A business model innovation framework for capturing white space opportunities

Kuhn, J. Wouter (2018-03)

Thesis (MEng)--Stellenbosch University, 2018.

Thesis

ENGLISH ABSTRACT: Business models and business model innovation (BMI) have been receiving increasing attention in recent years, from both academics and practitioners. BMI is crucial for any business to stay competitively relevant. Yet, few businesses understand its dynamics. Different perspectives still exist around what constitutes a business model, as well as what BMI is and how it should be executed. Similarly, white space opportunities are often avoided due to a lack of understanding and reliable capturing processes. A concrete understanding of present capabilities, along with methodological tactics to assess the requirements of a business model from new opportunities, result in the tough job of mapping a white space sensibly and making it practicably manageable. White space opportunities, defined as the range of potential activities not defined or addressed by the company’s current business model, that is, the opportunities outside its core and beyond its adjacencies that require a different business model to exploit, can bring about excellent transformational growth within an organisation and reveal new revenue streams. Thus, it should be viewed as an opportunity which should be pursued, rather than be an unfamiliar opportunity that is often avoided. A comprehensive literature review was conducted focusing on business model structures, BMI processes and frameworks, as well as white space opportunities. Related fields of study were also explored: innovation and innovation management, strategy, opportunity identification and opportunity analysis. A gap in the existing body of knowledge on BMI frameworks was identified as current BMI frameworks namely: (a) do not sufficiently address the concept of white space opportunities, (b) lack design guidelines supporting its execution on lower component levels, (c) incorporate limited decision-making structures, and (d) often have a lack of tools in context of where it is required or useful. The main objective of this study was therefore to develop a well-structured and comprehensive white space BMI framework. This framework contains suitable processes, tools and design guidelines, all of which support companies through the decision-making process in identifying white space opportunities and developing an innovative business model. The study used the literature analysis as well Delphi approach (involving various industry and academies experts), to identify and validate suitable design guidelines for the BMI process. The inputs from the literature analysis and experts were combined to develop a comprehensive framework, which can reliably guide managers through the BMI process of identifying a white space opportunity and then developing an innovative business model for that opportunity. The application of the entire framework is specifically aimed at larger, settled businesses - where a structured approach is more important. The framework was successfully validated through a survey involving various industry and academic experts. Positive feedback was received regarding the genericity, usefulness, practicality and comprehensiveness of the framework. Valuable inputs were also obtained and incorporated, to improve the logic, flexibility and quality of the developed framework. This framework makes a significant contribution towards the current body of knowledge about BMI for white space opportunities, by providing a better understanding of how white space opportunities can be systematically identified, as well as clarifying the process required to develop innovative business models for such opportunities. The identification of key design guidelines for the design process is also a useful contribution.

AFRIKAANSE OPSOMMING: Besigheidsmodelle en besigheidsmodel innovasie (BMI) het die afgelope paar jare toenemend aandag gekry, van beide akademici en praktisyns. BMI is noodsaaklik vir enige besigheid om mededingend relevant te bly. Tog verstaan min besighede sy dinamika. Terwyl besigheidsmodelle en BMI meer aandag geniet, bestaan daar steeds verskillende perspektiewe oor wat 'n besigheidsmodel en BMI is en hoe dit uitgevoer moet word. Net so word wit spasie geleenthede dikwels vermy weens 'n gebrek aan begrip en betroubare vasleggings prosesse. 'n Konkrete begrip van huidige vermoëns, tesame met metodologiese taktiek om die vereistes van 'n besigheidsmodel te evalueer vir nuwe geleenthede, lei tot die moeilike taak om 'n wit spasie sinvol te karteer en dit prakties hanteerbaar te maak. Wit spasie geleenthede, gedefinieer as die omvang van potensiële aktiwiteite wat nie deur die maatskappy se huidige besigheidsmodel gedefinieer of aangespreek word nie, dus die geleenthede wat buite sy kern en aangrensende geleenthede lê wat 'n ander besigheidsmodel vereis om te ontgin, kan uitstekende transformerende groei binne 'n organisasie veroorsaak en nuwe inkomstebronne openbaar stel. Dit moet dus beskou word as 'n geleentheid wat nagestreef moet word, eerder as om 'n onbekende geleentheid te wees wat dikwels vermy word. 'n Omvattende literatuuroorsig was uitgevoer met die fokus op besigheidsmodel strukture, BMI prosesse en raamwerke, asook wit spasie geleenthede. Verwante studierigtings is ook ondersoek: innovasie en innovasiebestuur, strategie, geleentheidsidentifikasie en geleentheidsanalise. 'n Gaping in die bestaande kennisraamwerk oor BMI raamwerke is in die huidige BMI raamwerke geïdentifiseer naamlik: (a) die konsep van wit spasie geleenthede is nie voldoende aangespreek nie, (b) gebrek van ontwerpriglyne wat die uitvoering daarvan op laer komponentvlakke ondersteun, (c) beperkte inkorporasie van besluitnemingstrukture, en (d) dikwels ‘n gebrek aan gereedskap in konteks van waar dit nodig of nuttig is. Die hoofdoel van hierdie studie was dus om 'n goeie gestruktureerde en omvattende wit spasie BMI raamwerk te ontwikkel met geskikte prosesse, gereedskap en ontwerpriglyne wat maatskappye ondersteun met die besluitnemingsproses om wit spasie geleenthede te identifiseer en 'n innoverende besigheidsmodel te ontwikkel. Die studie het die literatuuranalise asook ‘n Delphi-benadering (waarby verskeie bedryf en akademiese kundiges betrokke was) gebruik om toepaslike ontwerpriglyne vir die BMI proses te identifiseer en te valideer. Die insette van die literatuuranalise en kundiges was gekombineer om 'n omvattende raamwerk te ontwikkel wat bestuurders betroubaar kan lei deur die BMI proses om 'n wit spasie geleentheid te identifiseer en dan 'n innoverende besigheidsmodel te ontwerp vir daardie geleentheid. Die toepassing van die hele raamwerk is spesifiek gemik op groter gevestigde besighede waar 'n gestruktureerde benadering belangriker is. Die raamwerk is suksesvol gevalideer deur middel van 'n opname wat verskeie industriële en akademiese kundiges ingesluit het. Positiewe terugvoer is ontvang ten opsigte van die generiese, bruikbaarheid, praktiese en volledigheid van die raamwerk. Waardevolle insette was verkry en opgeneem om die logika, buigsaamheid en kwaliteit van die ontwikkelde raamwerk te verbeter. Hierdie raamwerk lewer 'n beduidende bydrae tot die huidige kennis van BMI vir wit spasie geleenthede deur beter begrip te verskaf van hoe wit spasie geleenthede stelselmatig geïdentifiseer kan word, asook om die proses te verduidelik wat nodig is om innoverende sakemodelle vir sulke geleenthede te ontwikkel. Die identifisering van sleutelontwerpriglyne vir die ontwerpproses is ook 'n nuttige bydrae. Toekomstige navorsing kan verder fokus op die validering van die raamwerk deur dit te toets en te evalueer deur middel van 'n gevallestudie.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/103402
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