Designing new business models: blue sky thinking and testing

2016 ◽  
Vol 37 (5) ◽  
pp. 22-31 ◽  
Author(s):  
Cara Wrigley ◽  
Sam Bucolo ◽  
Karla Straker

Purpose In what is going to be an uncertain and rapidly evolving global economic landscape, it is clear that firms will have to become more adaptive and responsive to changes within their marketplace. To do this, businesses will not only need to engage in business model experimentation but also look to embrace business model innovation as a core competency and a means for sustained competitive advantage. Design/methodology/approach This paper outlines how a design process of experimenting and prototyping can apply to the design of business models through the case study of hypothetical luggage company Packright. Findings Five meta-models with differing foci are illustrated as an accessible and provoking framework that provides a new logic to classifying, experimenting and prototyping business model designs. Practical implications These five meta-models provide a tangible starting point from which a business can begin to explore different perspectives and gain insights into the internal and external capabilities of their company. Originality/value This paper builds upon the emerging research and exploration into the importance and relevance of dynamic, design-driven approaches to the creation of innovative business models.

2016 ◽  
Vol 44 (1) ◽  
pp. 11-19 ◽  
Author(s):  
Cara Wrigley ◽  
Karla Straker

Purpose – Business models to date have remained the creation of management, however, it is the belief of the authors that designers should be critically approaching, challenging and creating new business models as part of their practice. This belief portrays a new era where business model constructs become the new design brief of the future and fuel design and innovation to work together at the strategic level of an organisation. Design/methodology/approach – The purpose of this paper is to explore and investigate business model design. The research followed a deductive structured qualitative content analysis approach utilizing a predetermined categorization matrix. The analysis of forty business cases uncovered commonalities of key strategic drivers behind these innovative business models. Findings – Five business model typologies were derived from this content analysis, from which quick prototypes of new business models can be created. Research limitations/implications – Implications from this research suggest there is no “one right” model, but rather through experimentation, the generation of many unique and diverse concepts can result in greater possibilities for future innovation and sustained competitive advantage. Originality/value – This paper builds upon the emerging research and exploration into the importance and relevance of dynamic, design-driven approaches to the creation of innovative business models. These models aim to synthesize knowledge gained from real world examples into a tangible, accessible and provoking framework that provide new prototyping templates to aid the process of business model experimentation.


2019 ◽  
Vol 26 (3) ◽  
pp. 707-720
Author(s):  
Ashish Thomas

Purpose Organizations are consistently seeking innovative strategies and novel pathways to enhance business processes and create differentiation. The global business ecosystem is changing and there is growing demand for multi-modal digital technologies, big data consolidation and data analytics to harness a cost-competitive agile system. Technological convergence and integration of digital systems is one of the preferred methodologies that facilitates new and effective workflows and revives business processes. The progressive interlinking of digital technologies with business operations leads to the convergence and blending of management disciplines, devices and applications. The growing inconsistencies in managerial understanding regarding the benefits of convergence prompts a comprehensive examination of digital convergence pathways, identifying the impacts on converging entities and business objectives. The State bank of India (SBI) mega-merger case study was selected to investigate the pragmatic framework of digital convergence and to understand the impacts on interlinked entities such as: business operations, strategic management, project team that support value creation and competitive differentiation. The purpose of this paper is to focus on the phenomena of techno-fusion of emerging technologies creating new opportunities, business models and unique strategies for global banking and financial service organizations. Design/methodology/approach This study applies the qualitative, inductive research method using critical reflection of before and after the implementation of convergence and digital integration strategies. The SBI case study employs this research strategy based on the premise that banks must stay agile and highly responsive to the changing environment to enhance its value proposition and competitive differentiation objectives. The study methodology incorporates cooperative inquiry and multiple levels of analysis using data collection techniques of exhaustive review of archives, informal interviews, questionnaires and observations to identify the synergistic process improvement pathway. The study is grounded on the concept that the convergence of diverse business pathways involves innovative and interlinked project, strategic and information technology (IT) workflows that results in open innovative systems. Findings The studies identify that organizational innovation and creative solutions are a result of ecosystem turbulence, environmental force diversity, competitive pressure and the need for differentiation. Organizations that harness the power of digital fusion and convergence of management, systems and data generate a competitive advantage. The technological convergence strategy pulls multiple business and technology processes (project, strategic, IT, Cloud, AI and business process management) at the organizational, divisional or functional level generating new opportunities and threats, new business models and unique growth strategies for global banking and financial services organizations. Organizations that fully integrate techno-fusion of business and digital strategies produce synergistic effects and enhance adaptability, innovation and resiliency in the face of competitive challenges. Research limitations/implications Additional areas that can be explored further as an extension of this study are listed below: identifying factors to improve the speed of convergence; the current results are limited to large size organizations where formal management and technology functions are distinctive. Similar studies on smaller organizations are warranted. Originality/value This study focuses on the evolving field of technology innovation, which is increasingly being intertwined with business operations. Innovative digital technology is enabling the convergence of the disciplines of management, digital devices and applications. This facilitates the creation of a pragmatic framework that supports convergence of business operations, strategic management and digital fusion which leads to value creation and competitive differentiation. The techno-fusion of emerging technologies and digital strategies generates new opportunities and threats, new business models and unique growth strategies for organizations.


