"Business Model Innovation and Industry Architectures: Business Model Innovation"
Academy of Management
Chicago, US, 8-11 August 2009
Paper presented: "Strategic Agility: A Key for Accelerating Business Model Renewal", Yves Doz and Mikko Kosonen, Long Range Planning, in print, 2009
Strategic discontinuities and disruptions usually call for changes in business models. However, efficient firms naturally evolve business models of increasingly stability and therefore rigidity over time. Resolving this contradiction can be made easier by developing three core meta-capabilities: strategic sensitivity, resource fluidity, and leadership unity. In this article we review the underlying determinants of these capabilities, based on detailed research done in a dozen companies who were re-conceiving their business models. Nokia, easyJet, HP, SAP and Kone, among others are used here as examples. We propose a repertoire of concrete leadership actions enabling the meta-capabilities needed to accelerate the renewal and transformation of business models. To organize our argument we borrow the three main dimensions of our earlier strategic agility framework, and develop three vectors of leadership actions accordingly. Each of these leadership actions contributes to, and conditions, a firm’s ability to renew its business models.