scholarly journals ONE SIZE DOES NOT FIT ALL — UNDERSTANDING THE FRONT-END AND BACK-END OF BUSINESS MODEL INNOVATION

2013 ◽  
Vol 17 (01) ◽  
pp. 1340002 ◽  
Author(s):  
FRANZISKA GÜNZEL ◽  
ANNA B. HOLM
Keyword(s):  
New Product Development ◽  
Business Model ◽  
Business Models ◽  
Innovation Process ◽  
Business Model Innovation ◽  
Central Research ◽  
News Production ◽  
Front End ◽  
Digital News ◽  
Development Literature

Business model innovation is becoming a central research topic in management. However, a lack of a common understanding of the nature of the business model leads to disregarding its multifaceted structure when analyzing the business model innovation process. This article proposes a more detailed understanding of the business model innovation process by drawing on existing knowledge from new product development literature and examining the front-end and the back-end of business model innovation of three leading Danish newspapers. We studied how changes introduced during the development of digital news production and delivery have affected key components of these business models, namely value creation, proposition, delivery and capture in the period 2002–2011. Our findings suggest the need to distinguish between front-end and back-end business model innovation processes, and to recognize the importance of organizational learning when incumbents are faced with disruptive technologies.

scholarly journals The evolution of facility management business models in supplier-client relationships

2018 ◽  
Vol 16 (1) ◽  
pp. 38-53 ◽  
Author(s):  
Giulia Nardelli ◽  
Risto Rajala
Keyword(s):  
Business Model ◽  
Business Models ◽  
Innovation Process ◽  
Facility Management ◽  
Business Model Innovation ◽  
Structured Interviews ◽  
Content Type ◽  
Client Relationships ◽  
New Thinking ◽  
Over Time

Purpose The purpose of this paper is to improve the current understanding of business model innovation by outlining how business models unfold over time within supplier–client relationships in facilities management (FM) services. Design/methodology/approach This study of FM services in Denmark consists of an explorative case study and three case studies of FM clients. Both phases, related and overlapping, involved collection and analysis of in-depth, semi-structured interviews and archive data. Findings Findings show that business model innovation entails interorganisational collaboration across different phases of the innovation process. The research demonstrates that external orientation within FM service ecosystems involves both a reaction to changes in the external environment and the proactive involvement of stakeholders throughout business model innovation. Research limitations/implications The selection of business model innovation processes was limited to the Danish context. The sample, although heterogeneous and representative, represented only a fraction of the total population, which may have excluded processes of business model innovation that contradict the research. Practical implications This paper suggests that by observing the business models of the value network over time, organisations could learn from the interdependencies between intra- and interorganisational stakeholders, thereby supporting the monitoring of risks and uncertainties as well as the anticipation of potential consequences of changes in the ecosystem. Originality/value This paper introduces new thinking on the subject of business model innovation to the context of FM. It presents the external orientation of FM business models as a way to combine planned and emergent business model innovation through interorganisational collaboration and value creation in FM ecosystems.

scholarly journals Defining business model key performance indicators using intentional linguistic summaries

2021 ◽  
Author(s):  
Rick Gilsing ◽  
Anna Wilbik ◽  
Paul Grefen ◽  
Oktay Turetken ◽  
Baris Ozkan ◽  
...  
Keyword(s):  
Decision Making ◽  
Business Model ◽  
Performance Indicators ◽  
Model Evaluation ◽  
Business Models ◽  
Real Life ◽  
Innovation Process ◽  
Key Performance Indicators ◽  
Business Model Innovation ◽  
Data Availability

AbstractTo sustain competitiveness in contemporary, fast-paced markets, organizations increasingly focus on innovating their business models to enhance current value propositions or to explore novel sources of value creation. However, business model innovation is a complex task, characterized by shifting characteristics in terms of uncertainty, data availability and its impact on decision making. To cope with such challenges, business model evaluation is advocated to make sense of novel business models and to support decision making. Key performance indicators (KPIs) are frequently used in business model evaluation to structure the performance assessment of these models and to evaluate their strategic implications, in turn aiding business model decision making. However, given the shifting characteristics of the innovation process, the application and effectiveness of KPIs depend significantly on how such KPIs are defined. The techniques proposed in the existing literature typically generate or use quantitatively oriented KPIs, which are not well-suited for the early phases of the business model innovation process. Therefore, following a design science research methodology, we have developed a novel method for defining business model KPIs, taking into account the characteristics of the innovation process, offering holistic support toward decision making. Building on theory on linguistic summarization, we use a set of structured templates to define qualitative KPIs that are suitable to support early-phase decision making. In addition, we show how these KPIs can be gradually quantified to support later phases of the innovation process. We have evaluated our method by applying it in two real-life business cases, interviewing 13 industry experts to assess its utility.

scholarly journals A Business Model Innovation Methodology for Established Organizations: Systematic Theory Validation

