Creating new business models : approaches, techniques and measurement for strategic leadership and management

Tekie, Eden Berhe (2003-03)

Thesis (MComm)--Stellenbosch University, 2003.

Thesis

ENGLISH ABSTRACT: Given the increased uncertainty and unpredictability prevalent in the business environment, there is heightened pressure for organizations to become radically innovative and to constantly reinvent themselves, and ultimately change the rules of the game in their industry. The concept of new business models is relatively new to business literature. However, its significance cannot be underestimated where operating in a turbulent competitive landscape has made the traditional way of doing business ineffective, and consequently has changed the nature of competitive advantage. Despite the obvious importance of creating new business models, there seems to be inadequate understanding and definition of the term "business model", thereby hindering the understanding of the nature of new business models and the approaches needed for creating new business models. This paper initially investigated the concept of "business model" and its core dimensions, which revealed that the term lacks an adequate and comprehensive definition. In response to this, a comprehensive working definition for the concept was formulated after an analysis of the various definitions proposed in the business literature. Since the key elements of a business model are important sources of competitive advantage, this definition has been used to illustrate how organizations can create new business models by manipulating the basic aspects of the business model. Approaches and techniques that enable organizations to create new business models and to become radically innovative have been selected from those put forward by Govindarajan and Gupta (2001) and Amit and Zott (2001). Finally, an analysis was made of the performance measurement tools for new business models. This revealed a lack of such an evaluation tool and this study has proposed a framework from which its dimensions can be used to expand and develop a measurement instrument for proposed business models and/or industries.

AFRIKAANSE OPSOMMING: Gegee die verhoogde onsekerheid en onvoorspelbaarheid wat teenwoordig is in die besigheidsomgewing, is daar meer druk op organisasies om radikaal innoverend te word, om hulself konstant te herontdek en uiteindelik om die reels van die spel in hulle bedryf te verander. Die konsep van nuwe besigheidsmodelle is relatief nuut in die besigheidsliteratuur, maar die belangrikheid van die konsep kan nie onderskat word nie, waar die tradisionele besigheidsbenaderings ondoeltrefferd geword het binne 'n fluktuerende mededingende omgewing. As gevolg hiervan, het die hele wese van mededingende voorsprong verander. Ten spyte van die duidelike behoefte aan die skep van nuwe besigheidsmodelle, blyk daar ook om onvoldoende begrip en definisie van die term "besigheidsmodel" te wees. Dit belemmer die begrip van die oorsprong van nuwe besigheidsmodelle en die benaderings benodig vir die skep van nuwe besigheidsmodelle. Hierdie skripsie het eerstens die konsep "besigheidsmodel" en sy kerndimensies ondersoek, wat aan die lig gebring het dat die term ontbreek aan 'n voldoende en volledige definisie. Nadat die verskeie definisies in die besigheids-literatuur is, is 'n volledige gangbare definiesie vir die konsep geformuleer. Aangesien die sleutelelemente van 'n besigheidsmodel belangrike bronne van mededingende voorsprong bied, is die definisie gebruik om te illustreer hoe organisasies nuwe besigheidsmodelle kan skep deur die basiese aspekte van die besigheidsmodel te manipuleer. Benaderings en tegnieke wat organisasies in staat stel om nuwe besigheidsmodelle te skep en om radikaal innoverend te word, is geselekteer vanuit die voorgestel deur Govindarajan en Gupta (2001) en Amit en Zott (2001). Ten slotte, is 'n ontleding gedoen van die instrumente wat gebruik word om die prestasie van nuwe besigheidsmodelle te meet. Dit het aan die lig gebring dat daar nie so 'n evalueringsinstrument is nie, en hierdie studie het dus 'n raamwerk voorgestel waarvan die dimensies gebruik kan word om 'n meetinstrument vir voorgestelde besigheidsmodelle en/of industrieë uit te brei en ontwikkel.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/53338
This item appears in the following collections: