scholarly journals Archetypes of incumbents’ strategic responses to digital innovation

2019 ◽  
Vol 20 (5) ◽  
pp. 662-679 ◽  
Author(s):  
Beatrice D’Ippolito ◽  
Antonio Messeni Petruzzelli ◽  
Umberto Panniello
Keyword(s):  
Business Model ◽  
Business Models ◽  
Secondary Data ◽  
Two Dimensions ◽  
Primary Data ◽  
Strategic Responses ◽  
Digital Innovation ◽  
Content Type ◽  
Knowledge Based ◽  
The Matrix

Purpose The purpose of this paper is to explore how incumbents adapt their business models in response to digital innovation whose impact is either incremental or radical and source industry is either their own industry or other industries. The authors propose a conceptual matrix that is built on these two dimensions. Design/methodology/approach The authors build examples of four multinational incumbents operating in different sectors and known for their forefront approach to digital innovation to populate the matrix. Cases were chosen because of their polar nature that could provide variation in the two dimensions. The authors draw on a variety of qualitative secondary data sources to build the cases. Findings The study reveals how incumbents’ response to digital technologies (DTs) may differ depending on the resources or assets (including knowledge-based ones) that need mobilising. Business model changes and innovations may require full reconfiguration of a firm’s activity system; hence, one business model may be preferred to others depending on how burdensome the reconfiguration process will be. Research limitations/implications As the study is exploratory in nature, the anecdotal evidence provided in the paper are only some of the possible strategic responses of firms. Future studies may further into the dimensions the authors identified by empirically testing their validity with primary data. Practical implications The research offers managers and executives of incumbent firms a clear indication as to which elements of their business model ought to be adapted given the opportunities as well as the challenges brought about by DTs. Originality/value This research has explored incumbents’ response to DTs by primarily focusing on the nature and source industry of the underpinning innovation, besides any consideration of the drivers or processes that may lead to business model change.

“Enabling circular business models in the fashion industry: the role of digital innovation”

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Phuc Hong Huynh
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Digital Technologies ◽  
Theory And Practice ◽  
Chain Model ◽  
Fashion Industry ◽  
Digital Innovation ◽  
Content Type ◽  
Radical Innovations

PurposeDigital innovation and circular business model innovation are two critical enablers of a circular economy. A wide variety of digital technologies such as blockchain, 3D printing, cyber-physical systems, or big data also diverges the applications of digital technologies in circular business models. Given heterogeneous attributes of circular business models and digital technologies, the selections of digital technologies and circular business models might be highly distinctive within and between sectorial contexts. This paper examines digital circular business models in the context of the fashion industry and its multiple actors. This industry as the world’s second polluting industry requires an urgent circular economy (CE) transition with less resource consumption, lower waste emissions and a more stable economy.Design/methodology/approachAn inductive, exploratory multiple-case study method is employed to investigate the ten cases of different sized fashion companies (i.e. large, small medium-sized firm (SME) and startup firms). The comparison across cases is conducted to understand fashion firms' distinct behaviours in adopting various digital circular economy strategies.FindingsThe paper presents three archetypes of digital-based circular business models in the fashion industry: the blockchain-based supply chain model, the service-based model and the pull demand-driven model. Besides incremental innovations, the radical business model and digital innovations as presented in the pull demand-driven model may be crucial to the fashion circular economy transition. The pull demand–driven model may shift the economy from scales to scopes, change the whole process of how the fashion items are forecasted, produced, and used, and reform consumer behaviours. The paths of adopting digital fashion circular business models are also different among large, SMEs and startup fashion firms.Practical implicationsThe study provides business managers with empirical insights on how circular business models (CBMs) should be chosen according to intrinsic business capacities, technological competences and CE strategies. The emerging trends of new fashion markets (e.g. rental, subscription) and consumers' sustainable awareness should be not be neglected. Moreover, besides adopting recycling and reuse strategies, large fashion incumbents consider collaborating with other technology suppliers and startup companies to incubate more radical innovations.Social implicationsAppropriate policies and regulations should be enacted to enable the digital CE transition. Market patterns and consumer acceptances are considered highly challenging to these digital fashion models. A balanced policy on both the demand and supply sides are suggested. The one-side policy may fail CBMs that entail an upside-down collaboration of both producers and consumers. Moreover, it is perhaps time to rethink how to reduce unnecessary new demand rather than repeatedly producing and recycling.Originality/valueThe pace of CE research is lagging far behind the accelerating environmental contamination by the fashion industry. The study aims to narrow the gap between theory and practice to harmonise fashion firms' orchestration and accelerate the transition of the fashion industry towards the CE. This study examines diverse types of digital technologies in different circular business models in a homogeneous context of the fashion industry with heterogeneous firm types.

