IT services which may be supplied by third parties in outsourcing business model must be identified first and then planned for migration to the cloud All services
having a significant impact upon the profitability of the business model in online. Consequently, Romania indicates a very strong tendency to finalize online transactions by means of cash payment,
The full operation of the incubator programme is aligned to the business model and operation of start-ups, incubators and accelerators.
and seek funding and sustainable new business models. This research has identified the goals of policy, the policy tools and funding instruments available
While massive commercial investment and business models fuelled the web's incredible growth, the use of platforms like Facebook to serve social good has been disputed accidental
this threatens the ability of the European innovation system to compete This European infrastructure would enable a whole new round of innovation that may not even be possible within current business models,
social innovations often need support in the early idea stages to refine their business models and grow their venture.
Standards will enable new business models for co-operation between multiple stakeholders such as companies, public authorities and citizens to develop meaningful technologies.
Strategy and business model Our assessment Key finding Now Future The Authority is taking steps to improve efficiency and accuracy.
the impact of legacy ICT Appendix Three Enterprise analysis framework Good practice in the management of legacy ICT Strategy and business model Strategy and business model There is a clear strategy in place for the service,
and little incentive to change business models when returns are unclear. SMES also face generic barriers to adoption including trust and transaction security and IPR concerns,
and countries and are most commonly related to lack of applicability to the business, preferences for established business models,
They may wish to retain their current business model and avoid the risks associated with new investments and new business models.
Strong links with customers and suppliers along the value chain as well as the lack of competition in the related market may also discourage businesses from introducing new business models
which would threaten existing transactions channels. Enabling factors: internal ICT and managerial knowledge SMES generally lack the human technological resources needed for ICT and e-commerce,
However, internal technological capabilities still matter because adoption of e-commerce cannot succeed without an understanding of the e-commerce business model.
in part due to problems in designing a global business model for these exchanges and in part due to difficulties attracting small suppliers.
such as how to effectively integrate e-business processes into existing business models and strategies to change organisational structures. 42 Table 3. Examples of ICT/e-commerce training programmes for SMES Country Programme Description Belgium Forem Forem and the Institute
whereby proposed national rules can affect new business models, as shown in the case ofe-books. 74 However,
and business models and provide different guarantees of service. To overcome such fragmentation, the Commission announced in the Digital Agenda for Europe (2010) its intention to create a stakeholder platform by 2012 for EU online trustmarks,
In all those business models, the use of search engines has become widespread. Customers rely increasingly on search engines to find their preferred product or service.
Businesses have developed new business models to promote transactions in online digital goods . Although this new form of trade creates huge expectations on the part of consumers,
Second, the creation of a clear and well-functioning legal framework for the multi-territorial licensing of musical works for online services will encourage the uptake of new business models that provide online services to European consumers 2
based on their integrated business model. 250 ITA Consulting/WIK Consult, The evolution of the European Postal market since 1997, August 2009, available at:
2014 40 value of external R&d and on building a business model so effective and innovative that it won't matter
Open/Big data and fast mobile communications are all creating opportunities for major changes in business models, in societal behaviour and in value-creation models in general.
and new approaches to innovation adoption based on open business models. The realisation of action points like these on a European-wide scale is no easy matter.
Develop a New Business model for the European union; Action No 2: Design for a New End State;
co-creating a ready-to-use roadmap with feasible solutions and related business models, and support in realising such a concept.
The ecosystem can consist of various types of offerings and business models, while the platform owner defines the interface and quality criteria for the inputs.
and/or A&d Technology driven Business value driven Knowledge ownership Knowledge access Product orientation Business model orientation Engineering job Everyone's Job market push-technology driven Market
pull-need driven Closed innovation Open innovation Calculated risk High risk Investment companies are now adapting new processes and business models,
which is the system for evaluating the quality of research in UK higher education institutions 7. Open innovation university To respond to global open innovation challenges universities need to open up their business models
processes and policies in order to develop innovative and sustainable business models. Key trends in universities'open innovation practices include:
Imperial Innovations'business model includes all elements of technology commercialisation from technology scouting, IP management and investment into promising technologies.
and collaboration schemes 3. Keeley et al. 4 explain that often the highest returns from innovation come from business model,
and/or business model alternative that determine the future innovation direction. People, concepts, networking and online serendipity Beside the review by André et al. 11 of existing systems supporting serendipity in one form or another;
business models and practices; they allow for flexible forms of cooperation in and across government, academia, research,
Investor-driven labs Investor-driven labs are testing arenas for new business ideas and business models.
access to business networks and working stations with a focus on online business models. Found Fair Ventures supports start-ups and start-up teams through different channels:
Supporting the development of business models and bolstering relationships with the finance sector in order to obtain financial resources;
from products to service The dominant business model in the lighting and ICT industry has mainly been based hardware:
At the same time the new services that can be designed on top of the platform introduce new business and new business models.
