Shaking up business models with creative strategies: when tried and true stops working

2018 ◽  
Vol 39 (4) ◽  
pp. 19-27 ◽  
Author(s):  
Sarah Browne ◽  
Pamela Sharkey Scott ◽  
Vincent Mangematin ◽  
Patrick Gibbons

Purpose The purpose of this paper is to provide guidelines for practitioners for developing creative strategies and new business models. Design/Methodology/Approach This paper reviews more than 150 interviews with CEOs, directors and business unit heads from across functional areas over the past decade, and captures best practices in strategy development and business modelling. Findings Findings of this study were combined with a review of relevant research papers from leading academic and practitioner journals to identify three critical management practices: challenging mental models, looking beyond logic and encouraging openness for new ideas, which enable organizations to develop creative strategies for building better business models. Originality/Value This paper demonstrates how these three practices combined can serve as a much needed tool for creative strategy design and development, particularly for established companies, when confronted with new forms of competition.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mirka Kans ◽  
Anders Ingwald

PurposeThe purpose is to describe new business opportunities within the Swedish railway industry and to support the development of business models that corresponds with the needs and requirements of Industry 4.0, here denoted as Service Management 4.0.Design/methodology/approachThe study is an in-depth and descriptive case study of the Swedish railway system with specific focus on a railway vehicle maintainer. Public reports, statistics, internal documents, interviews and dialogues forms the basis for the empirical findings.FindingsThe article describes the complex business environment of the deregulated Swedish railway industry. Main findings are in the form of identified business opportunities and new business model propositions for one of the key actors, a vehicle maintainer.Originality/valueThe article provides valuable understanding of business strategy development within complex business environments and how maintenance related business models could be developed for reaching Service Management 4.0.


2019 ◽  
Vol 26 (1) ◽  
pp. 59-79
Author(s):  
Meyer Haggège ◽  
Anne-Lorène Vernay

Purpose Imagining a new business model is a creative process that requires entrepreneurs to define how a firm can create and capture value with a new activity. The literature emphasises various tools and approaches for prototyping business models. The purpose of this paper is to investigate the suitability of story-making as a means of designing new business models and to shed light on its potential for stimulating creative entrepreneurial thinking. Design/methodology/approach This paper tests the use of story-making for business modelling in a real-life case to show its usefulness and shed light on its potential for stimulating creative entrepreneurial thinking. Findings The authors argue that story-making should be recognised as an approach to business modelling that can foster creativity and empathy. Building on insights from design thinking literature, the paper shows that planning for a long exploratory phase is necessary to allow system thinking. It also shows that anchors can act as intermediary stopping rule and help manage complexity. Originality/value The paper introduces an original method for crafting business models during early stages of the innovation process and argues that this method could also be used to design business processes, especially when they are not already formalised.


2020 ◽  
Vol 41 (4) ◽  
pp. 47-54
Author(s):  
Kirstin Eva Bosbach ◽  
Anne-Sophie Brillinger ◽  
Björn Schäfer

Purpose Established firms are increasingly under pressure to develop new business models (BM) in a continuous manner to cope with competitive constraints and changing market requirements. Business model innovation (BMI) is widely accepted as a viable means to stay ahead of competition. Yet, firms struggle with successful BMI. The barriers to BMI is a widely discussed topic in academia and practice but with little reference to the barriers a firm is confronted with when operating multiple BMs in a corporate portfolio. Design/methodology/approach This paper investigates the implications for a firm operating a multitude of BMs concurrently. By combining the results of a literature analysis and 15 expert interviews from the fields of corporate strategy, business modelling and consulting, this paper presents and discusses the opportunities and challenges related to BM diversification. Findings The findings show that a strategic BM portfolio can be installed for enhanced value creation. However, managing multiple BMs and finding the right balance between existing and new business pose a major challenge for many established firms. With these results, the paper contributes to the existing literature in the fields of BMI and BM portfolio management. The findings clearly show the emerging importance of a strategic corporate BM portfolio for both research and practice and may provide an impetus for management discussions involving strategic BM portfolio decisions. Originality/value By building on and adding to existing literature and discussing existing works, this paper aims to giving a structured and comprehensive overview of enhancing and impeding factors on value creation when operating multiple BMs in a corporate portfolio.


2019 ◽  
Vol 40 (2) ◽  
pp. 22-31 ◽  
Author(s):  
Marc André Baumgartner ◽  
Vincent Mangematin

