Participatory business modelling

PurposeEstablished firms are increasingly under pressure to develop new business models (BM) in a continuous manner to cope with competitive constraints and changing market requirements. Business model innovation (BMI) is widely accepted as a viable means to stay ahead of competition. Yet, firms struggle with successful BMI. The barriers to BMI is a widely discussed topic in academia and practice but with little reference to the barriers a firm is confronted with when operating multiple BMs in a corporate portfolio.Design/methodology/approachThis paper investigates the implications for a firm operating a multitude of BMs concurrently. By combining the results of a literature analysis and 15 expert interviews from the fields of corporate strategy, business modelling and consulting, this paper presents and discusses the opportunities and challenges related to BM diversification.FindingsThe findings show that a strategic BM portfolio can be installed for enhanced value creation. However, managing multiple BMs and finding the right balance between existing and new business pose a major challenge for many established firms. With these results, the paper contributes to the existing literature in the fields of BMI and BM portfolio management. The findings clearly show the emerging importance of a strategic corporate BM portfolio for both research and practice and may provide an impetus for management discussions involving strategic BM portfolio decisions.Originality/valueBy building on and adding to existing literature and discussing existing works, this paper aims to giving a structured and comprehensive overview of enhancing and impeding factors on value creation when operating multiple BMs in a corporate portfolio.

Building on cognitive theories and business model literature, the object of this paper is to analyze to what extent entrepreneurs rely on heuristics to develop startups and innovation business models. While recent research has referred to a cognitive view on business modeling, it is still unclear how the cognitive foundations of such modeling happens. Despite the constraining effects that management and entrepreneurship literature has attributed to these cognitive tools, we argue that in making sense of uncertainty, “fast and frugal” heuristics provides entrepreneurs with robust strategies to connect the dots that give rise to startups and their business models. The paper makes two main contributions. First, we introduce the heuristic of similarity into the business modeling literature. Second, through the results of a qualitative survey, we conceptualize and theorize on the cognitive activity of business modeling, presenting it as an iterative process of configuring heuristics.

It is well‐established that technology – and particularly the uncertainties caused by emerging disruptive technologies – has an impact on industrial dynamics, forcing organizations to reimagine their business models. The in‐depth qualitative case study of a Nordic telecom organization shows that the uncertainties created by disruptive technologies initiate a process of sensemaking and business model innovation, while the new business model becomes manifested at the final phase of the process (i.e., enactment). The newly developed business model has three dimensions reflecting value‐centric activities, internal changes, and attempts to capitalize on external opportunities. Investigating the way in which managers handle uncertainties related to 5G, this research argues that business model innovation emerges from a future‐oriented sensemaking process. The process model developed in this study entails three distinct phases disaggregated into eight underlying dimensions. The present study contributes in two ways: first, it advances our understanding about managing future uncertainties regarding business model innovation by identifying future‐oriented sensemaking as a mechanism to manage these uncertainties. Second, it sheds light on the process model underpinning future‐oriented sensemaking for business model innovation.

Crafting business models for conflicting goals: Lessons from creative service firms

Business models are a cornerstone of innovation for both startups and established firms. The term exists as part of the management lexicon, as media and scholars devote significant attention to it, especially with Internet-based and tech businesses exploiting innovative new models. This review aims to address the question concerning the current knowledge regarding the concepts of the business model and business model innovation. Starting with the business model, the paper examines the diversity of definitions that scholars offer, particularly related to its scope (e.g., firm, network) and conceptualization (e.g., activities, value). The narrative delves into a systematic review and components of the business model. It segues to examining links with the lean startup and associated canvases that encompass components to define value creation, delivery, and capture. This section closes by highlighting the diverse multitude of business models, including fifty-five common patterns, and finally, considers the assessment of the construct, most notably Teece's seven questions. The business model innovation section delves into its diverse characterizations by scholars, leading to the identification of common themes- value, process, novel, change, activities, core elements, model, and discovery. The section discusses two relevant systematic reviews that highlight gaps for further exploration. It then dives into multiple approaches, such as business model development, reconfiguration, discovery-driven planning, customer discovery, parallel play, and reinventing-the-wheel. This discussion closes by examining the role of business model innovation in the organizational learning process, particularly that of experimentation. Finally, it addresses evaluation, featuring Amit and Zott's six questions. Themes to draw for the business model involve that it (1) is essential to define a path to innovation and successful commercialization; (2) embodies the creation, delivery, capture, and apportionment of value; and (3) encompasses exploration and exploitation functions. For business model innovation, a notable extraction is that it involves a critical organizational learning process fashioning a model that offers novelty and value to the firm and its ecosystem of customers, investors, and partners.

