Actually, I've seen it work both ways. In our case, product innovation often drove changes to our business model, so 'Product > Strategy > Business Model' wasn't always backwards
I've seen it both ways, but I think the original sequence highlights how product innovation can drive business model changes, which then inform strategy; can you share an example where a top-down approach worked better for you?
I agree that the sequence seems counterintuitive at first, but doesn't a strong product often drive business model innovation, which in turn informs strategy?