PurposeRepeatedly engaging in strategic exercises may lead to a certain weariness, as the same strategic processes are used over and over again. The authors advocate looking at business model as a new concept to challenge existing beliefs and what is taken for granted. This paper aims to better understand how business model renews strategic processes. Does it change the strategic process, or is it a new strategic tool? Based on an analysis of the strategic processes of eight small- and medium-sized enterprises, the authors identify four mechanisms for challenging existing strategic processes: cognitive challenge, focus on process, mindset and mindset change, cognition and capabilities. Renewing strategic tools and processes is necessary to change the lens through which the environment is viewed. This change of perspective happens because of newness in the process of how top managers read the organisation and the environment, thus adapting their business more quickly than do other companies. To combine the understanding of history necessary for strategic thinking with the ability to think outside the box requires a certain flexibility of mind, which can be called cognitive strategic ambidexterity.Design/methodology/approachBased on an analysis of the strategic processes of eight small- or medium-sized enterprises, this paper shows that it is not because of business modelling that top managers may renew their strategic approach and think outside the box.FindingsBased on an analysis of the strategic processes of eight small- and medium-sized enterprises, the authors identify four mechanisms for challenging existing strategic processes: cognitive challenge, focus on process, mindset and mindset change, cognition and capabilities. Renewing strategic tools and processes is necessary to change the lens through which the environment is viewed. This change of perspective happens because of newness in the process of how top managers read the organisation and the environment, thus adapting their business more quickly than do other companies.Originality/valueA lot of research has been conducted in the fields of strategy as practice and business model. The newness added by this article is the interlinkage between the two fields of research. Looking at the process of strategy through the lens of business modelling has so far not been covered. Cognitive strategic ambidexterity is the key.


2017 ◽  
Vol 38 (2) ◽  
pp. 76-82 ◽  
Author(s):  
Ryan Rumble ◽  
Niall Anthony Minto

Purpose This paper aims to present a method for interpreting and reinterpreting business models as analogies to support the creation of new business model ideas. Design/methodology/approach The authors use the literature on cognitive frames and attention to demonstrate the often-overlooked potential of analogies. From this, the authors derive practical recommendations for the use of analogies in creative business model design. Findings Managers can design creative business models by seeking multiple interpretations of the way other businesses create and capture value. Originality/value Business model frameworks are commonplace, but there is little discussion on how to use them effectively. Furthermore, while analogies are helpful in inspiring novel ideas, their creative potential is limited if the questions asked of and insights found in the case study are not reimagined. The authors provide a practical solution to increase creativity in business model design by recursively reflecting upon issues and solutions.


2015 ◽  
Vol 43 (5) ◽  
pp. 32-39 ◽  
Author(s):  
Anthony Marshall ◽  
Stefan Mueck ◽  
Rebecca Shockley

Purpose – To understand how the most successful organizations use big data and analytics innovate, researchers studied 341 respondents’ usage of big data and analytics tools for innovation. Design/methodology/approach – Researchers asked about innovation goals, barriers to innovation, metrics used to measure innovation outcomes, treatment and types of innovation projects and the role of big data and analytics in innovation processes. Findings – Three distinct groups emerged: Leaders, Strivers and Strugglers. Leaders are markedly different as a group: they innovate using big data and analytics within a structured approach, and they focus in particular on collaboration. Research limitations/implications – Respondents were from the 2014 IBM Innovation Survey. We conducted cluster analysis with 81 variables. The three cluster solution was determined deploying latent class analysis (LCA), a family of techniques based around clustering and data reduction for segmentation projects. It uses a number of underlying statistical models to capture differences between observed data or stimuli in the form of discrete (unordered) population segments; group segments; ordered factors (segments with an underlying numeric order); continuous factors; or mixtures of the above. Practical implications – Leaders don’t just embrace analytics and actionable insights; they take them to the next level, integrating analytics and insights with innovation. Leaders follow three basic strategies that center on data, skills and tools and culture: promote excellent data quality and accessibility; make analytics and innovation a part of every role; build a quantitative innovation culture. Originality/value – The research found that leaders leverage big data and analytics more effectively over a wider range of organizational processes and functions. They are significantly better at leveraging big data and analytics throughout the innovation process – from conceiving new ideas to creating new business models and developing new products and services.


2015 ◽  
Vol 4 (1) ◽  
pp. 4-24 ◽  
Author(s):  
Julia Selberherr

Purpose – Sustainable buildings bear enormous potential benefits for clients, service providers, and our society. To release this potential a change in business models is required. The purpose of this paper is to develop a new business model with the objective of proactively contributing to sustainable development on the societal level and thereby improving the economic position of the service providers in the construction sector. Design/methodology/approach – The modeling process comprises two steps, the formal structuring and the contextual configuration. In the formal structuring systems theory is used and two levels are analytically separated. The outside view concerns the business model’s interaction with the environment and its impact on sustainability. The inside view focusses on efficient value creation for securing sustainability. The logically deductively developed business model is subsequently theory-led substantiated with Giddens’ structuration theory. Findings – The relevant mechanisms for the development of a new service offer, which creates a perceivable surplus value to the client and contributes to sustainable development on the societal level, are identified. The requirements for an efficient value creation process with the objective of optimizing the service providers’ competitive position are outlined. Research limitations/implications – The model is developed logically deductively based on literature and embedded in a theoretical framework. It has not yet been empirically tested. Practical implications – Guidelines for the practical implementation of more sustainable business models for the provision of life cycle service offers are developed. Social implications – The construction industry’s impact requires it to contribute proactively to a more sustainable development of the society. Originality/value – This paper analyzes the role for the players in the construction sector in proactively contributing to sustainable development on the societal level. One feasible strategy is proposed with a new business model, which aims at cooperatively optimizing buildings and infrastructures and taking the responsibility for the operating phase via guarantees.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manfred Bornemann ◽  
Kay Alwert ◽  
Markus Will