Discussion of new approaches and instruments for strategic management and organisation of small- and medium-sized enterprises (SMEs) is now routine among scholars and policymakers. Despite an expanding set of literature on business modeling, there is little acknowledgment of the SMEs performance in the context of strategic development. This paper aims to detect the business model factors that increase SMEs performance. Thus, we reveal how decision-makers perceive the strategic management process and manage strategic risks within it. To achieve this goal, the asymmetric configu-rational theorizing and methodology are applied. The research brings into perspective that SME owners and managers have to pay more attention to managerial ties for supporting business model innovation. Developing a dynamic view of business model innovation is also important for understanding of dynamics in the open innovation networks. This challenge therefore calls for further studies on how strategic management should feature in the development of SMEs.

The article is dedicated to exploring various strategies and approaches to business model development, emphasizing its role in enhancing organizational adaptability, competitiveness, and long-term sustainability. The study highlights the importance of business model development, innovation, and improvement in achieving sustainable success for organizations in dynamic market conditions. It identifies key factors that drive the need for continuous innovation of business models, including the impact of the external environment, influenced by rapid technological innovations, changing consumer preferences, economic volatility, and increasing competition. The article characterizes the main approaches to business model innovation depending on the enterprise's strategic focus (counteracting downturns or negative industry changes or striving for breakthrough growth) and the direction of transformation (transforming the core business activity or extending beyond it). Based on these approaches, enterprises are divided into reinventors, mavericks, adapters, and adventurers. We examine the forms of business model innovation: startups, transformation, diversification, and acquisitions, each involving different degrees of change to the business model. Criteria for classifying a business model innovation as sustainable or contributing to sustainable development are outlined. Popular strategies for business model innovation are summarized: integration, replacement, expansion, separation, exclusion, optimization, and relocation. For each strategy, opportunities and challenges are identified. Typical directions for business model development through these strategies are outlined. Internal and external factors to be considered in the analysis preceding business model innovation are defined. The article emphasizes that sustainable business models integrate technological, social, and environmental factors to ensure long-term success. Innovations toward sustainable development are key to achieving economic success and a positive societal impact.

Business modeling tools are crucial for designing and implementing successful business models. However, there exist instances—which we refer to as the design of ecosystemic business models—in which developing a business model requires simultaneous consideration of both one’s own business model and that of ecosystem partners. In these instances, standard business modeling tools focusing on representing business models in isolation may be inadequate. Based on a real-world example of a business ecosystem from the maritime logistics industry, we highlight five significant design challenges for ecosystemic business models. We then reflect on and discuss the extended role of the business model as an instrument for inter-organizational alignment, and draw out three implications for business modeling tools. The objective of this paper is to deduce implications and functional design requirements for business modeling tools from a conceptual perspective.

