Towards Systematic Business Model Innovation: Lessons from Product Innovation Management

Although business model innovations are decisive for a company's long‐term success or failure, they are still poorly understood compared to product innovations. Thus, their execution is imperfectly supported, and their organizational accountability is insufficiently regulated. In this paper, we systematically investigate similarities and differences between product and business model innovation to assess the potential of transferring insights and best practices. Therefore, we condense key findings of product innovation management into a framework as a basis for the analysis of 11 current cases of business model innovation. This paper intends to contribute to a better understanding of the options that exist for business model innovation. We derive implications for an improved management of business model innovation based on the cases analysed. For the innovation process and its organizational anchoring, we disclose potential benefits of a more structured and holistic approach.     

The Early Bird Gets the Worm,But the Second Mouse Gets the Cheese: Non‐Technological Innovation in Creative Industries

In the context of economic turmoil, firms in the creative industries (CIs) must make fast decisions as to when to break through with innovations. This paper discusses non‐technological, organizational innovation of early‐adopters, first movers and early followers in order to overcome persistent economic decline, and the implication of different strategies for innovation success. The strategic principle of the pioneer's advantage rests on pre‐emption – the premise that ‘the early bird gets the worm’ and this often applies to business model innovation (BMI). ‘But the second mouse gets the cheese’ points at early followers who may have a more systematic, strategic approach towards innovation. Greater understanding of the advantages of each strategic approach and their significance for innovation performance is critical for CIs where unpredictability and the accelerating pace of change pervade the decisions concerning innovation. Drawing on five exemplary cases of archaeological firms in Spain, this paper explores different innovation process dynamics. The study develops a contingency model where pioneers who challenge their current business model, may be outperformed by early followers who incorporate complementary management innovation (MI) initiatives into the BMI.     

Tourism multi‐sided platforms and the social innovation trajectory: The case of Airbnb

Multi‐sided platforms (MSPs) have recently gained significant attention due to their disruptive innovation capacity, which is introducing deep changes in several industries. Previous work has studied how MSPs grow and design the development of their business models (BMs). However, none of the previous work has studied how these MSPs innovate their BM by leveraging and implementing social innovations. In this paper we aim at filling this gap. In particular, we focus on the tourism sector and, using the theoretical lens of business model innovation (BMI), we explore the Airbnb case study with a qualitative approach. We identify three main stages that characterized the innovation of the Airbnb's BM. Each of them presents specific peculiarities that have been analyzed. Our study offers new insights to understand how the BM of the MSPs is evolving toward a more sophisticated one that includes also a deeper orientation toward sustainable and social goals.     

Does model consistency in business model innovation matter? A contingency‐based approach

Successful business model innovation requires managers to come up not only with new, but also with viable business models. To this end, it has been argued that business model consistency plays a vital role, as the internal fit of business model elements can generate reinforcing effects, thereby influencing performance and competitive advantage. Little research has been conducted to measure consistency and confirm these effects, especially within business model innovation. We tackle this issue by developing and testing a measurement of business model consistency, and investigate its relationship with business model innovation and its performance. We find evidence supporting the positive effect of consistency on innovation performance. We contribute to extant research by developing a concept and measurement for business model consistency based on contingency theory and empirically verifying it. Our findings underline that managers should pay close attention to the consistency of their business model designs during business model innovation.     

ICT infrastructure for innovation: A case study of the enterprise service bus approach

In this paper we investigate the relationship between ICT infrastructure and innovation. In recent years the concept of the enterprise service bus has been introduced as an ICT architecture that supports strong integration of distributed components and services, but at the same time allows for adding or subtracting business partners at short notice. What are the organizational issues and challenges of this approach? Building on a case study from Norway we investigated this topic in the context of innovation of ICT based services. Our findings were analyzed at three levels; the bus as technical infrastructure, the bus as innovation infrastructure and the bus as organizational structure. We find that the bus as technical infrastructure supports innovation within a business unit, while the bus as innovation infrastructure facilitates the innovation of new business services. Further, we propose that a shared topology of these three levels is important to support the overall innovation process. As illustrated in our case, this also raises new challenges for the innovative corporation.     

