Fostering the Implementation of Creative Ideas in Organizations
Edited by Miha Škerlavaj, Matej Černe, Anders Dysvik and Arne Carlsen
The concept of business model gained popularity among managers and entrepreneurs during the dot-com boom in the late 1990s (Zott et al., 2011). A key tenet of the concept is that it connects the value creation and value capture sides of a firm’s strategy. In other words, the business model must link the activities performed by the firm to create and capture value to outside actors such as customers, partners, and complementors (Baden-Fuller and Mangematin, 2013). In doing so, the business model plays three main roles (Spieth et al., 2014): it helps (1) to describe the business (that is, how the firm generates its profit); (2) to run the business (in terms of, for example, operational aspects like processes, linkages, and structures); and (3) to develop the business (in other words, as a support to the management in the strategy process). In addition, entrepreneurs can use the business model to generate and test working hypotheses about how their business creates and delivers value to customers (Eckhardt, 2013). In this chapter we introduce the concept of business model and business model innovation and provide some guidelines for designing ‘good’business models. Since this task is generally challenging in that it requires particularly creative reconfigurations, we will also discuss some of the key difficulties that firms may experience when trying to innovate their business model. Reflecting the richness of business model research, we will present three different perspectives.
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