The Future of Business Model Innovation

Prof. Tina Saebi

Center for Service Innovation

Department and Strategy and Management

NHH

Tina.Saebi@nhh.no

Agenda

1) Impact of the Fourth Industrial Revolution

2) Need for new business models

3) State of business model innovation in Norway

4) Become a BMI leader

The Impact of the 4th Industrial Revolution

Customer expectations

Digital enhancements

Collaborative innovations

The 4th Industrial Revolution Key changes

Need for New Business Models

Sharing economy

Servitization

Open innovation

Sustainability

Emerging trendsRethinking the established

business model

State of Business Model Innovation in Norway

0 %

20 %

40 %

60 %

80 %

100 %

TargetMarket

ValueProposition

ValueCapture

ValueDelivery

57,4 49,6

84,5

42,3

34,9

25,7

12,0

40,8

7,724,6

3,516,9

BMI By Component

No Change Adaption Innovation

What drives Business Model Innovation in Norway?

Business Environment

• Competition

• Turbulence

• Stability

Strategic Orientation

• R&D-oriented

• Customer-oriented

• Efficiency-oriented

Organizational Design

• Formalization

• Centralization

• Knowledge flows

Business model innovation?

“Turbulence as the main driver of business model change”

Why wait for turbulence to hit your industry?

“It’s harder to stay on top than to get there”

Become a BMI leader

Ambidexterity: exploit and exploreBias of the current business model

Main Challenges of BMI

Leadership gap Assign dedicated team to experiment with

BMI

Organizational resistance Institutionalize innovation culture

Developing key capabilities

Further reading