With technologies changing faster than ever the need to change business models is getting more and more important. However, it is not as easy as one might think for a company to change their business model. A lot of companies believe they need to change their business models but very few has been able to do so. In order to find out why companies have such a problem this master thesis attempts to answer the question of how consulting companies understand their own business models and business model innovation. By combining a literature review with interviewing both employees at a consulting company and their customers the author presents existing business models with the help of business model canvas as a framework in order to show what parts of a business model that a consulting company focuses on. Other than presenting the findings on the consulting company’s existing business model a totally new business model is also created. The insurance model is a new way for consulting companies to raise their value proposition in order to gain more revenue streams. This master thesis also finds out that one of the main problems for a consulting company when it comes to understanding its own business model is the fact that the company hierarchy creates a diversion between the cognitive aspectsand the material aspects in the business model and a lot of innovative ideas goes missing. The thesis also finds that the main focus is on value proposition and revenue streams and that the other parts of the business model is ending up in the shadow.