The idea allows for a range of business models: bar owners can rent it for their customers,
Different business models can coexist in such a platform however since many of the partners have invested time and money in the setup of the living lab,
as well as respecting each other's business models and shared value creation. The key aspect in the new ecosystem is real co-creation.
The shifts described above also make it important to ensure that the business models support sustainable exploitation of the system by integrating societal and economic interests.
Such business models need to be developed and implemented through a transition from the existing to the desired business model.
This quadruple helix innovation approach is most successful when there is a shared vision and shared value is created.
to create a sustainable ecosystem the business models should ensure the integration of the societal and economic interests of the different stakeholders.
New business models are explored, and it can be stated safely that the municipality has moved from the role of facilitator to that of a participant in the Brainport innovation ecosystem.
Since current business models are often based on the ownership of IP, this hampers cooperation. As stated earlier,
because they are all the underdogs starting with a business model or technology that is quite different from the existing norm.
and to make a business model for this. Through initiatives such as the Correspondent, Medium and Blendle that sector has been awakened.
You could say Medium is the opposite of Facebook media stars like Buzzfeed 4. All examples are in conflict with the business model of a traditional publisher.
and start a dialogue that can stimulate the internal vision and business model, that produces an interesting mix.
Last year, we read a lot about new business models. Parties like Airbnb 7 and Peerby 8 are new, sexy and idealistic.
This undoubtedly means that new business models will emerge. Being human also means limited scalability. Technology is scalable because of its zeros and ones,
'The article discusses also the new business model opportunities in light of a case study from the banking sector.
(and remove) the hinders for future innovative technology approaches and business models. Examples of implementing new technologies in virgin environments are shown also to highlight the importance of‘new'thinking in all professions.
Doblin's research showed that often the highest returns from innovation come from business model innovation, ecosystem orchestration, user experience innovation,
Business model Innovation Business model innovation is about defining and designing new models for capturing business value.
Osterwalder & Pigneur's (2010) business model canvas is a good tool for visualizing and prototyping business models and incorporates techniques such as visual thinking, design thinking, patterns, and platforms.#
#12: Intersectional Innovation Breakthrough insights occur at the intersection of fields, disciplines and cultures, according to Frans Johannson.
Doblin's research showed that often the highest returns from innovation come from business model innovation, ecosystem orchestration, user experience innovation and brand innovation.
Business model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Wiley. Wilson, E. J. 2012.
which enable business model (more generally value creation model) innovations. The areas of business model innovation together with the new markets emergence are clearly dimensions/realms in which
we Europeans, can do/perform much better. How to achieve the fluidity and frictionless environments for multi stakeholder trials, including legal
and services including the identification of potential business models as they are expected to consume the resulting services.
or empathical value through people connections and interactions, economical value with a low-cost or luxury business model or technological value with a low or high-tech solution.
Developing a Business model As the current margin for financial institutes is decaying, a new possible business model is very important.
Might the entry into hardware be a good move for financial institutions? Selling hardware is totally different from a service offering.
Interaction with hardware has a huge potential to change the entire business model of the economic region:
and agree upon the‘business model'of the EIT. There were many ideas in the air on how to tailor the mission of the EIT.
The KIC's shareholders agreed on a business model that will hopefully lead it to financial sustainability.
& debt management Internationalization support Business Development (growth strategies) Networking VC Forums Consolidation/Defining the appropriate Business model Training Competence development Protection of IPR+Patents
they will further expand having a sound value proposition based on a strategic vision and a viable business model.
Some KIC partners express a real concern on how to define the business model of a KIC.
Knowledge Triangle and Emerging Business models, Warsaw University of Technology Publishing house. 2) Dufour, A.,Carroll, S b. 2013),‘Great myths die hard',Nature, October 2013, vol 502.3) Elis, A.,(2010), Mein Traum ist länger als
A r B o O k 2 0 1 4 dissemination, exploitation and business models, policy and regulation, and standardisation were established.
and ecosystems required for service delivery and business model development and validation. Emergent questions included also issues related to more detailed definitions of the access rights and sustainability of the developed technologies.
