MANAGEMENT TOOLS FOR BUSINESS MODEL INNOVATION–A REVIEW

The purpose of this chapter is to identify and classify proposed business model innovation tools through a literature review of academic publications. We classified the tools into three categories: innovation process stage, strategic objective and size of firm. Our main findings are that the overall number of business model innovation (BMI) tools described in the research literature is limited mostly to facilitate design processes rather than for test or implementation purposes. Moreover, the identified tools are based on conceptual reasoning and not on empirical studies of tools used by managers. Implications for managers are that most BMI tools are intended for, and have their strength in, experimenting with the design or redesign of a business model, placing it in a value chain and value network ecosystem. As most of these BMI tools have a visual representation, such as the business model canvas, they facilitate creativity and analysis work in management groups with different functions, e.g., in workshops with visual boards. Moreover, while most BMI tools assume the profit objective it is important for managers to make the objective of the BMI process explicit as many of the tools may be used also for growth or creating new businesses. Making the objective explicit might be especially important for managers in government or non-profit organizations as these organizations often have other objectives than profit and growth. A final implication for managers is that BMI tools are mainly developed to support managers when established companies need to change their business model in three types of situations; changes due to digitalization, to develop and sharpen the company's competitive advantages and when developing new businesses, i.e., corporate venturing