Emerging technologies and new business models: a review on disruptive business models
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paper_title: Disruptive Innovation: In Need of Better Theory†

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Christensen’s (1997) original theory focused on disruptive technologies. Over time, the same theory has been used to explain all kinds of disruptive innovations. This is a mistake. Different kinds of innovations have different competitive effects and produce different kinds of markets. They should be treated as distinct phenomena. This article summarizes what the academic literature has to say about two specific types of disruptive innovations—namely, business-model innovations and radical (new-to-theworld) product innovations. It argues that even though they share many similarities to what Christensen calls disruptive innovations, they are still different phenomena: they create different kinds of markets, pose radically different challenges for established firms, and have radically different implications for managers. It is only when the topic of disruptive innovation is broken down into these finer categories that progress can be made. In a recent survey of the literature, Danneels (2004) examined the theory behind disruptive technological innovation and identified a number of issues that require further and deeper exploration. One of these issues is the actual definition of disruptive innovation. It appears that despite the widespread use of the term by both managers and academics, there is still a rather unclear understanding of what constitutes disruptive innovation. In its original formulation, Christensen (1997) focused primarily on technological innovation and explored how new technologies came to surpass seemingly superior technologies in a market. Over time, Christensen widened the application of the term to include not only technologies but also products and business models. For example, Christensen and Raynor (2003) list as disruptive innovations such disparate things as discount department stores; lowprice, point-to-point airlines; cheap, mass-market products such as power tools, copiers, and motorcycles; and online businesses such as bookselling, education, brokerage, and travel agents. Although I agree that all of these innovations are disruptive to incumbents, treating them all as one and the same has actually confused matters considerably. A disruptive technological innovation is a fundamentally different phenomenon from a disruptive business-model innovation as well as a disruptive product innovation: These innovations arise in different ways, have different competitive effects, and require different responses from incumbents. Lumping all types of disruptive innovations into one category simply mixes apples with oranges, which has serious implications on how we study disruptive innovations in the future (Henderson and Clark, 1990). To appreciate this point, this article summarizes what the academic literature has to say about two specific types of disruptive innovations—namely, business-model innovations and radical product innovations—and then demonstrates that even though both are disruptive innovations, they nevertheless pose radically different challenges for established firms and have radically different implications for managers.
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paper_title: Business Models, Business Strategy and Innovation

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Whenever a business enterprise is established, it either explicitly or implicitly employs a particular business model that describes the design or architecture of the value creation, delivery, and capture mechanisms it employs. The essence of a business model is in defining the manner by which the enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit. It thus reflects management's hypothesis about what customers want, how they want it, and how the enterprise can organize to best meet those needs, get paid for doing so, and make a profit. The purpose of this article is to understand the significance of business models and explore their connections with business strategy, innovation management, and economic theory.
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paper_title: How do Latecomer Firms Capture Value From Disruptive Technologies? A Secondary Business-Model Innovation Perspective

paper_content:

To fill the research gap between extant theory of disruptive technology and latecomer firms' business-model innovation practices in emerging economies, we explore the new latecomer advantage implied in the phenomena of overshooting and nonconsuming. Based on inductive theory building with a comparative case study, we find that latecomer firms, though disadvantaged in technological capabilities and market resources, can successfully introduce disruptive technologies from advanced economies into emerging economies through secondary business-model innovations. They provide cheaper, simpler, but good enough products or services that ordinary citizens in emerging economies can easily afford and access. How do latecomer firms capture value from disruptive technologies within the emerging economies context? While articulating an appropriate value proposition that is attractive for local customers is of great importance for those latecomer firms, they should also fully utilize strategic partners' complementary assets to build a unique value network embedded within local infrastructure. Thus, those latecomer firms tactfully bypass the substantial first-mover advantages and global advantages of multinational incumbents, and leverage their latecomer advantages such as low price and local savvy. Thus, latecomer firms should not ignore those disruptive growth opportunities within the large population of mass customers and nonconsumers in emerging economies.
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paper_title: Understanding The Disruptive Business Model Innovation Of E-Business Microcredit: A Comparative Case Study In China

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ABSTRACTThis paper uses an in-depth case study approach to compare and analyze e-business microcredit firms and traditional bank business models in China, employing a business model template redefined as an analytical tool. The results suggest that the EMF business model has typical disruptive innovation characteristics, shedding new light on the definition and criteria of disruptive business model innovation as little research has done on its systematic analysis. This study also presents a holistic conceptual framework for four triggers constituting their business model difference, inclusive of non-mainstream customer positioning, inclusive platform-based infrastructure, platform-based leveraged capability, and user experience-centered value proposition.
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paper_title: Disruptive information technology innovations and the cost of equity capital: The moderating effect of CEO incentives and institutional pressures

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We examined whether disruptive IT innovations affected equity financing cost.We used longitudinal data from 146 U.S. listed firms that adopted RFID.RFID adoption significantly reduced the cost of equity capital for adopting firms.The reduction was larger under greater CEO incentives and coercive pressure. Disruptive information technology (IT) innovations not only present opportunities, but also cause uncertain impacts on firm risk that affects the equity financing cost of a firm. This paper used longitudinal data from 146 U.S. listed firms that adopted radio frequency identification (RFID), a disruptive technology that enables supply chain process innovation. Results show that firms that adopted RFID significantly reduced their cost of equity capital, and the reduction was stronger for firms with greater CEO incentive-based compensation and coercive pressure. The findings help managers make strategies that maximize the benefits of disruptive IT innovations.
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paper_title: Disruptive innovation in health care delivery: a framework for business-model innovation.

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Disruptive innovation has brought affordability and convenience to customers in a variety of industries. However, health care remains expensive and inaccessible to many because of the lack of business-model innovation. This paper explains the theory of disruptive innovation and describes how disruptive technologies must be matched with innovative business models. The authors present a framework for categorizing and developing business models in health care, followed by a discussion of some of the reasons why disruptive innovation in health care delivery has been slow.
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paper_title: Darwin and the demon: innovating within established enterprises.

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Innovation comes in many forms - products, processes, marketing, business models, and more. Which kind should you be pursuing? It depends: Where are you in your product category's life cycle?
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paper_title: BUSINESS MODEL PATTERNS FOR DISRUPTIVE TECHNOLOGIES

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Companies nowadays face a myriad of business opportunities as a direct consequence of manifold disruptive technology developments. As a basic characteristic, disruptive technologies lead to a severe shift in value-creation networks giving rise to new market segments. One of the key challenges is to anticipate the business logics within these nascent and formerly unknown markets. Business model patterns promise to tackle this challenge. They can be interpreted as proven business model elements, which reveal valuable insights about pursued business logics. The approach in general helps increasing efficiency in business models design processes, but especially lacks methodological support so far. The paper at hand, therefore presents a methodology for pattern-based business model design simplifying development and analysis of business models for disruptive technologies. The methodology has been validated within several industrial projects.
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paper_title: The business model dilemma of technology shifts

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Technology shifts are lethal to many manufacturing companies. Previous research indicates that this is not purely a problem of technological innovation, but is also closely related to the inertia of business models and business model innovation. This paper inquires into the dynamics of this intersection between technology and business models. Anchored in a case study in the automotive industry, it reveals how a potential technology shift constitutes a business model dilemma for firms leading in the existing technology. The paper illustrates why technology shifts are so difficult to master and contributes to theory by suggesting that managing technology shifts does not require either technology or service innovation in order to create a viable business model, but instead a compound of both. Furthermore, the paper applies a business model perspective to illustrate the explanatory power of analyzing the challenges of technology shifts faced by incumbent firms.
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paper_title: Competing for the future

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Preface to the Paperback Edition Preface and Acknowledgments 1. Getting Off the Treadmill 2. How Competition for the Future Is Different 3. Learning to Forget 4. Competing for Industry Foresight 5. Crafting Strategic Architecture 6. Strategy as Stretch 7. Strategy as Leverage 8. Competing to Shape the Future 9. Building Gateways to the Future 10. Embedding the Core Competence Perspective 11. Securing the Future 12. Thinking Differently Notes Bibliography Index About the Authors
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paper_title: A Firm-Level Analysis on the Relative Difference between Technology-Driven and Market-Driven Disruptive Business Model Innovations

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Using the business model concept as a theoretical framework, this paper examines the relative disruptiveness potential between technology‐driven and market‐driven innovations. The study analyses retrospectively four case studies comprising two technologically sophisticated IT innovations and two technologically less sophisticated market‐driven innovations starting from their inception to the point of disruption over a period of 5–15 years. It finds that, while the disruption process of technology‐driven innovation conforms to the patterns predicted by disruptive innovation theory, the disruption process of market‐driven disruptive business model innovation depicts a bottleneck shape, where the positive effects of initial strategic choice, model specialization and investments on disruptiveness potential reach the maximum level and start to stagnate due to the same initial strategic choice and cost factors. Implications for researchers and practitioners are discussed.
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paper_title: A framework for analysing the effects of new, potentially disruptive technology on a business model case: Bluetooth

paper_content:

This paper presents a framework for analysing the effects of a new, potentially disruptive technology on a firm's business model using Bluetooth technology and its possible effects on an operator's business model as an exploratory case example. The theoretical section discusses the classifications of new technologies and the conceptual relationships between such concepts as disruptive technologies and discontinuous innovations. The different definitions of the concept of business model are presented and the concept is set into the context of the resource-based view of the firm with modifications. The propositional framework is used to estimate both the disruptiveness potential of a new technology and the strategic importance of a new technology, both of which determine the possible amount of radical changes in a firm's business model.
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paper_title: Business model innovation breakthrough moves

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While there are multiple breakthrough moves a company can adapt for business model innovation, leaders need to focus more on improving their skills in this area, for example by paying more attention to innovations in other industries. The potential to add business model innovation breakthroughs in a particular company is often largely untapped, but companies that make this activity a priority will gain large, sustained advantages over competitors.
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paper_title: The business model: Theoretical roots, recent developments, and future research

paper_content:

The paper provides a broad and multifaceted review of the received literature on business models, in which we attempt to explore the origin of the construct and to examine the business model concept through multiple disciplinary and subject-matter lenses. The review reveals that scholars do not agree on what a business model is, and that the literature is developing largely in silos, according to the phenomena of interest to the respective researchers. However, we also found some emerging common ground among students of business models. Specifically, i) the business model is emerging as a new unit of analysis; ii) business models emphasize a system-level, holistic approach towards explaining how firms do business; iii) organizational activities play an important role in the various conceptualizations of business models that have been proposed, and iv) business models seek not only to explain the ways in which value is captured but also how it is created. These emerging themes could serve as important catalysts towards a more unified study of business models.
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paper_title: Analyzing the past to prepare for the future: Writing a literature review

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A review of prior, relevant literature is an essential feature of any academic project. An effective review creates a firm foundation for advancing knowledge. It facilitates theory development, closes areas where a plethora of research exists, and uncovers areas where research is needed.
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paper_title: Business Models, Business Strategy and Innovation

paper_content:

Whenever a business enterprise is established, it either explicitly or implicitly employs a particular business model that describes the design or architecture of the value creation, delivery, and capture mechanisms it employs. The essence of a business model is in defining the manner by which the enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit. It thus reflects management's hypothesis about what customers want, how they want it, and how the enterprise can organize to best meet those needs, get paid for doing so, and make a profit. The purpose of this article is to understand the significance of business models and explore their connections with business strategy, innovation management, and economic theory.
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paper_title: Business Models for Internet-Based E-Commerce: An Anatomy

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The success of Internet-based businesses in the business-to-customer segment in recent years has been impressive. It is widely projected that the business-to-business segment is poised for a spectacular growth as well. However, a consistent definition and a framework for a business model for Internet-based business is still non-existent. This article proposes a three-dimensional framework for defining a business model and applies it to the emerging market structure. It also identifies certain factors that can guide organizations in their choice of an appropriate business model.
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paper_title: How do Latecomer Firms Capture Value From Disruptive Technologies? A Secondary Business-Model Innovation Perspective

paper_content:

To fill the research gap between extant theory of disruptive technology and latecomer firms' business-model innovation practices in emerging economies, we explore the new latecomer advantage implied in the phenomena of overshooting and nonconsuming. Based on inductive theory building with a comparative case study, we find that latecomer firms, though disadvantaged in technological capabilities and market resources, can successfully introduce disruptive technologies from advanced economies into emerging economies through secondary business-model innovations. They provide cheaper, simpler, but good enough products or services that ordinary citizens in emerging economies can easily afford and access. How do latecomer firms capture value from disruptive technologies within the emerging economies context? While articulating an appropriate value proposition that is attractive for local customers is of great importance for those latecomer firms, they should also fully utilize strategic partners' complementary assets to build a unique value network embedded within local infrastructure. Thus, those latecomer firms tactfully bypass the substantial first-mover advantages and global advantages of multinational incumbents, and leverage their latecomer advantages such as low price and local savvy. Thus, latecomer firms should not ignore those disruptive growth opportunities within the large population of mass customers and nonconsumers in emerging economies.
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paper_title: Market imperfections, opportunity and sustainable entrepreneurship

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This research develops the argument that four types of market imperfections (i.e., inefficient firms, externalities, flawed pricing mechanisms and information asymmetries) at once contribute to environmental degradation and that they also provide significant opportunities for the creation of radical technologies and innovative business models. We show that these opportunities establish the foundations for an emerging model of sustainable entrepreneurship, one which enables founders to obtain entrepreneurial rents while simultaneously improving local and global social and environmental conditions. To advance this new field, we offer suggestions for a research agenda focusing on two areas: the relationship between market imperfections and entrepreneurial opportunities, and the emerging field of sustainable entrepreneurship.
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paper_title: Why business models matter.

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"Business model" was one of the great buzz-words of the Internet boom. A company didn't need a strategy, a special competence, or even any customers--all it needed was a Web-based business model that promised wild profits in some distant, ill-defined future. Many people--investors, entrepreneurs, and executives alike--fell for the fantasy and got burned. And as the inevitable counterreaction played out, the concept of the business model fell out of fashion nearly as quickly as the .com appendage itself. That's a shame. As Joan Magretta explains, a good business model remains essential to every successful organization, whether it's a new venture or an established player. To help managers apply the concept successfully, she defines what a business model is and how it complements a smart competitive strategy. Business models are, at heart, stories that explain how enterprises work. Like a good story, a robust business model contains precisely delineated characters, plausible motivations, and a plot that turns on an insight about value. It answers certain questions: Who is the customer? How do we make money? What underlying economic logic explains how we can deliver value to customers at an appropriate cost? Every viable organization is built on a sound business model, but a business model isn't a strategy, even though many people use the terms interchangeably. Business models describe, as a system, how the pieces of a business fit together. But they don't factor in one critical dimension of performance: competition. That's the job of strategy. Illustrated with examples from companies like American Express, EuroDisney, WalMart, and Dell Computer, this article clarifies the concepts of business models and strategy, which are fundamental to every company's performance.
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paper_title: Disruptive innovation in health care delivery: a framework for business-model innovation.

paper_content:

Disruptive innovation has brought affordability and convenience to customers in a variety of industries. However, health care remains expensive and inaccessible to many because of the lack of business-model innovation. This paper explains the theory of disruptive innovation and describes how disruptive technologies must be matched with innovative business models. The authors present a framework for categorizing and developing business models in health care, followed by a discussion of some of the reasons why disruptive innovation in health care delivery has been slow.
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paper_title: Y.: Comparing two Business Model Ontologies for Designing e-Business Models and Value Constellations

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Business models have been an important topic in various disciplines and particularly ebusiness. Yet, little research has tempted to compare and integrate the different business model approaches. This paper compares two business model ontologies, the Business Model Ontology BMO and the e3value ontology, for the design of business models and value constellations. For that purpose it introduces a framework that allows the comparison of different conceptual approaches to business models. The two ontologies are illustrated through a case study in the domain of rights music management. The outcome of the analysis is twofold. Firstly, it permits a better understanding of business model research. Secondly, it highlights the possible paths to integrate the two ontologies in order to improve the representation, design, and analysis of business models.
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paper_title: Conceptualising business models : definitions, frameworksand classifications

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The business model concept is gaining traction in different disciplines but is still criticized for being fuzzy and vague and lacking consensus on its definition and compositional elements. In this paper we set out to advance our understanding of the business model concept by addressing three areas of foundational research: business model definitions, business model elements, and business model archetypes. We define a business model as a representation of the value logic of an organization in terms of how it creates and captures customer value. This abstract and generic definition is made more specific and operational by the compositional elements that need to address the customer, value proposition, organizational architecture (firm and network level) and economics dimensions. Business model archetypes complement the definition and elements by providing a more concrete and empirical understanding of the business model concept. The main contributions of this paper are (1) explicitly including the customer value concept in the business model definition and focussing on value creation, (2) presenting four core dimensions that business model elements need to cover, (3) arguing for flexibility by adapting and extending business model elements to cater for different purposes and contexts (e.g. technology, innovation, strategy),(4) stressing a more systematic approach to business model archetypes by using business model elements for their description, and (5) suggesting to use business model archetype research for the empirical exploration and testing of business model elements and their relationships.
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paper_title: Venture Capitalists' Evaluations of Start-Up Teams: Trade-Offs, Knock-Out Criteria, and the Impact of VC Experience

