• Define and describe the core models/frameworks of business models
• Understand and analyze the relationsship between innovation, strategy and business models including issues on sustainability
• Discuss and analyze how business models can be innovated and articuluate the managerial issues relating to this
• Understand, explain and discuss the dynamics of business models based on sociology and core models

Practitioners are increasingly interested in business models and the innovation of these, but research has only slowly responded to this significant interest. Hence, this course is an attempt to accommodate this need from the business world by providing a research-based perspective on business model innovation.
 
High performing organizations are able to manage business models. Thus, the course focuses on managerial issues and challenges an organization faces when wanting to manage business models. Among the dilemmas are that a short and long-term perspective have to be applied and that today's business model is not tomorrow's answer. Another dilemma is a central discussion as to whether a business model is a subject or an object, meaning what are the managerial challenges if a business model is the core logic of a business and therefore not tangible?
 
The course focuses on innovation of business models by describing business models in various components and frameworks, discussing the relationship with strategy and sustainability and the application to both service and product-based companies, as well as the dynamics of these.

The students will develop their competences in analysing complex business model issues and an ability to focus on managerial dilemmas. Many decision-making situations in the student’s future career will challenge an evaluation of what is considered relevant and irrelevant within an organization. We hope to expand this competence with the focus on managing business model innovation that contains many strategic challenges.
 
More specifically, the student will after the course be able to:

• Describe business models, including components and frameworks;
• Analyse business models in various industries and types of companies, e.g. service and products
• Understand the strategic role of business models and the relationship with strategy
• Comprehend the dynamics of business models with respect to certain sociologies
• Discuss the framing of business modelling with respect to sustainability, open innovation and ambidextrous organization
• Understand the managerial challenges while  managing a business model in an organizational context
• Develop the ability to understand complex systems and connections
• Develop analytical prowess
• Build confidence in knowledge of how value is created by organizations
• Ability to access and interpret business and economic news

Lecture 1:  Definition and Business Model Frameworks
 
Main points:

• Disagreements about definition, number of components and frameworks for business models
• Value proposition considered the most important component by the majority of reserachers
• Canvas business model

Readings:
 
Text book, Chapter 4: Magretta,J., (2011) Why Business Models Matter, Harvard Business Review on Rebuilding Your Business Model
 
Text book, Chapter 8: Zook, C., (2011) Finding Your Next Core Business, Harvard Business Review on Rebuilding Your Business Model
 
Teece, D. J. (2010) Business Models, Business Strategy and Innovation.  Long Range Planning, 43, 172-194.
 
Zott, C., Amit, R. (2010) Business Model Design: AnActivity System Perspective. Long Range Planning, 43, 216-226
 
Lecture 2: Business Models and Strategy
 
Main points: 

• Disagreements whether business models should mirror strategy

Readings:
 
Text book, Chapter 9: Bower, J., and Christensen, M., (2010), Distributive Technologies: Catching the Wave, Harvard Business Review on Rebuilding Your Business Model
 
Chesbrough, H., Rosenbloom, R. S. (2002) The Role of the Business Model in Capturing Value from Innovation: Evidence From Xerox Corporation's Technology Spin-Off Companies. Industrial and Corporate Change, 11 (3), 529-555.
 
Shafer, S. M., Smith, H. J., Linder, J. C. (2005) The Power of Business Models, Business Horizons, 48, 199-207.
 
Lecture 3: Sustainability and Business Models
 
Main points: 

• Is sustainability an input or output for a business model?
• Disagreements concerning the elements what should be changes under a sustainability strategy

Readings:
 
Kanter, R., M., (2010), From Spare Change to Real Change: The Social Sector as Beta Site for Business Innovation, Harvard Business Review on Business Model Innovation
 
Nidumolu, R., et al (2011), Why Sustainability is Now the Key Driver of Innovation, Greening Your Business Profitability, Harvard Business Review on Greening Your Business
 
Yunus, M., et al (2010), Building Social Business Models: Lessons from the Grameen Experience, Long Range Planning, 43: 308-325
 
