Abstract
Business Model (BM) Innovations aim at making systemic changes in the business logic of companies when they are bringing innovative products and services to the market. Companies should be sensitive to changes in their business environment and able to modify their BMs in an agile way. To assess the agility of BMI during specific market entry situations, this paper uses a method that stress tests the value proposition and the components of a BM against contingent uncertainties. We present three qualitative case studies of companies that differ in their market entry approach. Starting from their strategic orientation, these case companies’ stress test their Business models and BM components, using a scenario-based identification of uncertainties. The BM Stress Test method contributes to a quick understanding of the components their BM needs to monitor, reconsider, or improve. Such stress testing helps enhance business agility. The research contributes to market strategy and business modelling research by introducing BM Stress Testing as a new method that can achieve and maintain agility regarding BM uncertainties.
Highlights
Responsible Editor: Hans-Dieter ZimmermannBusiness Models (BMs) are acknowledged as effective instruments for strategy execution (Casadesus-Masanell and Ricart 2010; Cortimiglia et al 2016; DaSilva and Trkman 2013; Teece 2010; Zott and Amit 2010)
We explore and illustrate using three case studies, how BM Stress Testing can help identify the sensitivity of a BM to uncertainties, and how to make managers more agile by being able to identify the components of a BM that is affected by such a change
Thereafter, we focus on agility as it relates to BM innovations (BMIs)
Summary
Business Models (BMs) are acknowledged as effective instruments for strategy execution (Casadesus-Masanell and Ricart 2010; Cortimiglia et al 2016; DaSilva and Trkman 2013; Teece 2010; Zott and Amit 2010). They are combined with the designing, analyzing and implementing of new innovative concepts that can enhance the competitiveness of companies or business networks (Bock & George 2014). Even though it is acknowledged that companies should be sensitive to changes in their business environment and able to modify their BMs in an agile way, to our knowledge there is little research that has discussed how this agility of BMI is best achieved
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