Business Model Innovation Strategy: Transformational Concepts and Tools for Entrepreneurial Leaders

Preface Part I: Foundation and Mindset For Business Model Innovation Chapter 1: Why Do Business Models Matter--The "What, How, Who & Why" Framework For Understanding Any Business Model Why Do Business Models Matter? What Is a Business Model? Approaches Towards Defining Business Models Our Definition: The Business Model as an Activity System The "What, How, Who & Why" Framework Value Creation vs. Value Appropriation in Business Models Summary of Key Takeaways and Outlook Chapter 2: How Business Models Create Value in New Ways - Case Studies and Theory Value Creation Through Business Models Uber: A Star Is Born Michelin: Not Tired of Tire Rental Standing on the Shoulders of Giants: Theoretical Foundations Schumpeterian Innovation Resource-Based View Transaction Cost Economics Value Chain Analysis Strategic Network Theory Business Model: New Unit and Level of Analysis What the Business Model Is Not The Business Model Is Not Traditional Strategy The Business Model Is Not All-Encompassing Summary of Key Takeaways for the Effective Business Model Designer Chapter 3: Adopting a Business Model Mindset - A Prerequisite for Transformative Innovation Towards a Business Model Mindset What Is a Business Model Mindset? Why Is a Business Model Mindset Needed? Mindset Traps Cognitive Underpinnings of Business Models Business Models as Cognitive Structures Cognition as Antecedent: Cognitive Practices and Processes Underpinning Business Model Design and Innovation Ways to Foster a Business Model Mindset Leadership Actions to Foster Employees' Business Model Mindset Ways to Foster One's Own Business Model Mindset Summary of Key Takeaways for the Effective Business Model Designer Chapter 4: Business Model Innovation - A Fundamentally New Source of Innovation What is Business Model Innovation? Business Model Innovation Formally Defined Definition Illustrating the Definition What Business Model Innovation Is NOT A Framework for Business Model Innovation Business Model Content Innovation Business Model Structure Innovation Business Model Governance Innovation Business Model Value Logic Innovation Measuring Business Model Innovation Quantitative Measures Qualitative Measures Illustrating the Upside of Business Model Innovation Pros of Business Model Innovation Value Creation Beyond Process or Product Innovation Low Capital Expenditure Effective Barriers to Imitation Industry Disruption Illustrating the Downsides of Business Model Innovation Cons of Business Model Innovation Lack of Protection from Imitation by Competitors Legitimacy Risk Risk of Increased Complexity Risk of Path Dependency Summary of Key Takeaways for the Effective Business Model Designer Part II: Strategic Design and Evaluation of Business Model Innovation Chapter 5: Strategic Design of Innovative Business Models - How to Bring Design Thinking and Creativity to Your Business Model Why Design Is More Than a Metaphor for Business Model Development What Is Design? Business Model Strategic Design Drivers Deployable Resources (D) And External Environment (E) Stakeholders' Activities (S) Incumbents' Templates (I) Goals (G) and Needs (N) of Customers Mindfulness in Design Robust Business Model Design Designing Robust Business Model Content Designing Robust Business Model Structure Designing Robust Business Model Governance Summary of Key Takeaways for the Effective Business Model Designer Chapter 6: How to Design a New Business Model--A Dynamic Design Method A Process Perspective on Business Model Design The Business Model Design Process BMIdeate BMIterate BMImplement Building a Business Model Innovation Capability Summary of Key Takeaways for the Effective Business Model Designer Chapter 7: How to Design A New Business Model--Methods Championed by Startup Entrepreneurs Converting Design Ideas into Practice Discovery-Driven Planning--Fail Soon, and Fail Fast Basic Principles of Discovery-Driven Planning Discovery-Driven Business Model Development: Pros and Cons Other Planning Approaches That Are Related to Discovery-Driven Principles Effectuation--Just Do It! Effectuation Principles Effectual Business Model Development: Pros and Cons Lean Startup--Test, Test, Test Basic Principles of Lean Startup Lean Startup Business Model Development: Pros and Cons Summary of Key Takeaways for the Effective Business Model Designer Chapter 8: Value Propositions - The NICE Framework for Measuring the Impact of the Business Model Business Models and Value Propositions A Formal Model of the Value Proposition How the Business Model Enhances Value Propositions: The NICE Value Drivers Novelty Lock-in Complementarities Efficiency From Value Proposition to Value Appropriation Summary of Key Takeaways for the Effective Business Model Designer Chapter 9: Evaluating Existing Business Models and Designing New Ones--Your Essential Toolkit Business Model Analysis--Why Is It Needed? Tools for Articulating and Understanding Business Models Story of "How it Works" Business Model Elaboration Activity Map Tools for Framing the Design Effort Goals and Needs of Customers Templates External Environment, Stakeholders' Activities and Deployable Resources Tools for Designing and Implementing Business Model Innovations Generating New Business Model Ideas Experimenting with New Business Model Ideas Implementing Innovative Business Models Tools for Evaluating Business Models Summary of Key Takeaways for the Effective Business Model Designer Part III: MAKING BUSINESS MODEL INNOVATION HAPPEN Chapter 10: Implementing Business Model Innovation in Established Firms - Organizational Barriers and How to Overcome Them Changing the Model: The Importance of Fit So, What Does Implementation Mean Precisely? Implementation Challenges in Established Firms Creating Internal Fit: Resistance to Change Creating Internal Fit: Organizational Inertia Business Model-Specific Barriers to Implementation Overcoming BMI Implementation Barriers in Established Firms Addressing Leadership and Knowledge Gaps Anticipating and Overcoming Resistance to Change Countering Organizational Inertia Summary of Key Takeaways for the Effective Business Model Designer Chapter 11: Implementing Business Model Innovation in New Ventures - Balancing the Prospects of Shooting for the Stars With the Risks That Can Sink the Ship The Importance of BMI Implementation for New Ventures Implementing BMI New Ventures--Challenge or Opportunity? It is About Managing Risks, Not Taking Them Dependence on External Third Parties: The Sharks Dilemma Internal Governance and Leadership Problems That Can "Sink the Ship" Business Model-Specific Barriers to Implementation Approaches to Overcoming BMI Implementation Barriers in New Ventures Business Planning: An Effective Way to Manage Risk Building Trust with Business Model Stakeholders by Using Symbolic Actions Countering the Sharks Dilemma: Defense Mechanisms That Work Choosing a Revenue Model Strategically Establishing Good Governance from Day One Summary of Key Takeaways for the Effective Business Model Designer Chapter 12: Business Model Innovation Strategy in The Digital Age--What Does It Mean for You? Business Model Innovation in the Digital Age: A Key Strategic Issue The Strong Case for Having a Business Model Innovation Strategy Business Model Innovation Strategy: Think Digital Platforms How to Develop a Business Model Innovation Strategy Business Model Innovation Strategy: What Does It Mean For You? Business model innovation design skills and mindset Business model innovation implementation skills Business model innovation management skills The Bottom Line: What is Your Business Model Innovation Strategy? Acknowledgments About the Authors Index