Business Model Innovation – How to Create Value in a Digital World

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Zott, Ch., & Amit, R. (2017). Business Model Innovation: How to Create Value in a Digital World. GfK Marketing Intelligence Review 9(1), 18-23.

Year

2017

Authors

Christoph Zott,
Raphael Amit

Publication title

Business Model Innovation – How to Create Value in a Digital World

Publication

NIM Marketing Intelligence Review

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Christoph Zott and Raphael Amit

It is not only products or services that are becoming obsolete but also organizational processes and systems because they simply no longer create enough value. To seamlessly account for the digitalization of the business and the customer side, new ideas are mandatory, and the whole business model is increasingly becoming the new source of innovation. A new, smartly designed business model can increase the total value created for all stakeholders, including customers, partners and suppliers.

The three design elements that characterize a company’s activity system are content, structure and governance. Changing one or more of these elements means changing the entire model, and if the new business model is “new to the world” and not just “new to the company” it can be considered real business model innovation. Content, structure and governance can be highly interdependent; they need to be in line with value creation and capture the goals of the company, such as its revenue model.

Authors

Christoph Zott, Professor of Entrepreneurship, IESE Business School in Barcelona, University of Navarra, Spain, CZott@iese.edu
Raphael Amit, Robert B. Goergen Professor of Entrepreneurial Management, Wharton School, University of Pennsylvania Philadelphia, PA, USA, amit@wharton.upenn.edu

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