When markets evolve, businesses must transform to remain competitive. Executives should watch for and respond to signals that indicate the need to explore business model transformation. In many situations, the future of a company rests on the fundamental transformation of one or more dimensions of its business model. If a business is persistently underperforming, the market has either shifted significantly and/or a new technology has emerged it’s time to rethink your business model. Having a disciplined approach to transformation and following key principles will ultimately lead to a robust new business model. Executives who identify and appropriately respond to the need for transformation can position their business for long-term success.