• Explain the selected theories of business models and analyze the weak and strong points of the core models/frameworks.
• Analyze and explain the relationship between innovation, strategy and business models.
• Discuss and analyze how business models can be innovated and articulate the managerial issues relating to these.
• Reflect, explain and discuss the dynamics of business models based on sociology and core models.
• Explain the innovation of business models under different innovation strategies.
• Reflect and explain the organizational changes needed for business model innovation.
• Explain the impact of the five theoretical perspectives on the business model debate

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 established organization face when wanting to manage and innovate business models. Among the dilemmas are that a short and long term perspective has to be applied and that today’s business model is not tomorrows’ answer. Yet, another dilemma, is a central discussion 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 focus on innovation of business models by describing business models in various components and frameworks, discussing the relationship with strategy and sustainability, the application to both service and product based companies, and the dynamics of these.

By the end of this course, the students are going  to be able to:

• Understand how value is created through business model innovation, while distincting between different theoretical perspectives
• Understand the dynamics of business models innovation and why these are changing industries
• Recognize and understand the specificity of different business model patterns (e.g fremium model; razor-blade model; etc)
• Work with five of the most used tools in generting new business models (e.g The four blocks' model, Business model canvas, Chesbrough's model, Teece's innovation model; Davilla's model)
• Analize the perfomace of a business model
• Recognize and decide when a business model has reached its tipping point
• Understand the innovation stategies applied to business models
• Understand the difference between product and business innovation

Group work is required along the entire semester as the students are going to be given small case studies to solve and present during the course. 
The students are expected to form the groups of max three students at the first course.

Required course readings and literature:

For understanding the basic principles of business models, 1 text books is recommended:

1. Harvard Business Review on Rebuilding Your Business Model

Source: Harvard Business Press Books

288 pages. Publication date: Jun 15, 2011

And optional:

Business Model Innovation, The Organizational Dimension

Nicolai J., Foss and Tina Saebi

Oxford University Press, 208 pages. Publication date: 2015

Compulsory materials for each lecture are determined by the theoretical themes.

Course Outline

Lecture 1:  Definition and Business Model Frameworks

Main points:

• Disagreements about definition, number of components and frameworks for business models
• Outline of the existing business model perspectives
• Common frameworks for working with business models

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

Baden-Fuller, C. and Morgan, M. (2010) ‘Business Models as Models’, Long Range Planning 43: 156–71

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.

Wirtz, B.W., Pistoia, A., Ullrich, S. And Göttel, V., 2015, Business Models: Origin, Development And Future Research Perspectives,  Long Range Planning, 1-19.

Lecture 2:  Business Models as Activity Systems versus Dynamic capabilities

Main points:

• Standpoints of the different perspectives
• Business models analyzed through the two perspective: differences
• Managerial implications for regarding business models as a system or capability funnel
• Frameworks

Readings:

Zott, C., Amit, R. (2010) Business Model Design: An Activity System Perspective. Long Range Planning, 43, 216-226

Teece, D. J. (2010) Business Models, Business Strategy and Innovation.  Long Range Planning, 43, 172-194.

Demil, B., Lecocq, X. (2010) Business Model Evolution: In Search of Dynamic Consistency. Long Range Planning, 43, 227-246.

Willemstein, L., Van Der Valk, T. And Meeus, M.T.H., 2007. Dynamics in business models: An empirical analysis of medical biotechnology firms in the Netherlands. Technovation, 27(4), pp. 221-232.

Lecture 3:  Business Models in a  Discovery driven: Innovating BM versus product

Main points:

• Standpoints of the discovery driven perspective
• Differences and similarities between business model innovation and product innovation
• Managerial implications   

Readings:

McGrath, R., (2010) Business Models: A Discovery Driven Approach Original, Long Range Planning, 43 (2–3), 247-261.

