Transition process from closed to open business models

Abstract

Because of the growing concerns about shortening product life cycle and raising costs of R&D, companies are searching for new ways of doing business. There is an opinion that this can be done through business model innovation which can bring companies from closed to open business model. The purpose of this study is to find out what the drivers of business model innovation process are and depict the specific ones, which drives business model from closed to open type. Literature review method is used to depict those drivers and propose conceptual model. After literature analysis, eight drivers of business model innovation process were found. Study reveals that three of them drive business model innovation inside the current or existing type of business model and five of them drive business model innovation toward more advanced or open type of business model. This paper combines all eight drivers into conceptual model, which can be used for the future researches. Keywords: Business Model, Open Business Model, Business Model Framework, and Business Model Innovation.