An Ecosystem‐Level Process Model of Business Model Disruption: The Disruptor's Gambit

Abstract

Based on a longitudinal case study, this paper presents an ecosystem-level process model of the interlocking key activities of the business model disruptor, other ecosystem participants (customers, partners, media, analysts), and the incumbent. Together these constitute a strategic process of ecosystem evolution from incumbent-centred to disruptorcentred. We identify the phenomenon of a 'disruptor's gambit', where the disruptor reveals its intentions early on through effective framing, followed by rapid adaptation of its business model to satisfy ecosystem needs. These processes generate a virtuous framing-adaptation cycle, where feed-forward and feedback enable rapid response to customers and partners, while engaging them as force multipliers during new ecosystem creation. Our findings suggest that framing constitutes a dynamic strategic process enabling disruptors to reduce uncertainty, dislodge powerful incumbents, and shape new ecosystems through business model innovation.K ey word s: adaptation, business model innovation, disruption, ecosystem creation, framing 'Walker, there is no road, the road is made by walking'. -

Digital transformation strategies for existed firms: from the perspectives of data ownership and key value propositions

“…The paper suggests that with the conducting of digital strategies in firms, firms prefer to adopt the cloud platform strategy, like the cases in this research. It confirms the argument on platform-related strategy and ecosystem as business model (Gawer & Cusumano, 2014;Snihur et al, 2018). In addition, the research hints that the digitalization and cloud technology provide opportunities to mature firms to set up and conduct the platform strategy.…”

“…Thus, we assume that there are strategies for firms to integrate different resources and ownership of data, which we define it in the middle of framework (Figure 1), such as the cloud road port system of Company T, the connected car of Company G, the energy-saving cloud system of Company Z. This kind of platform in fact is a firm level of innovation ecosystem, according to the research of Snihur, Thomas, and Burgelman (2018). The process to build this kind of platform is the process to orchestrating innovation ecosystem to enhance the performance of collaboration (Valkokari, Seppänen, Mäntylä, & Jylhä-Ollila, 2017).…”

“…The paper suggests that when a firm employs a digital initiative using self-owned data and data from partners, it will be better to set up a cloud platform in order to reduce the data risk. In other words, it is a way to build the innovation ecosystem of firm and the ecosystem-level of business model innovation (Snihur et al, 2018) since the platform-related innovation ecosystem and competition (Gawer & Cusumano, 2014). In addition, the platform service and/or product strategy could be seen as a radical innovation in the industry, which will disrupt the existed industrial competition and lead to a new type of competition in the market.…”

Managing the Disruption of Mobility Services: How to align the value propositions of key ecosystem players

“…The disruptor's actions can also spark newfound resilience and performance improvements among incumbents, leading to a long period of coexistence between the new and old technologies (Adner & Kapoor, 2016). Thus, a central task during ecosystem disruption is to reduce uncertainty between various participants by clarifying strategies and actions for adapting to the disruption (Eggert et al, 2018;Snihur et al, 2018;. The complexities, dynamics, nested hierarchies, and interdependencies of an Managing the Disruption of Mobility Services: How to align the value propositions of key ecosystem players Joel Wolff and Esko Hakanen whole travel chain, the customer might only interact with one party to plan, purchase, and access mobility.…”

Business Model Dynamics from Interaction with Open Innovation

“…Business models change as managers not only innovate in business models, but also engage in more mundane adaptations in response to external changes [7]. Most researchers and managers will perceive Business Model Adaptation (BMA) as better suited to keep track of changes of incumbent firms in local markets [8], to attempt internationalization [8,9], and to simply adapt to the ecosystem evolution [10], whereas Business Model Innovation (Bmi) is perceived as directly linked to sustainable competitive advantage if successfully implemented [2][3][4][5]7,11,12]. While the message these studies convey is generally the same, they tend to employ different, often ad hoc, approaches to the definition of key concepts.…”