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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Business rule models are widely applied, standalone and embedded in smart objects. They have become segregated from information technology and they are now a valuable asset in their own right. As more business rule models are becoming assets, business models to monetize these assets are designed. The goal of this work is to present a step towards business model classification for organizations for which its value position is characterized by business rule models. Based on a survey we propose a business model categorization that is aligned to different types of assets and business model archetypes. The results show five main categories of business models: The value adding business rule model, the ‘create me a business rule model’ business model, the KAAS business model, the bait and hook business model and the market place business model.
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Business model innovations emerge over time and are influenced by managerial interaction with stakeholders. Especially with regard to business model innovation for sustainability, manager-stakeholder interaction can radically change a company’s business model and underlying logic. However, the majority of the literature shows how manager–stakeholder interaction may limit business model innovation when stakeholders reinforce existing managerial cognitions. In this chapter we study how stakeholders can also stimulate business model innovation by affecting managerial cognitive change. Through three case studies, we find that this can occur through three shaping processes: market approach shaping, product/service offering shaping, and credibility shaping. We also find that the impact of new or latent stakeholders is greater than that of existing stakeholders. We end the chapter by sketching a research agenda to further unravel the role of stakeholders affecting managerial cognition around business model innovation for sustainability.
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This paper seeks to make a contribution to business model experimentation for sustainability by putting forward a relatively simple tool. This tool calculates the financial and sustainability impact based on the SDG’s of a newly proposed business model (BM). BM experimentation is described by Bocken et al. (2019) as an iterative-multi-actor experimentation process. At the final experimentation phases some form of sustainability measurement will be necessary in order to validate if the new proposed business model will be achieving the aims set in the project. Despite the plethora of tools, research indicates that tools that fit needs and expectations are scarce, lack the specific focus on sustainable BM innovation, or may be too complex and demanding in terms of time commitment (Bocken, Strupeit, Whalen, & Nußholz, 2019a). In this abstract we address this gap, or current inability of calculating the financial and sustainability effect of a proposed sustainable BM in an integrated, time effective manner. By offering a practical tool that allows for this calculation, we aim to answer the research question; “How can the expected financial and sustainability impact of BMs be forecasted within the framework of BM experimentation?
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Pressure on natural resources, unsustainable production and consumption, inequality and a growing global population lie at the base of the big challenges that people face. This chapter investigates how businesses can take responsibility in dealing with these challenges by means of frugal business model innovation. The notion of ‘frugal innovation’ was first introduced in the context of emerging markets, giving non-affluent customers opportunities to consume affordable products and services suited to their needs. Business modelling with a frugal mindset opens up a path that provides significant value while minimizing the use of resources such as energy, capital and time. Business models require intentional design if they are to deliver aspired sustainability impacts. Diminish or simplify resources can be described as the means to remove or reduce features, resources, required activities and/or waste streams. Decompose can be described as the removal of resources from the commercial value proposition and replacing them with resources the user/consumer already can access or uses. This is an Accepted Manuscript of a book chapter published by Routledge/CRC Press in Circular Economy : Challenges and Opportunities for Ethical and Sustainable Business on 2021, available online: https://doi.org/10.4324/9780367816650
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The BMT provides the building blocks to develop a logic for a business model. In such a model the nature of value creation, how value creation is organized, and how transactions are taking shape are operationalized so that they meet the proposition. Practice shows that at present business models aimed at capturing multiple value creation can be divided into three major categories: (1) platform business models, (2) community-based (or collective) business models, and (3) circular business models. The three archetypes differ mainly in the way in which they create value, as well as the objective, the mechanism through which value creation takes place, and the infrastructural and technological requirements. When using the BMT, it is useful to consider at an early stage which business model archetype is dominant in the realization of the intended value proposition. Choosing a business model archetype might look straightforward, but it can be quite a tricky task.
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De huidige ontwikkelingen in de maatschappij leiden ertoe dat conventionele business modellen niet alle gecreëerde waarden in het business model laten terugkomen. Dit heeft tot gevolg dat deze niet onderkende waarden ook niet in het verdienmodel terugkomen. Hierdoor kunnen nieuwe business kansen niet doorgaan of bestaande business modellen onrendabel worden. Dit probleem wordt erkend in het vakgebied en er bestaan meerdere initiatieven die voorstellen doen voor nieuwe vormen van business modellen. Deze nieuwe business modellen lijken echter nog niet de slag te hebben gemaakt van strategisch naar operationeel niveau. In dit blog een eerste voorstel om tot het operationele niveau te komen.
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The Dutch government and leading academics in the field of circular economy propose that “repurposing”, i.e., finding new usages for discarded material, is important to reduce resource usage. Waste collectors, municipalities and start-ups increasingly find ways to develop circular business models, aiming for minimum loss of material integrity. Repurpose is a circular business model strategy which entails using a discarded product or its parts in a new product with a different function.The aim of this research is to gain a better understanding of this promising but academically underexposed circular strategy by empirically exploring its key characteristics and developing a taxonomy that reflects the scope and potential of the concept. The taxonomy development was based on clustering and comparing 96 case examples using key characteristics and critical factors empirically collected by means of 11 semi-structured expert interviews. The taxonomy was iteratively refined and validated by means of workshops with experts.This paper proposes a taxonomy and a comprehensive definition for repurposing. The Repurpose taxonomy distinguishes three main categories with increasing levels of material integrity: “Reprocess”, “Reshape” and “Recontextualize”. The taxonomy provides a refinement of existing circular business model patterns and frameworks for closing material loops strategies. It shows how repurposing may exploit the creative potential of design to fill the gap between reuse and recycling by retaining previously added value with three levels of physical adjustment.
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Business model innovation is essential to drive the systemic change required for a new economy. The Sustainable Development Goals (SDGs) provide focus and direction towards this transition. For companies in the agriculture and horticulture sectors, SDG 12, Responsible Consumption and Production, is particularly relevant. Designing, renewing, and innovating business models requires courageous and creative leadership. A new business model involves more than just analyzing problems and making well-considered decisions. It’s about creating something new, discovering innovative solutions, and testing them in practice. Design thinking is a method well-suited to addressing complex challenges that do not yet have clear solutions, such as the societal issues that characterize this era of transition. In this publication, the method is applied to real-world challenges faced by entrepreneurs in the agricultural and horticultural value chain. The iterative nature of design thinking leads to unexpected and innovative outcomes. This creative approach makes a valuable contribution to the realization of SDG 12.
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Industrial design practice has broadened from designing (mass-)products towards more open, complex, dynamic, and networked design. Organizations are increasingly hire design professionals and turn their attention towards design as an important capability that can help them generate innovation and improve business outcomes. Organizing design beyond organizations is becoming an interdisciplinary collaboration process rather than a design creation process. This has brought change for industrial designers with regards to the design process and the application of methods. By means of process research methods, this study addresses the question ‘how does an industrial design process evolve in a broadening field of design practice?’. Based on theoretical interpretation of an empirical narrative that tells the story of a design project in healthcare, this paper provides understanding in the messy and complex progression in design processes, and unstable and unpredictable dynamics. It works towards a process innovation model that fits contemporary roles for industrial designers who are adapting their ways of working in novel design challenges.
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