Article

The Wheel of Business Model Reinvention: How to Reshape Your Business Model and Organizational Fitness to Leapfrog Competitors

Institute of Innovation Research, Hitotsubashi University, IIR Working Paper 01/2003;
Source: RePEc

ABSTRACT In today's rapidly changing business landscapes, new sources of sustainable competitive advantage can often only be attained from business model reinvention, based on disruptive innovation and not incremental change or continuous improvement. Extant literature indicates that business models and their reinvention have recently been the focus of scholarly investigations in the field of strategic management, especially focusing on the search for new bases of building strategic competitive advantage, not only to outperform competitors but to especially leapfrog them into new areas of competitive advantage. While the available results indicate that progress is being made on clarifying the nature and key dimensions of business models, relatively little guidance of how to reshape business models and its organizational fitness dimensions have emerged. This article presents a systemic framework for business model reinvention, illustrates its key dimensions, and proposes a systemic operationalization process. Moreover, it provides a tool that helps organizations to evaluate both existing and proposed new business models.

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