BUSINESS MODEL INNOVATION – A GAMBLE OR A MANAGEABLE PROCESS?

Purpose: Any business model innovation process involves a certain level of uncertainty, complexity and, in effect, risk. A sloppy approach towards the management of risk may result in catastrophic, sometimes even fatal, consequences to a company’s core business. Although risk, risk appetite and risk management are relatively well-established concepts, their role in business model innovation is not well understood. The objective of this paper is to investigate how the risk associated with the innovativeness of a business model innovation, an organization’s risk appetite, and its risk management approach interact to affect the success or failure of a business model innovation process. Design: Retrospective case studies of business model innovations undertaken by three industrial companies provide the empirical basis for this paper. These companies were selected based on their relatively successful, yet somewhat different, business model innovation experiences over the years, and focused on the, in total four, cases in which they failed to implement their new business model attempts successfully. The reasons that led to these failures are discussed. Findings: Important factors explaining the business model innovation failure of these cases, appear to be the company’s risk appetite, the risk associated with the radicality, reach and complexity of the business model innovation, the management of risk, and especially the association between these factors. Originality:  There are many lessons to be learnt from the aftermath of a failed attempt in terms of what not to do and what to improve a next time. The cross-case analysis produced six testable propositions that enhance our understanding of business model innovation success/failure, with particular focus on: characteristics of the business model innovation; overall innovation management; risk, risk appetite and risk management; and interactions and fit between these constructs. Keywords: Business Model Innovation; Risk Management; Retrospective case studies

De-internationalisation, Re-internationalisation and Business Model Innovation:Exploring the Intersection

This article explores firms’ de-internationalisation and re-internationalisation through the lens of business model innovation. The purpose is to uncover the potential of business model innovation to enrich firms’ understanding of the reasons behind de-internationalisation and inspire their endeavour to re-internationalise. This article contributes to the research of this intersection. It supports practitioners in enhancing their decision-making by applying business model innovation lenses to their international business activities. Finally, it suggests and encourages further research of this scarsely researched intersection

Incorporating Enterprise Risk Management in the Business Model Innovation Process

Purpose: Relative to other types of innovations, little is known about business model innovation, let alone the process of managing the risks involved in that process. Using the emerging (enterprise) risk management literature, an approach is proposed through which risk management can be embedded in the business model innovation process.Design: The integrated business model innovation risk management model developed in this paper has been tested through an action research study in a Danish company.Findings: The study supports our proposition that the implementation of risk management throughout the innovation process reduces the risks related to the uncertainty and complexity of developing and implementing a new business model.Originality: The study supports the proposition that the implementation of risk management throughout the innovation process reduces the risks related to the uncertainty and complexity of developing and implementing a new business model. The business model risk management model makes managers much more focused on identifying problematic issues and putting explicit plans and timetables into place for resolving/reducing risks, and assists companies in aligning the risk treatment choices made during th

The challenge of authentic leadership in a volatile, uncertain, complex and ambiguous business environment

This chapter investigates the relevance and necessity of leadership and authentic leadership roles in organisational change in the modern VUCA world. He argues that authentic leaders need to learn to adapt to the increasingly VUCA environment, asking: Can they? Do they? If so, how? Authentic leaders need to evaluate not just the metrics behind success or failure but also their leadership traits and behaviour during organisational change to determine whether adjustments may be warranted. Taran provides an inspiration list of categories for leadership and authentic leadership self-refection. He calls for in-depth case studies of authentic leadership in response to VUCA circumstances that could be largely descriptive producing a body of data against which new theories can be tested and refined