A Unified Framework for Business Model Transformation of Established Firms

Purpose: This study develops a Framework for assessing and classifying Business Model Transformation (BMT) of established firm. This approach unifies diverse previous contributions while offering new and simplified insights to this complex phenomenon. Design/methodology/approach: A conceptual approach based on data from prevailing literature. The findings were refined and modified by seven case studies of of established firms BMT. Findings: Following Teece’s definition of interlinked BM dimensions, we propose a four-dimensional framework for transforming a given firm’s BM. Change in : Target market; Value Proposition; Value Delivery and Value Capture. Each dimension is quantified by several change elements, using a risk/reward hierarchy (No change, Medium, High). The granular approach enables naturally to classify a given BMT as Incremental, Semi-Radical, or Radical increasing our understanding and contributing to the potential emergence of new insights. Research limitations: The large amount of scientific publications targeting BM results in low likelihood that every relevant publication is sanitized into the formation of the proposed Framework and analysis. This study used an exploratory and descriptive research method supported by limited number of case studies. Practical implications: The framework provides a disciplined tool for analyzing a given firm risk /opportunities, enabling managers to assess the uniqueness of their BMT against their firm/ competitors/ industry. Originality/value: The new framework offers a greater level of abstraction and a higher degree of granularity and has the potential to provide a new way to operationalize and measure the BMT phenomena.