Lecture 4: Open Innovation
 
Main points:

• Is business model a radical or incremental type of innovation?
• How does a business model acts under an open innovation strategy?
• Creating new business opportunities
• Involving customers: ethnographic research

Readings:
 
Text book, Chapter 6: Kim, C., and Mauborgne, R.,(2011) Creating a New Market Space, Harvard Business Review on Rebuilding Your Business Model
Davila, T., Epstein, M., and Shelton, R. (2006) Making Innovation Work, Wharton School Publishing, chapter 2
 
Chesbrough, H. (2003) The era of open innovation. MIT Sloan Management Review, 44 (3): 77-82.
 
Chesbrough, H., Schwartz, K. (2007) Innovating Business Models with Co-Development Partnership, Research Technology Management, 55-59.
 
Goffin, K., Varnes, C., Van der Hoven, C., and Koners, U (2012), Beyond the Voice of the Customer: Ethnographic Market Research, Research Technology Management,
Lecture 5: Group presentations of the mid-term paper
To be announced.
 
Lecture 6: Servitization
 
Main points:

• Disagreements concerning the level of distinguishes between service and manufacturing companies
• Service business models versus product business models

Readings:
 
Chesbrough, H. (2011) Open Service Innovation: Rethinking Your Business to Grow and Compete in a New Era. San Francisco: Jossey-Bass, chapters 1 and 2
 
Cusumano, M. (2003) Business Models That Last: Balancing Products and Services in Software and Other Industries. MIT Sloan School of Management, 197, 1-22.
 
Ettlie, J., E., Rosenthal, S., R. (2011) Service versus Manufacturing Innovation. Journal of Product Innovation Management, 28, 285-299.
 
Lecture 7:Mind-set and core-logic
 
Main points:

• Complex to analyze business models
• Organizational change versus business models

Readings:
 
Text book, Chapter 10: Anthony, S., Eyring, M., and Gibson, Lib, (2011) Mapping Your Innovation Strategy, Harvard Business Review on Rebuilding Your Business Model
 
Demil, B., Lecocq, X. (2010) Business Model Evolution: In Search of Dynamic Consistency. Long Range Planning, 43, 227-246.
Linder, J. C., Cantrell, S. (2001) Five Business-Model Myths That Hold Companies Back. Strategy & Leadership, 29 (6), 13-18.
 
Linder, J. C., Cantrell, S. (2002) It’s All in the Mind (Set). Across the board, 38-42.
 
Lecture 8: Multiple Business Models: Ambidextrous Organizations
 
Main points: 

• Dilemmas for short term versus long term innovation
• Dilemmas concerning how many business models should a company have

Readings:
 
O'Reilly, C., and Tushman, M., (2004), The Ambidextrous Organization, Harward Business Review

 
Osterwalder, A., Pigneur, Y. (2010) Business Model Generation. SelfDpublished, pp 232- 243
 
Casadesus-Masanell, R., and Tarziján, J., (2012), When One Business Model Isn’t Enough, Harvard Business Review
 
Lecture 9:Business Models Framing and Tipping Points

Main points: 

• Innovation is overcoming resistance
• Business models are a mediation process

Readings:
 
Latour, B. (1994) On Technical Mediation-Philosophy, Sociology, Genealogy,Common Knowledge, 3, (2), 29-64.
 
Callon, Michel (1986), Some Elements of a Sociology of Translation: Domestication of the Scallops and the Fishermen of St Brieuc Bay, pp. 196-233 inPower, Action and Belief: A New Sociology of Knowledge, edited by John Law. London: Routledge & Kegan Paul.
 
Lecture 10: Case study of Liz Claiborne Inc.
 
Siggelkow, N (2004), Change in the Presence of Fit: The Rise, the Fall, and the Renaissance of Liz Claiborne, pp. 605- 623, in Managing Strategic Innovation and Change, Tushman, M., and Anderson, P., second edition, New York: Oxford University Press
 
Lecture 11: Comprehensive review
To be announced.