Envisioning entrepreneurship and digital innovation through a design science research lens: A matrix approach

Design Science Research (DSR) in the information systems (IS) field is, at its essence, about Digital Innovation (DI). Innovative sociotechnical design artifacts involve digital information technologies (IT) being used in ways that result in profound disruptions to traditional ways of doing business and to widespread societal changes. The pervasiveness of DI means that the individuals involved in bringing it about have diverse backgrounds, including application specialists, software engineers, data scientists, business managers, economists, venture capitalists, various user groups, and entrepreneurial leaders. This range of backgrounds means that DI, much more than traditional innovation, leads to varied perspectives on the methods and tools to be used in the development of effective and evolvable complex systems incorporating digital innovations. In this paper we present a new matrix approach to DI based on DSR, entrepreneurship, and innovation theories. Clear strategic guidance allows these multiple stakeholders to make sense of the diverse landscape and to understand when and how different entrepreneurial strategies for innovation can best be applied. We define the combined DSR and DI matrix approach in terms of four strategies: invention; advancement; exaptation; and exploitation and their associated DI practices. The research contribution is a novel DSR-DI matrix process model. This model extends entrepreneurship theory as it enriches effectuation thinking with more detailed process guidance for ambidextrous entrepreneurship and it enriches DSR models for DI by showing more explicitly the different pathways corresponding to different quadrants in the knowledge-innovation matrix.     

Business intelligence and analytics use,innovation ambidexterity,and firm performance: A dynamic capabilities perspective

To survive in a dynamic and hyper-competitive business environment, firms are compelled to simultaneously introduce incremental and radical innovations. While it is recognised that business intelligence and analytics (BI&A) can support innovation and provide organisational value, the literature provides a limited understanding of its impact on balancing different innovation activities and ensuring performance gains. In this study, we examine the relationship between BI&A use, innovation ambidexterity, and firm performance by relying on the process theory of IS value creation as well as the dynamic capabilities perspective. We test our model using data collected from medium- and large-sized firms in Slovenia, applying partial least squares modelling. The results support the notion that BI&A use is positively associated with successful balancing between explorative and exploitative innovation activities, which in turn enhances firm performance. Our results also indicate that innovation ambidexterity is enhanced in two ways: indirectly through interaction with the firm’s absorptive capacity, and directly by increasing the possibilities of faster experimentation with offerings of products or services and improved predictability of the value of new products or services.     

Casting for service innovation: The roles of frontline employees

The purpose of this paper is to explore the roles of frontline employees (FLEs) in service innovation processes and how they contribute to these roles. In the literature, FLEs are argued to play an important role in service innovation; however, neither the potential types of roles nor what taking on these potential roles means to FLEs, have previously been studied. This study investigates FLEs' actions in different types of service innovation processes. Based on analyses of eight different service business units, FLEs are identified as having either of two sets of roles: (1) leading roles as idea creators, developers and implementers, or (2) supporting roles as problem reporters, advisors and executors. The analysis provides managers with guidelines which can help them to better utilize FLEs as contributors to service innovation, either as leading or supporting actors. These imply different management challenges, which are discussed. Advice on how to tackle these challenges is given on the basis of the findings.     

Evaluating the impact of smart technologies on harbor’s logistics via BPMN modeling and simulation

A smart Information and Communication Technology (ICT) enables a synchronized interplay of different key factors, aligning infrastructures, consumers, and governmental policy-making needs. In the harbor’s logistics context, smart ICT has been driving a multi-year wave of growth. Although there is a standalone value in the technological innovation of a task, the impact of a new smart technology is unknown without quantitative analysis methods on the end-to-end process. In this paper, we first present a review of the smart ICT for marine container terminals, and then we propose to evaluate the impact of such smart ICT via business process model and notation (BPMN) modeling and simulation. The proposed approach is discussed in a real-world modeling and simulation analysis, made on a pilot terminal of the Port of Leghorn (Italy).     

Core capabilities for practitioners in achieving e-business innovation

The rapid advance of information technology and its penetration into the core elements of the business model and organizational structures is enabling profound and significant organizational changes. In such a dynamic environment, firms must be able to continually evolve their capabilities to facilitate electronic business (e-business) innovation. Yet, current research pays little attention to the core capabilities that contribute to e-business innovation in general. This research seeks to identify the core capabilities that are necessary for achieving e-business innovation. We propose a tri-core model of e-business innovation adopted from Swanson (1994), which knits together three cores: business technology, the business model and the value network. We use this model initially to specify the functional areas of the capabilities. Based on data collected through an intensive literature review and an exploratory Delphi study, thirteen essential capabilities were considered as the keys to e-business innovation exploitation and exploration. Firms can facilitate their e-business solutions over time through the successful development of these capabilities. These findings provide great insights for practitioners and scholars alike to better understand the core capabilities for achieving e-business innovation. It can also help practitioners form a template of the requisite in-house management for identifying knowledge gaps and developing action plans.     

