Business Model Innovation

[Excerpt] Who is your customer? What does the customer value? How do you deliver value to customers at an appropriate cost? Business models that focus on the who, what, and how to clarify managerial choices and their consequences underpin the operations of successful organizations

The Effects of Culture and Structure on Strategic Flexibility During Business Model Innovation

This study uses responses from 107 multinational firms to reveal CEO perceptions of the drivers of strategic flexibility during business model innovation. While the positive effect of creative culture is confirmed, partner reliance reduces strategic flexibility during business model innovation. Further, structural change is disaggregated into efforts that either focus managerial attention on core activities or reconfigure existing activities. CEOs perceive that structural flexibility requires structural simplification while retaining control of non-core functions. We find that the relative magnitude of business model innovation effort moderates the effect of reconfiguration on strategic flexibility. The implications for theories of organizational design and dynamic capabilities are discussed

Carving out new business models in a small company through contextual ambidexterity: the case of a sustainable company

Business model innovation (BMI) and organizational ambidexterity have been pointed out as mechanisms for companies achieving sustainability. However, especially considering small and medium enterprises (SMEs), there is a lack of studies demonstrating how to combine these mechanisms. Tackling such a gap, this study seeks to understand how SMEs can ambidextrously manage BMI. Our aim is to provide a practical artifact, accessible to SMEs, to operationalize BMI through organizational ambidexterity. To this end, we conducted our study under the design science research to, first, build an artifact for operationalizing contextual ambidexterity for business model innovation. Then, we used an in-depth case study with a vegan fashion small e-commerce to evaluate the practical outcomes of the artifact. Our findings show that the company improves its business model while, at the same time, designs a new business model and monetizes it. Thus, our approach was able to take the first steps in the direction of operationalizing contextual ambidexterity for business model innovation in small and medium enterprises, democratizing the concept. We contribute to theory by connecting different literature strands and to practice by creating an artifact to assist managemen

A value oriented conceptual model for innovation in local government

The political rhetoric that accompanied the introduction of eGovernment expected it to produce innovation in the way government agencies conducted themselves with citizen and business alike. It was assumed that innovation was both "good" and inevitable. This paper challenges these assumptions and presents a more realistic model of how innovation might occurs in UK local government. The model is supported by anecdotal evidence, literature and a recent study of eGoverment achievement in the UK - VIEGO. A key element in the model is the notion of innovation value

Rethinking business models for innovation

One of the major challenges confronted by those in charge of technological innovation involves anticipating the value creation model sufficiently early on,in a highly uncertain context both as far as the technology itself is concerned and the potential market. Today, in many industrial sectors, the innovation boundaries have moved towards projects that are more and more exploratory and fuzzy. The simple optimisation of linear processes of the "stage-gate" type is no longer sufficient to build sustainable competitive advantages. The notion of Business Models, when applied to innovation, enables us to describe how a company creates value through innovation, generally within a business ecosystem, and how the value will be distributed between the actors involved. The authors of this book believe that the notions of Business Modelling and value creation are key to all the dimensions of successful innovation, whether technology, marketing, organisational or economically based. Rethinking Business Models for Innovation: this title describes the relationship between thinking, modelling, and also field-testing. The book is based on a series of nine recent cases of innovation involving company managers, often assisted by researchers (the co-authors of each chapter), and how they built and formalised their Business Models and then tested their strategies. After having discovered the variety of the cases, the reader will understand that every innovation situation generates specific questions about Business Models. However, we feel that we can identify three key issues that arise, more or less, in each of these projects. The chapters in this book build on these issues: the identification of sources of value and revenue models (the notion of value creation), the position of the company in the value-network or ecosystem (the sharing of value) and finally the evolution of Business MoDdels over time (the sustainability and the competitiveness of the company). The last chapter goes over all the contributions, exploring the notion of value in the Business Model approach.business model ; innovation ; value ; entrepreneurial project

The Link Between Firms? Innovation Decision and the Business Cycle: An Empirical Analysis

The sensitivity of innovation activities with respect to the business cycle is often assumed to be small. In this paper the hypothesis on cyclical dependence of innovation activities is tested for firms in the German manufacturing, and additionally for SMEs. To this end firms? innovation decisions are considered. The decision to innovate in one period is modelled via a first-order Markov chain approach. The results suggest that the patterns in innovative behavior are linked to the business cycle. --Innovation,Business Cycle,Panel Model,Markov Chains

E-business Model Innovation and Capability Building

e-commerce, business models, capacity building

Implementation of the CDM model to the analisys of the hotel sector

The main aim of this study was to determine the impact of innovation on productivity in service sector companies — especially those in the hospitality sector — that value the reduction of environmental impact as relevant to the innovation process. We used a structural analysis model based on the one developed by Crépon, Duguet, and Mairesse (1998). This model is known as the CDM model (an acronym of the authors’ surnames). These authors developed seminal studies in the field of the relationships between innovation and productivity (see Griliches 1979; Pakes and Grilliches 1980). The main advantage of the CDM model is its ability to integrate the process of innovation and business productivity from an empirical perspective.Universidad de Málaga. Campus de Excelencia Internacional Andalucía Tech

Business model innovation: Creating value in times of change

We highlight business model innovation as a way for general managers and entrepreneurs to create and appropriate value, especially in times of economic change. Business model innovation, which involves designing a modified or new activity system, relies on recombining the existing resources of a firm and its partners, and it does not require significant investments in R&D. We offer managers and researchers a conceptual primer on business model innovation emphasizing the importance of system-level thinking.Business model; innovation; activity system; design; value creation;

How innovation intermediaries are shaping the technology market? An analysis of their business model

In an era with abundant and widely distributed knowledge across the globe, technology markets became prominent. As technology transactions suffer from several market imperfections, a rapidly increasing number of various innovation intermediaries are facilitating these transactions. We analyse how a subset of these intermediaries create value in a two-sided market and how they can capture part of the value. A detailed analysis of the business model of 12 innovation intermediaries clarifies how these organizations improve the effectiveness of technology markets providing benefits for both sides of the market. We also look at managerial trade-offs between the use of intermediaries’ services and in-house innovation platforms.innovation intermediaries; open innovation; business model; two-sided markets