PurposeThis article reports on the background, the conceptual ideas and the lessons learned from over more than 20 years of IC Statements and Management with a country focus on Germany and some international developments. It calls for an integrated management approach for IC and offers case study evidence on how to accomplish this quest.Design/methodology/approachReport on the German initiative “Intellectual Capital Statement made in Germany” (ICS m.i.G.). A brief review of the literature describes the background and theoretical foundation of the German IC method. A short description of the method is followed by four detailed case studies to illustrate long-term impact of IC management in very different organizations. A discussion of Lessons Learned from more than 200 implementations and an outlook on current and future developments finalizes the article.FindingsIC Statements made in Germany (ICS m.i.G.) was successful in providing a framework to systematically identify IC, evaluate the status quo of IC relative to the strategic requirements, visualize interdependencies of IC, business processes and business results as well as to connect IC reporting with internal management routines and external communication. However, ICS is not an insulated method but delivers the maximum benefit when integrated with strategy development, strategy implementation, business process optimization accompanied by change management routines. Strong ties to human resource management, information technology departments, quality management, research and development teams as well as business operations as the core of an organization help to yield the most for ICS m.i.G. Over time, the focus of managing IC changes and maturity leads to deutero learning.Practical implicationsICS m.i.G. proved easy to apply, cost efficient for SMEs, larger corporations and networks. It helps to better accomplish their objectives and to adjust their business models. The guidelines in German and English as well as a software application released were downloaded more than 100,000 times. A certification process based on a three-tier training module is available and was successfully completed by more than 400 practitioners. ICS m.i.G. is supporting current standards of knowledge management, such as ISO 9001, ISO 30401 or DIN SPEC PAS 91443 and therefore will most likely have a continuing impact on knowledge-based value creation.Originality/valueThis paper reports lessons learned from the country-wide IC initiative in Germany over the last 20 years initiated and supported by the authors. Several elements of the method have been published over time, but so far no comprehensive view on Lessons Learned had been published.


2018 ◽  
Vol 33 (6) ◽  
pp. 749-767 ◽  
Author(s):  
Seppo Leminen ◽  
Mervi Rajahonka ◽  
Mika Westerlund ◽  
Robert Wendelin

Purpose This study aims to understand their emergence and types of business models in the Internet of Things (IoT) ecosystems. Design/methodology/approach The paper builds upon a systematic literature review of IoT ecosystems and business models to construct a conceptual framework on IoT business models, and uses qualitative research methods to analyze seven industry cases. Findings The study identifies four types of IoT business models: value chain efficiency, industry collaboration, horizontal market and platform. Moreover, it discusses three evolutionary paths of new business model emergence: opening up the ecosystem for industry collaboration, replicating the solution in multiple services and return to closed ecosystem as technology matures. Research limitations/implications Identifying business models in rapidly evolving fields such as the IoT based on a small number of case studies may result in biased findings compared to large-scale surveys and globally distributed samples. However, it provides more thorough interpretations. Practical implications The study provides a framework for analyzing the types and emergence of IoT business models, and forwards the concept of “value design” as an ecosystem business model. Originality/value This paper identifies four archetypical IoT business models based on a novel framework that is independent of any specific industry, and argues that IoT business models follow an evolutionary path from closed to open, and reversely to closed ecosystems, and the value created in the networks of organizations and things will be shareable value rather than exchange value.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ian R. Hodgkinson ◽  
Thomas W. Jackson ◽  
Andrew A. West

Purpose Customer experience is more critical than ever to firms’ successes and future growth opportunities. Typically measured through aggregate satisfaction scores, businesses have been criticized for oversimplifying what experience means. The purpose of this study is to provide a new perspective on experience management and offers a novel way forward for customer-centric strategizing. Design/methodology/approach Mapping the current digital technologies being used across businesses in all sectors to engage and connect with customers more effectively, this paper outlines some of the fundamental challenges of experience management and future opportunities to enhance business practice. Findings Businesses are capturing what they know about customers, rather than what a customer thinks and feels about the firm. Many experience management initiatives create customer pains (not gains), while for businesses, decision-making can be jeopardized by fake customer data. A framework based upon the five experience dimensions is presented for optimal customer-driven decision-making. Practical implications Going beyond aggregate satisfaction scores that serve as an output rather than an input into businesses strategizing, the paper presents an actionable framework for targeted investments and enhanced experience management practices. Originality/value Businesses are seeking to grow intelligent customer experience analysis capabilities to disrupt traditional business models toward greater customer-centricity and to track the digital spread of positive and negative experiences. Examining how this is being done and where the weaknesses lie by bridging management practice and the scientific literature, this paper provides new knowledge to advance customer-centric strategies for growth and profitability.


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