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The start-up team plays a key role in venture capitalists' evaluations of venture proposals. Our findings go beyond existing research, first by providing a detailed exploration of VCs' team evaluation criteria, and second by investigating the moderator variable of VC experience. Our results reveal utility trade-offs between team characteristics and thus provide answers to questions such as “What strength does it take to compensate for a weakness in characteristic A?” Moreover, our analysis reveals that novice VCs tend to focus on the qualifications of individual team members, while experienced VCs focus more on team cohesion. Data were obtained in a conjoint experiment with 51 professionals in VC firms and analyzed using discrete choice econometric models.
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paper_title: Business Models: A Discovery Driven Approach

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The business model concept offers strategists a fresh way to consider their options in uncertain, fast-moving and unpredictable environments. In contrast to conventional assumptions, recognizing that more new business models are both feasible and actionable than ever before is creating unprecedented opportunities for today's organizations. However, unlike conventional strategies that emphasize analysis, strategies that aim to discover and exploit new models must engage in significant experimentation and learning – a ‘discovery driven,’ rather than analytical approach.
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paper_title: Disruptive Technologies: A Business Model Perspective on Cloud Computing

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A viable business model is crucial for the successful commercialisation of disruptive technologies. The cloud computing industry provides an ideal example for exploring how various elements of a business model contribute to a product's success (or failure). We examine how Amazon.com, Salesforce.com and Siebel responded to the disruptive power of the cloud computing technology. Our findings suggest disruptive technology per se is not the reason for the collapse of large corporations, but rather the failure to adapt or create new business models to incorporate novel technology. Our findings have direct implications for strategic managers and entrepreneurs seeking to leverage disruptive technologies through the right business model.
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paper_title: The entrepreneur's business model: toward a unified perspective

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Highly emphasized in entrepreneurial practice, business models have received limited attention from researchers. No consensus exists regarding the definition, nature, structure, and evolution of business models. Still, the business model holds promise as a unifying unit of analysis that can facilitate theory development in entrepreneurship. This article synthesizes the literature and draws conclusions regarding a number of these core issues. Theoretical underpinnings of a firm’s business model are explored. A six-component framework is proposed for characterizing a business model, regardless of venture type. These components are applied at three different levels. The framework is illustrated using a successful mainstream company. Suggestions are made regarding the manner in which business models might be expected to emerge and evolve over time.
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paper_title: Inscribing value on business model innovations: Insights from industrial projects commercializing disruptive digital innovations

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Abstract In this paper we seek to show how marketing activities inscribe value on business model innovation, representative of an act, or sequence of socially interconnecting acts. Theoretically we ask two interlinked questions: (1) how can value inscriptions contribute to business model innovations? (2) how can marketing activities support the inscription of value on business model innovations? Semi-structured in-depth interviews were conducted with the thirty-seven members from across four industrial projects commercializing disruptive digital innovations. Various individuals from a diverse range of firms are shown to cast relevant components of their agency and knowledge on business model innovations through negotiation as an ongoing social process. Value inscription is mutually constituted from the marketing activities, interactions and negotiations of multiple project members across firms and functions to counter destabilizing forces and tensions arising from the commercialization of disruptive digital innovations. This contributes to recent conceptual thinking in the industrial marketing literature, which views business models as situated within dynamic business networks and a context-led evolutionary process. A contribution is also made to debate in the marketing literature around marketing's boundary-spanning role, with marketing activities shown to span and navigate across functions and firms in supporting value inscriptions on business model innovations.
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paper_title: The power of business models

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Over the past few years, bbusiness modelsQ have surged into the management vocabulary. But, while it has become quite fashionable to discuss business models, there is still much confusion about what business models are and how they can be used. In fact, business models can serve a positive and powerful role in corporate management. While other authors have recently offered definitions of bbusiness model,Q none appear to be generally accepted. This lack of consensus may in part be attributed to interest in the concept from a wide range of disciplines, all of which have found a connection to the term. To help managers better understand business models, this paper reviews the extant literature and identifies and classifies the components of business models cited therein. Components were classified into four primary categories: strategic choices, the value network, creating value, and capturing value. To address the absence of a generally accepted definition of a business model, a new definition that integrates and synthesizes the earlier work is offered. Based on the proposed definition, business models are then contrasted with strategy. Four problems associated with business models are also discussed. D 2004 Kelley School of Business, Indiana University. All rights reserved.
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paper_title: The Business Model in Practice and its Implications for Entrepreneurship Research

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While the term “business model” has gained widespread use in the practice community, the academic literature on this topic is fragmented and confounded by inconsistent definitions and construct boundaries. In this study, we review prior research and reframe the business model with an entrepreneurial lens. We report on a discourse analysis of 151 surveys of practicing managers to better understand their conceptualization of a business model. We find that the underlying dimensions of the business model are resource structure, transactive structure, and value structure, and discuss the nature and implications of dimensional dominance for firm characteristics and behavior. These findings provide new directions for theory development and empirical studies in entrepreneurship by linking the business model to entrepreneurial cognition, opportunity co-creation and organizational outcomes.
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paper_title: A framework for analysing the effects of new, potentially disruptive technology on a business model case: Bluetooth

paper_content:

This paper presents a framework for analysing the effects of a new, potentially disruptive technology on a firm's business model using Bluetooth technology and its possible effects on an operator's business model as an exploratory case example. The theoretical section discusses the classifications of new technologies and the conceptual relationships between such concepts as disruptive technologies and discontinuous innovations. The different definitions of the concept of business model are presented and the concept is set into the context of the resource-based view of the firm with modifications. The propositional framework is used to estimate both the disruptiveness potential of a new technology and the strategic importance of a new technology, both of which determine the possible amount of radical changes in a firm's business model.
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paper_title: Business model configurations: a five-V framework to map out potential innovation routes

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Purpose ::: ::: ::: ::: ::: Despite the common understanding that business model (BM) innovation is of vital importance for securing competitive positioning in the market place, managers still seem to lack appropriate frameworks and tools which can support them in renewing and rejuvenating their company’s existing BM. The purpose of this paper is to develop a structural and comprehensive toolbox of available BM configurations, from which companies can choose, to innovate their BM upon, and to design an appropriate BM innovation framework which can facilitate them in re-designing, selecting, and implementing new BM configuration possibilities. ::: ::: ::: ::: ::: Design/methodology/approach ::: ::: ::: ::: ::: A structured literature review is conducted to identify all the relevant BM configurations. Then, a value driver analysis is performed to group these BM configurations into appropriate categories. Finally, an ontological classification scheme and a structural and workable process, i.e. a BM innovation framework, are inductively developed. ::: ::: ::: ::: ::: Findings ::: ::: ::: ::: ::: The paper systematically develops a list of 71 BM configurations and groups them into an ontological classification scheme according to five groups: Value Proposition, Value Segment, Value Configuration, Value Network, and Value Capture. The paper illustrates how the BM innovation framework, enabled by this ontological classification scheme, provides a platform for identifying BM innovation routes for companies, allowing managers to envisage radical, disruptive, and new-to-the-world BM configuration ideas, or apply existing configurations from other industrial settings in what may be deemed new-to-the-industry innovation. ::: ::: ::: ::: ::: Originality/value ::: ::: ::: ::: ::: The paper enriches the amount of potential BM configurations available for managers to choose from when innovating their BMs, and extends the analysis to five core BM configuration categories. Moreover, the BM innovation framework suggested highlights the strong relationships among the value drivers, thus presenting the opportunity for managers to assess potential conflicts or synergies between various value drivers, and to align the BM management process as a whole.
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paper_title: The business model: Theoretical roots, recent developments, and future research

paper_content:

The paper provides a broad and multifaceted review of the received literature on business models, in which we attempt to explore the origin of the construct and to examine the business model concept through multiple disciplinary and subject-matter lenses. The review reveals that scholars do not agree on what a business model is, and that the literature is developing largely in silos, according to the phenomena of interest to the respective researchers. However, we also found some emerging common ground among students of business models. Specifically, i) the business model is emerging as a new unit of analysis; ii) business models emphasize a system-level, holistic approach towards explaining how firms do business; iii) organizational activities play an important role in the various conceptualizations of business models that have been proposed, and iv) business models seek not only to explain the ways in which value is captured but also how it is created. These emerging themes could serve as important catalysts towards a more unified study of business models.
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paper_title: The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies

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This paper explores the role of the business model in capturing value from early stage technology. A successful business model creates a heuristic logic that connects technical potential with the realization of economic value. The business model unlocks latent value from a technology, but its logic constrains the subsequent search for new, alternative models for other technologies later on--an implicit cognitive dimension overlooked in most discourse on the topic. We explore the intellectual roots of the concept, offer a working definition and show how the Xerox Corporation arose by employing an effective business model to commercialize a technology rejected by other leading companies of the day. We then show the long shadow that this model cast upon Xerox's later management of selected spin-off companies from Xerox PARC. Xerox evaluated the technical potential of these spin-offs through its own business model, while those spin-offs that became successful did so through evolving business models that came to differ substantially from that of Xerox. The search and learning for an effective business model in failed ventures, by contrast, were quite limited. Copyright 2002, Oxford University Press.
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paper_title: The Business Model: Recent Developments and Future Research

paper_content:

This article provides a broad and multifaceted review of the received literature on business models in which the authors examine the business model concept through multiple subject-matter lenses. The review reveals that scholars do not agree on what a business model is and that the literature is developing largely in silos, according to the phenomena of interest of the respective researchers. However, the authors also found emerging common themes among scholars of business models. Specifically, (1) the business model is emerging as a new unit of analysis; (2) business models emphasize a system-level, holistic approach to explaining how firms “do business”; (3) firm activities play an important role in the various conceptualizations of business models that have been proposed; and (4) business models seek to explain how value is created, not just how it is captured. These emerging themes could serve as catalysts for a more unified study of business models.
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paper_title: Emerging e-commerce business models : an analysis of case studies from West Lothian , Scotland

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The paper surveys existing theory of e‐commerce business models and associated conceptual instruments. It employs three original case studies of SMEs using e‐commerce to demonstrate the dynamic nature of e‐commerce business models for networked SMEs. The idea of evolutionary business planning based upon Molina’s sociotechnical constituency approach and the diamond of alignment is introduced.
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paper_title: Incumbents’ responses to disruptive business model innovation: the moderating role of technology vs. market-driven innovation

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Current research argues that incumbents should respond to disruptive innovation by setting up a separate business unit. This recommendation stems from research predominantly carried out on disruptive technologies in high-tech industries but whether incumbents respond differently to other types of disruptive business model innovations and whether the type of response leads to a difference in performance have not been empirically analysed. By collecting data from 88 strategic business units (SBUs) and dividing the sample into incumbents responding to disruptive technology against those responding to disruptive market-driven innovations, the study shows that the latter type of firms can succeed in managing both disruptive and sustaining innovations without setting up structurally separated business units. We discuss the implications of our results and highlight areas for further research.
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paper_title: DISRUPTIVE TECHNOLOGIES: AN EXPANDED VIEW

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The term "disruptive technology" as coined by Christensen (1997, The Innovator's Dilemma; How New Technologies Cause Great Firms to Fail. Harvard Business School Press) refers to a new technology having lower cost and performance measured by traditional criteria, but having higher ancillary performance. Christensen finds that disruptive technologies may enter and expand emerging market niches, improving with time and ultimately attacking established products in their traditional markets. This conception, while useful, is also limiting in several important ways.By emphasising only "attack from below" Christensen ignores other discontinuous patterns of change, which may be of equal or greater importance (Utterback, 1994, Mastering the Dynamics of Innovation. Harvard Business School Press; Acee, 2001, SM Thesis, Massachusetts Institute of Technology). Further, the true importance of disruptive technology, even in Christensen's conception of it is not that it may displace established products. Rather, it is a powerful means for enlarging and broadening markets and providing new functionality.In Christensen's theory of disruptive technology, the establishment of a new market segment acts to channel the new product to the leading edge of the market or the early adopters. Once the innovation reaches the early to late majority of users it begins to compete with the established product in its traditional market. Here we present an alternative scenario in which a higher performing and higher priced innovation is introduced into the most demanding established market segments and later moves towards the mass market.
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paper_title: The innovator's prescription: a disruptive solution for health care

paper_content:

A groundbreaking prescription for health care reform--from a legendaryleader in innovation ...Our health care system is in critical condition. Each year, fewer Americans can afford it, fewer businesses can provide it, and fewer government programs can promise it for future generations. We need a cure, and we need it now. Harvard Business School's Clayton M. Christensen-whose bestselling The Innovator's Dilemma revolutionized the business world-presents The Innovator's Prescription, a comprehensive analysis of the strategies that will improvehealth care and make it affordable. Christensen applies the principles of disruptive innovation to the broken health care system with two pioneers in the field-Dr. Jerome Grossman and Dr. Jason Hwang. Together, they examine arange of symptoms and offer proven solutions. YOU'LL DISCOVER HOW "Precision medicine" reduces costs and makes good on the promise of personalized care Disruptive business models improve quality, accessibility, and affordability by changing the way hospitals and doctors work Patient networks enable better treatment of chronic diseases Employers can change the roles they play in health care to compete effectively in the era of globalization Insurance and regulatory reforms stimulate disruption in health care
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paper_title: Reinventing Your Business Model

paper_content:

When does an established company need a new business model to capture a game-changing opportunity? Only companies that understand how - and why - their current model works can answer that question.
---
paper_title: How do Latecomer Firms Capture Value From Disruptive Technologies? A Secondary Business-Model Innovation Perspective

paper_content:

To fill the research gap between extant theory of disruptive technology and latecomer firms' business-model innovation practices in emerging economies, we explore the new latecomer advantage implied in the phenomena of overshooting and nonconsuming. Based on inductive theory building with a comparative case study, we find that latecomer firms, though disadvantaged in technological capabilities and market resources, can successfully introduce disruptive technologies from advanced economies into emerging economies through secondary business-model innovations. They provide cheaper, simpler, but good enough products or services that ordinary citizens in emerging economies can easily afford and access. How do latecomer firms capture value from disruptive technologies within the emerging economies context? While articulating an appropriate value proposition that is attractive for local customers is of great importance for those latecomer firms, they should also fully utilize strategic partners' complementary assets to build a unique value network embedded within local infrastructure. Thus, those latecomer firms tactfully bypass the substantial first-mover advantages and global advantages of multinational incumbents, and leverage their latecomer advantages such as low price and local savvy. Thus, latecomer firms should not ignore those disruptive growth opportunities within the large population of mass customers and nonconsumers in emerging economies.
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paper_title: Business Model as an Inducer of Disruptive Innovations: The Case of Gol Airlines

paper_content:

This study was undertaken to investigate the premises that the success of disruptive innovation is related to the business model adopted by organizations. An analysis of five business models from the literature review - Bovet and Martha (2000), Applegate (2001), Chesbrough and Rosenbloom (2002), Osterwalder and Pigneur (2010), and Rodrigues, Maccari and Lenzi (2012) – was conducted based on the case of the Brazilian Gol Airlines who is recognized as a success business that promoted a disruptive innovation. The results suggest that the assertive choice of the business model can leverage innovation processes , and two of the models listed are adherence to the case studied. Keywords: Disruptive Innovation; Business Model; Innovation Elements; Strategy; Gol Airlines.
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paper_title: Disruptive innovation in health care delivery: a framework for business-model innovation.

paper_content:

Disruptive innovation has brought affordability and convenience to customers in a variety of industries. However, health care remains expensive and inaccessible to many because of the lack of business-model innovation. This paper explains the theory of disruptive innovation and describes how disruptive technologies must be matched with innovative business models. The authors present a framework for categorizing and developing business models in health care, followed by a discussion of some of the reasons why disruptive innovation in health care delivery has been slow.
---
paper_title: The Innovator's Solution: Creating and Sustaining Successful Growth.

paper_content:

The article presents a review of the book “The Innovators Solution: Creating and Sustaining Successful Growth,” by Clayton M. Christensen and Michael E. Raynor.
---
paper_title: The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail

paper_content:

A Wall Street Journal and Businessweek bestseller. Named by Fast Company as one of the most influential leadership books in its Leadership Hall of Fame. An innovation classic. From Steve Jobs to Jeff Bezos, Clay Christensens work continues to underpin todays most innovative leaders and organizations. The bestselling classic on disruptive innovation, by renowned author Clayton M. Christensen. His work is cited by the worlds best-known thought leaders, from Steve Jobs to Malcolm Gladwell. In this classic bestsellerone of the most influential business books of all timeinnovation expert Clayton Christensen shows how even the most outstanding companies can do everything rightyet still lose market leadership. Christensen explains why most companies miss out on new waves of innovation. No matter the industry, he says, a successful company with established products will get pushed aside unless managers know how and when to abandon traditional business practices. Offering both successes and failures from leading companies as a guide, The Innovators Dilemma gives you a set of rules for capitalizing on the phenomenon of disruptive innovation. Sharp, cogent, and provocativeand consistently noted as one of the most valuable business ideas of all time The Innovators Dilemma is the book no manager, leader, or entrepreneur should be without.
---
paper_title: BUSINESS MODEL PATTERNS FOR DISRUPTIVE TECHNOLOGIES

paper_content:

