Skip to main content
Search
Search
Quick Search anywhere
Quick Search anywhere
Quick Search anywhere
Quick Search anywhere
Quick Search anywhere
Quick Search anywhere
Advanced Search
Skip main navigation
No Access

The 4I-framework of business model innovation: a structured view on process phases and challenges

Published Online:June 27, 2013pp 249-273https://doi.org/10.1504/IJPD.2013.055012

Abstract

Business model innovation has received rising attention as a means for firms to achieve superior performance. Yet, as we argue based on a review of related literature, the research field so far lacks a comprehensive framework that supports managers in their endeavour to innovative their firms’ business models. Based on process models from innovation management literature and insights from 14 cases of past business model innovations, we develop the 4Iframework that structures the business model innovation process and highlights the specific challenges which managers face during the initiation, ideation, integration and implementation of new business models. Through our study, we also provide a conceptual framework to organise existing literature in the business model innovation field and identify promising areas for future research.

Keywords

business model, business model innovation, business model innovation process, process phases, challenges, incumbent firms

References

  • 1. Adner, R. , Kapoor, R. (2010). ‘Value creation in innovation ecosystems: how the structure of technological interdependence affects firm performance in new technology generations’. Strategic Management Journal. 31, 3, 306-333 Google Scholar
  • 2. Afuah, A. , Tucci, C.L. (2001). Internet Business Models and Strategies. McGraw-Hill International Editions Google Scholar
  • 3. Altshuller, G. (1973). Innovation Algorithm. Worcester, MA:Technical Innovation Center Google Scholar
  • 4. Amit, R. , Zott, C. (2001). ‘Value creation in e-business’. Strategic Management Journal. 22, 6/7, 493-520 Google Scholar
  • 5. BCG (2008). BusinessWeek/BCG Innovation Survey. Missoula, MT Google Scholar
  • 6. Baden-Fuller, C. , Morgan, M.S. (2010). ‘Business models as models’. Long Range Planning. 43, 2/3, 156-171 Google Scholar
  • 7. Björkdahl, J. (2009). ‘Technology cross-fertilization and the business model: the case of integrating ICTs in mechanical engineering products’. Research Policy. 38, 9, 1468-1477 Google Scholar
  • 8. Bouchikhi, H. , Kimberly, J.R. (2003). ‘Escaping the identity trap’. MIT Sloan Management Review. 44, 3, 20-26 Google Scholar
  • 9. Bucherer, E. , Eisert, U. , Gassmann, O. (2012). ‘Towards systematic business model innovation: lessons from product innovation management’. Creativity and Innovation Management. 21, 2, 183-198 Google Scholar
  • 10. Calia, R. , Guerrini, F. , Moura, G. (2007). ‘Innovation networks: from technological development to business model reconfiguration’. Technovation. 27, 8, 426-432 Google Scholar
  • 11. Casadesus-Masanell, R. , Ricart, J.E. (2011). ‘How to design a winning business model’. Harvard Business Review. 89, 100-107 Google Scholar
  • 12. Cheng, Y.T. , Van De Ven, A.H. (1996). ‘Learning the innovation journey: order out of chaos?’. Organization Science. 7, 6, 593-614 Google Scholar
  • 13. Chesbrough, H. (2007). ‘Business model innovation: it’s not just about technology anymore’. Strategy and Leadership. 35, 6, 12-17 Google Scholar
  • 14. Chesbrough, H. (2010). ‘Business model innovation: opportunities and barriers’. Long Range Planning. 43, 2/3, 354-363 Google Scholar
  • 15. Chesbrough, H. , 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 Google Scholar
  • 16. Christensen, C.M. (1997). The Innovator’s Dilemma. Cambridge,MA:Harvard Business School Press Google Scholar
  • 17. Christensen, C.M. , Raynor, M.E. (2003). The Innovator’s Solution. Cambridge, MA:Harvard Business School Press Google Scholar
  • 18. Comes, S. , Berniker, L. , Pantaleo, D. Pal, N. (2008). ‘Business model innovation’. From Strategy to Execution – Turning Accelerated Global Change into Opportunity. Springer, 65-68 Google Scholar
