The Art of Prioritizing and Timing in Business Model Innovation

Abstract

Overview: Business model innovation (BMI) is especially challenging in rapidly changing environments. When developing a new business model over time, entrepreneurs and managers often find it hard to figure out where to start and what to do next. The success of BMI largely lies in when companies attempt to make changes, as well as what components of the business model to change and in what order. This process can be sometimes biased. As a result, what managers prioritize in their minds and what they act on can be different. Managers must be aware of such differences and consciously manage the development journey over time. This article discusses the BMI process in detail, examining how prioritizing (selective attention) and timing (action attention) can be (un)synchronized, why this happens, and how to maximize learning and avoid learning traps. Based on several longitudinal and in-depth case studies, this work highlights the importance of prioritization and timing with respect to BMI success.