Abstract
This paper focuses on the challenges related to, and the risk management needed
in, the process of business model innovation. Business model innovation may
involve hefty investments, high levels of uncertainty, complexity and, inevitably,
risk. Although many firms follow a first mover strategic approach, arguing from a
“no risk no reward” aphorism, a sloppy implementation approach towards
business model innovation may result in catastrophic, sometimes even fatal,
consequences to a firm’s core business. Based on four unsuccessful business model
innovation experiences, which took place in three industrial firms, we discuss the
reasons that led to these failures, and outline various possible solutions for
practitioners to manage business model innovation adequately.
in, the process of business model innovation. Business model innovation may
involve hefty investments, high levels of uncertainty, complexity and, inevitably,
risk. Although many firms follow a first mover strategic approach, arguing from a
“no risk no reward” aphorism, a sloppy implementation approach towards
business model innovation may result in catastrophic, sometimes even fatal,
consequences to a firm’s core business. Based on four unsuccessful business model
innovation experiences, which took place in three industrial firms, we discuss the
reasons that led to these failures, and outline various possible solutions for
practitioners to manage business model innovation adequately.
| Original language | English |
|---|---|
| Title of host publication | Proceedings of the 16th International CINet Conference on Pursuing Innovation Leadership |
| Number of pages | 10 |
| Volume | 16 |
| Place of Publication | Enschede |
| Publisher | Continuous Innovation Network |
| Publication date | Sept 2015 |
| Pages | 919-929 |
| ISBN (Electronic) | 978-90-77360-18-7 |
| Publication status | Published - Sept 2015 |
| Event | 16th International CINet Conference on Pursuing Innovation Leadership: Pursuing Innovation Leadership - Royal Institute of Technology, Stockholm, Sweden Duration: 13 Sept 2015 → 15 Sept 2015 Conference number: 16 |
Conference
| Conference | 16th International CINet Conference on Pursuing Innovation Leadership |
|---|---|
| Number | 16 |
| Location | Royal Institute of Technology |
| Country/Territory | Sweden |
| City | Stockholm |
| Period | 13/09/2015 → 15/09/2015 |
Keywords
- Business model innovation
- Risk management
- Case studies