2019 ◽  
Vol 16 (1) ◽  
pp. 17-35 ◽  
Author(s):  
Moema Pereira Nunes ◽  
Ana Paola Russo

Purpose This paper aims to analyze the business model innovation in medium and large Brazilian manufacturing companies located in Rio do Sul State. Design/methodology/approach A holistic multiple case study in five companies was developed. Data were collected through interviews and analyzed according to the content analysis technique. Findings The main motivation to business model innovation was the innovation in products and services, while the difficulties were the factors relating to the cost. The most common practice among cases was innovation in value proposition and the most widely used method was learning-by-searching. While part of the theory was demonstrated in the case studies, new motivations and practices were identified. The investigation of the learning process on business models’ innovation is pioneered in this study. Further studies on this subject are required. Originality/value New business models are likely to provide new opportunities to better address customer needs, generating differentiating itself from its competitors. It is a subject little investigated in the international context, and there are no studies to investigate the experience of Brazilian companies.


2015 ◽  
Vol 19 (3) ◽  
pp. 258-273 ◽  
Author(s):  
Esben Rahbek Gjerdrum Pedersen ◽  
Sarah Netter

Purpose – The purpose of this paper is to explore barriers and opportunities for business models based on the ideas of collaborative consumption within the fashion industry. Design/methodology/approach – The analysis is based on a multiple-case study of Scandinavian fashion libraries – a new, clothes-sharing concept that has emerged as a fashion niche within the last decade. Findings – It is concluded that fashion libraries offers interesting perspectives, e.g. by allowing people to experiment with styles without having to pay the full cost and becoming a meeting place for young designers and end consumers. However, at present fashion libraries remain a small-scale phenomenon with difficulties reaching the mainstream market, not least due to limited financial and human resources as well as conventional fashion consumption patterns. Research limitations/implications – The study is limited to the new phenomenon of fashion libraries and does not cover other types of collaborative consumption within the fashion industry (Swap-parties, etc.). Originality/value – The paper is one of the first attempts to examine new business models of collaborative consumption in general and the fashion library concept in particular. The study contributes to the discussions of whether and how fashion sharing and collaboration holds promise as a viable business model and as a means to promote sustainability.


