Now showing 1 - 10 of 21
  • Publication
    Business model innovation processes in large corporations: insights from BASF
    Purpose Despite the fact that business model innovation (BMI) has attracted intense attention from scholars and practitioners alike, practicable knowledge on the organizational implementation of BMI efforts in large multinational corporations is rather rare. This paper aims to investigate how BMI is managed in the complex environment of the chemical industry based on a study at BASF SE, a leading global chemical company. Design/methodology/approach The empirical data draw from six case studies (i.e. six BMI projects) within BASF which were observed in the 2010-2014 timeframe. Findings There is not one uniform BMI process archetype. Three different types can be identified, whereby the degree of technology involvement and the maturity of this technology act as determining factors for the form of the process and its organizational implementation. Originality/value This paper profits from its unique empirical setting, which allows identifying practices for the organizational implementation of systematic BMI processes in large corporations. The guidelines derived are highly relevant for general managers and business development departments.
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    Scopus© Citations 22
  • Publication
    Engaging with Startups to Enhance Corporate Innovation
    (Haas School of Business, University of California, 2015-03-15) ;
    Chesbrough, Henry W.
    When it comes to agility, startups have an edge over large corporations - whereas large corporations sit on resources which startups can only dream of. The combination of entrepreneurial activity with corporate ability seems like a perfect match, but can be elusive to achieve. This article examines how large corporations from the tech industry have begun to tap into entrepreneurial innovation from startups. Prominent examples are used to inductively derive a set of four models commonly used to engage with startups and to describe their characteristics, challenges, and rationales. While corporate equity is the key mechanism behind more established models, newer approaches replace equity with shared technology to connect both worlds with fewer organizational costs and greater speed and agility. We construct a typology of corporate mechanisms to engage with startups that balance speed and agility against control and strategic direction, to map the ways companies can bridge the gap between themselves and the startup world.
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  • Publication
    A Six-Step Approach to Business Model Innovation
    (Inderscience Enterprises Ltd., 2014-08-01)
    Eurich, Markus
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    Breitenmoser, Pablo
    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.
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  • Publication
    The antecedents of open business models : an exploratory study of incumbent firms
    Firms engage increasingly in open business models. While most research has previously focused on typologies or challenges of open business models, their specific antecedents have not been studied so far. We use data from eight open business model cases to explore this question and identify five main antecedents of open business models: (1) business model inconsistency, (2) need to create and capture new value, (3) previous experience with collaboration, (4) open business model patterns, and (5) industry convergence. Based on openness characteristics from the existing literature, we differentiate four basic types of open business models and develop an initial understanding of the relevance of the identified antecedents for each of them. We thereby provide first guidelines for practitioners in choosing the right form of business model openness for their company.
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    Scopus© Citations 65
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  • Publication
    The 4I-framework of business model innovation : A structured view on process phases and challenges
    Business model innovation has received rising attention as a means for firms to achieve superior performance. Yet, as we argue based on a review of related literature, the research field so far lacks a comprehensive framework that supports managers in their endeavour to innovative their firms' business models. Based on process models from innovation management literature and insights from 14 cases of past business model innovations, we develop the 4I-framework that structures the business model innovation process and highlights the specific challenges which managers face during the initiation, ideation, integration, and implementation of new business models. Through our study, we also provide a conceptual framework to organise existing literature in the business model innovation field and identify promising areas for future research.
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    Scopus© Citations 257
  • Publication
    Network configuration, customer centricity, and performance of open business models : A solution provider perspective
    While research has shown a positive impact of open business models on value creation, it has remained silent on the configuration of the corresponding partner networks and their effect on performance. Studying three cases of solution providers which involve external service partners for solution delivery, we find that solution customer centricity - the degree to which the focal firm focuses on solution customers in the joint delivery of solutions - moderates the relationship between partner networks and open business model performance. For open business models with low solution customer centricity, a network configuration characterized by many weak ties to service partners leads to superior performance. Conversely, for open business models with high solution customer centricity, few but strong ties to partners lead to superior performance. Based on these findings, three ideal configurations of networks for open business models are derived: the controlled, the joint, and the supported model. The findings of this paper are especially relevant for managers of product-focused firms who seek guidance in evolving their business models into solution providers. The paper also contributes to business model research by linking extant insights from network research to open business model performance.
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    Scopus© Citations 90
  • Publication
    Virtual Organization Breeding Environments in the ICT Industry: Opportunities and Barriers
    (International Society for Professional Innovation Management ISPIM, 2014-06-08)
    Eurich, Markus
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    Barve, Kapil
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    Boutellier, Roman
  • Publication
    Achieving business model innovation in large corporations
    Despite the fact that business model innovation (BMI) has attracted intense scholarly attention, there is a paucity of insights concerning the organizational implementation of BMI efforts in large corporations. This paper investigates how business model innovation is managed in the complex environment of the chemical industry and derives consequences for the establishment of a systematic BMI process in large corporations. Based on a multiple case study design, we identify three different types of BMI processes and show that (1) the degree of technology involvement and (2) the stage of technology development act as key moderators for the choice of process. With our results, we contribute novel insights to the ongoing academic discussions on BMI processes in corporate environments and on the relationship between technology and business model innovation. Practitioners will profit from rich implications gained from our study.
  • Publication
    Business models for frugal innovation : the role of Resource-Constraints
    Frugal Innovation is an extreme case of innovation: radically new applications are innovated for an environment of extreme resource and cost constraints. While the phenomenon of frugal innovation has been described from a product perspective, very little is known about how firms organize frugal innovation on a business model level. This study is based on a multiple case study approach investigating five business models for frugal innovation in the context of the medical equipment market in emerging economies. We find that there exists an overarching frugal business logic, based on which firms can establish different business models.