scholarly journals Business model patterns for 3D printer manufacturers

2019 ◽  
Vol 31 (6) ◽  
pp. 1281-1300 ◽  
Author(s):  
Patrick Holzmann ◽  
Robert J. Breitenecker ◽  
Erich J. Schwarz
Keyword(s):  
Business Model ◽  
Business Models ◽  
Low Cost ◽  
Secondary Data ◽  
Future Research ◽  
3D Printer ◽  
Value Capture ◽  
Content Type ◽  
Starting Point ◽  
Depth Analysis

Purpose The purpose of this paper is to analyze the business models that 3D printer manufacturers apply to commercialize their technologies. The authors investigate these business models and analyze whether there are business model patterns. The paper describes the gestalt of the business model patterns and discusses differences and similarities. Design/methodology/approach The authors review the literatures on business models and 3D printing technology. The authors apply a componential business model approach and carry out an in-depth analysis of the business models of 48 3D printer manufacturers in Europe and North America. The authors develop a framework focusing on value proposition, value creation and value capture components. Cluster analysis is used to identify business model patterns. Findings The results indicate that there are two distinct business model patterns in the industry. The authors termed these patterns the “low-cost online business model” and the “technology expert business model.” The results demonstrate that there is a relationship between business model and technology. The identified patterns are independent of age, company size and country of origin. Research limitations/implications The empirical results complement and extend existing literature on business models. The authors contribute to the discussion on business models in the context of novel technology. The technology seems to influence the gestalt of the business model. The sample is limited to European and North American companies and the analysis is based on secondary data. Originality/value This is the first empirical study on the business models of 3D printer manufacturers. The authors apply an original mixed-methods approach and develop a framework that can function as a starting point for future research. 3D printer manufacturers can use the identified business model patterns as blueprints to reduce the risk of failure or as a starting point for business model innovation.

A business model approach to supply chain management

2015 ◽  
Vol 20 (6) ◽  
pp. 587-602 ◽  
Author(s):  
Peter Trkman ◽  
Marko Budler ◽  
Aleš Groznik
Keyword(s):  
Business Model ◽  
Dynamic Capabilities ◽  
Business Models ◽  
Single Case ◽  
Secondary Data ◽  
Capabilities Approach ◽  
Model Management ◽  
Content Type ◽  
Strategic Issues

Purpose – This paper aims to extend the topics from a 2007 paper to stimulate debate on strategic issues vital for the long-term success of supply chains (SCs). The authors upgraded from SC process modelling towards SC business model management; from information to knowledge transfer and from the maturity of SC to dynamic capabilities. The paper attempts to identify and connect the elements of SC business model and the key issues for development of dynamic capabilities to enable future redesign of business models. Design/methodology/approach – The paper develops two frameworks showing the elements of an SC business model and the interconnection of those elements and dynamic capabilities. The use of these frameworks is demonstrated in a case study of Post of Slovenia. The case uses both primary and secondary data gathered from interviews, publicly accessible articles and internal reports. Findings – An SC should develop the elements of its business model in such a way that it will be able to continually change its existing or add a new business model from the AS-IS state to a currently unpredictable “TO-BE” state as a response to currently unknown changes in its business model. Research limitations/implications – The selection of the elements in the frameworks is partly arbitrary. A single case study was conducted. Practical implications – SCs should not simply focus on improving the maturity/efficiency of current processes but can use the findings to carefully design their current business model and develop dynamic capabilities for future changes. Originality/value – This paper summarises and extends the recent literature through the dynamic capabilities approach and business model management and proposes two frameworks and identifies topics relevant for future development of the SCM field.

scholarly journals From walls to experience – servitization of workplaces

Facilities ◽  
2018 ◽  
Vol 36 (9/10) ◽  
pp. 525-544 ◽  
Author(s):  
Vitalija Petrulaitiene ◽  
Pia Korba ◽  
Suvi Nenonen ◽  
Tuuli Jylhä ◽  
Seppo Junnila
Keyword(s):  
Business Models ◽  
Service Providers ◽  
Physical Space ◽  
Secondary Data ◽  
Support Service ◽  
Point Of View ◽  
Primary Data ◽  
Case Study Methodology ◽  
Content Type ◽  
Service Portfolio