Strategic aspirations for net-enabled business

The net-enabled business innovation cycle (NEBIC) model describes a path by which firms employ dynamic capabilities to leverage net-enablement. Some firms strategically aspire to follow this path in a more gradual fashion striving for business process improvements (incremental strategy) while others aspire to exploit rapidly net-enablement to achieve business innovation (leapfrogging strategy) that offers completely new market opportunities. Study results suggest that firms adopt accelerated leapfrogging strategies when faced with more severe external competitive pressures. This combined with strong leadership, a propensity to embrace internal user involvement, IT maturity, and an accommodating firm structure, as indicated by path accelerators, result in higher aspirations for business innovation. Firms shying away from leapfrogging strategies tend to protect existing customers and employees from more radical changes. These firms sometimes lacked the internal capability to enact more aggressive strategies and thus had to acquire the necessary capabilities before aspiring for business innovation.     

Determinants of the intention to use NFC technology as a payment system: an acceptance model approach

The worldwide growth of mobile technology has enabled many companies to take advantage of its application as complementary sales tools. The main objective of this research is user acceptance analysis of near field communication mobile payment systems. Classic variables from the technology acceptance model, as well as variables from other recent studies, were used as models for this research (compatibility, security, personal innovation and individual mobility). To meet these objectives a questionnaire, filled out by 191 respondents, formed the basis of a structural equation modeling designed by PLS 3.0 software. The results show that attitude, subjective norms and innovation and are determinants of the future intention to use this technology. Finally, the main implications for corporate management and business development strategies which reinforce this type of business in light of new technical developments are discussed.     

A New Approach Towards Procurement of Software Models Via Distributed Business Models

Nowadays the distributive nature of many modern enterprises leads business strategists to look forward to new solutions which could take over this new requirement. The ever-increasing surge of e-business trend is another driving force for dealing with new distributed environment in addition to the serious need for core software components. On the other hand, the major role of these information systems in survival of business while tight competition exists is a facet which reveals another requirement focused on the robust relationship of business and the system(s) maintaining it. In this paper we aim to introduce a new approach to procure software models by means of the underlying business model. Since the introduction of UML as the latest OMG standard modeling language in 1997, a few researches have been done to use UML as a tool for business modeling. Unfortunately, recent trends are still immature and confronted with shortages and deficiencies. BSUP, which stands for Business to Software Unified Process, is our new approach to fulfill such a goal by means of a proprietary extension of UML. In this work, while analyzing the issues causing problems in the existing methods, we show how BSUP successfully resolves a few of such problems. Issues such as distributed processes, uncertainty in values and associations, ambiguity in the model, lack of precisely defined semantics and etc. may successfully be addressed and resolved. The BSUP is an ongoing work currently being evaluated in Paxan Corp,¹ a mid-scale industrial environment and a leading manufacturer of cosmetics and detergent products in the region. So far a few encouraging benefits have been revealed as briefly discussed within this paper.     

Business Model Design Games: Rules and Procedures to Challenge Assumptions and Elicit Surprises

Previously well‐established companies are currently struggling to secure profits, mainly due to the pressure from new communication technology‐based business models. Because of this, the business model research field has flourished in recent years, but most of the applied approaches still rely on linear, rational conceptions and causal reasoning. Through three games and three business cases, it is argued that experimental game‐like innovation activities can lead the way into another approach to business model development, called ‘business model design games’. This paper illustrates how the application of game rules and procedures can challenge business assumptions and evoke surprises that lead to novel business model insights.     

Leveraging diverse knowledge sources through proactive behaviour: How companies can use inter‐organizational networks for business model innovation

The relevance of business model innovation (BMI) for strategic renewal and competitive advantage has been increasingly recognized by both strategy scholars and managers. In this paper, we explore how inter‐organizational networks and firms' proactiveness influence BMI. By examining Dutch design companies, we show that having a network of companies with different sizes has a positive effect on BMI. We also observe a positive effect of ties change. Finally, we show the importance of firms' proactiveness. Through the discussion of network elements and proactiveness as antecedents of BMI, we contribute to the business model and social network literature.     

