Digital Transformation & Strategic Innovation (6314M0372Y)
Institution
Universiteit Van Amsterdam (UvA)
Book
Reinventing Business Models
This is a summary of the book Reinventing business models: how firms cope with disruption by Volberda, H.W., Van Den Bosch, F.A.J., & Heij, K.
All chapters are covered except for Chapter 8, as it is a summary of everything discussed in the book, and it seems redundant to summarize a summary.
Summary Digital Transformation and Strategic Innovation ALL ARTICLES - grade 9.0
Reinventing business models - Henk Volberda
All for this textbook (3)
Written for
Universiteit van Amsterdam (UvA)
MSc Business Administration - Digital Business
Digital Transformation & Strategic Innovation (6314M0372Y)
All documents for this subject (4)
1
review
By: ioanaadimitriu • 11 months ago
Seller
Follow
maaike591
Reviews received
Content preview
Digital Transformation and
Strategic Innovation
Reinventing business models: how firms cope with disruption.
Volberda, H.W., Van Den Bosch, F.A.J., & Heij, K.
,Table of Contents
1. Introduction 3
2. Know Your Business Model 5
3. How Firms Modify Their Business Model: Replication or Renewal 8
4. Levers for Business Model Innovation 11
5. Enablers and Inhibitors of Business Model Innovation 13
6. Business Model Transformation: Driven by Strategy or Customer? 16
7. Managing Business Model Transformation 17
8. Re-examining Business Model Innovation: Dos and Don’ts for Managers 21
, 1. Introduction
In the current turbulent environment, it Is no longer relevant to ask whether firms should innovate their
business model, but how, when, and the extent to which firms should change their business models. Every firm
has a business model and business model has become more important and is a crucial factor in explaining
differences in firm performance.
Research on business model innovation falls into two main streams:
- Replication: Leveraging an existing business model.
- Renewal: Introducing a new business model that is very different from the previous one.
The need for business model innovation
The speed with which technologies and strategies change forces firms to innovate their business model
continually. Existing players will have to deal with new forms of competition, where incumbents find
themselves superseded by new firms whose business models are based on the digital world. In today’s
dynamic business environments, there has been increasing focus on how to create distinctive business models
and how to change them in order to sustain competitive advantage.
Signs a business model is under pressure:
- New generations of products and services are not significantly better.
Traditional strategies, based on top-sown control, formal planning, and detailed industrial analysis, guaranteed
that their business models would remain both distinctive and sustainable for some time, with only a slow and
gradual erosion of the business model. However, competition is now characterized by short periods of
competitive advantage, alternating with frequent disturbances and disruptions of the busines model.
Disruptions can be either demand-driven, supply-driven, or a combination of the two.
The examples of Kodak and Polaroid profited from the razor blade business model: one item is offered cheaply
(camera), and a considerable margin is then achieved on another related item (film rolls). Their downfall came
when they did not dare to let go.
A changing competitive landscape
Firms can now only achieve a temporary competitive advantage, because those advantages are being imitated
or improved upon at an ever more rapid rate through business model innovation by other players in the
market. Players seem to be standing still because others are doing the same: the Red Queen race.
As an organization adapts fully to the existing environment, it becomes highly vulnerable should the
environment change unexpectedly falling into (a) business model trap(s):
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller maaike591. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.28. You're not tied to anything after your purchase.