2018 ◽  
Vol 15 (4) ◽  
pp. 338-355 ◽  
Author(s):  
Giovana Sordi Schiavi ◽  
Ariel Behr

Purpose This paper aims to conduct a review on disruptive business models. Considering that competition among companies will not only happen through new products, services or technologies but also through innovative business models, the disruptive business models arise to replace the existing business models, adapting the organizational structures to the products and services offered and emphasizing the proposition of unique value. Design/methodology/approach The literature on this topic was revised, allowing the obtaining of the state of the art and the construction of a research agenda. The analyzed literature was obtained from systematic searches by the term disruptive business model in some databases. For the analysis of the data, the content analysis strategy was used through categorizations in the material exploration phase, and, later, for the processing of the results, the authors made use of inference and interpretation regarding the content analyzed. Findings The collected literature made it possible to obtain a set of data formed by different views of authors on disruptive business models, which was analyzed and categorized to make new inferences and interpretations. Originality/value Considering that the literature on the disruptive process of business models is emerging and addressing an important phenomenon in the market that lacks the theoretical basis to sustain it, this paper contributes by presenting a consolidated examination on this subject, thus deepening the theoretical analyzes on this topic and reducing this lack in the literature. This study also presents a research agenda, which clarifies the disruptive business model gap and reveals some opportunities for future empirical researches.


2015 ◽  
pp. 2126-2150
Author(s):  
Te Fu Chen

This chapter focuses on a new business model in social networking, uses platform strategy to discuss possible business models, evaluates the optimal model for partnering with social networking service providers. This research develops a new revenue business model in social networking with a case study and discusses its potential monetization business model. The chapter reviews five business models including: 1) social media startups; 2) challenges social networks face: must monetize or die; 3) a case study of the new effective social business model – Facebook; 4) monetization: Facebook revenue and business model; and 5) a discussion of monetizing social networks: the four dominant business models and how you should implement them in the future. Through a comprehensive review, the chapter proposes a social media monetization model as the reference for firms to implement new business models of social networking.


Author(s):  
Jaehun Lee ◽  
Taewon Suh ◽  
Daniel Roy ◽  
Melissa Baucus

Artificial intelligence (AI) has been altering industries as evidenced by Airbnb, Uber and other companies that have embraced its use to implement innovative new business models. Yet we may not fully understand how this emerging and rapidly advancing technology influences business model innovation. While many companies are being made vulnerable to new competitors equipped with AI technology, this study attempts to focus on the proactive side of the use of AI technology to drive business model innovation. Describing AI technology as the catalyst of business model innovation, this study sheds light on contingent factors shaping business model innovation initiated by the emerging technology. This study first provides a brief overview of AI, current issues being tackled in developing AI and explains how it transforms business models. Our case study of two companies that innovated their business models using AI shows its potential impact. We also discuss how executives can create an innovative AI-based culture, which rephrases the process of AI-based business model innovation. Companies that successfully capitalize on AI can create disruptive innovation through their new business models and processes, enabling them to potentially transform the global competitive landscape.


2016 ◽  
Vol 44 (1) ◽  
pp. 3-10 ◽  
Author(s):  
B. Joseph Pine II ◽  
James Gilmore

Purpose – In little more than a decade, experience thinking has influenced the development of new business models in a wide variety of enterprises. Design/methodology/approach – The authors describe best practices for five approaches Five approaches are noteworthy: Experiential marketing (EM or XM). Digital experiences using the Internet and other electronic platforms to create new technology interfaces focused on the user experience (UX). The application of experience-staging to enhance interactions with customers. Experiences as a distinct economic offering. Designing transformational business models that allows the company to charge for the demonstrated outcomes customers achieve. Findings – Companies can innovate by recognizing trends in customer needs and aspirations that provide opportunities to develop business models that offer high value experiences or even customer transformations. Originality/value – To truly pursue experiences as a distinct form of economic output, companies must design a business model that involves charging for the time customers spend engaging with the business, such as an admission or membership fee of some sort.


