Mobility

Toward A Theory Of Business Model Innovation Within Incumbent Firms

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Executive Summary

This paper presents a theory of business model innovation (BMI) within incumbent firms. The process of business model change is examined, with particular attention to business units in a multi business enterprise. The paper expands upon past definitions of business models. It identifies four separate but interrelated components in a business model: 1. a set of elemental activities. 2. A set of organizational units that perform the activities (some of these units are internal to the firm, others external). 3. A set of linkages between the activities, made explicit by an isomorphic set of physical transactions (between the organizational units that perform the activities) and human relationships among the individuals

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