Transformation Mechanisms in the Business Model/Business Process Interface

Many scholars view the emerging business model concept as the missing link between a company's strategy and its operational implementation into business processes. They remain vague, however, in answering the question as to how strategy-induced changes to the business model can be transformed into business process adjustments. The other way round-a feedback mechanism that triggers business model adjustments in case of issues at the business process level-is not conceptualized either. The study hence is twofold. The authors explore both the top-down (business model to business process) and the bottom-up (business process to business model) perspective of this interface.
The top-down part considers business model changes, such as induced by adopting a Software-as-a-Service strategy, which require an effective implementation in a firm's organization. The explorative findings cover a detailed description of the transformation framework as well as an exemplary expert survey that can serve as a reference for software firm decision makers.
The bottom-up part clarifies the influence of business processes on the business model based on a literature review, expert interviews, and inductive reasoning. The authors derive a classification framework that provides new insights into the maturity of current KPI-systems and their strategic importance with regards to business model changes.