with "Leading Organic Growth: Module Caselets" (UVA-BP-0541), which also includes an instructor's teaching note that outlines a course module.