Business Model Renewal and Its Networking Aspects in a Telecom Service Company
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This thesis examines business model renewal and its networking aspects. Business models are an emerging tool that practitioners, managers and researchers use to describe and illustrate how a company does business. Through innovative business model, a firm might gain competitive advantage, and thus transition in business models and business model innovation are important research topics. Network aspects were studied with four attributes that network pictures have: scope, structure, firm positioning, and processes. The objective of the thesis was to identify how these two concepts relate to each other and how the transition process concerning networks may happen. This research was done as a single case study. The empirical data was gathered during two business model workshop events with the case company managers and some teleconference calls were also made. The literature review suggested that the most appropriate business model that is both scientifically and managerially valid is the Business Model Canvas. Thus, the Canvas was taken as a starting point as the networking aspects were examined. The literature review and the workshop results proposed that narrative business models such as the Canvas are unable to describe the network attributes. In addition, visual business models and network pictures are unable to illustrate the core of business models – different value activities. The results indicate that managers and researchers should use both visual and narrative elements when designing business models. This is the case especially when a company does business in a network and the network structure is essential to perceive. Thus, this thesis provides two guidelines regarding the transition from a narrative business model to a network picture. The first guideline deals with the actual transition and the second deals with enhancing the network aspects in the Business Model Canvas. Moreover, the thesis studied the renewal process and its network aspects. The main findings regarding the process were that the designed model has to be feasibility studied and experimented before it can be implemented. Moreover, managing the business model change process is crucial.