Purpose New ways of working challenge workplace management: increasing mobility and diminishing organizational boundaries require re-evaluation of both workplace design and service delivery. However, structures and processes of workplace management are still traditional, and managers, together with outsourced facility service providers, often do not succeed at fulfilling the needs of mobile employees. The aforementioned changes stimulate discussions in many areas in both industry and academy. Nevertheless, workplace literature from business perspective seems to be scarce. In this paper, the focus is on workplace service offering for mobile knowledge workers. This paper aims to study the current state of workplace servitization. To answer this, the authors identify value offering elements that are used in office business market to deliver workplace as a service. Design/methodology/approach This study follows multiple case study methodology including five case studies. Primary data were collected through interviews with workplace service providers. Secondary data included observations and publicly available data. The authors took business model design approach to study selected business offerings. Findings The results indicate that workplace business models include elements of servitization on various levels. Physical space is no longer the central offering in the office business; instead, it acts as a component on which the service portfolio is built. The highest value from workplace comes from experience-related service offerings. Originality/value Academically, research contributes to the workplace management studies by providing servitization perspective to a topic previously approached with a more technical and psychological point of view. This study can also support service providers and customer organizations in their quest to make service provision more flexible and experience-oriented.

scholarly journals Innovation of Business Model to Expand New Revenue Stream and Exploring Willingness to Pay in Café, Restaurant, and Business Sector to Waste Logistic Service in Urban Area: Study Case of NYAMPIH

2021 ◽  
Vol 6 (7) ◽  
pp. 350-359
Author(s):  
Karin Winda Lestari ◽  
Melia Famiola
Keyword(s):  
Business Model ◽  
Urban Areas ◽  
Business Models ◽  
Scale Up ◽  
Secondary Data ◽  
Model Systems ◽  
Primary Data ◽  
Market Segment ◽  
Market Expansion ◽  
New Business

The purpose of this study is to find out solutions and implementation of business model systems to get new customers when NYAMPIH starts to scale-up and market expansion to urban areas such as coffee shops, restaurants, and also other sector businesses in the city of Bandung. NYAMPIH is a smart application and educational platform that connects waste officers with their consumers. In this case, the transported waste has been categorized properly according to the facilities provided. After that, consumers can collect points given by officers when picking up their garbage and can be exchanged for prizes. Consumers only need to subscribe, so all organic and inorganic waste will not end up in the TPA/TPS, because we will process it back into a new value. NYAMPIH faces an obstacle, how to change one's habits to care about their own waste. This study will use a qualitative approach by conducting observations, observations, and also interviews with a total of 30 respondents who have the position of manager and also the location cleaning division according to the market segment appointed by the researcher. The primary data used is the history of NYAMPIH operations with financial data, and for secondary data from literature reviews, journals, and books. Previously, the NYAMPIH market segment was housewives who lived in housing, but there was still a lack of comprehensive implementation when viewed from NYAMPIH's income so far. Therefore, this research is devoted to analyzing new business models with sales scenarios for new market segments. The location observation is used to obtain location information and also the problems faced by the respondents directly. Interviews were conducted to obtain validation regarding the business model which will later become the new guidelines for NYAMPIH. The results of this study indicate that NYAMPIH must expand its market segment broadly and large according to the results of observations and interviews that when market expansion will be NYAMPIH will be more prepared and can also be implemented comprehensively through the results of business models with new revenue streams There is also to implement the location of the sector business that subscribes to NYAMPIH which will later become a zerowaste city area. After evaluation and scenario analysis, all divisional activities, including marketing, operations, finance, will be further improved for each activity that will be carried out in terms of developing NYAMPIH in the future.