Companies nowadays face a myriad of business opportunities as a direct consequence of manifold disruptive technology developments. As a basic characteristic, disruptive technologies lead to a severe shift in value-creation networks giving rise to new market segments. One of the key challenges is to anticipate the business logics within these nascent and formerly unknown markets. Business model patterns promise to tackle this challenge. They can be interpreted as proven business model elements, which reveal valuable insights about pursued business logics. The approach in general helps increasing efficiency in business models design processes, but especially lacks methodological support so far. The paper at hand, therefore presents a methodology for pattern-based business model design simplifying development and analysis of business models for disruptive technologies. The methodology has been validated within several industrial projects.
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paper_title: Disruptive Technologies: Catching the Wave

paper_content:

Joseph L. Bower and Clayton M. Christensen explain how Disruptive Technologies work and the repercussions they have on industry leaders. Disruptive Technologies are dangerous because initially underestimated they end up coopting a large majority of that industry's clients when further developed. This article explains what makes a Disruptive Technology so dangerous and what current industry leaders can do to compete and keep their consumer base.
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paper_title: Disruptive Technologies: A Business Model Perspective on Cloud Computing

paper_content:

A viable business model is crucial for the successful commercialisation of disruptive technologies. The cloud computing industry provides an ideal example for exploring how various elements of a business model contribute to a product's success (or failure). We examine how Amazon.com, Salesforce.com and Siebel responded to the disruptive power of the cloud computing technology. Our findings suggest disruptive technology per se is not the reason for the collapse of large corporations, but rather the failure to adapt or create new business models to incorporate novel technology. Our findings have direct implications for strategic managers and entrepreneurs seeking to leverage disruptive technologies through the right business model.
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paper_title: Corporate Entrepreneurship, Disruptive Business Model Innovation Adoption, and Its Performance: The Case of the Newspaper Industry

paper_content:

Recently, Internet and digitization, along with major news and information companies, have disrupted traditional newspaper companies' business models, and raised serious concerns about the future viability of the print newspaper industry. This study provides a theoretical viewpoint, supported by empirical evidence from the newspaper industry, on how prominent corporate entrepreneurship attributes impact disruptive business model innovation adoption, and how such adoption impacts business model performance. It finds that, while autonomy, risk-taking, and proactiveness do have positive associations with the extent of adoption of disruptive business model innovation, innovativeness does not. Further, disruptive business model innovation adoption has a nonlinear association with business model performance. We conclude the paper by discussing theoretical implications of the study and by providing strategies that entrepreneurs and technology managers can use to adjust their corporate entrepreneurship activities in their effort to successfully adopt disruptive business model innovation.
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paper_title: A Firm-Level Analysis on the Relative Difference between Technology-Driven and Market-Driven Disruptive Business Model Innovations

paper_content:

Using the business model concept as a theoretical framework, this paper examines the relative disruptiveness potential between technology‐driven and market‐driven innovations. The study analyses retrospectively four case studies comprising two technologically sophisticated IT innovations and two technologically less sophisticated market‐driven innovations starting from their inception to the point of disruption over a period of 5–15 years. It finds that, while the disruption process of technology‐driven innovation conforms to the patterns predicted by disruptive innovation theory, the disruption process of market‐driven disruptive business model innovation depicts a bottleneck shape, where the positive effects of initial strategic choice, model specialization and investments on disruptiveness potential reach the maximum level and start to stagnate due to the same initial strategic choice and cost factors. Implications for researchers and practitioners are discussed.
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paper_title: A framework for analysing the effects of new, potentially disruptive technology on a business model case: Bluetooth

paper_content:

This paper presents a framework for analysing the effects of a new, potentially disruptive technology on a firm's business model using Bluetooth technology and its possible effects on an operator's business model as an exploratory case example. The theoretical section discusses the classifications of new technologies and the conceptual relationships between such concepts as disruptive technologies and discontinuous innovations. The different definitions of the concept of business model are presented and the concept is set into the context of the resource-based view of the firm with modifications. The propositional framework is used to estimate both the disruptiveness potential of a new technology and the strategic importance of a new technology, both of which determine the possible amount of radical changes in a firm's business model.
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paper_title: Disruptive Technologies, Services, or Business Models?

paper_content:

Convergence in the realm of media, consumer electronics, computer technologies, and telecommunications has contributed to societal changes in terms of individual expectations and behavior leading to the re-appraisal of traditional market segments. Key innovations like the internet create a global platform that provides for new means in product and services configuration. This expands opportunities and threats in the business environment contributing to increased competition in a dynamic environment where traditional boundaries are shifting. In a world of converging technologies, increasing marketplace dynamics and rapid technological advances, new upcoming "disruptive technologies" such as Voice-over-IP (VoIP) pose threats to traditional telecommunications companies. Business leaders in order to succeed need to be "thinking outside the box". We introduce the concept of a business model as a tool in crafting strategy for the purpose of achieving sustainable innovation in the face of the reshaping of the industry and the market. We apply this model to the VoIP market and in particular the Skype technology and service. The significance of this contribution is that it highlights the importance of developing an innovative business model to take advantage of disruptive technologies. Our analysis of the dimensions of innovations shows that the more dimensions the greater the impact. ICT convergence is leading to a paradigm shift with innovation effects that are both effective and disruptive. Thus, leading to equally disruptive business models reshaping innovation strategy.
---
paper_title: Avoiding the Pitfalls of Emerging Technologies

paper_content:

Despite their superior resources, incumbents have a poor track record in developing and managing emerging technologies. Established firms are prone to delay participation and stick with the familiar too long. Even if these pitfalls are sidestepped, incumbents are often unwilling to make a full-fledged commitment and find it difficult to persist in the face of uncertainty and adversity. Some established firms have been able to avoid these pitfalls by: attending closely to signals from the periphery of their markets; investing in a learning capacity so there is a diversity of viewpoints that challenge prevailing mind-sets and myopic views of new ventures; maintaining their flexibility by adopting a real options perspective, which lets the firm make informed investments when the time is right; and organizationally separating the fledging initiative pursuing the emerging technology from the mainstream activities.
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paper_title: FROM EXPERIENCE: Disruptive Innovation and the Need for Disruptive Intellectual Asset Strategy

paper_content:

Disruption has become a popular business term, yet it is often used so loosely as to convey almost nothing of substance. Here a largely neglected factor is addressed: the role of intellectual assets in securing opportunities for or averting threats from disruptive innovations. While the literature explains why the decision-making systems in large established companies cause difficulty in responding effectively to disruptive innovation the generation of intellectual assets (e.g., patents, publications, trademarks) typically is not subject to the same cultural and structural barriers. Though it may be difficult to convince a business to invest millions in pursuit of a speculative disruptive innovation, it is much easier for a small team to gain support in pursuing low-cost intellectual assets in the name of mitigating potential threats. A two-pronged approach is proposed that builds on the authors' experience at Kimberly-Clark Corporation in dealing with disruptive threats and opportunities. The approach calls for generation of intellectual assets, often using small proactive teams, to (1) protect an existing business by reducing competitive risks from disruptive innovation, including the risk of new products with disruptive potential and the risk of associated competitive patents that might limit one's response; and (2) prepare for future new and disruptive business opportunities that could be protected or strengthened by the intellectual assets generated. Kimberly-Clark's growing experience with this approach suggests that it may be a valuable component of one's strategy for innovation and protection of the business.
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paper_title: Disruptive Innovation: In Need of Better Theory†

paper_content:

Christensen’s (1997) original theory focused on disruptive technologies. Over time, the same theory has been used to explain all kinds of disruptive innovations. This is a mistake. Different kinds of innovations have different competitive effects and produce different kinds of markets. They should be treated as distinct phenomena. This article summarizes what the academic literature has to say about two specific types of disruptive innovations—namely, business-model innovations and radical (new-to-theworld) product innovations. It argues that even though they share many similarities to what Christensen calls disruptive innovations, they are still different phenomena: they create different kinds of markets, pose radically different challenges for established firms, and have radically different implications for managers. It is only when the topic of disruptive innovation is broken down into these finer categories that progress can be made. In a recent survey of the literature, Danneels (2004) examined the theory behind disruptive technological innovation and identified a number of issues that require further and deeper exploration. One of these issues is the actual definition of disruptive innovation. It appears that despite the widespread use of the term by both managers and academics, there is still a rather unclear understanding of what constitutes disruptive innovation. In its original formulation, Christensen (1997) focused primarily on technological innovation and explored how new technologies came to surpass seemingly superior technologies in a market. Over time, Christensen widened the application of the term to include not only technologies but also products and business models. For example, Christensen and Raynor (2003) list as disruptive innovations such disparate things as discount department stores; lowprice, point-to-point airlines; cheap, mass-market products such as power tools, copiers, and motorcycles; and online businesses such as bookselling, education, brokerage, and travel agents. Although I agree that all of these innovations are disruptive to incumbents, treating them all as one and the same has actually confused matters considerably. A disruptive technological innovation is a fundamentally different phenomenon from a disruptive business-model innovation as well as a disruptive product innovation: These innovations arise in different ways, have different competitive effects, and require different responses from incumbents. Lumping all types of disruptive innovations into one category simply mixes apples with oranges, which has serious implications on how we study disruptive innovations in the future (Henderson and Clark, 1990). To appreciate this point, this article summarizes what the academic literature has to say about two specific types of disruptive innovations—namely, business-model innovations and radical product innovations—and then demonstrates that even though both are disruptive innovations, they nevertheless pose radically different challenges for established firms and have radically different implications for managers.
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paper_title: Business Model Innovation: Opportunities and Barriers

paper_content:

Companies commercialize new ideas and technologies through their business models. While companies may have extensive investments and processes for exploring new ideas and technologies, they often have little if any ability to innovate the business models through which these inputs will pass. This matters - the same idea or technology taken to market through two different business models will yield two different economic outcomes. So it makes good business sense for companies to develop the capability to innovate their business models. This paper explores the barriers to business model innovation, which previous academic research has identified as including conflicts with existing assets and business models, as well as cognition in understanding these barriers. Processes of experimentation and effectuation, and the successful leadership of organizational change must be brought to bear in order to overcome these barriers. Some examples of business model innovation are provided to underline its importance, in hopes of inspiring managers and academics to take these challenges on.
---
paper_title: Reinventing Your Business Model

paper_content:

When does an established company need a new business model to capture a game-changing opportunity? Only companies that understand how - and why - their current model works can answer that question.
---
paper_title: How do Latecomer Firms Capture Value From Disruptive Technologies? A Secondary Business-Model Innovation Perspective

paper_content:

To fill the research gap between extant theory of disruptive technology and latecomer firms' business-model innovation practices in emerging economies, we explore the new latecomer advantage implied in the phenomena of overshooting and nonconsuming. Based on inductive theory building with a comparative case study, we find that latecomer firms, though disadvantaged in technological capabilities and market resources, can successfully introduce disruptive technologies from advanced economies into emerging economies through secondary business-model innovations. They provide cheaper, simpler, but good enough products or services that ordinary citizens in emerging economies can easily afford and access. How do latecomer firms capture value from disruptive technologies within the emerging economies context? While articulating an appropriate value proposition that is attractive for local customers is of great importance for those latecomer firms, they should also fully utilize strategic partners' complementary assets to build a unique value network embedded within local infrastructure. Thus, those latecomer firms tactfully bypass the substantial first-mover advantages and global advantages of multinational incumbents, and leverage their latecomer advantages such as low price and local savvy. Thus, latecomer firms should not ignore those disruptive growth opportunities within the large population of mass customers and nonconsumers in emerging economies.
---
paper_title: Why business models matter.

paper_content:

"Business model" was one of the great buzz-words of the Internet boom. A company didn't need a strategy, a special competence, or even any customers--all it needed was a Web-based business model that promised wild profits in some distant, ill-defined future. Many people--investors, entrepreneurs, and executives alike--fell for the fantasy and got burned. And as the inevitable counterreaction played out, the concept of the business model fell out of fashion nearly as quickly as the .com appendage itself. That's a shame. As Joan Magretta explains, a good business model remains essential to every successful organization, whether it's a new venture or an established player. To help managers apply the concept successfully, she defines what a business model is and how it complements a smart competitive strategy. Business models are, at heart, stories that explain how enterprises work. Like a good story, a robust business model contains precisely delineated characters, plausible motivations, and a plot that turns on an insight about value. It answers certain questions: Who is the customer? How do we make money? What underlying economic logic explains how we can deliver value to customers at an appropriate cost? Every viable organization is built on a sound business model, but a business model isn't a strategy, even though many people use the terms interchangeably. Business models describe, as a system, how the pieces of a business fit together. But they don't factor in one critical dimension of performance: competition. That's the job of strategy. Illustrated with examples from companies like American Express, EuroDisney, WalMart, and Dell Computer, this article clarifies the concepts of business models and strategy, which are fundamental to every company's performance.
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paper_title: Disruptive innovation in health care delivery: a framework for business-model innovation.

paper_content:

Disruptive innovation has brought affordability and convenience to customers in a variety of industries. However, health care remains expensive and inaccessible to many because of the lack of business-model innovation. This paper explains the theory of disruptive innovation and describes how disruptive technologies must be matched with innovative business models. The authors present a framework for categorizing and developing business models in health care, followed by a discussion of some of the reasons why disruptive innovation in health care delivery has been slow.
---
paper_title: Darwin and the demon: innovating within established enterprises.

paper_content:

Innovation comes in many forms - products, processes, marketing, business models, and more. Which kind should you be pursuing? It depends: Where are you in your product category's life cycle?
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paper_title: The Innovator's Solution: Creating and Sustaining Successful Growth.

paper_content:

The article presents a review of the book “The Innovators Solution: Creating and Sustaining Successful Growth,” by Clayton M. Christensen and Michael E. Raynor.
---
paper_title: The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail

paper_content:

A Wall Street Journal and Businessweek bestseller. Named by Fast Company as one of the most influential leadership books in its Leadership Hall of Fame. An innovation classic. From Steve Jobs to Jeff Bezos, Clay Christensens work continues to underpin todays most innovative leaders and organizations. The bestselling classic on disruptive innovation, by renowned author Clayton M. Christensen. His work is cited by the worlds best-known thought leaders, from Steve Jobs to Malcolm Gladwell. In this classic bestsellerone of the most influential business books of all timeinnovation expert Clayton Christensen shows how even the most outstanding companies can do everything rightyet still lose market leadership. Christensen explains why most companies miss out on new waves of innovation. No matter the industry, he says, a successful company with established products will get pushed aside unless managers know how and when to abandon traditional business practices. Offering both successes and failures from leading companies as a guide, The Innovators Dilemma gives you a set of rules for capitalizing on the phenomenon of disruptive innovation. Sharp, cogent, and provocativeand consistently noted as one of the most valuable business ideas of all time The Innovators Dilemma is the book no manager, leader, or entrepreneur should be without.
---
paper_title: BUSINESS MODEL PATTERNS FOR DISRUPTIVE TECHNOLOGIES

paper_content:

Companies nowadays face a myriad of business opportunities as a direct consequence of manifold disruptive technology developments. As a basic characteristic, disruptive technologies lead to a severe shift in value-creation networks giving rise to new market segments. One of the key challenges is to anticipate the business logics within these nascent and formerly unknown markets. Business model patterns promise to tackle this challenge. They can be interpreted as proven business model elements, which reveal valuable insights about pursued business logics. The approach in general helps increasing efficiency in business models design processes, but especially lacks methodological support so far. The paper at hand, therefore presents a methodology for pattern-based business model design simplifying development and analysis of business models for disruptive technologies. The methodology has been validated within several industrial projects.
---
paper_title: Business Model: What it is and What it is Not

paper_content:

The term “business model” has been misinterpreted and misused over the years, resulting in it being inadequately understood and applied by both practitioners and scholars. It is frequently confused with other popular terms in the management literature such as strategy, business concept, revenue model, economic model or even business process modeling. Our findings suggest that while business model describes what an organization currently is, it needs to be complemented with a strategy and capabilities in order to face upcoming changes. Besides clarifying the meaning and use of the business model terminology, we theorize about its roots through a combination of the resource-based view and transaction cost economics. Finally, we identify new avenues for further research such as the investigation of path dependency in a business model and the meaning of business model innovation. “The definition of a business model is murky at best. Most often, it seems to refer to a loose conception of how a company does business and generates revenue... The business model approach to management becomes an invitation for faulty thinking and self-delusion” (Porter, 2001, p. 73).“While the term ‘business model’ has gained widespread use in the practice community, the academic literature on this topic is fragmented and confounded by inconsistent definitions and construct boundaries” (George & Bock, 2011, p. 83).
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paper_title: CUSTOMER POWER, STRATEGIC INVESTMENT, AND THE FAILURE OF LEADING FIRMS

paper_content:

Why might firms be regarded as astutely managed at one point, yet subsequently lose their positions of industry leadership when faced with technological change? We present a model, grounded in a study of the world disk drive industry, that charts the process through which the demands of a firm's customers shape the allocation of resources in technological innovation—a model that links theories of resource dependence and resource allocation. We show that established firms led the industry in developing technologies of every sort—even radical ones—whenever the technologies addressed existing customers' needs. The same firms failed to develop simpler technologies that initially were only useful in emerging markets, because impetus coalesces behind, and resources are allocated to, programs targeting powerful customers. Projects targeted at technologies for which no customers yet exist languish for lack of impetus and resources. Because the rate of technical progress can exceed the performance demanded in a market, technologies which initially can only be used in emerging markets later can invade mainstream ones, carrying entrant firms to victory over established companies.
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paper_title: Business model innovation: it's not just about technology anymore

paper_content:

Purpose – To innovate the company business model, executives must first understand what it is, and then examine what paths exist for them to improve on it. This article aims to examine this issue.Design/methodology/approach – The article provides a practical definition of business models and offers a Business Model Framework (BMF) that illuminates the opportunities for business model innovation.Findings – The article finds that BMF sequences possible business models from very basic (and not very valuable) models to far more advanced (and very valuable) models. Using the BMF, companies can assess where their current business model stands in relation to its potential and then define appropriate next steps for the further advancement of it.Practical implications – An organization must give a senior manager the resources and authority to define and launch business‐model experiments.Originality/value – The article provides a cogent model for assessing the potential for new business model innovation, a framewor...
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paper_title: The Business Model Navigator: 55 Models That Will Revolutionise Your Business

paper_content:

A strong business model is the bedrock to business success. But all too often we fail to adapt, clinging to outdated models that are no longer delivering the results we need. The brains behind The Business Model Navigator have discovered that just 55 business models are responsible for 90% of the world's most successful businesses. These 55 models - from the Add-On model used by Ryanair to the Subscription model used by Spotify - provide the blueprints you need to revolutionise your business and drive powerful change. As well as providing a practical framework for adapting and innovating your business model, this book also includes each of the 55 models in a quick-read format that covers: * What it is * Who invented it and who uses it now * When and how to apply it "An excellent toolkit for developing your business model." Dr Heinz Derenbach, CEO, Bosch Software Innovations
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paper_title: Disruptive Technologies, Services, or Business Models?

paper_content:

Convergence in the realm of media, consumer electronics, computer technologies, and telecommunications has contributed to societal changes in terms of individual expectations and behavior leading to the re-appraisal of traditional market segments. Key innovations like the internet create a global platform that provides for new means in product and services configuration. This expands opportunities and threats in the business environment contributing to increased competition in a dynamic environment where traditional boundaries are shifting. In a world of converging technologies, increasing marketplace dynamics and rapid technological advances, new upcoming "disruptive technologies" such as Voice-over-IP (VoIP) pose threats to traditional telecommunications companies. Business leaders in order to succeed need to be "thinking outside the box". We introduce the concept of a business model as a tool in crafting strategy for the purpose of achieving sustainable innovation in the face of the reshaping of the industry and the market. We apply this model to the VoIP market and in particular the Skype technology and service. The significance of this contribution is that it highlights the importance of developing an innovative business model to take advantage of disruptive technologies. Our analysis of the dimensions of innovations shows that the more dimensions the greater the impact. ICT convergence is leading to a paradigm shift with innovation effects that are both effective and disruptive. Thus, leading to equally disruptive business models reshaping innovation strategy.
---
paper_title: Business model innovation breakthrough moves

paper_content:

While there are multiple breakthrough moves a company can adapt for business model innovation, leaders need to focus more on improving their skills in this area, for example by paying more attention to innovations in other industries. The potential to add business model innovation breakthroughs in a particular company is often largely untapped, but companies that make this activity a priority will gain large, sustained advantages over competitors.
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paper_title: The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies

paper_content:

This paper explores the role of the business model in capturing value from early stage technology. A successful business model creates a heuristic logic that connects technical potential with the realization of economic value. The business model unlocks latent value from a technology, but its logic constrains the subsequent search for new, alternative models for other technologies later on--an implicit cognitive dimension overlooked in most discourse on the topic. We explore the intellectual roots of the concept, offer a working definition and show how the Xerox Corporation arose by employing an effective business model to commercialize a technology rejected by other leading companies of the day. We then show the long shadow that this model cast upon Xerox's later management of selected spin-off companies from Xerox PARC. Xerox evaluated the technical potential of these spin-offs through its own business model, while those spin-offs that became successful did so through evolving business models that came to differ substantially from that of Xerox. The search and learning for an effective business model in failed ventures, by contrast, were quite limited. Copyright 2002, Oxford University Press.
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paper_title: Value creation in E‐business

paper_content:

We explore the theoretical foundations of value creation in e-business by examining how 59 American and European e-businesses that have recently become publicly traded corporations create value. We observe that in e-business new value can be created by the ways in which transactions are enabled. Grounded in the rich data obtained from case study analyses and in the received theory in entrepreneurship and strategic management, we develop a model of the sources of value creation. The model suggests that the value creation potential of e-businesses hinges on four interdependent dimensions, namely: efficiency, complementarities, lock-in, and novelty. Our findings suggest that no single entrepreneurship or strategic management theory can fully explain the value creation potential of e-business. Rather, an integration of the received theoretical perspectives on value creation is needed. To enable such an integration, we offer the business model construct as a unit of analysis for future research on value creation in e-business. A business model depicts the design of transaction content, structure, and governance so as to create value through the exploitation of business opportunities. We propose that a firm's business model is an important locus of innovation and a crucial source of value creation for the firm and its suppliers, partners, and customers. Copyright © 2001 John Wiley & Sons, Ltd.
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paper_title: UNBUNDLING THE STRUCTURE OF INERTIA: RESOURCE VERSUS ROUTINE RIGIDITY.

paper_content:

I work to unbundle the structure of inertia into two distinct categories: resource rigidity (failure to change resource investment patterns) and routine rigidity (failure to change organizational p...
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paper_title: Business Model Innovation: Opportunities and Barriers

paper_content:

Companies commercialize new ideas and technologies through their business models. While companies may have extensive investments and processes for exploring new ideas and technologies, they often have little if any ability to innovate the business models through which these inputs will pass. This matters - the same idea or technology taken to market through two different business models will yield two different economic outcomes. So it makes good business sense for companies to develop the capability to innovate their business models. This paper explores the barriers to business model innovation, which previous academic research has identified as including conflicts with existing assets and business models, as well as cognition in understanding these barriers. Processes of experimentation and effectuation, and the successful leadership of organizational change must be brought to bear in order to overcome these barriers. Some examples of business model innovation are provided to underline its importance, in hopes of inspiring managers and academics to take these challenges on.
---
paper_title: Reinventing Your Business Model

paper_content:

When does an established company need a new business model to capture a game-changing opportunity? Only companies that understand how - and why - their current model works can answer that question.
---
paper_title: When technological discontinuities and disruptive business models challenge dominant industry logics: Insights from the drugs industry

paper_content:

An industry's dominant logic is the general scheme of value creation and capture shared by its actors. In high technology fields, technological discontinuities are not enough to disrupt an industry's dominant logic. Identifying the factors that might trigger change in that logic can help companies develop strategies to enable them to capture greater value from their innovations by disrupting that logic. Based on analyzing the changes that biotechnologies and bioinformatics have brought to the drug industry, we identify and characterize three triggers of change that can create disruptive business models. We suggest that, in mature industries experiencing strong discontinuities and high technological uncertainty, entrants' business models initially tend to fit into the industry's established dominant logic and its value chains remain unchanged. But as new technologies evolve and uncertainty decreases, disruptive business models emerge, challenging dominant industry logics and reshaping established value chains.
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paper_title: Why business models matter.

paper_content:

"Business model" was one of the great buzz-words of the Internet boom. A company didn't need a strategy, a special competence, or even any customers--all it needed was a Web-based business model that promised wild profits in some distant, ill-defined future. Many people--investors, entrepreneurs, and executives alike--fell for the fantasy and got burned. And as the inevitable counterreaction played out, the concept of the business model fell out of fashion nearly as quickly as the .com appendage itself. That's a shame. As Joan Magretta explains, a good business model remains essential to every successful organization, whether it's a new venture or an established player. To help managers apply the concept successfully, she defines what a business model is and how it complements a smart competitive strategy. Business models are, at heart, stories that explain how enterprises work. Like a good story, a robust business model contains precisely delineated characters, plausible motivations, and a plot that turns on an insight about value. It answers certain questions: Who is the customer? How do we make money? What underlying economic logic explains how we can deliver value to customers at an appropriate cost? Every viable organization is built on a sound business model, but a business model isn't a strategy, even though many people use the terms interchangeably. Business models describe, as a system, how the pieces of a business fit together. But they don't factor in one critical dimension of performance: competition. That's the job of strategy. Illustrated with examples from companies like American Express, EuroDisney, WalMart, and Dell Computer, this article clarifies the concepts of business models and strategy, which are fundamental to every company's performance.
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paper_title: Business Model as an Inducer of Disruptive Innovations: The Case of Gol Airlines

paper_content:

This study was undertaken to investigate the premises that the success of disruptive innovation is related to the business model adopted by organizations. An analysis of five business models from the literature review - Bovet and Martha (2000), Applegate (2001), Chesbrough and Rosenbloom (2002), Osterwalder and Pigneur (2010), and Rodrigues, Maccari and Lenzi (2012) – was conducted based on the case of the Brazilian Gol Airlines who is recognized as a success business that promoted a disruptive innovation. The results suggest that the assertive choice of the business model can leverage innovation processes , and two of the models listed are adherence to the case studied. Keywords: Disruptive Innovation; Business Model; Innovation Elements; Strategy; Gol Airlines.
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paper_title: Disruptive innovation in health care delivery: a framework for business-model innovation.