'They also need to soak up new business models more in line with today's society. In this way:
Social network or crowdsourcing businesses reflect these new business models and a new philosophy where Internet is the natural environment in
4) produce a variety of validated digital services/proof of concepts for personal health and wellbeing, 5) Business models & ecosystem for the digital service creation in health domain.
and Business plans, Brainstorming and Prototyping, Business models and Finance, Concept Development & Implementation, how to build a robust business plan around the developed prototype,
If we accept that it is indeed more reasonable and beneficial to embrace the open business models
One of the main challenges businesses are facing in the sharing economy is defined their strongly traditional and inflexible definition of business model and organisational boundaries.
and is therefore unable to embrace the opportunities that might exist to innovate within the business model and across products and services.
This will allow businesses to look beyond traditional business models and constrictions and instead utilise and leverage crowd wisdom both internally and externally.
The model has been adapted elsewhere to expand our understanding of how we can adopt more open crowd based models into an existing business model.
and the crowd paves the way for open business models. According to Henry Chesbrough,‘Open business models enable an organisation to be more effective in creating as well as capturing value.
They help to create value by leveraging many more ideas because of their inclusion of a variety of external concepts.
Open business models can help businesses from a revenue perspective by licensing its own technologies to other companies
and integrating crowd based activity to a business model. It is possible for us to map onto the matrix value creation activities that currently happen within an existing organisation
a type of business model that would prevent unbought cars from rusting over in dealership parking lots.
Why Companies Should Have Open Business models, MIT Sloan Management Review, 48 (2), pp. 22-28.14.
12 2 Business model innovation in low-tech SMES...14 2. 1. Business model innovation in SMES to sidestep the commodity trap...
14 2. 2. The role of the initial business concept or vision...15 2. 3. Innovate beyond products and services:
31 3 A dynamic view on business model innovation...37 3. 1. Stepwise discovery of new business models...
37 3. 2. The process of discovering new applications...40 3. 3. Diversify or not?..
51 4 How SMES build new business models through open innovation?..54 4. 1. Benefiting from open innovation:
Business model innovation at Curana...38 Figure 6: Case Innovacelli...42 Figure 7: Case Jaga...47 Figure 8:
and changing their business model. A major liability is that small firms lack the required internal financial resources and technical capabilities.
Instead, small-and medium-sized companies engage in open innovation as a consequence of their search for major changes in their business model to seize new business opportunities and boost profitability.
Chesbrough showed that business models are crucial for unlocking the latent value of new or existing technologies6.
and commercialize it through a particular business model. In all our interviews, managers emphasized that business models play a primary role in SMES in low-and medium-tech industries, not the technology.
Most SMES we examine in this report did not have internal technological competencies, but they set up new business models to leverage commercial value from technologies that existed in other organizations
or that had been developed co with partners. They developed an open innovation network with several partners
because they can develop business model innovations without having the required technologies in-house. Instead, SMES can leverage external technologies by setting up a network with partners who have required the competencies
A business model has two important functions: it must describe the way in which the company creates value
Value creation and value appropriation can be analyzed using a business model framework. Despite the fact that the term business model is used widely in the business world,
academic research is relatively sparse, and there is no consensus because researchers define business models in different ways8.
Applying existing business model (innovation) frameworks to low-tech SMES is not trivial because the open innovation network is at the core of the business model.
The existing business model (innovation) frameworks do not pay attention to strategic partners or they incorporate them as a module in the model without analyzing interactions with other modules in the framework.
We will examine in detail, therefore, how a business model framework must be adapted to fit business model innovations based on open innovation in low-tech SMES.
Examining which implications our findings have for the theoretical modeling of business model innovation, which has received significant attention among strategy scholars,
is beyond the scope of this report. Business model innovations based on an open innovation imply that there are cost-increasing effects of technology sourcing and technology co-development9.
The new revenue streams resulting from business model innovation must be balanced against the costs of setting up
and managing the external network of partners. Moreover SMES have limited financial means to seize new business opportunities.
Accordingly, they may have to work in several consecutive steps, which in some cases look like a bootstrapping strategy.
Business models take thus a central place in analyzing open innovation in small firms. This has implications for the structure of this report.
