Five business‐model myths that hold companies back

Abstract

Most executives are well aware of the acceleration in the pace of business, and they want to know what to do about it. The authors talked with executives in 40 companies about how they are dealing with this issue and identified five business‐model myths that are holding these firms back. Companies that have dispelled these misconceptions are not only achieving record profitability they are hitting new highs in the tough business environments that have driven their competitors under. This article describes the five myths and outlines how businesses can become more fluid and ready to respond quickly to change.

The antecedents of open business models: an exploratory study of incumbent firms

“…Some researchers in the field explicitly consider boundary‐spanning activities (e.g., Shafer et al., ; Zott and Amit, , , ) or collaboration with partners (Osterwalder et al., ; Al‐Debei and Avison, ; Teece, ) an integral part of business models, whereas others do not (e.g., Afuah and Tucci, ; Linder and Cantrell, ; Morris et al., ). Chesbrough () was the first to differentiate explicitly between two types of business models by coining the term ‘open business model’.…”

“…The definition by Teece (2010, p. 191) is sufficiently broad to capture most research conducted in the business model domain: 'A business model describes the design or architecture of the value creation, delivery and capture mechanisms employed [by a particular business]. ' Some researchers in the field explicitly consider boundary-spanning activities (e.g., Shafer et al, 2005;Zott and Amit, 2007 or collaboration with partners (Osterwalder et al, 2005;Al-Debei and Avison, 2010;Teece, 2010) an integral part of business models, whereas others do not (e.g., Afuah and Tucci, 2001;Linder and Cantrell, 2001;Morris et al, 2005). Chesbrough (2006) was the first to differentiate explicitly between two types of business models by coining the term 'open business model'.…”

An Analysis of Telemedicine in Taiwan: A Business Model Perspective

“…(1) Value proposition: a term that has been used for the general presentation of the products and services of an enterprise as valuable and desirable 5,7,10e13 . (2) Target customers: a component that entails the primary customers targeted and served by a company 10,12 . (3) Service process: the delivery of products or services involves a number of steps or procedures 5,11,13 . (4) Resources and capabilities: the execution of a business model requires resources and capabilities 9 .…”

Evaluation of Electronic Business Model Success: Survey among Leading Finnish Companies

“…The top-right quarter in their matrix focuses on the evaluative issues of business model including evaluation models [3], [9], [15], [17] as well as change methodologies [14]. There is a remarkable number of business model literature on the constructive and static view-points instead of describing the dynamic nature and evolution of a business model.…”

“…The framework quite clearly describes the maturity of the business model research, which can be divided into constructive and evaluative studies. According to the framework, the low timeliness and low integration sections include constructive issues related to the business model discussion and research such as the business model definition [3], [4], [5], [8], [12], component listings [5], [9], [13], [14], [15], taxonomies [4], [7], [8], [12], [16], and case representations [9].…”