Over the past decade, practitioners and researchers attained a lot of attention of business model innovation (BMI). The arising of business model innovation publications has insufficient theoretical support but it directs an important circumstances. A real business model (BM) gives the platform where clearly know the business concepts like: how the revenue and costs estimates; or to create competitive business; or what kind of problems solving for whom; or how the best service and product deliver to the ustomers; and how the customer value will be produced. BMI is mainly readdress the existing BM and its focus on the need of organizations customer, with this new value proposition it gives betterment of organization process, resources and profit formula. Most of the authors show the business models and describe business model innovation in different ways. In current study, the main objective is to investigate the business model innovation in Changing Environment of Businesses (Small medium enterprises (SMEs) of Information Technology (IT) Sector) in Pakistan. Questionnaire is developed about external and internal antecedents of BMI, novelty and scope of BMI and outcomes of BMI. Positive outcomes will be expected which will give better outcomes in future. In this study; questionnaire technique will be use; likert and nominal scale use for the questionnaire; and 91 items will be used for collecting the data. This study will also show how the innovation can solve problems in the BM and it’s also identifying important direction for future research. Supervisor:- Dr. Nadeem Ahmad Khan