In Chapter 2, we analyze the business model innovations of the SMES we interviewed. First, we pay attention to how small firms develop strategies to create value for customers.
Besides value creation we also examine how small firms can appropriate part of the value they create with the new business model.
but most of the firms we examined were successful in crafting new ways to gain significantly more profits with the new business models.
In Chapter 3, we enter the dynamics of business model innovation. The firms that have reached the most spectacular results with their business model innovation realized this in several consecutive steps.
In SMES, new businesses are developed stepwise using new product projects as tools to move forward.
and May 2011.14 2 Business model innovation in low-tech SMES Analyzing the open innovation activities of SMES in traditional industries starts with a broader analysis of the business model innovation of those companies.
The analysis of the business model innovation, therefore, logically comes first, and the usefulness of open innovation hinges on the role it plays in achieving broader strategic goals.
In the next section, we illustrate how the different companies we interviewed sidestep the commoditization pressure by changing their business model.
Next, we focus on the initial entrepreneurial act to initiate such a business model change. In section 2. 3, we look at how several companies transitioned from products or services to experiences in their search to offer more value to the customer.
we examine the different drivers that enable SMES to accomplish these major business model changes. 2. 1. Business model innovation in SMES to sidestep the commodity trap Many SMES face severe commoditization pressure in their markets.
As the burgeoning management literature on business model innovation has shown during the last decade, SMES can take different approaches to reshaping offerings and seizing new growth opportunities.
A business model defines the way companies deliver value to a set of customers at a profit.
and financial viability of a business model erodes over time as price competition starts to dominate. Sooner or later, firms'existing businesses are prone to commoditization.
or business model innovation to find new ways to create value for customers. Business success comes from satisfying real,
Companies that are successful in business model innovation gain a unique position in the competitive space that is difficult for others to imitate.
White space represents the business opportunities outside a company's current businesses that require a different business model to exploit.
and models to implement business models and business model innovations. SMES that successfully sidestepped the commodity trap have changed their existing business model successfully to deliver more value for the customer at a profit.
In contrast with large firms, SMES 15 sometimes develop their business model in a rather intuitive way, based on strong but informed vision, conviction or basic insight.
We observed in all the SMES we interviewed that open innovation is embedded always in the company's broader strategic goals.
when these innovation activities are placed within the SMES'overall strategy or business model. We thus explore the strategy of innovating SMES in this
when it is commercialized in some way. 14 It is the business model that determines the economic value of a new technology by indicating how customer value will be created
but when isolated from SMES'strategies and business model development, they are useless in explaining why
or vision Developing a start-up's business model or reinventing the existing strategy of an SME usually starts with developing basic insight into how a company can deliver value for a specific target customer.
the business model's customer value proposition for the customer of Isobionics (see p 81), the Dutch start-up Janssen established in 2008,
In other cases, it takes more time to articulate the customer value proposition of a new business model in small firms.
The QOD case illustrates that developing a successful business model that ultimately changes the industry starts with nothing more than the conviction of a well-informed entrepreneur.
It took a stepwise approach of more than three years before the business model for a functional quilt was developed in great detail.
Curana (see p 24) is another example that illustrates how developing a new business model is a gradual process that can take years.
and developing a new business model. Sometimes, the business model is straightforward, as we have seen in the case of Isobionics.
This represents an instance when the company is replacing existing product offerings with a new one at considerably lower production costs.
and articulating a business model is a more complex process requiring months and years to get the details just right.
We have examined thus far several ways to develop a business model. Some companies such as Devan Chemicals, start with key concepts that act as fundamental guidelines for many years.
Business model innovations start with articulating a customer value proposition. 17 During our interviews all managers underlined that creating value for customers is the first and most important element in generating new business.
but not for game-changing and highly profitable business model innovations. 18 Next, business models cannot be anticipated fully in advance
Innovative business models are sometimes hard to articulate because too many questions remain unanswered. The needs of the target customer might not be explicit.
Game-changing business model innovations cannot be planned analytically because many of the variables relevant to their success are unknown at the outset.
In contrast, SMES have to experiment to discover new business models. Moreover, experimentation is path-dependent;
that is, early experiments and choices shape the trajectory for to evolve the business mode further. 19 New opportunities will be discovered each time the company achieves a new step in realizing its business model. 19 Figure 1:
DNA Interactif Fashion proposed a new business model for fashion shopping. It changes shopping for fashion goods into a completely new experience for the customer.
far we have focused on how small companies develop new business models and how this move allows them to sidestep the commodity trap.
and the potential of turning business models that are product and service oriented into more profitable business models based that generate experiences for customers The role of open innovation is not in business model innovation is discussed not here.
