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Research project at Halmstad University in Sweden is exploring how business
model innovation could help businesses to make innovation happen, contribute
to growth and sustainability.
Innovation is when ideas have been developed, ommercialized and successfully create value for users and customers.
An increasing amount of research evidence shows hat business models are seen as a key to companies’ innovation capability, competitiveness, renewal and sustainable growth. Since mid-1990s here has been an increasing interest in business models by both academics and practitioners. The business model concept is multifaceted and puts focus on processes for value creation at systems level, i.e. it is a holistic approach towards explainin how companies do business and is used to communicate strategic choices, explain how
companies create, deliver and capture value a well as facilitate identification of sources of competitiveness.
A business model is nothing else then a simple representation of how a company makes money!
If a business model is “the fundamental structure for how companies capture, create, and deliver "value”, then business model innovation is to "innovate the very theory of the business itself ”.
Business model innovation is the process aimin to create and deliver new forms and levels of value, develop new skills, new strengths, and new ways to make money in the process of identifying and capturing new business opportunities as a result of external and\or internal drivers of change.
Business model innovation is one way to create competitive advantage if the new model is sufficiently differentiated and hard to replicate for existing companies and new entrants alike.
A holistic vision is required in order to address the challenge the future for of sustainable development. Responding to environmental changes will necessarily needs to be in parallel with economic and social changes.
Business model innovation is more and more recognized as an important concept approach for delivering greater social and environmental sustainability
in throughout the industrial system.
Business model innovations for sustainability are defined as:
”innovations that create significant positive and/or significantly reduced negative impacts for the environment and/or society, through changes in the way the organization create, deliver and capture value"
Following the tradition in business model innovation research, our group is using case studies to address our research questions. More specifically,
we follow interactive and integrated approach which is appropriate to capture the complexity of business model innovation where multiple players are involved and no clearly evident boundaries to their context exist.
Particularly useful is the multiple-case study approach that has exploratory
and explanatory applications and is based on on-going comparison between relevant enterprises.
We have extensive experiences of collaboration with enterprises in our research, empirical “clinical” implementation as well as education and training activities stemming of our research.
It can be noted that innovations are often experienced in cycles that take over from one another with relatively short intervals, whilst social innovations can take significantly longer to develop and spread to new areas. The
most important elements of innovation are new value establishment anddiffusion,
thereby creation of economic
and social value. Value is created for individuals – consumers and users – as well as for businesses and society.