The project analyzes how firms manage their business model innovation processes. A business model innovation redefines the value proposition, its customer delivery or how the firm profits from the customer offering, and thus can create strong competitive advantage (Brink and Holmén, 2009; Björkdahl, 2009a, 2009b).
Business model innovation has become important to firms because it often has a stronger impact on profit margins than product and service innovations. Given the challenge Western firms are facing from the low cost and increasingly high quality manufacturing and IT companies globally we need to know more about business model innovation as these are critical business opportunities. While much is known of product or service innovation, there is only anecdotal evidence concerning changes on business models. We need, therefore, to know more about business model innovation.
This project touches upon the causes and effect of some specific business model innovation phenomena. These are related to the causes and effects of:
1) capturing value from free or subsidized products and services,
2) business model disruption,
3) lead users and customer driven business model innovation development.