This is the subject of chapter four in which the role of open innovation in new business development is analysed in detail. 29 Figure 3:
Curana innovated its business model primarily in response to these shifts in the marketplace. In fact, Curana changed its business model
and embraced an ODM model and later a proactive design strategy as a competitive driver.
and the role the complementary assets play in a particular industry. 21 Shifts in government policies targeted at the business environment are another important driver of business model innovations in SMES.
thus an important reason small companies experiment with new business models to revamp or grow their business.
However, we must also look at value drivers to explain successful business model innovations in SMES. Small firms can benefit from having several advantages compared to large companies depending on the activities that drive profits in different industries.
and developing a new business model. A business model defines the way a company delivers value for a specific customer group at a profit.
The value of open innovation activities in SMES can only be estimated correctly within the context of their broader strategic objectives.
New strategic objectives of a company should be analyzed via a business model innovation framework. All firms have in common that their efforts are focused on creating value for a particular target customer.
Business model innovations start with articulating a customer value proposition. Creating customer value through game-changing
and highly profitable business models will usually not be developed by questioning existing customers. Sometimes the business model is straightforward.
In the other cases, conceptualizing and articulating a business model is a more complex process. It may take months
and even years to clearly articulate the customer value of an idea. Innovative business models are sometimes hard to articulate
because the needs of the target customer might not be explicit, uncertainty might exist about which technologies to use and
Game-changing business model innovations cannot be planned analytically because many of the variables relevant to their success are unknown at the outset.
SMES have to experiment to discover new business models. It is driven a discovery process. Most of the SMES use business model innovation to fight commoditization of their products.
They can increase functionality or reliability of the products, they can create more convenient products for the customers.
Case Segers & Balcaen 36 37 3 A dynamic view on business model innovation Business model innovation should
In this chapter, we analyze some aspects of business model innovation in SMES. First, we look at the possibility of changing business models.
Change may not occur just once, but several times, moving stepwise toward a business model that creates more interesting value propositions and results in higher profitability.
Second, we examine the process of discovering new applications after a small firm has introduced a new technology to solve a problem in its existing product markets.
Developing a dynamic view on business model innovation is also important to understand the dynamics in the open innovation networks of the companies we examined.
These open innovation aspects will be described in detail in the next chapter 3. 1. Stepwise discovery of new business models In the previous chapter,
Why did he change the business model several times? Some managers continuously probe new business models, with each new model building on the strength of its predecessor.
Switching to a new business model creates opportunities to change it again for a second or a third time.
It is a path-dependent process in that opportunities to change the business model into a more profitable model can only be detected after the previous business model has materialized fully.
SMES thus change their business model in a stepwise way. To illustrate this concept, we take the example of Curana
and use a scheme suggested by Dirk Vens (see figure 5, p 38. The scheme shows his company's business model innovations between 1999 and 2010.
Curana, a small, family-owned bicycle accessories manufacturer started as a typical OEM: it produced steel mudguards and other accessories according to specs from bike manufacturers in Belgium and surrounding countries.
which is why Dirk Vens chose to change his company's business model. 38 Figure 5:
Business model innovation at Curana The transformation from an OEM to an ODM model was made possible through a new product development project,
The B Lite enabled Curana to change its business model from an OEM model to an ODM model.
Most SME-managers would be inclined to stick to this new business model because avoiding the commodity trap
and changed its business model again. It established an internal design office because design had become the heart of the company.
Dirk Vens was searching for a new business model that would bring growth and profitability. He started with one product development project that resulted in the successful launch of the B Lite and the start of the ODM business model.
The B lite, however, was invented not in a straightforward or linear way. The company and its innovation partners continuously probed new solutions;
Let's look again at the four business models in figure 5 (p. 38. Once Curana had adopted the ODM model,
if the company had remained with the ODM business model, several competitors might already be imitating Curana's strategy.
Curana's successive business model changes also offered it a unique position in the market. Curana develops new concepts and designs,
The PROF business model brings together several companies with complementary competencies to develop a new idea or concept for a particular end consumer (patient or the elderly.
It is thus too early to evaluate its effects on the company's bottom line. 53 Key learning points Successful SMES do not remain with one business model forever.
