Software tools for business model development hold great promise for supporting business model innovation, but nonetheless, virtually no design-relevant knowledge exists concerning the functions that ...such tools should possess. As a result, practitioners lack guidance for choosing software tools, and researchers lack a foundation for advancing knowledge on these tools in a cumulative way. To address these issues, we synthesize knowledge from research on software tools for business model development and adjacent fields with the results of an analysis of 24 software tools from practice. Our contribution is threefold. First, we provide a comprehensive taxonomy that identifies 43 characteristic functions of software-based business model development tools. Second, we provide a classification of existing software tools for the taxonomy and, on this basis, third, we derive an agenda for future research. We thus support practitioners’ decision making on tool (re-)design and investment, and provide the foundation for a cumulative stream of research on software tools for business model development.
Scholars and practitioners across fields increasingly recognize that business models for the circular economy may be an effective lever for solving ecological persistent problems such as climate ...change, biodiversity loss, and growing natural resource scarcity. Despite a growing interest in the potential of circular business models, interconnections between the organizational dimensions of firms and their business model innovation processes remain underexplored. Based on problem-centered expert interviews with business consultants experienced in circular business development, this study creates a conceptual model that offers structured knowledge about why firms steadily reproduce linear BMs and how incumbents manifest themselves as a constant linear-oriented value creation system. The model also demonstrates organizational conditions and management strategies that frustrate the reproduction of linear BMs and, thus, enable initial moves towards CBM innovation. Building on this, the article provides a set of propositions on how an organizational transition management may be configured and what incumbents require to successfully navigate circular business model innovation. The findings provide a foundation for a contemporary understanding of circular business model transition management, which simultaneously serve as impulses for future research investigations.
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BFBNIB, FZAB, GIS, IJS, KILJ, NLZOH, NUK, OILJ, SAZU, SBCE, SBMB, UL, UM, UPUK
Manufacturers around the globe are expected—with growing urgency—to contribute to the implementation of a circular economy (CE) to enhance environmental sustainability. However, to put circularity ...into practice, companies need to be better guided. Responding to their need, this paper 1) documents research-based insights for CE implementation; 2) clarifies key CE concepts; 3) highlights learning of CE research and innovation in various regions; 4) outlines guiding principles for CE implementation; and 5) proposes issues for future research to various communities with a cross-disciplinary approach in mind. The adopted method is a literature review supplemented with stakeholder interviews.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
The emergence of the Industrial Internet of Things (IIoT) poses a large impact on established business models of manufacturing companies. This study aims at analyzing the influence of the IIoT on ...these business models from a business level perspective. In particular, it focuses on the interrelationships between business model component changes. While the sparse body of extant management literature examines just a subset of business model elements as affected by the IIoT, a framework comprising an entire set of elements is provided. Besides, their direct and indirect interrelationships, and the most important changes in each of the elements, are investigated. For this purpose, an exploratory multiple case study approach is employed, which is based on relevant IIoT-related experiences of 76 German manufacturing companies. By triangulating data from semi-structured expert interviews and archival company material, the study provides in-depth insights and a better understanding of IIoT-driven effects on manufacturing business models. It contributes to extant management literature by revealing the value proposition, internal infrastructure management, and customer relationships predominantly influenced by the IIoT. Moreover, it is shown that IIoT-triggered business model changes are offer-driven, particularly by production and process optimization within customers' production systems. These value proposition changes result in subsequent modifications of the remaining business model elements.
•Identification of business model elements taking on a key role in the IIoT.•Explanation of crucial IIoT-related business model changes.•Value proposition, internal infrastructure, and customer relations are mostly affected.•Business model changes are mainly offer-driven.•A framework of business model element interrelationships is provided.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK, ZRSKP
PurposeThe authors seek to understand the process of digital servitization as a shift of manufacturing companies from the provision of standard products and services to smart solutions. Specifically, ...the authors focus on changes in the business model (i.e. the value proposition, the value delivery system and the value capture mechanism) for digital servitization.Design/methodology/approachThe authors examine a Chinese air conditioner manufacturer, Gree, who became the global leader with their smart solutions. These solutions included performance-based contracts underpinned by artificial intelligence (AI)-powered air conditioners that automatically adjust to environmental changes and are capable of remote monitoring and servicing thanks to its Internet of things (IoT) technology.FindingsTo successfully offer smart solution value propositions, a manufacturer needs an ecosystem value delivery system composed of suppliers, distributors, partners and customers. Once the ecosystem relationships are well aligned, the manufacturer gains value with multiple value capture mechanisms (i.e. efficiency, accountability, shared customer value and novelty). To arrive at this point, a manufacturer has to pass through different stages that are characterized by both discontinuous and continuous interplay between business models and digital technologies. At the beginning of each stage, new value propositions and value delivery systems are first discontinuously created and then enabled with digital technology. As a result, new value capture mechanisms are activated. Meanwhile, the elements of the existing business model are continuously improved.Research limitations/implicationsBy combining process-perspective and business-model lenses, the authors offer nuanced insights into how digital servitization unfolds.Practical implicationsExecutives can obtain insights into the business model elements, they need to change over the course of digital servitization and how to manage the process.Originality/valueA longitudinal case study of a traditional manufacturer that has achieved stellar success through digital servitization business models development.