Предметом исследования является процесс формирования новых бизнес-моделей высокотехнологичных компаний в условиях глобальной цифровой кооперации. Цель: исследование перспектив и проблем формирования новых бизнес-моделей высокотехнологичных компаний России в условиях глобальной цифровой кооперации. Методология исследования носит междисциплинарный характер, в статье применяются как общенаучные методы, так и специальные аналитические и статистические методы исследования, а также метод научного синтеза. Исходные цифровые данные для анализа взяты из открытых источников тематических обзоров консалтинговых агентств VC.RU, Центр исследований Сколково, Digital IQ, PWC. Результаты исследования подтвердили гипотезу о том, что для поддержания конкурентной позиции и обеспечения умного роста высокотехнологичных компаний РФ необходимо обновление их стратегических бизнес-моделей Выводы: 1. Основные бизнес-модели устройства высокотехнологичных компаний включают в себя: интеграционную бизнес-модель, дирижистскую, модель лицензирования. 2. Как показало исследование, российские финтех-компании практически дублируют зарубежный опыт и тренды цифровизации бизнес-процессов, что связано как с глубокой интеграцией российских банков в мировую банковскую систему, так и тщательно отлаженные стандарты цифрового этикета, и методологию построения операционных бизнес-процессов в цифре. 3. У российских High-Tech компаний нефинансового сектора имеется значительное расхождение в части мотивации к новаторству (16,0 % в РФ против 36,0 % в мире), готовность работать в новой отрасли или выход на новый рынок (4,0 % против 18,0 %), зато ввиду наличия существенных пробелов с эффективностью организации операционных бизнес-процессов менеджмент оценивает новую бизнес-модель именно с позиции ее потенциальных способностей сократить операционные издержки. 4. Для финтех-компаний ожидается использование таких бизнес-моделей, как следующий гигант (Next Giant), партнер по своей воле, пятый элемент. Для нефинансового сектора — охотники за эффективностью и новаторы. Завершающим этапом масштабной эволюции бизнес-моделей высокотехнологичных компаний финансового и нефинансового сектора РФ станет массовизация бизнес-модели кросс-функциональной экосистемы. Результаты исследования могут быть использованы как в образовательном процессе в рамках преподавания дисциплин «Стратегический менеджмент», «Управление проектами», «Бизнес-моделирование», «Форсайт-менеджмент», так и в практическом аспекте при разработке проектов обновления стратегических бизнес-моделей высокотехнологичных компаний. Дальнейшие направления исследований планируется акцентировать на оценке финансово-экономического потенциала роста обновленных бизнес-моделей, анализа возможностей масштабирования новых бизнес-моделей на мезоуровне, а также тестирование возможности создания высокотехнологичных франшиз и их экспорта. Subject of research: the process of forming new business models of high-tech companies in the context of global digital cooperation. Goal: To study the prospects and problems of forming new business models of high-tech companies in Russia in the context of global digital cooperation. The research methodology is interdisciplinary, the article uses both general scientific methods, as well as special analytical and statistical methods of research, as well as the method of scientific synthesis. Initial digital data for analysis are taken from open sources of thematic reviews of consulting agencies VC.RU, Skolkovo Research Center, Digital IQ, PWC. The results of the study confirmed the hypothesis that in order to maintain a competitive position and ensure smart growth of high-tech companies of the Russian Federation, it is necessary to update their strategic business models Conclusions: 1. The main business models of the device of high-tech companies include: integration business model, conducting, licensing model. 2. As the study showed, Russian fintech companies practically duplicate foreign experience and trends in the digitalization of business processes, which is associated with both the deep integration of Russian banks into the global banking system, as well as carefully debugged digital etiquette standards, and the methodology for building operational business processes in the figure. 3. Russian High-Tech companies in the non-financial sector have a significant discrepancy in terms of motivation for innovation (16.0% in the Russian Federation versus 36.0% in the world), readiness to work in a new industry or enter a new market (4.0% versus 18.0%), but due to significant gaps in the effectiveness of the organization of operational business processes, management evaluates the new business model precisely from the position of its potential abilities to reduce transaction costs. 4. For fintech companies, the use of business models such as the next giant (Next Giant), a partner of its own free will, the 5th element is expected. For the non-financial sector – efficiency hunters and innovators. The final stage of the large-scale evolution of business models of high-tech companies in the financial and non-financial sector of the Russian Federation will be the mass of the business model of the cross-functional ecosystem. The results of the study can be used both in the educational process as part of the teaching of the disciplines "Strategic Management," "Project Management," "Business Modeling," "Forsyth Management," and in the practical aspect when developing projects for updating strategic business models of high-tech companies. Further research areas are planned to focus on assessing the financial and economic potential of the growth of updated business models, analyzing the possibilities of scaling new business models at the meso-level, as well as testing the possibility of creating high-tech franchises and their exports. Key words: business model, strategies, innovation, digitalization, intellectual capital, stakeholders, Industry 4.0, proactive development, venture capital investments.

