A guide to the concept and implementation of business model innovation: The 5 V BM framework

Abstract

[Excerpt] Background: The term Business Model (BM) came into popular parlance in the mid-1990s when newly founded internet-based companies emerged, challenging traditional incumbents. Victims of such change are numerous. Take Blockbuster (video renting company) as an example. The managers were too reluctant to incorporate the web into their BM, allowing opportunistic newcomers like Netflix to make the most of the situation and grab their customers. As many business activities such as marketing, sales, information acquisition, and customer communication began to shift to the online environment, companies were forced to revamp their traditional structure into web-based platforms, recognised as "changing their BM". Ever since then, constant academic and business efforts have been devoted to building a clearer picture of the firm’s BM. One of the outcomes of such efforts is the emergence of the concept of Business Model Innovation (BM innovation). [...]