Sosna, M.,  Trevinyo- Rodriguez, R. N., Velamuri, R. (2010) Business Model Innovation through Trial and Error Learning, Long Range Planning, 43 (2–3), 383-407.

Makrides, C (2006) Distruptive Innovation: In Need of  Better Theory, Journal of Product Innovation Management, 23, 19-25.

Bucherer, E., Eisert, U., Gassmann, O, (2012) Towards Systematic Business Model Innovation: Lessons from Product Innovation Management, Creativity and Innovation Management, 21 (2), 183- 198.

Gunzel, F., Holm, A., (2013) One Size Does Not Fit All — Understanding The Front-End And Back-End Of Business Model Innovation, International Journal of Innovation Management, 17 (1), 1-34.

Lecture 4: Cognitive and Collective Sensemaking Perspectives

Main points:

• Standpoints of the different perspectives
• Business models analyzed through the two perspective: differences
• Managerial implications

Readings:

Tikkanen, H., Lamberg, J-A., Parvinen, P., Kallunki, J-P. (2005) Managerial cognition, action and the business model of the firm, Management Decision, 43 (6), 789-809

Chesbrough (2010)  Business Model Innovation: Opportunities and Barriers, Long Range Planning, 43, 354-363.

Aspara, J., Lamberg, J-A.,  Laukia, A., Tikkanen, H., (2013)  Corporate Business Model Transformation and Inter-Organizational Cognition: The Case of Nokia, Long Range Planning, (46), 459-474.

Martins, L., Rindova, V.P., Greenbaum, B., (2015) Unlocking The Hidden Value Of Concepts: A Cognitive Approach To Business
Model Innovation,  Strategic Entrepreneurship Journal, 9, 99-117

Lecture 5: 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

Shafer, S. M., Smith, H. J., Linder, J. C. (2005) The Power of Business Models, Business Horizons, 48, 199-207.

Zott, C. And Amit, R., 2008. The fit between product market strategy and business model: implications for firm performance, Strategic Management Journal, 29, pp. 1-26

Stefanovic, I., Milosevic, D., (2012) On conceptual differentiation and integration of strategy and business model, Journal of Economics and Business, 30 (1). 141-161

Lecture 6:  Triggers of Business Model Innovation: servitization and sustainability

Main points:

• Is sustainability an input or output for a business model?
• Disagreements concerning the elements that should be changed under a sustainability strategy
• Disagreements concerning differences/or no differences between service and manufacturing companies
• Service business models versus product business models

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

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:  Triggers of Business Model Innovation: Open Innovation

Main points:

• Is business model a radical or incremental type of innovation?
• How does a business model act 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 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., Tushman, M., (2004), The Ambidextrous Organization, Harvard Business Review

Osterwalder, A., Pigneur, Y. (2010) Business Model Generation. Self-published, pp 232- 243

Casadesus-Masanell, R., and Tarziján, J., (2012), When One Business Model Isn’t Enough, Harvard Business Review

Smith, W, Binns, A., Tushman, M., (2010) Complex Business Models: Managing Strategic Paradoxes Simultaneously, Long Range Planning, 43, 448-461.

McNamara, P, Peck, S., Sasson, A., (2013) Competing Business Models, Value Creation and Appropriation in English Football, Long Range Planning, 46, 475-487.

Lecture 9: Mind-set and dominant logics

Main points:

• 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

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.

Prahalad, C. K., Bettis, R., (1986) The Dominant Logic, A New Linkage between Diversity and Performance, Strategic Management Journal, 7, 485-501.

Bock, A., Opsahl, T., George, G., Gann, D., (2012) The Effects of Culture and Structure on Strategic Flexibility during Business Model Innovation, Journal of Management Studies, 49 (2), 279-305,

Lecture 10: 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 in Power, Action and Belief: A New Sociology of Knowledge, edited by John Law. London: Routledge & Kegan Paul.

Lecture 11: Case study of Liz Claiborne Inc. and Comprehensive review

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