“Business models by their very nature are designed not to change”
by Cecilia Thirlway, on 20 Sep 2016 1 min read
Essentially, the researchers observed that business models rely on a number of interdependencies to be successful - between their value proposition, their resources, their processes and their profit formula - and that as businesses evolve, those interdependencies become more fixed and resistant to change. This limits the types of innovation that can happen at any particular stage.
Based on this, they suggest a number of questions to ask about potential innovations at every stage, to determine whether in fact they are feasible at the stage the business is at, or might need to be developed outside the current business model in order to succeed. They also recommend generally focusing on creating new business models, rather than innovating around existing business models, where the opportunities are more limited.