From cloud computing to cloud manufacturing

Cloud computing is changing the way industries and enterprises do their businesses in that dynamically scalable and virtualized resources are provided as a service over the Internet. This model creates a brand new opportunity for enterprises. In this paper, some of the essential features of cloud computing are briefly discussed with regard to the end-users, enterprises that use the cloud as a platform, and cloud providers themselves. Cloud computing is emerging as one of the major enablers for the manufacturing industry; it can transform the traditional manufacturing business model, help it to align product innovation with business strategy, and create intelligent factory networks that encourage effective collaboration. Two types of cloud computing adoptions in the manufacturing sector have been suggested, manufacturing with direct adoption of cloud computing technologies and cloud manufacturing—the manufacturing version of cloud computing. Cloud computing has been in some of key areas of manufacturing such as IT, pay-as-you-go business models, production scaling up and down per demand, and flexibility in deploying and customizing solutions. In cloud manufacturing, distributed resources are encapsulated into cloud services and managed in a centralized way. Clients can use cloud services according to their requirements. Cloud users can request services ranging from product design, manufacturing, testing, management, and all other stages of a product life cycle.     

Collective action problems in public sector innovation: A business model perspective

We explore how the literature on business models can explain the outcomes of innovation attempts in the public sector. Our findings suggest that governments can access a well‐developed knowledge domain for a public sector area but have a weak ability to propagate its value for society. Drawing on the business model literature concerning interdependence and distributed agency, we illustrate how a collective action problem related to innovation may arise in the public sector. We illustrate this new category of public innovation challenge with the (failed) case of the Swedish civil contingencies system and subsequently discuss a new line of inquiry for future research.     

<Emphasis Type="Italic">i</Emphasis>SIM: An integrated design method for commercializing service innovation

Service innovation is focused on customer value creation. At its core, customer centric service innovation is technology-enabled, human-centered, and process-oriented. To profit from such innovation, firms need an integrated cross-disciplinary, holistic method to design and commercialize service innovation. From diverse but interrelated strands of theories from service science, strategic management, organization science and information systems literatures, this article develops a new integrated design method, known as iSIM (integrated Service Innovation Method), for simultaneous service innovation and business model design for sustained customer value co-creation with the firm. Following design science research method, the article theoretically defines and integrates iSIM’s seven constitutive design process-elements: service strategy, customer type / value proposition, service concept, service system, customer experience, service architecture and monetization into a coherent and end-to-end aligned integrated design method. It explains how iSIM would be holistically and iteratively practiced by practitioners, and conceptually exemplifies its utility via telco and Amazon case studies using secondary data. Perspectives on iSIM from selected practitioners are discussed which confirm iSIM’s potential utility for their business. Managerial implications of implementing the iSIM and potential areas for further research are also discussed.     

A Firm‐Level Analysis on the Relative Difference between Technology‐Driven and Market‐Driven Disruptive Business Model Innovations

Using the business model concept as a theoretical framework, this paper examines the relative disruptiveness potential between technology‐driven and market‐driven innovations. The study analyses retrospectively four case studies comprising two technologically sophisticated IT innovations and two technologically less sophisticated market‐driven innovations starting from their inception to the point of disruption over a period of 5–15 years. It finds that, while the disruption process of technology‐driven innovation conforms to the patterns predicted by disruptive innovation theory, the disruption process of market‐driven disruptive business model innovation depicts a bottleneck shape, where the positive effects of initial strategic choice, model specialization and investments on disruptiveness potential reach the maximum level and start to stagnate due to the same initial strategic choice and cost factors. Implications for researchers and practitioners are discussed.     

制造业信息化建设

推进制造业信息化是落实"以信息化带动工业化"战略、走新型工业化道路的重要举措。推进制造业信息化是《国家中长期科学和技术发展规划纲要》提出的重要任务;是面向国民经济建设主战场,整合科技资源、实施"以信息化带动工业化"战略、走新型工业化道路的重要举措;是推进经济结构调整和经济增长方式转变的重要手段。制造业信息化将信息技术、自动化技术、现代管理技术与制造技术结合应用,推进设计制造数字化、生产过程智能化和企业经营管理信息化。用高新技术改造和提升制造业,促进制造业研发设计、生产制造、企业管理和市场营销的变革,带动产品设计和制造模式的创新、企业管理和经营模式的创新以及企业间协作模式的创新,是新时期我国制造业适应全球竞争环境、生存和发展的必由之路,对提升我国制造业的自主创新能力和市场竞争能力具有重要意义。