  • 19. Cooper, R.G. (1990). ‘Stage-gate systems: a new tool for managing new products’. Business Horizons. 33, 3, 44-54 Google Scholar
  • 20. Cope, J. (2011). ‘Entrepreneurial learning from failure: an interpretative phenomenological analysis’. Journal of Business Venturing. 26, 6, 604-623 Google Scholar
  • 21. Cormican, K. , O’Sullivan, D. (2004). ‘Auditing best practice for effective product innovation management’. Technovation. 24, 819-829 Google Scholar
  • 22. Demil, B. , Lecocq, X. (2010). ‘Business model evolution: in search of dynamic consistency’. Long Range Planning. 43, 2/3, 227-246 Google Scholar
  • 23. Doz, Y.L. , Kosonen, M. (2010). ‘Embedding strategic agility - a leadership agenda for accelerating business model renewal’. Long Range Planning. 43, 2/3, 370-382 Google Scholar
  • 24. Dunning, J.H. (2000). ‘The eclectic paradigm as an envelope for economic and business theories of MNE activity’. International Business Review. 9, 163-190 Google Scholar
  • 25. Economist Intelligence Unit (2005). Business (2010): Embracing the Challenge of Change. New York, NY:SAP, Alacra Store , A Report of the Economist Intelligence Unit Google Scholar
  • 26. Eisenhardt, K.M. (1989). ‘Building theories from case study research’. The Academy of Management Review. 14, 4, 532-550 Google Scholar
  • 27. Eveleens, C. (2010). Innovation Management: A Literature Review of Innovation Process Models and their Implications. Nijmegen, NL Google Scholar
  • 28. Gassmann, O. , von Zedtwitz, M. , Shavinina, L.V. (2003). ‘Innovation processes in transnational corporations’. The International Handbook on Innovation. Elsevier, 702-714 Google Scholar
  • 29. Girotra, K. , Netessine, S. (2011). ‘Strategy and competition: how to build risk into your business model’. Harvard Business Review. 89, 5, 100-105 Google Scholar
  • 30. Goldenberg, J. , Horowitz, R. , Levav, A. , Mazursky, D. (2003). ‘Finding your innovation sweet spot’. Harvard Business Review. 81, 3, 120-129, 142 Google Scholar
  • 31. Hamel, G. (2000). Leading the Revolution. Boston, MA:Harvard Business School Press Google Scholar
  • 32. Hansen, M.T. , Birkinshaw, J. (2007). ‘The innovation value chain’. Harvard Business Review. 85, 6, 121-130 Google Scholar
  • 33. Hartley, J. (2006). Innovation and its Contribution to Improvement: A Review for Policymakers, Policy Advisers, Managers and Researchers. London, UK Google Scholar
  • 34. Hedman, J. , Kalling, T. (2003). ‘The business model concept: theoretical underpinnings and empirical illustrations’. European Journal of Information Systems. 12, 1, 49-59 Google Scholar
  • 35. IBM (2008). IBM Global CEO Study – The Enterprise of the Future. Blenheim:Teamworks Pacific Ltd. Google Scholar
  • 36. Johnson, M.W. , Christensen, C.M. , Kagermann, H. (2008). ‘Reinventing your business model’. Harvard Business Review. 86, 51-59 Google Scholar
  • 37. Kim, W.C. , Mauborgne, R. (2004). ‘Blue ocean strategy’. Harvard Business Review. 82, 10, 76-84 Google Scholar
  • 38. Kim, W.C. , Mauborgne, R. (2005). Blue Ocean Strategy How to Create Uncontested Market Space and make the Competition Irrelevant. Boston, MA:Harvard Business School Press Google Scholar
  • 39. Kline, S.J. (1985). ‘Innovation is not a linear process’. Research Management. XXVIII, 4, 36-45 Google Scholar
  • 40. Kline, S.J. , Rosenberg, N. , Landau, R. Rosenberg, N. (1986). ‘An overview of innovation’. The Positive Sum Strategy – Harnessing Technology for Economic Growth. Washington, DC:National Academy Press , 275-306 Google Scholar
  • 41. Magretta, J. (2002). ‘Why business models matter’. Harvard Business Review. 80, 5, 86-92 Google Scholar
  • 42. Mahadevan, B. (2000). ‘Business models for internet-based e-commerce: an anatomy’. California Management Review. 42, 4, 55-69 Google Scholar
  • 43. McGrath, R.G. (2001). ‘Exploratory learning, innovative capacity and managerial oversight’. Academy of Management Journal. 44, 1, 118-131 Google Scholar
  • 44. McGrath, R.G. (2010). ‘Business models: a discovery driven approach’. Long Range Planning. 43, 2/3, 247-261 Google Scholar
  • 45. Mendelson, H. (2000). ‘Organizational architecture and success in the information technology industry’. Management Science. 46, 4, 513-529 Google Scholar
