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Business model innovation is an iterative and potentially circular process

Business model innovation is an iterative and potentially circular process

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Organisations increasingly understand that meeting their sustainability ambitions does not only require new technologies, but innovation on the business model level. To facilitate the design of more sustainable business models, a range of new tools and techniques have been developed. While this resulted in the design of a wide range of promising bu...

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The chemical engineering sector faces the challenge of meeting the continuously growing demand for their products and services while at the same time ensuring that the industry fully integrates the concepts of sustainable manufacturing. Industry 4.0 provides immense opportunities for the realisation of sustainable manufacturing. Industry 4.0 is a c...

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... Neste contexto, objetivos específicos e princípios de desenvolvimento sustentável são integrados em uma abordagem de resolução de problemas. Esta abordagem integrada é subsequentemente usada como uma base para o desenvolvimento direcionado de inovações sustentáveis no quadro de um conceito, e tem como resultado final do modelo, uma ideia de solução concreta para uma invenção sustentável Cambridge Business Model Innovation Process (CBMIP) (GEISSDOERFER; SAVAGET;EVANS, 2017) Este Framework foi desenvolvido para orientar os esforços de inovação do modelo de negócios das organizações e mapear as atividades necessárias e os desafios potenciais. Neste artigo, apresentamos o framework e apresentamos uma tentativa exploratória de aplicá-lo a uma start-up social. ...
... Neste contexto, objetivos específicos e princípios de desenvolvimento sustentável são integrados em uma abordagem de resolução de problemas. Esta abordagem integrada é subsequentemente usada como uma base para o desenvolvimento direcionado de inovações sustentáveis no quadro de um conceito, e tem como resultado final do modelo, uma ideia de solução concreta para uma invenção sustentável Cambridge Business Model Innovation Process (CBMIP) (GEISSDOERFER; SAVAGET;EVANS, 2017) Este Framework foi desenvolvido para orientar os esforços de inovação do modelo de negócios das organizações e mapear as atividades necessárias e os desafios potenciais. Neste artigo, apresentamos o framework e apresentamos uma tentativa exploratória de aplicá-lo a uma start-up social. ...
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Abstract: Designing with emphasis on the human is a complex activity, because each individual has needs, capabilities, limitations and particular dimensions, as well as specific Contexts in which they develop their activities, requiring a detailed and accurate knowledge of all the variables involved. To assist this approach, proposals for human-centered design Processes have been developed, by means of guides, toolkits, frameworks, among others, with the purpose of allowing assertive answers during project development. Among them is the Project Development Guidance Guide (PDGG), which has been showing important results in the last decade. However, the Procedures require clear detailing as well as constant updating, given the specifics of each Product, User and Context (PUC). One of the difficulties in the management of project practice is the adequate transfer of information between the stages which usually follow a sequence characterized by a concrete beginning (associated with the various surveys and analyses), which becomes abstract (especially in the creation) and returns to concrete (in the implementation and materialization), requiring the procedures to be clearly and precisely detailed. In projects that demand the involvement of an interprofessional and interdisciplinary team, these difficulties tend to increase, given the intrinsic characteristics of each knowledge area. In this way, the general objective of this research was to develop, apply, and analyze an organized and systematized proposal of a Set of Procedures to assist the projectual practice of Design, having as reference the Project Development Guidance Guide. It's characterized as research of applied nature, with a qualitative approach and exploratory and descriptive objectives. Regarding technical procedures, it's classified as bibliographic and survey. It was divided into three phases: (1) Theoretical and Practical Foundation; (2) Development of the Procedural Set; (3) Application and Analysis. The research resulted in the development of the Procedural Set (PS), composed of 28 Design Procedures, which were organized, systematized and detailed in: what is it?, what to do?, and how to do it?. To assist in the project management, support materials were created, being: 16 boards, 01 Visual Panel, post-its and markers, which were used, tested and analyzed longitudinally, in other words, throughout the development process of the project low-cost laryngoscope with micro-camera attached to assist health professionals in combating COVID-19. Thus, it was possible to verify that the support materials were satisfactory, supporting the project practice in a dynamic, adaptable and flexible way.
... It is necessary to understand the role of the innovation process to understand, adopt, and manage the innovation process. Innovation process: as a system of organized activities, technology enables the transformation of ideas into commercial value [40]. However, at the end of the process, success in the commercial sense is not always possible. ...