A business model typology for destination management organizations

2019 ◽  
Vol 74 (6) ◽  
pp. 1135-1152 ◽  
Author(s):  
Stephan Reinhold ◽  
Pietro Beritelli ◽  
Rouven Grünig
Keyword(s):  
Business Model ◽  
Perceived Control ◽  
Business Models ◽  
Two Dimensions ◽  
Model Concept ◽  
Value Capture ◽  
Content Type ◽  
Ideal Types ◽  
The One ◽  
Destination Management Organizations

PurposeThe need and legitimacy of destination management organizations (DMOs) are increasingly questioned. Still, the tourism literature provides little advice on how DMOs change and finance their activities for the benefit of their destination-given contextual change. This conceptual article aims to contribute to filling this gap. The authors do so by proposing a typology of business models for destination management organizations.Design/methodology/approachWith the help of typological reasoning, the authors develop a new framework of DMO business model ideal types. To this end, the authors draw on extant literature on business model typologies and identify key dimensions of DMO business models from the tourism literature.FindingsThe challenges DMOs face, as discussed in the tourism literature, relate to both ends of their business model: On the one end, the value creation side, the perceived value of the activities they traditionally pursue has been declining; on the other end, the value capture side, revenue streams are less plentiful or attached to more extensive demands. On the basis of two dimensions, configurational complexity and perceived control, the authors identify four distinct ideal types of DMO business models: the destination factory, destination service center, value orchestrator and value enabler.Originality/valueThe authors outline a “traditional” DMO business model that stands in contrast to existing DMO classifications and that relates DMO challenges to the business model concept. The typology provides an integrated description of how DMO business models may be positioned to create and capture value for the organization and the destination(s) it serves. The ideal types point to important interdependencies of specific business model design choices.

Business model innovation in the Indian hospitality industry

2019 ◽  
Vol 11 (4) ◽  
pp. 362-377 ◽  
Author(s):  
Sonia Bharwani ◽  
David Mathews ◽  
Amarpreet Singh Ghura
Keyword(s):  
Business Model ◽  
Hospitality Industry ◽  
Strategic Alliance ◽  
Secondary Data ◽  
Business Environment ◽  
Business Model Innovation ◽  
Primary Data ◽  
Content Type ◽  
Road Map ◽  
Luxury Hotels

Purpose This study aims to explore the reasons for the rise of independent, stand-alone restaurants and ascertains the benefits of outsourcing food and beverage (F&B) in luxury hotels in India from the perspectives of the strategic partners involved in such an alliance. The study also proposes different formats for F&B outsourcing in luxury hotels. Design/methodology/approach An exploratory study was carried out by collecting primary data from 16 Hotel General Managers and F&B operations experts through qualitative, semi-structured, personal and in-depth interviews. NVivo12 software was used to carry out a qualitative thematic analysis of the data. The primary data collected were triangulated with secondary data gathered through literature review of academic papers, industry reports and studies on the trends of restaurants in luxury hotels being outsourced. Findings The study focusses on the antecedents of the rise of stand-alone restaurants in the Indian hospitality industry. To combat the competitive disruption arising because of this trend, the study posits the business model innovation of outsourcing F&B operations in luxury hotels. Practical implications The benefits of a strategic alliance from the perspective of both parties – the luxury hotel and Michelin-star chef or branded/marquee restaurant – are elucidated. Further, three broad formats, which can be adopted for speciality restaurant outsourcing are also proposed. Practitioners, researchers and educationists in the hospitality industry would find the implications of this study useful in the context of the present customer-centric business environment where hotels are constantly striving to meet the exponentially rising bar of guest expectations in an increasingly globalised milieu. Originality/value The study proposes a preliminary road map for internationalisation of F&B operations through the business model innovation of outsourcing operations of in-house specialty restaurants by luxury hotels in the Indian context.

scholarly journals The impact of digital logistics start-ups on incumbent firms: a business model perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jasmin Mikl ◽  
David M. Herold ◽  
Marek Ćwiklicki ◽  
Sebastian Kummer
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Business Models ◽  
Primary Data ◽  
Value Proposition ◽  
Value Capture ◽  
Content Type ◽  
Main Factors ◽  
Start Ups ◽  
The Impact

