Capturing Dynamics in Business Model Frameworks

Business model dynamics is important, because high-tech companies, the technology that they commercialize, and the market in which they operate all change over time. We build on the dynamic capability view of the firm to explain business model evolution and innovation, looking particularly at the dynamics that are created by interactions between business model components over time. We use the following four criteria to assess the degree of dynamics in business model frameworks: completeness of business model aspects, interrelationships between aspects, interrelationships over time, and framework changes over time and across contexts. Business model completeness involves internal company aspects and external environmental aspects. Interrelationships of business model aspects are required to assess business model coherence, which is an important indicator of business model quality. Interrelationships between the environment and business model aspects are required to assess the fit of a particular business model in its context. Interrelationships of these aspects over time are needed to understand business model evolution. Finally, business model frameworks need to be adapted over time and across contexts to keep frameworks simple and useful yet complete. Our analysis shows that current business model frameworks do not meet all four criteria, and thus only partly incorporate dynamics.

Download Full-text

How Multinational Companies Create and Capture Value From Innovation Through Business Model Dynamics

Advances in Business Strategy and Competitive Advantage - Handbook of Research on Business Models in Modern Competitive Scenarios ◽

10.4018/978-1-5225-7265-7.ch025 ◽

2019 ◽

pp. 454-471

Author(s):

Mariane Figueira ◽

Annika Rickne ◽

Joel Yutaka Sugano

Keyword(s):

Business Model ◽

New Technology ◽

Research Question ◽

External Environment ◽

Multinational Companies ◽

Value Proposition ◽

External Pressures ◽

Model Dynamics ◽

Model Components

Willing to answer to the research question of how multinational companies succeed in creating and capturing value from a new technology, this chapter aimed at filling the gaps in the existing literature with regards to defining business model dynamics and demonstrating business model dynamics in practice. Through a case study of Monsanto, and of the way the company's subsidiary managed to successfully adapt and innovate in Brazil, this chapter showed that external pressures such as new technology, the need to respond to the customers' demand for information concerning the company's new value proposition, existing regulation (among other external pressures) forced the multinational company to implement changes and create new elements in some of the business model components. Results also showed that to capture part of the value created with a new technology it might be necessary to complete business model design and evaluation with the analysis of the external environment.

Download Full-text

Business model evolution and the growth drivers of high-tech new ventures

Fast Growing Firms in a Slow Growth Economy ◽

10.4337/9781785367113.00019 ◽

2016 ◽

Author(s):

Andrea Tracogna

Keyword(s):

Business Model ◽

New Ventures ◽

High Tech ◽

Model Evolution

Download Full-text

Business model evolution, contextual ambidexterity and the growth performance of high-tech start-ups

Journal of Business Research ◽

10.1016/j.jbusres.2019.02.029 ◽

2019 ◽

Vol 99 ◽

pp. 115-124 ◽

Cited By ~ 12

Author(s):

Bernardo Balboni ◽

Guido Bortoluzzi ◽

Roberto Pugliese ◽

Andrea Tracogna

Keyword(s):

Growth Performance ◽

Business Model ◽

High Tech ◽

Model Evolution ◽

Start Ups

Download Full-text

Business Model Dynamics — Towards a Dynamic Framework of Business Model Components

Lecture Notes in Business Information Processing - Enterprise Systems. Strategic, Organizational, and Technological Dimensions ◽

10.1007/978-3-319-17587-4_13 ◽

2015 ◽

pp. 190-215

Author(s):

Julian Krumeich ◽

Dirk Werth ◽

Peter Loos

Keyword(s):

Business Model ◽

Dynamic Framework ◽

Model Dynamics ◽

Model Components

Download Full-text

Transforming SNCF’s business model through the evolution of participative innovation routine

European Business Review ◽

10.1108/ebr-03-2015-0024 ◽

2016 ◽

Vol 28 (4) ◽

pp. 467-485 ◽

Cited By ~ 4

Author(s):

Carine Deslée ◽

Oussama Ammar

Keyword(s):

Business Model ◽

Business Models ◽

Evolutionary Dynamics ◽

Organizational Routines ◽

Model Concept ◽

Content Type ◽

Railway Company ◽

Contextual Elements ◽

Model Components ◽

Over Time

Purpose Many barriers prevent firms from changing their business models. Inertia, as it accumulates over time, transforms into organizational routines that doom change; however, it can also be a source of organizational flexibility. How does a business model evolve in interaction with organizational routines? This paper aims to study the interactions between forms of participative innovation (PI) and existing business models. Design/methodology/approach The exploratory approach includes interviews, participant and non-participant observations and archive analysis. It adapts an existing framework, based on the notion of scripts, to the evolutionary dynamic of organizational routines at the French railway company SNCF. The analysis of a set of contextual elements clarifies events over time and interactions between PI and the company’s business model. Findings The empirical insights indicate how existing routines can help reinvent business models. Business model components evolve along the transformation phases of PI. The case reveals co-evolutionary dynamics: evolution of the organizational routine from bureaucratic suggestion, to structured innovation, to PI leads to the transformation of the business model from functionalist, to customer-centric, to open business model. Practical implications Firm managers can think more proactively about how to reinvent established business models by innovating their existing routines, according to the position and role of routines, shifting from sources of rigidity and inertia to levers for innovation and change. Originality/value The business model concept serves as a prism of analysis for organizational routines. Organizational routines are sources of flexibility, strategic renewal and business model reinvention.

Download Full-text

Comparison of two devices for measuring exercise transcutaneous oxygen pressures in patients with claudication

VASA ◽

10.1024/0301-1526/a000454 ◽

2015 ◽

Vol 44 (5) ◽

pp. 355-362 ◽

Cited By ~ 8

Author(s):

Marie Urban ◽

Alban Fouasson-Chailloux ◽

Isabelle Signolet ◽

Christophe Colas Ribas ◽

Mathieu Feuilloy ◽

...

Keyword(s):

Oxygen Pressure ◽

Optical Sensors ◽

Chemical Sensors ◽

Transcutaneous Oxygen ◽

Starting Values ◽

Two Systems ◽

Transcutaneous Oxygen Pressure ◽

New Sensors ◽

Changes Over Time ◽

Over Time

Abstract. Summary: Background: We aimed at estimating the agreement between the Medicap® (photo-optical) and Radiometer® (electro-chemical) sensors during exercise transcutaneous oxygen pressure (tcpO2) tests. Our hypothesis was that although absolute starting values (tcpO2rest: mean over 2 minutes) might be different, tcpO2-changes over time and the minimal value of the decrease from rest of oxygen pressure (DROPmin) results at exercise shall be concordant between the two systems. Patients and methods: Forty seven patients with arterial claudication (65 + / - 7 years) performed a treadmill test with 5 probes each of the electro-chemical and photo-optical devices simultaneously, one of each system on the chest, on each buttock and on each calf. Results: Seventeen Medicap® probes disconnected during the tests. tcpO2rest and DROPmin values were higher with Medicap® than with Radiometer®, by 13.7 + / - 17.1 mm Hg and 3.4 + / - 11.7 mm Hg, respectively. Despite the differences in absolute starting values, changes over time were similar between the two systems. The concordance between the two systems was approximately 70 % for classification of test results from DROPmin. Conclusions: Photo-optical sensors are promising alternatives to electro-chemical sensors for exercise oximetry, provided that miniaturisation and weight reduction of the new sensors are possible.

Download Full-text