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... CBMI is a change process that moves through the stages of visioning, sensing, seizing and transforming (Foss and Saebi, 2017;Guldmann et al., 2019;Pieroni et al., 2019;Santa-Maria et al., 2022). Similar business model stages have been described in the literature (e.g., Frankenberger et al., 2013;Frishammar and Parida, 2019;Geissdoerfer et al., 2017a). We take a dynamic capabilities lens of sensing, seizing, and transforming here (Teece, 2018), because of its recent focus in sustainable and circular business model innovation literature (Bocken and Geradts, 2020;Inigo et al., 2017;Pieroni et al., 2019;Santa-Maria et al., 2022), and because it is widely recognized in mainstream business model literature as underpinning competitive advantage and business model innovation (Teece et al., 1997;Teece, 2018). ...
... The final stage of CBMI is transforming, in which new business models are launched, run, adapted and implemented (Frankenberger et al., 2013;Geissdoerfer et al., 2017a). Transforming focuses on the deliberate and continued renewal of the organization's capabilities (Teece, 2018). ...
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... Parts of this study are based on a literature review and work published by Geissdoerfer (2017bGeissdoerfer ( , 2018b. The key underlying concepts of sustainable business model innovation are: business models, sustainable business models, and sustainable business model innovation. ...
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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.
... Scenario description swimlane diagram describes the various behaviors of multiple participants (students, teachers, family members, etc.) in a series of activities in the online classroom, making the results more intuitive and clear, and this overall analysis is compared to the simple addition of each part better results. e swimlane diagram in the online classroom scenario includes storyboards, resources, user experience, target process, tool contact requirements, and pain points, as shown in Figure 3 [19]. ...
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... After conceptualizing an idea, the idea concept evaluation follows [68]. For instance, in the context of an SME's DT, a selection of ideas can be elaborated into business model concepts [69,70]. Other types of digital innovation might manifest as, e.g., To-Be process models or product/service concepts [10]. ...
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The joint effects of digital innovations constitute a continuous change process known as digital transformation. Every digital innovation is inevitably preceded by the initial idea for it. Furthermore, the success of innovations and, thereby, digital transformation is vitally dependent on their starting points, that is, ideas. Literature and practice observations reveal that SMEs often base their idea selection on intuitions and gut feelings rather than rigorous methods. Furthermore, they often miss the opportunity to involve external support units. Therefore, the research objective is to develop an IT-supported, criteria-based, and multi-stage idea evaluation method supporting the selection of digital innovation ideas in the context of SMEs' digital transformation. Methodologically, a design science research approach is followed. A structured literature review, two focus group discussions, and three interviews inform the artifact's design. The artifact comes with a comprehensive set of evaluation criteria embedded into a flexible evaluation method that involves an interaction concept with external supporters. Thereby, it solves a practice-inspired problem and contributes to the existing repertoire of idea management tools.
... Obtaining a detailed insight into the relationship between the resources involved in shaping the elements that build the company will allow to reduce the risk associated with investing in resources (Berends et al., 2016), improve operational efficiency (Rachinger et al., 2018) and contribute to achieving consistency and synergy (Teece, 2018). The presented relationships between resources and the achieved results allow for benchmarking and building optimized configuration defining business model efficiency, as well as supporting the design of paths to reach the target state of the organization (Geissdoerfer et al., 2017). This paper depicts two separate perspectives of resource utilization, namely, their impact on the application of BMI based on new technology and the significance of resources for BMI effects based on new technology. ...
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Purpose The purpose of this paper is to analyse the significance and impact of different resource types and their features on the operation of business model innovation (BMI) based on new technologies and their effects. Specifically, the relationships of nine different types of resources, as well as their features in terms of VRIO and VARIM concepts, and 10 BMI effects of operation were examined. The significance and impact of resources on the operation of BMI are pretty well established in the literature. However, when the analysis is narrowed down to BMI based on new technologies, there is very little research in this field. This is partly because of the subject’s novelty and the wide range and complexity of this phenomenon. Design/methodology/approach The research covers 483 Polish companies that implement BMI based on new technology. For gathering data, the computer-assisted telephone interview method was used. Analysis is based on Spearman correlation. Results meet the requirement of p -value = 0.01 and are statistically significant and representative. Findings The main findings of this paper is that there is a need for building interdependency and synergy between individual types and features of resources and thus properly arrange and orchestrate them to succeed. Moreover, there are several patterns that stand out from the analysis, with the leading role of employees, technology, dynamic capabilities and know-how being the key enablers of BMI transformation. Practical implications The paper presents several compounds and relationships that shed light on the application and effects of BMI based on new technologies in terms of resource utilization, which can help business owners and senior managers to make consistent decisions in matching and orchestrating resources. Originality/value This study clarifies theoretical concepts building a resource-based view (VRIO, VARIM, dynamic capabilities, etc.) and their impact on BMI based on new technology. The results expand and complement existing research by shedding new light on resource utilization and orchestration.