paper_content:

Disruptive innovation has brought affordability and convenience to customers in a variety of industries. However, health care remains expensive and inaccessible to many because of the lack of business-model innovation. This paper explains the theory of disruptive innovation and describes how disruptive technologies must be matched with innovative business models. The authors present a framework for categorizing and developing business models in health care, followed by a discussion of some of the reasons why disruptive innovation in health care delivery has been slow.
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paper_title: The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail

paper_content:

A Wall Street Journal and Businessweek bestseller. Named by Fast Company as one of the most influential leadership books in its Leadership Hall of Fame. An innovation classic. From Steve Jobs to Jeff Bezos, Clay Christensens work continues to underpin todays most innovative leaders and organizations. The bestselling classic on disruptive innovation, by renowned author Clayton M. Christensen. His work is cited by the worlds best-known thought leaders, from Steve Jobs to Malcolm Gladwell. In this classic bestsellerone of the most influential business books of all timeinnovation expert Clayton Christensen shows how even the most outstanding companies can do everything rightyet still lose market leadership. Christensen explains why most companies miss out on new waves of innovation. No matter the industry, he says, a successful company with established products will get pushed aside unless managers know how and when to abandon traditional business practices. Offering both successes and failures from leading companies as a guide, The Innovators Dilemma gives you a set of rules for capitalizing on the phenomenon of disruptive innovation. Sharp, cogent, and provocativeand consistently noted as one of the most valuable business ideas of all time The Innovators Dilemma is the book no manager, leader, or entrepreneur should be without.
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paper_title: Corporate Entrepreneurship, Disruptive Business Model Innovation Adoption, and Its Performance: The Case of the Newspaper Industry

paper_content:

Recently, Internet and digitization, along with major news and information companies, have disrupted traditional newspaper companies' business models, and raised serious concerns about the future viability of the print newspaper industry. This study provides a theoretical viewpoint, supported by empirical evidence from the newspaper industry, on how prominent corporate entrepreneurship attributes impact disruptive business model innovation adoption, and how such adoption impacts business model performance. It finds that, while autonomy, risk-taking, and proactiveness do have positive associations with the extent of adoption of disruptive business model innovation, innovativeness does not. Further, disruptive business model innovation adoption has a nonlinear association with business model performance. We conclude the paper by discussing theoretical implications of the study and by providing strategies that entrepreneurs and technology managers can use to adjust their corporate entrepreneurship activities in their effort to successfully adopt disruptive business model innovation.
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paper_title: A Firm-Level Analysis on the Relative Difference between Technology-Driven and Market-Driven Disruptive Business Model Innovations

paper_content:

Using the business model concept as a theoretical framework, this paper examines the relative disruptiveness potential between technology‐driven and market‐driven innovations. The study analyses retrospectively four case studies comprising two technologically sophisticated IT innovations and two technologically less sophisticated market‐driven innovations starting from their inception to the point of disruption over a period of 5–15 years. It finds that, while the disruption process of technology‐driven innovation conforms to the patterns predicted by disruptive innovation theory, the disruption process of market‐driven disruptive business model innovation depicts a bottleneck shape, where the positive effects of initial strategic choice, model specialization and investments on disruptiveness potential reach the maximum level and start to stagnate due to the same initial strategic choice and cost factors. Implications for researchers and practitioners are discussed.
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paper_title: The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies

paper_content:

This paper explores the role of the business model in capturing value from early stage technology. A successful business model creates a heuristic logic that connects technical potential with the realization of economic value. The business model unlocks latent value from a technology, but its logic constrains the subsequent search for new, alternative models for other technologies later on--an implicit cognitive dimension overlooked in most discourse on the topic. We explore the intellectual roots of the concept, offer a working definition and show how the Xerox Corporation arose by employing an effective business model to commercialize a technology rejected by other leading companies of the day. We then show the long shadow that this model cast upon Xerox's later management of selected spin-off companies from Xerox PARC. Xerox evaluated the technical potential of these spin-offs through its own business model, while those spin-offs that became successful did so through evolving business models that came to differ substantially from that of Xerox. The search and learning for an effective business model in failed ventures, by contrast, were quite limited. Copyright 2002, Oxford University Press.
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paper_title: UNBUNDLING THE STRUCTURE OF INERTIA: RESOURCE VERSUS ROUTINE RIGIDITY.

paper_content:

I work to unbundle the structure of inertia into two distinct categories: resource rigidity (failure to change resource investment patterns) and routine rigidity (failure to change organizational p...
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paper_title: Business Model as an Inducer of Disruptive Innovations: The Case of Gol Airlines

paper_content:

This study was undertaken to investigate the premises that the success of disruptive innovation is related to the business model adopted by organizations. An analysis of five business models from the literature review - Bovet and Martha (2000), Applegate (2001), Chesbrough and Rosenbloom (2002), Osterwalder and Pigneur (2010), and Rodrigues, Maccari and Lenzi (2012) – was conducted based on the case of the Brazilian Gol Airlines who is recognized as a success business that promoted a disruptive innovation. The results suggest that the assertive choice of the business model can leverage innovation processes , and two of the models listed are adherence to the case studied. Keywords: Disruptive Innovation; Business Model; Innovation Elements; Strategy; Gol Airlines.
---
paper_title: The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail

paper_content:

A Wall Street Journal and Businessweek bestseller. Named by Fast Company as one of the most influential leadership books in its Leadership Hall of Fame. An innovation classic. From Steve Jobs to Jeff Bezos, Clay Christensens work continues to underpin todays most innovative leaders and organizations. The bestselling classic on disruptive innovation, by renowned author Clayton M. Christensen. His work is cited by the worlds best-known thought leaders, from Steve Jobs to Malcolm Gladwell. In this classic bestsellerone of the most influential business books of all timeinnovation expert Clayton Christensen shows how even the most outstanding companies can do everything rightyet still lose market leadership. Christensen explains why most companies miss out on new waves of innovation. No matter the industry, he says, a successful company with established products will get pushed aside unless managers know how and when to abandon traditional business practices. Offering both successes and failures from leading companies as a guide, The Innovators Dilemma gives you a set of rules for capitalizing on the phenomenon of disruptive innovation. Sharp, cogent, and provocativeand consistently noted as one of the most valuable business ideas of all time The Innovators Dilemma is the book no manager, leader, or entrepreneur should be without.
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paper_title: Inscribing value on business model innovations: Insights from industrial projects commercializing disruptive digital innovations

paper_content:

Abstract In this paper we seek to show how marketing activities inscribe value on business model innovation, representative of an act, or sequence of socially interconnecting acts. Theoretically we ask two interlinked questions: (1) how can value inscriptions contribute to business model innovations? (2) how can marketing activities support the inscription of value on business model innovations? Semi-structured in-depth interviews were conducted with the thirty-seven members from across four industrial projects commercializing disruptive digital innovations. Various individuals from a diverse range of firms are shown to cast relevant components of their agency and knowledge on business model innovations through negotiation as an ongoing social process. Value inscription is mutually constituted from the marketing activities, interactions and negotiations of multiple project members across firms and functions to counter destabilizing forces and tensions arising from the commercialization of disruptive digital innovations. This contributes to recent conceptual thinking in the industrial marketing literature, which views business models as situated within dynamic business networks and a context-led evolutionary process. A contribution is also made to debate in the marketing literature around marketing's boundary-spanning role, with marketing activities shown to span and navigate across functions and firms in supporting value inscriptions on business model innovations.
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Title: Emerging Technologies and New Business Models: A Review on Disruptive Business Models

Section 1: Introduction
Description 1: Introduce the topic, including the relevance of emerging technologies and disruptive business models, and outline the aims of the review.

Section 2: Methodology
Description 2: Describe the research design, data collection process, and the methods used for analyzing the articles related to disruptive business models.

Section 3: Analysis
Description 3: Present the analysis of the 19 selected articles, including the categorization of key concepts such as business models, emerging technologies, and disruptive business models.

Section 4: Business models
Description 4: Discuss the definitions and classifications of business models, their components, and their theoretical underpinnings.

Section 5: Emerging technologies and innovation processes
Description 5: Explore the role of emerging technologies and innovation processes in the development of new business models and their impacts on organizations.

Section 6: Disruptive business models
Description 6: Define disruptive business models, explain their origins, and discuss how they replace or restructure existing models to provide unique value propositions.

Section 7: Research agenda
Description 7: Propose a future research agenda based on the gaps identified in the literature, highlighting opportunities for empirical studies on disruptive business models.

Section 8: Final considerations
Description 8: Summarize the key findings, contributions to the theory, implications for practice, and the importance of further research on disruptive business models.