2020 ◽  
Vol 7 (2) ◽  
pp. 23
Author(s):  
Michael Lang
Keyword(s):  
Business Model ◽  
Business Models ◽  
Innovation Process ◽  
Business Model Innovation ◽  
High Tech ◽  
Research Gaps ◽  
Significant Research ◽  
New Business ◽  
Research Gap ◽  
Tool Set

The goal of this paper is to validate a business model methodology in practice. The goal of the business model methodology is to generate new business models with disruptive potential by overcoming the blindness of organizations mindset. In total nine focus group workshops in automotive, home appliances and high-tech industry with defined tool set and methods are processed. By conducting the workshops in practice several methods of the theory could be validated and points of improvement identified.Among other findings, the applied methods of the new business model methodology are successful in identifying relevant levers for disruption. Even several starting points for new disruptive business models are found.In addition, the workshop participants’ feedback implicate that in contrast to other studies aligning the process of overcoming the organizational mindset within the business model innovation process, is more effective than implementing a prepending phase to it.In summary, the present research aims at contributing to the research gap within science regarding the consideration of organizational mindset within business model innovation. Conclusively, it becomes obvious that, while this research delivers a methodology, which serves as an indication on how to close the research gap of acknowledging organizational mindset within the beginning of the innovation process, further significant research gaps remain to be investigated. Thus, two research gaps are identified. First, the later stages of the business model innovation need further investigation. Secondly, the challenge of organizational mindset in the later steps have also not received sufficient scientific interest as yet.

scholarly journals Importance of the Innovative Business Models for the Future Success of the Company

2021 ◽  
Vol 100 ◽  
pp. 01013
Author(s):  
Leyla Djuraeva
Keyword(s):  
New Product Development ◽  
Business Model ◽  
Business Models ◽  
Theoretical Perspective ◽  
New Product ◽  
Business Model Innovation ◽  
Future Success ◽  
New Business ◽  
Present Context ◽  
To Receive

During the last decade, the market environment for the businesses has been influenced by digital developments and as a result, the focus on business model innovations has rapidly grown. Businesses started moving away from the classic method of creating competitive advantage like a new product development. Thus, this influenced business activities as well as companies’ business models into innovations of new products and services, a new ways of company relationships with customers and employees. Customers started expecting to receive services at a level comparable to digital solutions. Simultaneously, it put pressure on organizations to reflect on their current strategy and discover new business opportunities at the early stages. Digitalization is a one of the significant reasons for innovation on the business model of companies. Currently, business model as a tool is becoming a very popular topic due to its benefits received by companies and this topic studied by various researchers. This paper is based on theoretical perspective and the study was done by analysing previous researches, articles and papers in the present context. The study emphasizes that business model innovation can be a basis of sustainable competition for companies and innovators may increase their returns 4 times than product and service developers.

Eco Innovation

2018 ◽  
Author(s):  
Alberto Peralta ◽  
Jorge Castellote ◽  
Mohamed Salama
Keyword(s):  
New Product Development ◽  
Business Model ◽  
Business Models ◽  
Business Model Innovation ◽  
Limited Attention ◽  
Sustainable Business ◽  
Strategic Objectives ◽  
Root Cause ◽  
New Business ◽  
Sustainable Business Models

Business model innovation (BMI) has emerged as a key root cause of competitive advantage. This is vital for organizations seeking to achieve the set strategic objectives through projects, particularly New Product Development (NPD) projects. However, there is limited attention among scholars and practitioners about sustainable BMI and its methods. Eco-innovation efforts (including the environmental, social and economic dimensions of innovation) concentrate on triple bottom line goals, but to date there seems to be a deficit of academic and practitioner literature on the effect of this type of innovation on new business models. Scholars has been trying to address this gap, mostly focused on eco-innovation from a product-centric perspective where the product is the cornerstone of the new sustainable business models. And this is how conventional sustainable business model innovation is being developed.

scholarly journals Entrepreneurial lean thinking for sustainable business modeling: a workshop design for incumbent firms

2021 ◽  
Author(s):  
E. J. Schwarz ◽  
P. Gregori ◽  
I. Krajger ◽  
M. A. Wdowiak
Keyword(s):  
Business Model ◽  
Business Models ◽  
Business Model Innovation ◽  
Opportunity Identification ◽  
Sustainable Business ◽  
Lean Thinking ◽  
Business Modeling ◽  
Innovation Research ◽  
Political Debates ◽  
Negative Environmental Impact

