Title: A six-step approach to business model innovation

Authors: Markus Eurich; Tobias Weiblen; Pablo Breitenmoser

Addresses: Department of Management, Technology, and Economics, ETH Zürich, Scheuchzerstrasse 7, 8092 Zürich, Switzerland; Institute for Manufacturing, University of Cambridge, 17 Charles Babbage Road, Cambridge, CB3 0FS, UK ' Institute of Technology Management, University of St. Gallen, Dufourstrasse 40a, 9000 St. Gallen, Switzerland; Institute for Business Innovation, UC Berkeley, F402 Haas School of Business #1930, Berkeley, CA 94720, USA ' Department of Management, Technology, and Economics, ETH Zürich, Scheuchzerstrasse 7, 8092 Zürich, Switzerland

Abstract: In both theory and practice, business model innovation is acknowledged as an important means to gain a competitive edge. Designing a new business model, however, requires profound knowledge, experience and skills. To support the task, practitioners can rely on a set of techniques, namely cases, component-based approaches, taxonomies, conceptual models, causal loop diagrams and design patterns. We argue that these techniques only provide valuable support during specific steps of the design process. In addition, there is a tendency towards focusing on model-internal consistency while neglecting the organisation's actual mission and external business environment. Therefore, this study proposes a complementary six-step approach to business model innovation, which is based on the principles of 'networked thinking'. This holistic and systemic approach comprises features of established techniques and explicates assumptions about the organisation's specific business situation. It gives entrepreneurs, decision makers and managers a better handle on structuring, communicating and evaluating different business model designs.

Keywords: business models; business model innovation; decision making; innovation management; networked thinking; strategy; entrepreneurship.

DOI: 10.1504/IJEIM.2014.064213

International Journal of Entrepreneurship and Innovation Management, 2014 Vol.18 No.4, pp.330 - 348

Received: 15 Aug 2013
Accepted: 21 Apr 2014

Published online: 06 Aug 2014 *

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