Achieving agility using business model stress testing

Abstract

Business Model (BM) Innovations aim at making systemic changes in the business logic of companies when they are bringing innovative products and services to the market. Companies should be sensitive to changes in their business environment and able to modify their BMs in an agile way. To assess the agility of BMI during specific market entry situations, this paper uses a method that stress tests the value proposition and the components of a BM against contingent uncertainties. We present three qualitative case studies of companies that differ in their market entry approach. Starting from their strategic orientation, these case companies' stress test their Business models and BM components, using a scenario-based identification of uncertainties. The BM Stress Test method contributes to a quick understanding of the components their BM needs to monitor, reconsider, or improve. Such stress testing helps enhance business agility. The research contributes to market strategy and business modelling research by introducing BM Stress Testing as a new method that can achieve and maintain agility regarding BM uncertainties.

Enterprise Agility: Why Is Transformation so Hard?

“…Continuous business model renewal [7] and continuous business model 'stress testing' [23] are considered as important elements of leadership processes related to enabling enterprise agility. In addition to continuous evaluation of risks and uncertainties related to the business model, Bowman et al [23], Doz et al [7] and Teece et al [6] have addressed the leadership role in conjunction with business model innovation and ability to continuously evaluate opportunistically alternatives related to elements of a business model [24]. Table 1 summarises their viewpoints on dimensions of agile capabilities and leadership activities for enabling enterprise agility.…”

“…Business-Driven Approach (Strategic Orientation Towards Agility). The businessdriven approach takes a business level viewpoint such as business model stress testing [23] and continuous business model renewal [7,32]. This could mean for example strategic orientation towards leveraging state-of-the-art digital services and architectures for doing business and/or continuously evaluating alternative revenue streams and channels for deploying customer value.…”

Electronic Markets and current general research

“…Business model research in Electronic Markets dates back to the seminal paper in issue 8/2 (Timmers 1998) and has seen two dedicated special issues and many articles on the topic since. The present contribution adds a new aspect, which focusses on BAchieving agility using business model stress testing^and was authored by Harry Bouwman, Jukka Heikkilä, Marikka Heikkilä and Carlo Leopold (Bouwman et al 2018). Contrary to existing research, which discussed various forms (Btypologies^) and elements (Bbuilding blocks^) of business models as well as methodologies for designing business models (Alt and Zimmermann 2014a, 233), this article conceives business models themselves as objects of change.…”

Revisión de la Literatura sobre el Enfoque Estratégico de los Modelos de Negocios

“…El enfoque del aprendizaje (14,3%) introduce el tema de la estrategia como práctica (Stefanovic y Milosevic, 2012) y el rol simbólico de los BM (Hacklin y Wallnöfer, 2012). El enfoque prescriptivo (9,5%), enfatiza en las opciones tácticas (Haubro et al, 2015) y las técnicas y herramientas estratégicas para la evaluación de los negocios (Bouwman et al, 2018). El enfoque integrador (9,5%), aborda la gestión de los BM y las transformaciones estructurales (Tallman et al, 2018;Brea-Solis et al, 2015).…”