Marikka Heikkilä

Collaborative Business Model Innovation Process for Networked Services

This paper presents a process framework for innovating joint business models (co-BM) for multiple companies. Our framework describes the change management that should be carried out in parallel to the rigorous analysis and development of the business model details. With two illustrative cases we show that fruitful co-BM creation process in networks requires both development of the model itself, but also organizational innovation processes including mutual learning and harmonisation of operations. We claim that by understanding this dual process and its key facets might help (1) to coordinate the practical BM creation projects better and (2) to analyse which BM related decisions contribute or hinder the joint development project.

Business model metrics: an open repository

Development of successful business models has become a necessity in turbulent business environments, but compared to research on business modeling tools, attention to the role of metrics in designing business models in literature is limited. Building on existing approaches to business models and performance measurement literature, we develop a generic open repository of metrics related to core business model concepts. We validate and assess the practical value of the repository based on four e-Business model cases. The repository can be utilized in designing business models, specifically for networked enterprises. It is neither complete nor universally applicable, but needs adjustment with each design. Ultimately, with this paper, we hope measurement will become an integral part of the business model innovation discussion.

Achieving agility using business model stress testing

Business Model (BM) Innovations aim at making systemic changes in the business logic of companies when they are bringing innovative products and services to the market. Companies should be sensitive to changes in their business environment and able to modify their BMs in an agile way. To assess the agility of BMI during specific market entry situations, this paper uses a method that stress tests the value proposition and the components of a BM against contingent uncertainties. We present three qualitative case studies of companies that differ in their market entry approach. Starting from their strategic orientation, these case companies’ stress test their Business models and BM components, using a scenario-based identification of uncertainties. The BM Stress Test method contributes to a quick understanding of the components their BM needs to monitor, reconsider, or improve. Such stress testing helps enhance business agility. The research contributes to market strategy and business modelling research by introducing BM Stress Testing as a new method that can achieve and maintain agility regarding BM uncertainties.

Business Model Implementation within Networked Enterprises: A Case Study on a Finnish Pharmaceutical Project

In many entrepreneurial projects, the concept of the business model (BM) is used to describe a business idea at a high-level and in a holistic way. However, existing literature pays less attention to implementation (or execution) of BM. Implementation becomes more complex when a BM is proposed by or requires a network of collaborating enterprises. The aim of this paper is to provide an approach based on empirical research that supports BM transition from design to implementation. The empirical data used in this paper is based on a case study involving an innovative project in the pharmaceutical sector in Finland. The case analysis demonstrates how a high-level BM needs careful consideration of its operational components from a network perspective to secure both value creation and capture. Drawing on the analysis, six concluding propositions on BM implementation in networked settings are put forward.

Explaining Diversity and Conflicts in Privacy Behavior Models

ABSTRACT Technological development and increasing personal data collection and utilization raise the importance of understanding individuals’ privacy behavior. Privacy behavior denotes the willingness to disclose personal data for services utilizing these data. The literature presents various privacy behavior models (PBMs). However, the research is incoherent, with inconsistencies among models. Therefore, the application and subsequent development of PBMs are challenging. Different background theories are used for model construction, and studies have been conducted in distinct application domains. We studied whether the models’ inconsistencies could be explained by these differences. Our in-depth analysis of PBMs was based on a systematic literature review of the most often cited key studies. Our findings indicate that the choice of theories and the application domains do not explain inconsistencies; instead, the models are often of an ad hoc type and constructed in an eclectic way. These results imply the need for more consistent research on privacy behavior.

Business Model Innovation in European SMEs - Descriptive analysis of quantitative survey and case survey data

In this paper we analyse Business Model Innovation (BMI) in European micro, small and medium sized enterprises (SME). We present descriptive findings from our quantitative survey and qualitative case survey on how SMEs are innovating their Business Models. Our survey indicates that 37% of European SMEs innovate their Business Model. We found some differences in BMI depending on the age and industry sectors. We also describe the changes the SMEs make in differing Business Model components when they are improving their Business Model.

From strategic goals to business model innovation paths: an exploratory study

Purpose The purpose of this paper is to analyse how different strategic goals of (micro-, small- and medium-sized firms=SMEs) relate to the business model innovation (BMI) paths that SMEs take when improving their business. Design/methodology/approach The authors conducted 11 in-depth case studies involving SMEs innovating their business models (BMs). Findings The authors found evidence that strategic goals of SMEs (start new business, growth and profitability) lead them to alternative innovation path in terms of BM components affected. Growth seekers start from the right-hand side of a BM Canvas, while profitability seekers start from the back end, the left side of a Canvas; and new businesses adopt a cyclical approach considering BM components in turn, while at the same time redesigning and testing the BM. The findings of this study also indicate that all three paths gradually lead to improvement in several BM components. Research limitations/implications Findings indicate that a strategic management view in which strategic goals define BMI also applies to SMEs. The distinctive BMI paths that the authors identified provide evidence to suggest that, although the SMEs may not have an explicitly formulated strategy, their strategic goals determine the type of improvements they make to their BM. All three SME groups started their improvements from different BM components and changed several elements in their BMs in a specific order, forming distinctive BMI paths. Finally, to understand the BMI in SMEs better, more research is needed into BMI processes and into the way BMI is managed in SMEs. Practical implications The findings of this study help SMEs to anticipate the next steps in their path towards an improved BM. By mirroring their approach to the BMI paths, they can better manage their BM makeover process and focus on their innovation activities. For providers of BMI tools and methods, the study indicates which SME innovation tasks could be supported by tools and how the tools should be aligned with the BMI paths. Originality/value BMI is attracting growing attention in both research and practice. However, knowledge concerning BMI in SMEs is limited. The authors contributed to BMI research by focussing on the BMI paths of SMEs, i.e. the often sequential, non-linear and iterative steps taken to improve the business by making changes to specific BM components.