In Carlos M. DaSilva's Understanding Business Model Innovation from a Practitioner Perspective paper, the scholar analyzes the content of 63 interviews with CEOs of medium and small organizations in the technology industry to arrive at a comprehensive definition of Business Model Innovation from the practitioner's perspective (DaSilva, 2018).
This paper will discuss the scholar's findings and their application to the current discussion questions.
Background
The author acknowledges that business model innovation still needs to be better understood in the business world compared to other innovations such as processes, products, and marketing. There is a definition that has taken a measure of acceptance and has been widely quoted, which is the definition of David W. Stewart and Qin Zhao in 2000; the authors explain the business model as the logic that an institution follows to create, communicate and possess value (whether this value is economic, social or other) (Stewart & Zhao, 2000), in the paper, the author says that business models can be considered as unique models of companies. It is difficult and even impossible to copy. For example, the product can be copied easily, but the business model has a complex dynamic nature that is difficult to copy (Schneider and Spieth, 2014).
Mechanism of Action:
The author adopted the direct questions method to find out the following:
- Defining business model innovations according to what entrepreneurs do in their organizations.
- Types of business models and their subsidiaries.
- When to transition to a new business model.
- Barriers to moving to a new business model.
- The responsibility of completing the process.
- The results of business model innovations.
Results:
Definition: Most of the answers agreed that business model innovations aim to change the current work mechanism into a new mechanism that targets the customer in the first place (DaSilva, 2018)
Types: Branch into (total change, adaptation to a new situation, development, and finding new solutions) (DaSilva, 2018).
Timing: The time of transition to a new business model relates to new markets rather than a business model to existing markets (DaSilva, 2018).
Barriers: More empirical and theoretical research is needed to support business model innovations within organizations (DaSilva, 2018).
Responsibility lies directly with the senior management team (DaSilva, 2018).
Results: Respondents acknowledged that revenue and profits result from business model innovations but are not the primary drivers (DaSilva, 2018).
Application to current discussion questions:
The integration between scholarpractitionersr:
In this paper, the scholar, who is the author, and the 63 practitioners and entrepreneurs have been effectively integrated to reach specific and effective answers to understand business innovation models.
The methods used to illustrate the scholarly element(s):
The method of prepared questions was used, similar answers were collected, and percentages were given to reach rates through which the correctness of the results could be judged.
The practical methods used to illustrate the practitioner element(s):
The practitioner's business model is based on the past and current experiences of the practitioners in their organizations.
Will this approach work and/or be acceptable to stakeholders in your organization?
The investigative method, asking direct questions and obtaining specific answers from successful practitionerss, is an excellent way to arrive at new, reliable solutions. Still, the circumstances of the place and time must be established in which the organization is directly affected and may not be able to apply the same standards through which the organization succeeded.
Conclusion
The business innovation model is one of the most challenging things to export from one company to another (Bucherer et al., 2012); its definition and action mechanism differ from place to place. The scholar-practitioner near model here is in defining new methods for institutions. These have already been tried on other institutions, and it is possible to choose from them in a way that suits the current situation of the institution. Methods are integrated to reach a new value that the institution could not access except through this new model (Massa & Tucci, 2013).
References
Bucherer, E., Eisert, U., & Gassmann, O. (2012). Towards systematic business model innovation: lessons from product innovation management. Creativity and innovation management, 21(2), 183-198.
DaSilva, C. M. (2018). Understanding business model innovation from a practitioner perspective. Journal of business models, 6(2), 19-24.
Massa, L., & Tucci, C. L. (2013). Business model innovation. The Oxford handbook of innovation management, 20(18), 420-441.
Schneider, S., & Spieth, P. (2014). Business model innovation and strategic flexibility: insights from an experimental research design. International Journal of Innovation Management, 18(06), 1440009.
Stewart, D. W., & Zhao, Q. (2000). Internet marketing, business models, and public policy. Journal of public policy & marketing, 19(2), 287-296