Imagine a New Venture Creation class full of enthusiastic young students. Soon, you will divide them into groups and set them the task of coming up with innovative business ideas and models, which they will later need to implement in practice. How can you help your students to explore and learn about their intrinsic, subconsciously generated motivation, aspirations, persistence, intuition, drive, desire, and passion? What tools and frameworks should you use to facilitate your students in their pursuit of creating new ventures? Many entrepreneurship educators turn to all-inclusive business modeling tools (e.g., the Business Model Canvas) to help their students in the process of New Venture Creation. The results of our case study, however, indicate the difficulties faced by entrepreneurship students in learning and developing “soft” skills when they rely on such tools. This is indicative of the instrumental focus in modern entrepreneurship education, highlighting a need to identify tools and techniques to f...

Aim: In the era of mobile internet, live marketing has become a new business model for network marketing, and is a product of the interactive integration of new technology and marketing activities in the new era.Method: Based on the business model theory, combining the value creation process, using live streaming platforms such as Taobao, Tiktok, Jingdong and Amazon as examples, and adopting a qualitative analysis method, the business model elements and innovation paths of live marketing are analyzed.Findings: The research found that: (1) The live marketing model has new integrated features and new values. The combination of technical system integration and marketing activities is a hotbed for live marketing;(2) Based on the anchors influence and audiences attractiveness as the classification criteria, live broadcast sellers can be divided into super sellers, famous sellers, ordinary sellers and low-level sellers. It is a new classification proposed for the first time, which provides important evaluation contributions for understanding and distinguishing the different categories of live broadcast sellers; (3) Based on the business model canvas, this article finds that the business model innovation of live marketing illustrates the nine elements logical relationship of the business model, value proposition is the key-hub linking other elements. The business model innovation of live marketing also follows the basic laws of value creation, that is, from value proposition to value creation to value transmission, and finally to value acquisition;(4) The business model innovation path of live marketing is also the path of value rebuilding, which increasing value is the essence of the sustainable development of business model innovation.Implications/Novel Contribution: Therefore, these new findings can help non-live broadcast marketers transform their marketing concepts and methods, and improve their sales capabilities. The analysis of the business model innovation and value creation of live marketing reveals the essence of live marketing, and the mechanism of value co-creation between sellers and customers, which this research also creatively proposes its innovation model and value creation process from the perspective of the relationship between business model and value creation. Finally, the article is not in-depth study of its relationship business model innovation and value creation from the perspective of explicit knowledge and tacit knowledge.

Business modelling is recognized as an important concept to make company strategies more explicit and to compare alternatives combined with their translation to the operational layer. Typically, busi-ness modelling is performed by a group of experts building on established frameworks like the Busi-ness Model Canvas. In a subsequent step, different stakeholders in a company should build upon and work with the defined business models, thus, comprehension is critical. However, this is challenging from a practical point of view and existing research has not addressed the issue of business model comprehension. In order to close this research gap and to increase users’ business model comprehen-sion, we propose an advanced business model tool and an experimental design in this research-in-progress paper. Following the design science approach, we derive a first set of meta-requirements and design principles and present an advanced business model tool instantiation. The presented tool should contribute to an increased business model comprehension by providing semantic relationships and extended business performance indicators. Finally, we present a set of testable hypotheses and the research design for an experimental tool evaluation. With this research we intend to provide a solu-tion to the problem of business model comprehension and contribute to the design knowledge base of business model tools.

