scholarly journals Using Systems Thinking to Illustrate Digital Business Model Innovation

Systems ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 86
Author(s):  
Erdelina Kurti ◽  
Sadaf Salavati ◽  
Anita Mirijamdotter
Keyword(s):  
Systems Thinking ◽  
Business Model ◽  
Business Models ◽  
Business Model Innovation ◽  
Digital Innovation ◽  
Rich Picture ◽  
Systemic Innovation ◽  
The Rich ◽  
Systems Thinking Approach ◽  
Mixed Systems

Digital business model innovation is discussed by bringing together systemic innovation and digital innovation. Applying the Rich Picture technique, the complexity transpiring in the digital innovation of the business models is illustrated. Further, a real world example is presented and discussed in relation to systemic innovation and digital innovation. This study further contributes by shedding light on the added complexity brought by digital innovation but also the need for a combined and mixed systems thinking approach.

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.

“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 Equipment Maintenance Business Model Innovation for Sustainable Competitive Advantage in the Digitalization Context: Connotation, Types, and Measuring

2018 ◽  
Vol 10 (11) ◽  
pp. 3970 ◽  
Author(s):  
Juhong Chen ◽  
Ruijun Zhang ◽  
Di Wu
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Business Models ◽  
Economic Benefits ◽  
Business Model Innovation ◽  
Equipment Maintenance ◽  
Sustainable Competitive Advantage ◽  
Structured Interviews ◽  
Profit Center ◽  
Manufacturing Enterprises

The equipment maintenance services have become a new profit center and an important way to gain sustainable competitive advantage for manufacturing enterprises. The business model is an important tool for manufacturing enterprises to derive economic benefits from sustainable competitive advantage in the context of digitalization technologies, such as IoT, big data, and cloud computing. At present, the concept of equipment maintenance business model innovation is still vague, and it is rare to report on the innovation behaviors and types of equipment maintenance business models adopted by manufacturing enterprises. Based on literature analysis of equipment maintenance services and business model innovation, following business model gestalt theory, the concept of equipment maintenance business model innovation is analyzed at the business-level, the types are divided into novel and efficient following value sources—“innovation and efficiency”. The initial scale is developed through literature investigation, semi-structured interviews and expert reviews, and tested by exploratory and confirmatory factor analysis by using the data of two independent large-sample questionnaires. The results indicate that the behavior and types of equipment maintenance business model innovation can be described by two types and 19 items.

scholarly journals Pushing the Limits using Business Model Innovation a Three Pronged Approach and Lessons Learned

2021 ◽  
Vol 2 (1) ◽  
pp. 24-35
Author(s):  
Ignitia Motjolopane
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Business Models ◽  
Industrial Revolution ◽  
Business Environment ◽  
Business Model Innovation ◽  
Lessons Learned ◽  
Revenue Streams ◽  
Reducing Costs ◽  
Model Components

In a constantly changing business environment, with increasing digitisation and fourth industrial revolution blurring the traditional value creation boundaries, companies need to explore ways to push the limits to remain competitive. Business model innovation offers companies the dynamic capability to differentiate business models and find innovative revenue streams while reducing costs. As such, the question arises as to how company may use business model innovation to remain competitive as the world digitises. Based on a literature review and empirical research involving six case studies, a three pronged approach in support of business model innovation is proposed. Business model innovation has the potential to push the limits when company executives and academia focus on the interrelation between drivers, process and components. Moreover, both effective and ineffective practices based on the research are presented. In conclusion, for companies to use business model innovation in pushing the limits, there is need to respond to the business model innovation drivers, adopt a systematic process and change at least one or more business model components and taking into account the interactions between these three concepts. This article may contribute to existing theory in the field of business model innovation and lessons learned from executives that have pushed the limits using business model innovation. Doi: 10.28991/HEF-2021-02-01-03 Full Text: PDF

scholarly journals The Green Multi Business Model Innovation Brain

2021 ◽  
Author(s):  
Peter Lindgren
Keyword(s):  
Business Model ◽  
Business Models ◽  
Business Model Innovation ◽  
Green Technologies ◽  
Sustainable Business ◽  
Case Examples ◽  
Innovation Potential ◽  
Business Modelling ◽  
Model Ecosystems ◽  
Green Business

