Business Model Renewal for Manufacturing Firms and Emerging Technologies

Business Model Renewal for Manufacturing Firms and Emerging Technologies

Rebecca De Coster (Brunel University London, UK)
DOI: 10.4018/978-1-4666-9787-4.ch001
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Background

Previous research into business models has been shown to be fragmented and inconsistent (George & Bock, 2011; Zott, Amit & Massa, 2011). However, many of the published papers do focus on similar components within their discussions that typically address the ‘scope’ and ‘architecture’ of a firm such that the organisation can create a value proposition and organise its resources and processes to deliver products and services (Osterwalder, Pigneur & Tucci, 2005; Richardson, 2008; Zott, Amit & Massa, 2011). With the market changes that are occurring in today’s Information Age firms can find themselves in a situation where they are outside of their existing expertise and product base. This requires them to alter their organisation in order to provide products and services to the new market i.e. it requires Enterprise Realignment involving regenerative dynamic capabilities (Ambrosini, Bowman & Collier, 2009; Eisenhardt & Martin, 2000). This recognises that firms often seek to utilise their legacy which gave them credibility in the market by various means including sector expertise (Davenport, Campbell-Hunt & Solomon, 2003) as shown in Figure 1.

Figure 1.

Enterprise realignment: The aspects of legacy

Key Terms in this Chapter

Industry Position: The positioning of the firm in the sector to secure competitive advantage by establishing value chain leadership along with technological differentiators.

Value Chain: The position of the firm within the value network of a sector linking suppliers and customers, including identification of potential complementors and competitors.

Bespoke Development: The development of a product or solution for a specific customer contract. Business Model: the architecture of a firm including the business processes and resources that enable customer value and its competitive basis.

Business Model Renewal: Innovation management that goes beyond improvements to products or services but also on the way that the businesses operate including their organisational structures and business processes.

Application Provision: The value of the firm’s offering to the targeted market with essential attributes being provided for the end user’s context.

Enterprise Realignment: Dynamic alterations to a firm’s business model including organisational, management and strategic changes so that they are able to create value in a new market.

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