Article: A business Model Innovation Typology

5 important questions on Article: A business Model Innovation Typology

What is the difference between open and closed business innovation?

Closed is when the business model innovation is used and stays within the organisation. Open is when the innovation is conducted with one or more external partners

What is the pattern distinguished in failure cases?

Complexity does not note the difference between success and failure, but reach and radicality do

What are the 3 main propositions for further research?

1. Companies pursuing a proactive (high radicality and reach) business model innovation best adopt an open approach with limited complexity
2. Companies pursuing a proactive (high radicality and reach) business model innovation with high complexity, should opt for a closed approach to manage risks
3. Companies an open, reactive business model innovation should go for low radicality, high reach and low complexity or vice versa
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What 3 factors determine the success of business model innovation?

1. Innovativeness (radicality, reach and complexity)
2. Strategic context (proactive vs reactive)
3. Organisational setting (open vs closed)

What are the 2 forms of closed setting strategies?

1. Internal  - make use of, and staying within, the existing organisation
2. Separation - keep innovation in organisation, but build in some separation early/later

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