Innovation adoption´s effect on established business models as means to adjust in a rapid changing technological and innovative landscape: A case study on Business Models, innovation Hype Cycles and the STREET process for adopting innovations

Mikkel Landt & Michael Vantore Damstrup

Student thesis: Master thesis

Abstract

Try to imagine the amount of manual laborers required to operate a single bank branch without the use of ICT, but simultaneously maintain the same throughput as it would with the use of ICT. The widespread diffusion and adoption of ICT and Internet technology has greatly impacted and improved the way businesses operates by increasing productivity and efficiency. Process automation, transactions, queries, resources planners, inventory control systems, and point of sale etc. are all based on ICT systems in today’s world. ICT entrepreneurs is an eager lot with many creative ideas and visions for delivering the ‘next big thing’ or ‘the next killer something’. They roam the realm of opportunities and perceptions of ‘fly-or-die’ without the slightest consideration of a core business component. Since the birth and proliferation of the Internet much have happened, the virtual and technological landscapes have been changing faster than ever. The rapid pace of new technologies development, emerging innovations, and increasing data generation, puts pressure on firms in high-tech industries to continuously innovate and reinvent themselves. To describe the challenges of a changing technological and innovative landscape and the perspective of a core business understanding, we have defined two dilemmas; the web 2.0 dilemma & the entrepreneur’s dilemma. Changing these threats of continuous change into opportunities is essential to any business; to proactively seek and adopt innovations to stay competitive and increase value. The purpose of the thesis is to examine innovations adoption’s effect on established business models as means to adjust to a rapid changing technological and innovative landscape and innovate a company’s business model. The thesis applies two different key theories, Business Model Generation (Osterwalder & Pigneur, 2010) based on the Business Model Ontology (Osterwalder, 2004) and the STREET process (Fenn & Raskino, 2008), on a case company called Qwiki, Inc. The concept of business models has been defined and explained by many scholars, but there is no consensus among the different scholars as to what constitutes and defines a business model. Due to this, we have conducted a literature review on the business model literature. To define and understand innovations and the phenomenon of technology we have used Hype Cycle (Fenn & Raskino, 2008) and Nature of Technology Arthur (2010) to clarify the terms. Using a classic ICT-startup like Qwiki as our case company we had to establish their business model – since they had not formulated one – as it was a prerequisite in order to better understand Qwiki business and their environment. Based on their business model we analyze Qwiki’s business value context for innovation adoption from the perspectives of Qwiki’s corporate core, current business objective and initiative, and enterprise personality profile. From analysis we identified eight different innovation candidates with relevance to Qwiki. By ranking the innovation candidates we found the four most relevant candidates based on an overall evaluation of the outcome (two innovations were combined due to interdependencies and similarities). These three most relevant innovation candidates we identified relevant for Qwiki to adopt showed the following business model impact:  Cloud solution – STaaS (storage as a service), low impact on the business model through an enhanced the value proposition through higher accessibility to content. SaaS (software as a service) high impact on; customer segment, value proposition, channels, key resource, and key partners.  Tablet industry and app programming language – low impact on the business model with changes to the targeted customer segment, which would need new key resources.  Activity stream – adopting this innovation complete transform their business model from a type of mobile application model to a social platform business model affecting all areas of the business model, especially the value configuration of activities

EducationsMSc in Business Administration and Information Systems, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2013
Number of pages163