A step towards Successful Implementation of Business Model Innovation

Abstract

In today’s fast growing and competitive environment, keeping up with changing trends has become a necessity for firms to beat the competition. A relatively new form of innovation with a growing community of people have stated that Business Model Innovation is essentially the key to successful organizations nowadays. Several companies are failing to achieve this in practice particularly in the implementation of new Business Models. This graduation research is carried out to tackle the problems in apprehending the key drivers, key barriers and key enablers along with process of a successful Business Model Innovation within Philips. The main research question is: “How can insights about various drivers, barriers and enablers help in the process of a successful Business Model Innovation transforming business within companies?”To achieve the objectives, the research was segregated into three main stages namely Literature Study, Phase 1, Phase 2.In Literature Study, the basic understanding of Business Model Innovation concepts was made aware. After having a clear comprehension, the literature study forayed into desk research where Secondary Articles like Harvard Business Review in addition to documents from within the companies were reviewed. A list of Drivers, Barriers and Enablers were identified from literature review alone along with several inputs for framework. Thus, Literature Study facilitated the development of questions for conducting interviews in Phase 1 of the research.In Phase 1, semi-structured interviews were conducted to support the findings from a practical perspective. The target group included practitioners from different functional background dealing with Business Model Innovation of some sort and were considered as subject matter experts. A total of 11 participants were interviewed. The recommendations provided by the interviewees along with an in-depth literature helped to identify a total of 16 Drivers, 32 Barriers and 22 Enablers.Following the analysis, the research proceeded with Phase 2. Here a survey was devised. This was done to rank the various Drivers, Barriers and Enablers. A total of 32 participants answered the questionnaire and the top three of each of Drivers, Barriers and Enablers were listedFurther to this, the findings added to the integrative framework. This framework was based on 4I process framework by Frankenberger, Weiblen, Csik, & Gassmann (2013). Inputs from interviews, survey and in-depth analysis went on to adding components to the framework. The proposed framework contributes in two ways: First, it lists a comprehensive list of key drivers, key barriers and key enablers which come up during the process of Business Model Innovation. Secondly, a process model of Business Model Innovation with key tasks have been outlined. As literature suggests so far there has been no process model developed for Business Model Innovation. This integrative framework incorporates the quite dispersed literature and helps to organize existing contributions and in identify any “blind spots” of Business Model research.Among the many other Recommendations, an important one is that the scope of the research in developing the conceptual framework is at a holistic level, since the key focus of the research was to identify key drivers, key barriers and key enablers that incorporates various perspectives. When Business Model Innovation is being undertaken at a rapid pace within the company it would be interesting to analyze in-depth on the individual elements of the framework. It would also be interesting to develop metrics around the drivers, barriers and enablers which could be adopted within projects of any nature.