2019 ◽  
Vol 25 (7) ◽  
pp. 1520-1542 ◽  
Author(s):  
Raffaello Balocco ◽  
Angelo Cavallo ◽  
Antonio Ghezzi ◽  
Jasmina Berbegal-Mirabent

Purpose Business model change (BMC) is a process new ventures are frequently involved in, especially in dynamic environments like the digital industry: copying with it is a key issue for entrepreneurs attempting to shorten the transition between current and new business models (BMs) and avoid losses in terms of revenue, image and customer retention, while acquiring experience and validated learning in the process. The purpose of this paper is to propose a lean framework to support digital new ventures in the BMC process. Design/methodology/approach The study builds its contribution on two pillars: a review on BM and the lean thinking theories, and a multiple case study on three digital new ventures which underwent BMC. Findings The study shows how BMC in a digital context can beneficially follow lean principles, and how these principles can be integrated in an original lean framework to experiment on, validate and subsequently change a BM. Originality/value The authors provide the “single minute exchange of die” for BMC framework that extends and complements lean startup approaches to further relate lean thinking and BMC, thus operationalizing the process of BM experimenting and validation that enables change.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gina Rennings ◽  
Michael Wustmans ◽  
Martin Kupp

Purpose Business model innovation (BMI) provides enormous opportunities to multinational corporations (MNCs). Consequently, some MNCs have created dedicated BMI units. Yet, research only provides limited guidance and lacks empirical evidence on the implementation of BMI processes in a corporate environment through dedicated units. Accordingly, the main goal of the research is to shed light on understanding the role (s) of a dedicated BMI unit and how it interacts with the existing businesses to help them identify, evaluate or implement new business models. Design/methodology/approach This work adopts a case study approach as a research design (Yin, 2015). In particular, the study is set up as a single in-depth case study in a holistic design (Yin, 2013). The data consists of a total of nine extensive interviews with employees of Bosch’s BMI unit, as well as project team members the unit has worked with. Of the nine interviewees, six are working within the BMI unit (internal perspective) and three are members of two project teams, i.e. customers of the BMI unit (external perspective). Archival records serve as an additional source of evidence aimed at enhancing internal validity. Findings This research is the first work to determine the explicit roles of an MNC’s dedicated BMI unit throughout the BMI process. Through derivation of roles from the tasks and responsibilities of Bosch’s BMI unit in each process phase, six overarching roles have been identified, namely, process owner, executor, enabler, challenger, networker and connector. Simultaneously, this work has suggested the existence of process-independent roles, namely, knowledge intermediary and trainer. Research limitations/implications The case study approach underlying this work allowed an in-depth investigation of the BMI process and the BMI unit of Bosch but the results are still based on a single case study. In this regard, limitations that occur for qualitative case study approaches are also relevant for this study, i.e. although careful analysis to reveal the stage-gate such as the design of BMI processes or the roles of a dedicated BMI unit was performed, a certain degree of subjectivity remains. Practical implications The results underline that a dedicated BMI unit within an MNC constitutes a way to allow for managing the cross-functional and complex tasks of BMI by giving projects the necessary flexibility to develop while remaining aligned and benefitting from the organizational setting. This paper further observes that a dedicated BMI unit expresses an opportunity to define responsibilities for corporate BMI processes that are described in the literature (Geissdoerfer et al., 2017; Tesch, 2019; Wirtz and Daiser, 2018). Thus, the results may be used by practitioners working in MNCs to understand some of the issues related to the implementation of BMI processes in a corporate context, i.e. how to organize and structure BMI (Geissdoerfer et al., 2017; Winterhalter et al., 2017) or where to locate and how to interlink BMI with existing corporate functions (Chesbrough and Rosenbloom, 2002; Cortimiglia et al., 2016). Originality/value The outcomes of this work are twofold. First, building on existing literature, a process model for BMI through dedicated BMI units is proposed. Second, based on findings from the in-depth case study, eight overarching roles a BMI unit can hold have been identified. Thereby, this work constitutes a starting point for intensified research on the value and the implications of dedicated BMI units in the context of BMI and BMI processes.


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