Iterative Business Model Innovation: Exploring a Holistic Framework in Order to Create and Capture New Value
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Background: There is an increasing amount of arguments made that new business models are the solution when companies and industries face radical changes in the environment. To be able to prosper in the long run, organizations must reinvent themselves over and over again. Many authors (e.g. Abernathy & Utterback, 1978; Christensen, 1997; Kim & Mauborgne, 2005; Ries, 2011) claim that big, radical, reconfigurations are needed in order to prosper in the long-term. Theories, concepts and framework have been developed to answer how this reconfiguration should happen within organizations. However, the concepts derived are just parts of the solution, and none take a holistic approach, trying to cover them in a practical framework that could be used by organizations.
Aim: The aim of the thesis is to propose a framework that enables organizations to systemize their innovation processes, making them flexible enough to repetitively seize opportunities through business model innovation where new value can be created and captured. The proposed framework aims to enable organizations to start discussing how they should create and capture new value and give them a more pragmatic view on the innovation process. It also aims to act as a starting point for future research.
Methodology: The thesis follows March & Smith’s (1995) design science methodology in order to build and evaluate the framework. This is done in three steps; first by building a model from theory. Second, the emergence of business models in three different case companies are compared and investigated qualitatively. Lastly the model and the factors derived from the data are contrasted and a framework is built and evaluated.
Findings & Conclusion: The basis of the derived framework proposes for big steps to change, and create and capture new value; analyze the basis of competition in the macro and micro environment, analyze and experiment with different non-customer tiers, experiment with the creation of value and experiment and analyze the capture of the value created. More tangible tools are proposed for each of these steps. Actually testing the framework and further evaluating and theorizing of the framework is proposed as future research directions.
Place, publisher, year, edition, pages
2013. , 106 p.
Lean Startup, Disruptive Innovation, Business Model Generation, Minimum Viable Product, Radical Change, Blue Ocean Strategy
IdentifiersURN: urn:nbn:se:liu:diva-97540ISRN: LIU-IEI-FIL-A--13/01599--SEOAI: oai:DiVA.org:liu-97540DiVA: diva2:648366
Subject / course
Master's Programme in Business Administration – Strategic
Sjögren, Hans, Professor
Bengtsson, Marie, Univ lektor