... For the success of the business model, marketing, advertisements, production, and product features should be determined according to the characteristics of each customer group [26]. The value propositions of these different customer groups may also differ from each other. ...
Chapter
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Digitalization is gaining speed, latest since the global pandemics, even for those industries which only observed it as a supplementary phenomenon to their physical business activities. Despite this ongoing phenomenon and the use of catchwords such as e-business or e-commerce in both academia and practice, there is still confusion when the discussion shifts to the sphere of digital entrepreneurship-especially when it comes to the "who" and "how" of the digital entrepreneurship. The aim of this chapter is to focus on digital entrepreneurship as an ongoing phenomenon in the digital economy. In this chapter, the authors first introduce background and rationale with respect to digitalization and digital entrepreneurship by using a thematic literature review of recent contributions coming from economics and management disciplines. Next, the authors present next-generation models of digital entrepreneurship, with which they specify three important components of digital entrepreneurship as a business model, customer base, and social networks. By doing so, the authors not only aim to answer the questions of who the digital entrepreneur is, and how he/she acts in an entrepreneurial way, but they also aim to provide a knowledge base of digital entrepreneurship for future endeavors, let them be practical or theoretical ones.
... Authors, such as Glass (1997), , Prescott andSoeken (1989), Turner (2005) and van Teijlingen and Hundley (2001) emphasize that pilots are becoming increasingly disseminated within organizational practices -including companies of different sizes and sectors as well as governmental bodies, non-profit organisations, and in academic research. Several studies on business model innovation (e.g., Lindgardt et al, 2009;Girotra and Netessine, 2013;Geissdoerfer et al. 2017b;, discuss piloting as an important component of the business model innovation process. However, they do so without explicitly addressing what piloting is and without much information about what it entails. ...
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Business model innovation is increasingly seen as a key competitive factor in B2B settings. In this context, prototyping, experimentation, and piloting have gained prominence as agile and resourceful methods that can be employed in business model innovation pursuits. Yet, despite increasing interest in this area, and the growing number of large B2B companies who also started deploying these methods, there is a lack of clarity on the conceptual boundaries between the three concepts. This may impede the advancement of business model innovation research and practices based on the three concepts. We address this gap by conducting a structured literature review, using cross-reference searches and a key informant interview study of 43 executives in 13 B2B organisations. We offer three contributions: (1) definitions for each of these three concepts, (2) seven dominant similarities and (3) five key differences across them. Our research shows that the concepts serve distinct purposes at different stages of the business model innovation process, and we discuss these findings and their broader implications for the literature on business model innovation and for innovation management practices in B2B companies.
... In addition, how to use market demands and master key technologies is also very important for enterprises to expand their advantages [8]. Geissdoerfer et al. advocated that the process of business model construction and modification is the business model innovation and forms a part of business strategy [26]. However, it is not easy for the hotel industry to develop a new business model, growing instability of the environment and constant transformation processes which dictate the new rules for the market participants require increased attention from scientists [27]. ...
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It is not easy for the hotel industry to develop a new business model. To find new consumers, Taiwan’s hotel industry has learned from the successful experience of internal restaurants and set up affiliated restaurants. The innovative business model has become an important niche for grasping key technologies and expanding advantages in terms of food and beverage management outside the hotel building. Based on this, and on the application of resource theory, this research is based on the authors’ previous research results which used resource-based theories as the basis to develop evaluation dimensions and criteria. This article continues this aspect and model, and merges MCDM models such as DEMATEL and DANP methods to formulate a research evaluation standard system for affiliated restaurants. According to the research results, there are four resource dimensions and eight measurement indicators for the development of key resources for affiliated restaurants; the importance of the four resources is in the following order: organizational ability, personal ability, tangible assets, and intangible assets, and the first two are the “causes” in the causal relationship. The important order of the eight measurement indicators is organizational resources, human resources, financial resources, physical resources, brand/business reputation resources, marketing resources, technical resources, and relationship resources; among them, human resources and financial resources are the most important factors which are the “causes” in the causal relationship. This study uses a multi-criteria decision-making model to explore the resource application, evaluation, and importance ranking of hotel development for affiliated restaurants, which provides a benchmark for the hotel industry to establish affiliated restaurants as an innovative business model. The study results can be referred to for the future and sustainable development of the hotel industry.