Business model innovation, which has evolved from the business model concept, considers how firms can both innovate in and reconfigure their business models in the digital transformation journey. This chapter highlights tools that firms can employ to design and redesign their business models in response to advances in digital technologies and the pursuit of digital transformation. An overview of the business model concept and associated components of value creation, value delivery and value capture are provided. The theory of disruptive innovation and the impact on business models is outlined. The business model innovation concept is introduced along with an outline of how digital technologies can drive business model innovation. An understanding of the barriers to employing digital technologies in business model innovation is provided. Finally, the chapter highlights how the business model canvas and design thinking can be used in business model innovation.