Reinventing business models: How firms cope with disruption
Reinventing Business Models: How Firms Cope with Disruption
Now available at Oxford University Press: click here to obtain your copy
Henk Volberda, Frans van Den Bosch, and Kevin Heij
Although research on business model innovation is flourishing internationally, important questions on the ‘how’, ‘what’, and ‘when’ of this process remain largely unanswered, particularly in regard to the role of top management. Using new knowledge derived from a survey among firms from various industries and several case studies, the book Reinventing Business Models: How Firms Cope with Disruption (Oxford University Press, 2018) seeks to give us better understanding of ‘how’ firms can innovate their business model, ‘what ‘ kind of levers management should work on, and ‘when’ management should change the business model. It particularly considers one key question: is it better to replicate existing models or to develop new ones? Renewal is especially vital in highly competitive environments. Nonetheless, whatever the environment, high levels of both replication and renewal will be key for a firm to succeed. We look at four levers that can be used by managers to innovate their business model: management itself, organizational form, technology, and co-creation with external parties. Furthermore, specific combinations which strengthen business model innovation are analysed. To help firms, the book also explores the different factors that can either enable or inhibit business model innovation. Through an investigation of replication versus renewal and strategy-driven versus client-driven change, four distinct modes of business model innovation are identified: exploit and improve (replication which is strategy-driven); exploit and connect (replication which is customer-driven); explore and connect (renewal which is customer-driven); and explore and dominate (renewal which is strategy-driven). The book ends with a list of managerial dos and don’ts for business model innovation,
The discussion and case studies presented in this book have provided some insights into the paths that firms might take to transform their business models, and which levers may be the most helpful to them in that process. But, of course, you may still have your own questions about the best route for you. How do you reinvent your business model? Are you really facing disruption? What levers are most effective for developing a new business model? And what are the specific enablers or inhibitors of business model innovation in your company?
To assist you in this, we have therefore developed an online tool to support you in your attempts to innovate your business model. This scan provides you valuable feedback on how to reinvent your business model, be it replication, renewal, or a combination of the two. In line with the book, the online tool focusses on the two basic types of business model innovation, i.e. replication and renewal, and the four levers of business model innovation (management itself, organizational structure, technology, and co-creation with external parties). The tool also explores the different factors that can either enable or inhibit business model innovation. It also looks at whether your firm’s business model innovation is more strategy-driven or more customer-driven. This Business Model Innovation Scan can be found at www.reinventingbusinessmodels.com.