In times of climate change, biodiversity loss, or growing natural resource scarcity, the circular business model (CBM) concept is increasingly attractive, promoting the reorganization of current ...value creation architectures and supply chains toward a sustainable system of production and consumption. Driven by a vision of continued economic expansion and growth on a planet with finite natural resources, CBMs are endorsed by political institutions, multinational corporations, business consultancies, and academia. Some argue that CBM configurations contribute to a more holistic and radical change in the existing business logics than approaches that achieve incremental resource efficiency improvements. However, how “holistic” and “radical” are CBMs theoretically constituted in academia if we consider the deep structural and paradigmatic shifts in societies necessary to deal with the challenges associated with the Anthropocene? Prior studies do not examine the inherent normative settings and the operational change approaches beneath CBM concepts. To reconstruct the theoretical foundations of CBMs critically, the recent CBM body of academic literature is systematically reviewed according to (1) the legitimacy of CBMs (why should it be done) (2) the modes of value creation and offerings (what should be done), and (3) the core principles of CBM integration into daily business (how should it be done). From this synthesis, the predominant notion of sustainability behind the CBM concept can be revealed. This study argues contemporary scientifically constructed CBMs need to be reconsidered if they are intended to contribute to a profound economic transition toward sustainability. Hence, the paper shows how principles from more “holistic”, “radical”, and pluralistic economic approaches can widen CBMs and how future research can help to diversify the concept.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
The emergence of “big data” offers organizations unprecedented opportunities to gain and maintain competitive advantage. Trying to exploit the strategic business potential embedded in big data, many ...organizations have started to renovate their business models or develop new ones, giving rise to the phenomenon of big-data business models. Although big-data business model research is still in its infancy, a significant number of studies on the topic have been published since 2014. We thus suggest it is time to perform a critical review and assessment of the literature at the intersection of business models and big data (analytics), thereby responding to recent calls for further research on and sustained analysis of big-data business models. In particular, our review uses three major criteria (big-data business model types, dimensions, and deployment) to assess the state of the big-data business model literature and identify shortcomings in this literature. On this basis, we derive and discuss five central research perspectives (supply chain, stakeholder, ethics, national, and process), providing guidance for future research and theory development in the area. These perspectives also have practical implications on how to address the current big-data business model deployment gap.
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CEKLJ, NUK, OILJ, SAZU, UKNU, UL, UM, UPUK
Designing a business model is not a one-off process; adjustments are often required. To create such adjustments and realize business model innovation, firms require the deployment of dynamic ...capabilities. Yet, we know little about the role of dynamic capabilities in fostering business model innovation, particularly in SMEs. This research, designed as an in-depth longitudinal case study, investigates how an SME’s market orientation and its deployment of dynamic capabilities are related to business model innovation. By developing a process framework of an SME’s business model innovation from start-up to scale-up, this paper contributes to the literatures on business model (innovation), small business, and dynamic capabilities. It clarifies how an SME’s market orientation, through the fitting deployment of its dynamic capabilities, drives its business model innovation. More specifically, this study characterizes market-driving, market-driven, and ambidextrous business models in the SME context, and reveals the exact dynamic capability processes necessary for transforming a business model from market-driving to market-driven, and ultimately to a model reflecting an ambidextrous market orientation. These insights outline how SMEs can deploy dynamic capabilities that align with the SME’s market orientation to innovate the design and architecture of their business models.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
Purpose
Business model change (BMC) is a process new ventures are frequently involved in, especially in dynamic environments like the digital industry: copying with it is a key issue for ...entrepreneurs attempting to shorten the transition between current and new business models (BMs) and avoid losses in terms of revenue, image and customer retention, while acquiring experience and validated learning in the process. The purpose of this paper is to propose a lean framework to support digital new ventures in the BMC process.
Design/methodology/approach
The study builds its contribution on two pillars: a review on BM and the lean thinking theories, and a multiple case study on three digital new ventures which underwent BMC.
Findings
The study shows how BMC in a digital context can beneficially follow lean principles, and how these principles can be integrated in an original lean framework to experiment on, validate and subsequently change a BM.
Originality/value
The authors provide the “single minute exchange of die” for BMC framework that extends and complements lean startup approaches to further relate lean thinking and BMC, thus operationalizing the process of BM experimenting and validation that enables change.
Consumer-facing corporations have started setting ambitious circular economy goals. However, it is unclear what innovators in corporations do to help meet these targets. The literature on circular ...business model innovation (CBMI) has focused on business-to-business contexts, efficiency, and recycling, but lacks insight into the innovation activities within consumer-facing corporations to pursue higher strategies in the waste hierarchy such as repair and reuse. Because of the size and potential impact of such organizations, it is important to better understand these activities. The aim of this study is to investigate the essential activities innovators in consumer-facing corporations carry out as part of CBMI. We use a dynamic capabilities lens to review the literature on innovation activities according to the CBMI stages of visioning, sensing, seizing and transforming. The following research question is investigated: What practices and tools help corporations build dynamic capabilities during the CBMI process? We conduct in-depth interviews with key informants dealing with CBMI in three corporations (H&M, IKEA, and Philips), and use thematic analysis to analyze and map the data to the four stages. We thereby add a range of CBMI innovation activities to the current literature and provide additional guidance for practitioners in large corporations.
•We study circular business model innovation (CBMI) in corporations.•CBMI follows the stages of visioning, sensing, seizing, and transforming.•We identify lower-level practices and tools for CBMI.•CBMI validates business models and shapes locally adapted circular ecosystems.•A strong vision and embedding sustainability impact are unique to CBMI.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
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