The authors present the elements constituting an advantageous business model, and suggest how to achieve that competitive edge. They argue that traditional innovation processes with funnelling front-end, stage-gate with go/kill decisions, and similar processes have inherent limitations in such an inclusive concept. They propose an alternative approach, driven by strategic business options. A business model, like everything else, has a limited life span. Anew model requires radical changes in thinking and logics. Still, the move is not easy, and most attempts will fail. The right timing is tricky, plans to abandon an existing model might feel dispiriting, and the necessity to change can be blinded by past successes. This article discusses these complex aspects and the steps needed to overcome them. Finally, in ever-changing business competition it is not realistic to constantly renew inside-out. Instead, for a company to survive, its business model must have a very important quality known as resilience. This article is based on the authors' extensive practical experience in a global business environment, as well as on their academic work.
Emerald Group Publishing Limited