|Welcome to Business Model
Innovation.com, a website on innovations in business models. The English version is just a
summary of the site that is mainly in German. Sorry! The site is the result of a Ph.D.
thesis which was written in German. Due to the interest from
non-German speakers in the German pages I decided to open a brief
Business model innovation is a fresh
approach how companies can find new ways to diffferentiate themselves from their
competitors. Business model innovations are all about being different from your
competitors. Business model innovations are not about being more efficient or doing more
of what you have done before. With business model innovations you question the very basis
of your business. Every part of todays business and its structure become a variable of the
management. The existing value architectur, the value proposition or the revenue models
are being questioned. A classical example of a business model innovator is Dell. Dell did
not imitate the business model of IBM or Dell. It did not copy the business model, but
create a new business model that did not rely on distribution partners. What looked at the
beginning like a serious disadvantage (How do you want to reach as a start-up your
customers whithout an existing distribution channel?), turned into a serious advantage
with the advent of the Internet. The omission of distribution partners also helped to gain
more information about the customer and its buying behavior. So the omission let to the
now famous build-to-order production system of Dell.
Business model innovation are not relied
on the use of new media. Entrepreneurs in every industry can use the concept. IKEA is such
a business model innovator. It did not imitate the traditional furniture industry but
created a new value architecture. IKEA transfered two value steps to the buyers of
furniture. People have to transport the merchandise by themselves and have to assemble the
furniture. These two activities were before IKEA part of the value architecture of the
furniture reseller industry. What looks like a big disadvantage for customers, customers
loved it since it changed completely the buying pattern. While before IKEA customers had
to wait for 4 to 8 weeks for what they have bought, at IKEA you get instant satisfaction
after the purchase (at least when your know how to assemble the furniture).
What is behind business models and
business model innovation you find in the section of definitions.
The section based on a discussion paper
I have written for a seminar at the University of Lausanne. The site will be
expanded over time, so I am very happy about any feedback. Just write me an email (Patrick.Staehler@business-model-innovation.com).
The content is the result of four years
research I did at the Institute for Media and Communications Management at the University
of St. Gallen in Switzerland. If you use parts of the website please cite it and also the
original source which is Stähler, Patrick (2001) Geschäftsmodelle in der digitalen
Ökonomie: Merkmale, Strategien und Auswirkungen, Josef Eul Verlag, Cologne-Lohmar.
The second edition of the book is available at Amazon.de