An Integrated Business Model Innovation Approach

Abstract

This chapter will foster the understanding of business model innovation with a focus on the Information and Communication Technology (ICT) industry and e-entrepreneurship. A general overview of business models and their elements as well as an introduction to innovation alternatives will provide the necessary background for business model innovation. On the basis of Schumpeterian innovation, this chapter will pioneer in describing business model innovation as addendum to Abernathy’s and Utterback’s dynamic model of process and product innovation. Thereby an integrated business model innovation approach will be initiated overcoming the drawbacks of unilateral innovation. The integrated business model innovation approach proposes a framework for long-term differentiation and competitive advantages. Different examples, in particular ICTventures, will clarify the effect of integrated business model innovation.