  • 46. Miles, M.B. , Huberman, A.M. , Holland, R. (1994). Qualitative Data Analysis. Newbury Park, CA:Sage Google Scholar
  • 47. Mitchell, D.W. , Coles, C.B. (2003). ‘The ultimate competitive advantage of continuing business model innovation’. Journal of Business Strategy. 24, 5, 15-21 Google Scholar
  • 48. Mitchell, D.W. , Coles, C.B. (2004). ‘Establishing a continuing business model innovation process’. Journal of Business Strategy. 25, 3, 39-49 Google Scholar
  • 49. Morgan, D.L. (1998). The Focus Group Guidebook. Thousand Oaks, CA:Sage Publications Google Scholar
  • 50. Morris, M. , Schindehutte, M. , Allen, J. (2005). ‘The entrepreneur’s business model: toward a unified perspective’. Journal of Business Research. 58, 6, 726-735 Google Scholar
  • 51. Osterwalder, A. (2004). The Business Model Ontology – A Proposition in A Design Science Approach. Switzerland:University of Lausanne , Dissertation 173 Google Scholar
  • 52. Osterwalder, A. , Pigneur, Y. , Clark, T. (2010). Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Hoboken, NJ:Wiley Google Scholar
  • 53. Rothwell, R. (1994). ‘Towards the fifth-generation innovation process’. International Marketing Review. 11, 1, 7-31 Google Scholar
  • 54. Roy, R. , Cross, N. (1983). Bicycles: Invention and Innovation. London, UK:The Open University Press Google Scholar
  • 55. Schneider, S. , Spieth, P. (2012). ‘Business model innovation: towards an integrated future research agenda’. EURAM (2012) Conference, European Academy of Management, Rotterdam, NL, 1-40 Google Scholar
  • 56. Shafer, S.M. , Smith, H.J. , Linder, J.C. (2005). ‘The power of business models’. Business Horizons. 48, 3, 199-207 Google Scholar
  • 57. Sosna, M. , Trevinyo-Rodriguez, R.N. , Velamuri, S.R. (2010). ‘Business model innovation through trial-and-error learning the Naturhouse case’. Long Range Planning. 43, 2/3, 383-407 Google Scholar
  • 58. Tankhiwale, S. (2009). ‘Exploring the interrelationship between Telco business model innovation and the change in business process architecture’. Journal of Telecommunications Management. 2, 2, 126-137 Google Scholar
  • 59. Teece, D.J. (2010). ‘Business models, business strategy and innovation’. Long Range Planning. 43, 2/3, 172-194 Google Scholar
  • 60. Tidd, J. , Bessant, J. , Pavitt, K. (2005). Managing Innovation: Integrating Technological, Market and Organizational Change. 3rd ed., Chichester, UK:Wiley Google Scholar
  • 61. Timmers, P. (1998). ‘Business models for electronic markets’. Electronic Markets. 8, 2, 3-8 Google Scholar
  • 62. Tushman, M.L. , Anderson, P. (1986). ‘Technological discontinuities and organizational environments’. Administrative Science Quarterly. 31, 3, 439-465 Google Scholar
  • 63. Van De Ven, A.H. , Polley, D.E. , Garud, R. , Venkataraman, S. (1999). The Innovation Journey. New York:Oxford University Press Google Scholar
  • 64. Venkatraman, N. , Henderson, J.C. , Pantaleo, D. Pal, N. (2008). ‘Four vectors of business model innovation: value capture in a network ERA’. From Strategy to Execution. Springer Berlin Heidelberg, 259-280 Google Scholar
  • 65. Voelpel, S. , Leibold, M. , Tekie, E. (2004). ‘The wheel of business model reinvention: how to reshape your business model to leapfrog competitors’. Journal of Change Management. 4, 3, 259-276 Google Scholar
  • 66. Yin, R.K. , Bickman, L. Rog, D.J. (2009). Case Study Research: Design and Methods. Thousand Oaks:Sage Publications Google Scholar
  • 67. Zott, C. , Amit, R. (2008). ‘The fit between product market strategy and business model: implications for firm performance’. Strategic Management Journal. 29, 1, 1-26 Google Scholar
  • 68. Zott, C. , Amit, R. , Kleindorfer, P.R. Wind, Y.J. (2009). ‘The business model as the engine of network-based strategies’. The Network Challenge. Upper Saddle River, NJ:Wharton School Publishing , 259-275 Google Scholar
  • 69. Zott, C. , Amit, R. , Massa, L. (2011). ‘The business model: recent developments and future research’. Journal of Management. 37, 4, 1019-1042 Google Scholar
Previous article
Next article