PurposeDigital freight forwarder (DFF) start-ups and their associated business models have gained increasing attention within both academia and industry. However, there is a lack of empirical research investigating the differences between DFFs and traditional freight forwarders (TFF) and the impact of digital start-ups on incumbents' companies. In response, this study aims to examine the key business model characteristics that determine DFFs and TFFs and propose a framework illustrating the extent to which digital logistics start-ups influence incumbent logistics companies.Design/methodology/approachBased on the primary data gathered from eight interviews with experts from start-ups' and incumbents' logistics companies, as well as secondary data, the authors identify the main factors of DFFs start-ups that have an impact on TFFs and analyze the similarities and differences in regard to the business model components' value proposition, value creation, value delivery and value capture.FindingsThe results show that differences between DFFs and TFFs appear in all four business models' components: value proposition, value creation, value delivery and value capture. In particular, the authors identify three main factors that need to be considered when assessing the impact of DFFs on TFFs: (1) the company size, (2) the market cultivation strategy and (3) the transport mode.Originality/valueThis is one of the first studies to specifically examine the key business model differences between DFFs and TFFs and to propose a conceptual framework for understanding the impact of digital logistics start-ups on incumbent companies.

A dual knowledge perspective on the determinants of SME patenting

2017 ◽  
Vol 55 (6) ◽  
pp. 1226-1247 ◽  
Author(s):  
Lara Agostini ◽  
Anna Nosella
Keyword(s):  
Absorptive Capacity ◽  
Secondary Data ◽  
Primary Data ◽  
Firm Level ◽  
Content Type ◽  
Knowledge Based ◽  
Knowledge Perspective ◽  
Portfolio Size ◽  
The Impact ◽  
Moderating Role

Purpose Considering that SMEs are widely recognized as important innovators and, in the past years, have registered increasing levels of patenting, the purpose of this paper is to unveil the impact of both internal and external knowledge sourcing on SME patenting performance and test the moderating role of formal plan for innovation and absorptive capacity. Design/methodology/approach The authors propose an econometric approach based on a Hurdle Count Data Model which allows the authors not only to overcome problems related to the count dependent variables often assuming zero values, but also to separate patent propensity from patent portfolio size. Findings This methodology puts in evidence that an internal factor (i.e. employee skills for innovation) significantly influences SME patent propensity, while an external factor (i.e. open innovation with business partners) impacts SME portfolio size. Moreover, both formal plan for innovation and absorptive capacity play an important moderating role. Originality/value This paper embraces a knowledge perspective to investigate the determinants of SME patenting, which contributes to the knowledge-based view of the firm in the SME domain. Moreover, differently from most studies in the area of patenting which adopt a macro-level perspective and rely on secondary data, it assumes a firm-level approach and bases on primary data, which contributes to make it particularly distinctive.

The value matrix: a tool for assessing the future of a business model

2016 ◽  
Vol 44 (4) ◽  
pp. 41-48 ◽  
Author(s):  
Vladyslav Biloshapka ◽  
Oleksiy Osiyevskyy ◽  
Marc Meyer
Keyword(s):  
Business Model ◽  
Customer Value ◽  
Business Models ◽  
Performance Outcomes ◽  
Two Dimensions ◽  
Business Value ◽  
Operating Efficiency ◽  
Short Article ◽  
Content Type ◽  
Depth Analysis

Purpose Good companies innovate. In the process, they consider target markets, target customers, new product or service offerings, and the positioning of these relative to competitors. This forms a basic strategy for the innovation. However, the lesson of competitive dynamics today is that innovation effort stops short of its ultimate potential if it does not also embrace the business model possibilities provided by the innovation itself. This short article provides a strategic lens for considering the efficacy and power of a business model for a product or service innovation. Design/methodology/approach The current paper is grounded in the empirical results of an ongoing longitudinal study (undertaken by the authors team in the U.S., Canada and Ukraine) aimed at exploring the structure, characteristics, evolution, and performance outcomes of organizational business models. Findings The business model’s key characteristics are customer value (the “effectiveness side” of the equation, i.e., doing right things for customers that the latters are ready to appreciate and pay for, but not always to the focal firm) and business value (the “efficiency side” of the equation, reflecting translation of the customer value into profit). Importantly, our evidence strongly reveals the dynamic nature of the business model construct, implying that the companies evolve in terms of these two dimensions. Practical implications The recommendations part of the article is primarily based on the in-depth analysis of the recent history of large companies that were struggling to: sustain customer value, and develop and apply internal product and production platforms to increase operating efficiency, and hence business value. All these firms had either slipped into or were in the danger of slipping into Impostor status, and were seeking ways to regain and sustain their Innovation advantage, often over newer entrants in their respective industries. Originality/value Introduction of the Business Model Value Matrix allowing to analyze the current company’s business model; practical recommendations regarding getting to and remaining in the Winner quadrant

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