AbstractIn times of increasing concerns and extensive political debates about social and environmental problems, incumbent firms are obliged to reduce their negative environmental impact by implementing sustainable business model innovation. Yet, realizing more sustainable business model variants entails several complexities and associated challenges that need to be overcome. To support this task, this article takes an entrepreneurship perspective on sustainable business model innovation and combines literature of business models and entrepreneurial lean thinking (ELT). In doing so, it derives a workshop design grounded in contemporary theory with state-of-the-art tools and methods. The workshop is framed as a stage-gate process facilitating the notions of ELT with iterative cycles of ‘create, test, and improve’ and spans the phases of opportunity identification, opportunity evaluation, opportunity development through sustainable business model design, and decision of opportunity exploitation. The article shows that ELT is an appropriate yet underutilized approach for sustainable business modeling. Further, it discusses how the workshop supports opportunities and mitigate pitfalls of ELT for sustainable business modeling. As such, the findings have theoretical implications for the intersection of sustainability and lean approaches in innovation research as well as implications for practitioners by providing a comprehensive framework to support sustainable business model innovation.

scholarly journals Secondary Business Model Innovation in Emerging Economies

2021 ◽  
pp. 1-30
Author(s):  
Sonia Mehrotra ◽  
S. Ramakrishna Velamuri
Keyword(s):  
Organizational Learning ◽  
Business Model ◽  
Emerging Economies ◽  
Business Models ◽  
Business Model Innovation ◽  
Street Vendors ◽  
China And India ◽  
Successful Business ◽  
Quick Service

ABSTRACT We study two quick-service restaurant (QSR) chains based on regional ethnic foods that were launched in China and India. The products that these QSR ventures offered had hitherto been sold by fragmented street vendors who typically operated single outlets. Inspired by the successful business models of international QSR brands, these entrepreneurs developed business models to popularize their chosen regional ethnic foods in multiple new regions and grew their organizations to 1,400 and 300 outlets in China and India, respectively. We build on the recently coined concept of ‘secondary’ business model innovation (SBMI), which is based on inter-organizational learning, break down its constituents into creative and imitative, specify the mechanisms through which it is achieved, and propose that it is a specific case of the more general construct of creative imitation.

scholarly journals The Role of Social Enterprise Hybrid Business Models in Inclusive Value Chain Development

2021 ◽  
Vol 13 (2) ◽  
pp. 499
Author(s):  
Bob Doherty ◽  
Pichawadee Kittipanya-Ngam
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Social Impact ◽  
Business Models ◽  
Rural Poverty ◽  
Sustainable Business ◽  
Middle Income ◽  
Low Middle Income Countries ◽  
Development Literature ◽  
Hybrid Organisations

This study contributes to the growing interest in hybrid organisations, sustainable business models and inclusive value chain development (IVCD). Recent work has identified that of some 570 million farmers in the world, more than 475 million farmers are smallholders in low-middle-income countries experiencing increasing food insecurity and rural poverty. Research argues that there is a lack of research that provides work on appropriate solutions for smallholders. This paper answers this call by a qualitative study of ten case studies, which draws on hybrid organising, sustainable business model and IVCD research to identify the novel business model characteristics that hybrid organisations use to create and manage more inclusive value chains for smallholders. These hybrid organisations are designed to create a value proposition that delivers sustainability upgrading for smallholders via both product, process and governance upgrades, empowers smallholders to achieve development goals and creates multiple value for social impact. We therefore identify the important characteristics of the hybrid business model to provide appropriate solutions for smallholders and overcome the challenges identified in the inclusive value chain development literature.

Business model innovation canvas: a visual business model innovation model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yuran Jin ◽  
Shoufeng Ji ◽  
Li Liu ◽  
Wei Wang
Keyword(s):  
3D Printing ◽  
Business Model ◽  
Innovation Process ◽  
Theory Model ◽  
Business Model Innovation ◽  
Mass Selection ◽  
Unified Framework ◽  
Content Type ◽  
Innovation Model ◽  
First Time

PurposeMore and more enterprises have realized the importance of business model innovation. However, the model tools for it are still scarce. There is a clear research gap in this academic field. Therefore, the aim of this study is to put forward a visual business model innovation model.Design/methodology/approachThe scientific literature clustering paradigm of grounded theory is used to design business model innovation theory model (BMITM). BMITM and the business model innovation options traced back from 870 labels in the grounded process are integrated into a unified framework to build the business model innovation canvas (BMIC).FindingsBMIC composed of three levels and seven modules is successfully developed. 145 business model innovation options are designed in BMIC. How to use BMIC is explained in detail. Through the analysis of innovation hotspots, the potential business model innovation directions can be found. A new business model of clothing enterprises using 3D printing is innovated with BMIC as an example.Research limitations/implicationsCompared with the previous tools, BMIC owns a clearer business model innovation framework and provides a problem-oriented business model innovation process and mechanism.Practical implicationsBMIC provides a systematic business model innovation solution set and roadmap for business model innovation practitioners.Originality/valueBMIC, a new tool for business model innovation is put forward for the first time. “Mass Selection Customization-Centralized Manufacturing” designed with BMIC for the clothing enterprises using 3D printing is put forward for the first time.

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