It is widely recognised that there is an increased need for business modellers to understand businesses do not exist in isolation, but are part of a complex interconnected and interactive system (e.g. local communities, national and global societies, natural environment settings, local and global economies). There is an increased pressure on businesses to think beyond self-interests and focussing on maximising their profits. Many now argue that every business needs to take a transcendent responsibility for its actions and decisions. Moreover, there are increasing numbers of stakeholders (e.g. employees, customers, suppliers), besides shareholders, who want to have their say and influence on how businesses do the business. There are also calls for transcendent business education, with the claim that it has not been shown clearly enough how businesses could achieve their objectives with transcendent responsibilities. A transcendent business is one that goes beyond self-interest and generating profit; it is a business that simultaneously accounts for multiple typological groupings when developing business objectives, and leaves behind a better world for the next generation. This thesis presents a Transcendent Reference Model and Methodology (TRM+) of a business modelling approach that goes beyond self-interest and generating profit. The TRM+ is a set of repeatable steps/phases that have been developed to assist future business entrepreneurs /modellers to design business models for their transcendent businesses around their selected innovations/patents. The TRM+ consists of a number of problem solving and decision-making methods (heuristics), and interpretations. These can assist business entrepreneurs/modellers to make decisions during the process of designing business models of their transcendent businesses – businesses that simultaneously account for multiple typological groupings (e.g. social, environmental, economic) when developing business opportunities from post-incubation innovations/patents. The TRM+ is exercised by developing a detailed business model for a hypothetical transcendent business around a selected patent, and by extracting knowledge from multiple expert groups (Corporate Social Responsibility (CSR) experts, Solar Thermal Power (STP) experts with expertise relative to a selected patent, and business entrepreneurs). Whilst the TRM+ has been shown to be conceptually viable, it is no more than a theoretical reference model and methodology at this stage. There is a need for its practical testing as well as a need for feedback from business modellers who will use it as a guide for developing business models of their transcendent businesses. The TRM+ is a first step toward development of a reusable methodology for transcendent business modelling and measurement. It provides a foundation for future research and refinement of the TRM+.

The process of developing sustainable and circular business models is quite complex and thus hinders their wider implementation in the market. Further understanding and guidelines for firms are needed. Design thinking is a promising problem solving approach capable of facilitating the innovation process. However, design thinking does not necessarily include sustainability considerations, and it has not been sufficiently explored for application in business model innovation. Given the additional challenges posed by the need for time-efficiency and a digital environment, we have therefore developed a design thinking-based framework to guide the early development of circular business models in an online and efficient manner. We propose a new process framework called the Circular Sprint. This encompasses seven phases and contains twelve purposefully adapted activities. The framework development follows an Action Design Research approach, iteratively combining four streams of literature, feedback from sixteen experts and six workshops, and involved a total of 107 participants working in fourteen teams. The present paper describes the framework and its activities, together with evaluations of its usefulness and ease-of-use. The research shows that, while challenging, embedding sustainability, circularity and business model innovation within a design thinking process is indeed possible. We offer a flexible framework and a set of context-adaptable activities that can support innovators and practitioners in the complex process of circular business model innovation. These tools can also be used for training and educational purposes. We invite future researchers to build upon and modify our framework and its activities by adapting it to their required scenarios and purposes. A detailed step-by-step user guide is provided in the supplementary material.

Organizations continually realise that fulfilling their sustainability objectives requires emerging innovations and innovation in the business model. Initially, most research revolved around product or method innovations with a new field of concern for the innovation in the business for its sustainability. A variety of new techniques & strategies have been designed to promote sustainability in the business models. While creating a large variety of business models, very few have been introduced successfully. Despite the topic's importance, research shows that many business model innovations fail. The causes of failure are largely unexplored and there is a lack of a comprehensive review of the literature on innovation in sustainable business models. The identified gaps in the areas of sustainable business model innovation that undermine bridging the design-implementation gaps are; the process of implementing business model innovation; its tools; and its challenges. The Cambridge Business Model innovation process (CBMIP) enables current and newly designed tools to be incorporated into the market modelling process, showing deficiencies.