They are continuously probing new business models. Each new business model builds on the strength of the previous business model
and improves its value proposition and profitability. This constitutes a path-dependent process because new opportunities to transform the business model into being more profitable can only be detected after the previous business model has materialized fully.
In business model innovation too much uncertainty exists to plan analytically a way to move forward. Indeed, SMES change their business model in a stepwise way.
Business model innovations are designed to create more value and generate more profits, and increasing profitability can be the result of several changes.
We have emphasized innovating SMES can increase profitability by increasing the number of control points and creating a unique offering.
In the case of Curana, the company gained control points to differentiate itself from the competition.
and other inexpensive means. 54 4 How SMES build new business models through open innovation? In the previous chapters, we explored how small firms can boost their competiveness in the long run by changing their business model.
So far, we have not been emphasizing the role of the innovation partners in enabling or supporting these changes.
In this chapter, we examine how SMES integrate open innovation as they develop new business models. We have explained already why the business model approach is useful in the context of SMES that want to improve their competitive position28.
Business models also play a central role in open innovation as the continuous sourcing from and collaboration with partners can add value for the focal organization29.
The business model literature however, has been marginalizing partnerships to outsourcing or acquiring particular activities or assets.
A major shortcoming in the existing literature, therefore, is to analyze how open innovation and collaboration with external partners can add value to the business model of SMES.
A business model describes how an SME creates value for a particular customer group and how it captures a portion of that value.
Open innovation uses the division of innovation labor to both create and capture value. We will look first at how the companies we interviewed jointly create value with their innovation partners.
Business model innovation starts with discovering or recognizing new forms of value creation for a particular customer group.
and referring to any factor that enhances the total value created by a change in the business model.
Open innovation allows companies to implement business models that generate more profits. We provide illustrations from the SMES we have analyzed.
Curana, for instance, experienced serious pressure to adapt its business model in 2011 when it was exploring the potential of a new,
therefore how to change its business model to benefit from this promising technology in a different way. 5. Open innovation also means openness in communication and in reporting among the innovation partners.
and stay focused on the joint value they create. 74 Key Learning Points Open innovation as an integral part of business model innovations In the past,
Rather, they focus on major changes in their business model to seize new business opportunities and to boost profitability.
Additionally, the benefits of open innovation-based business model changes differ from the classic open innovation benefits identified for large firms.
therefore, must rely on innovation partners to realize major business model changes. Open innovation is a direct consequence of a small firm's ambition to change its business model.
A business model describes how a firm creates value for a particular customer group and how it captures a portion of that value.
We examined a range of possibilities how small firms jointly create value with their innovation partners.
With which small firms a company innovates is determined largely by the new business model the central firm wants to implement.
and the sequence of collaborating with partners are defined by the business model. Most of the small firms that collaborate intensively do so with value chain partners and less with technology partners.
Developing technology can be very important in realizing the business model, but it is always a supporting activity.
More radical business model changes combine knowledge from unrelated fields. Companies pull in expertise from industries and fields that have never been related previously to the current industry to
and they can change over time. 75 Capturing value Good business models also guarantee profitability. The SMES we interviewed work together with different innovation partners to create
There are many ways open innovation helps in executing business models with higher profitability. We enumerate a few possibilities:
Profitability through open innovation can be built in consecutive steps as we have seen in Chapter 3. Curana has changed its business model three times
Let your partner pursue business opportunities in areas that do not fit your business model. In the Airfryer case, this translated into opportunities for both partners,
Frequently, a (radically) new vision of entrepreneurs or managers is the starting point for the business model of SMES.
In open business models, therefore, one has to analyze the joint value creation together with the value distribution among the different partners.
Business model innovations are high-risk ventures because a firm must search for new technologies and develop new products.
SMES change their business model in a stepwise way. In most cases, companies begin with a (radically) new product or service,
Therefore, some SMES unfold their business model innovation in several consecutive steps, building new competencies and a stronger financial position at the same time.
Finally, a business model change creates opportunities to change a second and a third time. Curana switched from an OEM to an ODM business model.
Once the company was recognized as an ODM, it changed its business model again by proactively designing bicycle parts.
Because of this change, the company was recognized in the industry as a trendsetter. This in turn, triggered Curana to build a brand-based strategy.
If the company stayed tuned to the ODM business model, it would already be confronted with several competitors imitating the ODM move.
