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A Six-Step Approach to Business Model Innovation
Journal
International Journal of Entrepreneurship and Innovation Management
ISSN
1368-275X
ISSN-Digital
1741-5098
Type
journal article
Date Issued
2014-08-01
Author(s)
Abstract
In both theory and practice, business model innovation is acknowledged as an important means to gain a competitive edge. Designing a new business model, however, requires profound knowledge, experience and skills. To support the task, practitioners can rely on a set of techniques, namely cases, component-based approaches, taxonomies, conceptual models, causal loop diagrams and design patterns. We argue that these techniques only provide valuable support during specific steps of the design process. In addition, there is a tendency towards focusing on model-internal consistency while neglecting the organisation's actual mission and external business environment. Therefore, this study proposes a complementary six-step approach to business model innovation, which is based on the principles of ‘networked thinking'. This holistic and systemic approach comprises features of established techniques and explicates assumptions about the organisation's specific business situation. It gives entrepreneurs, decision makers and managers a better handle on structuring, communicating and evaluating different business model designs.
Language
English
Keywords
business model
business model innovation
decision-making
innovation management
networked thinking
strategy
entrepreneurship
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Refereed
Yes
Publisher
Inderscience Enterprises Ltd.
Publisher place
Milton Keynes
Volume
18
Number
4
Start page
330
End page
348
Pages
19
Subject(s)
Division(s)
Eprints ID
233599