Purpose: To facilitate the design of viable business models by proposing a novel business model design framework for viability. Design: A design science research method is adopted to develop a business model design framework for viability. The business model design framework for viability is demonstrated by using it to design a business model for an energy enterprise. The aforementioned framework is validated in theory by using expert opinion. Findings: It is difficult to design viable business models because of the changing market conditions, and competing interests of stakeholders in a business ecosystem setting. Although the literature on business models provides guidance on designing viable business models, the languages (business model ontologies) used to design business models largely ignore such guidelines. Therefore, we propose a business model design framework for viability to overcome the identified shortcomings. The theoretical validation of the business model design framework for viability indicates that it is able to successfully bridge the identified shortcomings, and it is able to facilitate the design of viable business models. Moreover, the validation of the framework in practice is currently underway. Originality / value: Several business model ontologies are used to conceptualise and evaluate business models. However, their rote application will not lead to viable business models, because they largely ignore vital design elements, such as design principles, configuration techniques, business rules, design choices, and assumptions. Therefore, we propose and validate a novel business model design framework for viability that overcomes the aforementioned shortcomings.
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Paper presented at the International Sustainability Transitions conference 2018 (12-14 june) Manchester, UK. The Dutch agrifood regime is grinding to a halt. International economic pressures force Dutch farmers to further scale up and intensify their businesses, while food scandals and calamities as well as many and varied negative environmental impacts have led to an all-time low societal acceptance of the agrifood regime as well as a host of legislative measures to stifle further growth. Such a situation, in which regime pressures increasingly undermine the regime, represents a strong call for transition of the Dutch agrifood system.At the same time, new business models emerge: new players arrive, new logistical pathways come to the fore and innovative consumer and farmer relationships – food co-operatives – are forged. In a sense, the transition is already under way (cf. Hermans et al., 2010), with new business models forming an important backbone. However, the way forward is still a matter of great uncertainty and controversy: How do new business models relate to reconfiguring the Dutch agrifood system? We explore the hypothesis that different transition pathways put specific demands on the role of new business models. We studied various new business models in the Dutch agrifood system and their relations to three different transition pathways. Our research combines future exploration (backcasting) and analysis of new business models. In this research, we approach this question from two angles. First, we introduce a transition-oriented business model concept, in order to effectively link new business models to transition. Then we shortly touch upon the transition pathway typology introduced by Geels et al. (2016) and describe three different transition pathways for the Dutch agrifood system. We report on XX business models in each of these transition pathways. The paper ends with a discussion of the role of business models for different types of transition pathways.
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