Advanced Green technologies integrated in Business Models and Green Multi Business Model Innovation processes introduce a new leadership and management agenda of Green Business Models. Fast innovation of sensing, persuasive and virtual Business Modelling that can operate autonomously and dynamically primarily lead by machines. Green Multi Business Model Innovation Brains will soon be the state of the art in Business that want to become Green – but also for businesses that want to do circular and/or sustainable business modelling. Businesses will build Green Multi Business Model Innovation competence and advanced Green Multi Business Models Innovation Brains capable to innovated and operate Green Business Models to all kinds of Business Model Ecosystems. This will open up to new Green Multi Business Model Innovation potential and create a new generation or archetypes of Business Models, new practice of Multi Business Model Innovation. The paper is a second articles and extension of a conceptual paper on Multi Business Model Brains. First paper was presented at the BIT Sindri IEEE Conference 2020 conceptualizing on how a Multi Business Model Brain could be constructed and would operate supported by advance sensor technologies, artificial intelligence technologies, deep learning, persuasive technologies, Multi Business Model Innovation pattern analysis and libraries of BM archetypes. In combination they will all be important supporting tools to the Multi Business Model Innovation Brain – but now also to the Green Multi Business Model Innovation Brain. 8 case examples shows how Green Multi Business Model Innovation Brains can work in different contexts – in physical, digital, virtual and combined Business Model ecosystems.

IBM's global CEO report 2006: business model innovation matters

2006 ◽  
Vol 34 (5) ◽  
pp. 34-40 ◽  
Author(s):  
George Pohle ◽  
Marc Chapman
Keyword(s):  
Financial Performance ◽  
Business Model ◽  
Business Models ◽  
Business Model Innovation ◽  
Content Type ◽  
Revenue Growth ◽  
Business Executives ◽  
Operating Margin ◽  
Operational Innovation ◽  
Study Participants

PurposeTo ascertain whether the choices CEOs were making about particular types of innovation and key enablers had any correlation with financial performance, IBM looked at a subset of our sample where publicly reported financial information was available.Design/methodology/approachThe findings in this report are based on in‐depth, consultative interviews on the topic of innovation with 765 CEOs, business executives and public sector leaders from around the world.FindingsFor a subset, the authors compared their financial performance to that of an industry‐accepted list of their nearest competitors (up to ten companies with similar revenue and publicly available information). Some of their competitors were CEO study participants, but most were not. By taking a five‐year view, the researchers were able to identify which companies outperformed and under‐performed the average revenue growth, operating margin growth and historical operating margins of their closest competitors.Research limitations/implicationsThroughout the analysis, IBM used these top‐half and bottom‐half groupings to look for notable financial correlations. In this report, the term outperformers refers to the study participants that are in the top 50 percent based on this competitive comparison, and under‐performers are those that fall in the bottom 50 percent.Practical implicationsThe authors report on how business leaders are seeking and finding new ways to adapt their business models to remain competitive in their current industry – or to seek growth by entering new industries.Originality/valueCompanies focusing on business model innovation have enjoyed significant operating margin growth, while those using products/services/markets and operational innovation have sustained their margins over time.

The Role of Internal Standardization in Business Models

2020 ◽  
pp. 931-953
Author(s):  
Magnus Johansson ◽  
Amalia Foukaki ◽  
Matts Kärreman
Keyword(s):  
Business Model ◽  
Business Models ◽  
Business Model Innovation ◽  
Firm Level ◽  
Internal Standardization

This chapter focuses on business models and the role of internal standardization in business models. We develop a typology that outlines the role of internal standardization for a set of value configurations that serve as representations of generic business models. The topic is of importance for both managers and researchers in relation to firm level innovation and strategy, as well as how business models relate to internal and external standardization. With regard to business model innovation, this chapter can aid in identifying shifts in the firm's internal standardization focus associated with changes in its business model.

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