The Three Faces of Business Model Innovation: Challenges for Established Firms

Koen, Peter A.; Bertels, Heidi; Elsum, Ian

doi:10.5437/08453608x5403009

Cited by 22 publications

(24 citation statements)

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“…Partly because each study has a different focus, researchers often consider only some aspects of business models (typically value creation and value capture), while leaving out others that are not relevant to their work but are nonetheless essential. There is also a lack of consensus in academic literature around the primary components of a business model; for instance, in some studies, value networks are considered a primary component of the business model alongside value creation and value capture (Koen, Bertels and Elsum 2011), while others regard them as a part of value creation (Abdelkafi, Makhotin, and Posselt 2013). Finally, there is occasionally some confusion over some of the components; for instance, as discussed in Makadok and Coff (2002), the term "value creation" is sometimes used to describe aspects of business models that are in fact related to value capture, such as the revenue models.…”

Section: Business Model or Business Models?mentioning

confidence: 99%

360° Business Model Innovation: Toward an Integrated View of Business Model Innovation

Rayna

Striukova

2016

Research-Technology Management

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technological change and digitization for intellectual property strategies, business models, and innovation ecosystems. He has served as an advisor for national and international institutions, as well as for major companies in the media, telecommunications, and cultural industries. He also mentors startups. trayna@novancia.fr Ludmila Striukova is a senior lecturer in the UCL School of Management at University College London. Her previous experience includes working as a market analyst for a statistical agency and as a researcher at King's College, University of London. She has published extensively in the area of innovation and technology management, and her research work has been used in numerous EU and national government reports. She also has used her telecommunications engineering background to mentor and advise technology-based startups and multinational corporations. l.striukova@ucl.ac.uk Overview: Business model innovation has arguably become a critical way to innovate, but its success factors are poorly understood. A lack of tools allowing the examination of business models in their entirety combined with the complex relationship between business model changes and market outcomes makes this especially difficult. This article introduces a comprehensive framework that addresses these two issues, by providing an integrated, value-based view of all of the critical components of the business model. Comparing this framework with Osterwalder's Business Model Canvas highlights its benefits in considering business model innovation. Finally, the framework is applied to two well-known cases-Netflix and Spotify-to demonstrate how the tool can be used to highlight the critical differences in business models that may at first seem very similar and show how the framework enables managers to envisage the dynamics of business model innovation.

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Section: Business Model or Business Models?mentioning

confidence: 99%

360° Business Model Innovation: Toward an Integrated View of Business Model Innovation

Rayna

Striukova

2016

Research-Technology Management

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“…Their study confirmed a positive link between collaboration and innovation performance and strongly recommended inter-organisational cooperation with customers when seeking to encourage product or service originality. Others reinforce this view: Desouza et al, 2008;Mustak et al, 2013;Koen et al, 2011;Denning, 2010;Giesen et al, 2010;Di Gangi et al (2010) -all attest to the drive for direct customer involvement in innovation activities. Blumenitt (2004, pp.29) highlights an additional interesting corollary by saying this is "especially true for firms in mature or declining industries".…”

Section: Enterprise Collaboration Co-creation and Innovationmentioning

confidence: 87%

“…Kodak invested over $5 billion in digital technology and never managed to become more than a small player in that market while Knight Ridder reportedly accumulated losses of over $100 million in the launch of its first online newspaper (Koen et al, 2011). Many other examples exist.…”

Section: Resultsmentioning

confidence: 99%

Navigating Service Sector Innovation Using Co-Creation Partnerships

2016

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Purpose -This paper analyses a series of engineering services partnerships to better understand requisites needed in building high value co-creation alliances -especially where innovation is the strategic goal.Methodology/approach -Using a combination of quantitative surveys, qualitative 'deep-dive' assessments and a small number of in-situ mini-case investigations this research sets out to analyse 99 joint-venture innovation partnerships. These ventures represent a variety of asymmetric and symmetric alliances within the engineering services sector. Particular emphasis is given to those where the prerequisites for cocreative innovation are either in place or could be built.Findings -Partnering and progressing innovative ideas are important behaviours for organisations seeking higher levels of commercial success and competitive advantage. Navigating the partnering dynamic can also be harder than expected, potentially hindered by misunderstandings and differing expectations between enterprises. Particularly for symmetric endeavours success often hinges upon not only having clarity in the degree of innovation sought but also alignment as to the depth and stage of the partnering dynamic itself. However, when such collaboration works customer satisfaction and associated contract retention can increase significantly.Originality/value -Most inter-company innovation projects historically seem to occur where one firm is significantly larger than the other. In contrast, this study highlights issues encountered when innovation co-creation projects are undertaken by a mature (as opposed to maturing) organisation in collaboration with partners where the power balance is similar between the two enterprises. In such cases, customer satisfaction surveys can be useful tools for objectively navigating the innovation co-creation experience.

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“…In successful examples, the parent company navigates and controls the cooperation between the units and makes sure that synergies are exploited (Markides and Charitou, 2004). Finally, despite high potential rewards, most companies fail in successfully operating dual business models (Koen et al, 2011;Markides and Oyon, 2010). …”

Section: Dual Business Modelsmentioning

confidence: 99%

The introduction of a competing business model: the case of eBay

Comberg

Velamuri

2017

IJTM

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In today's highly competitive business environment, the reasons for companies to engage in business model innovation (BMI) are manifold. The pressure on firms to innovate their business models results in either an adaptation of the incumbent business model, or the introduction of a new competing business model. Based on extant theory, we found that the reasons for a firm to engage in BMI can be clustered into three categories: 1) increased profitability; 2) improved strategic positioning; 3) customer attraction. By conducting an exploratory single case study approach, we confirmed these categories by identifying the distinct reasons for eBay to introduce a competing business model. We then highlight the impacts on the focal firm as a result of the new business model. We find that the introduction of a competing business model can create novel sources of value for the company and its customers. In total, the study emphasises that when firms launch competing business models, intended and unintended consequences can be both positive and negative.

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The Three Faces of Business Model Innovation: Challenges for Established Firms

Cited by 22 publications

References 0 publications

360° Business Model Innovation: Toward an Integrated View of Business Model Innovation

360° Business Model Innovation: Toward an Integrated View of Business Model Innovation

Navigating Service Sector Innovation Using Co-Creation Partnerships

The introduction of a competing business model: the case of eBay

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