Relational capital plays a central role in developing an open innovation based business model. The competitive strength of the SMES is no longer (only) related to its internal competencies,
MA and Chesbrough, H. W. 2006), Open business models: How to thrive in the new innovation landscape, Harvard Business school Press, Harvard:
MA and Chesbrough, H. W. 2006), Open business models: How to thrive in the new innovation landscape, Harvard Business school Press, Harvard:
MA. 7 Chesbrough, H. W. 2007), Why companies should have open business models, MIT Sloan Management Review, 48 (2),
22-28.8 There are different approaches to business models. Different authors have analyzed the business models along different frameworks.
Prominent approaches are: Afuah, A (2004), Business models: A strategic management approach, Mcgraw-hill; Morris, M. and Schindehutte, M. 2005), The entrepreneur's business model:
Toward a unified perspective, Journal of Business Research, 4, 123-128; Osterwalder, A. 2004), The business model ontology a proposition in a design science approach, Ph d. Thesis University Lausanne, Ecole des Hautes Etudes Commerciales HEC. 173 p;
Osterwalder, A.,Pigneur, Y. and Tucci, C. L. 2005), Clarifying business models: Origins, present, and future of the concept, Communications of the Association for Information systems, Vol. 16,1-25-25;
Shafer, M. S.,Smith, H. J. and Linder, J. C. 2005), The power of business models, Business Horizons, 48 (3), 199-207.
Chesbrough, H. W. and Rosenbloom, R. S. 2002), The role of the business model in capturing value from innovation:
evidence from Xerox Corporation's technology spin-off companies, Industrial and Corporate Change, 11 (3), 529-555;
Johnson, M. W.,Christensen, C. M, . and Kagermann, H. 2008), Reinventing your business model. Harvard Business Review, December, 51-59.;
and Johnson, M. W. 2010; Seizing the white space: Business model innovation for growth and renewal, Harvard Business Press, Boston:
MA. 9 Faems, D.,de Visser, M.,Andries, P. and Van Looy, B. 2010; Technology Alliance Portfolios and Financial Performance:
Chapter 2 11 A business model can be defined in different ways. A. Osterwalder and Y. Pigneur (2009), Business model Generation is one of the most influential books on business model innovation besides M. W.
Johnson (2011) Seizing the white space: Business model innovation for growth 96 and renewal, Harvard Business Press, Harvard:
MA. The core ideas of this book are summarised in the following HBR article: Other definitions of open innovation have been provided by Johnson.
M. W.,Christensen, C. M. and Kagermann, H. 2008), Reinventing your business model. Harvard Business Review, December, 51-59.
Other definitions have been provided by A. Afuah (2003), Business models: A strategic management approach, Mcgraw-hill Irwin. Boston:
and Rosenbloom and H. W. Chesbrough (2002), The role of the business model in capturing value from innovation:
Business model innovation for growth and renewal, Harvard Business Press, Harvard: MA. 14 The role of the business model creating economic value from technological inventions is one of the central themes in Chesbrough, H. W. 2003), Open innovation;
The new imperative for creating and profiting from technology, Harvard Business school Press, Harvard: Boston; and Chesbrough, H. W. and Rosenbloom, R. S. 2002), The role of the business model in capturing value from innovation:
Evidence from Xerox Corporation's technology spin-off companies, Industrial and Corporate Change, 11 (3), 529-555.15 In reality, the customer value proposition is a bit more complex.
M. W.,Christensen, C. M. and Kagermann, H. 2008), Reinventing your business model. Harvard Business Review, December, 51-59.18 See, for instance, Govindarajan, V. and Trimble
R. Mcgrath (2010), Business models: A discovery driven approach, Long Range Planning, 43,247-261.20 Pine, B. G. and Gilmore, J. H. 2011), The experience economy, Harvard Business Review
The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies, Industrial and Corporate Change, 11 (3), 529-555;
. and Allen, J. 2005), The entrepreneur's business model: toward a unified perspective, Journal of Business Research, 58,726-735;
Shafer, S m.,Smith, H. J.,Linder, J. C. 2005), The power of business models, Business Horizons, 48,199-207;
Osterwalder, A.,Pigneur, Y.,Tucci, C. L. 2005), Clarifying business models: origins, present and future of the concept, Communications of the Association for Information systems.
Chapter 4 98 29 Chesbrough, H. 2007), Why companies should have open business models, MIT Sloan Management Review, Winter 2007,48, 2, 22-28;
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