Every firm today needs a business model innovation strategy.
"At last, an excellent book on business model innovation...the crucial step that technology wizards often get wrong."
David J. Teece, Thomas W. Tusher Professor in Global Business, Haas School of Business, University of California, Berkeley
What is Business Model Innovation?
A Fundamental Source of Value Creation
A business model is a boundary-spanning system of interdependent
activities that centers on a focal firm, yet may encompass activities performed by its partners, suppliers, and customers in the pursuit of value creation and capture.
A firm's business model, or activity system, is characterized by four key dimensions — the What, How, Who, and Why of the business model.
Firms can innovate their business model along any of these dimensions.
Business Model Innovation (BMI) refers to a business model that is new to the industry in which the innovating firm competes. A BMI strategy is the pattern of choices regarding:
Design of a new activity system
Processes and antecedents by which the new system is created
Implementation and ongoing adaptation of the system
A BMI strategy is a core strategic choice that corporate executives and startup entrepreneurial leaders need to consider. It complements corporate strategy as well as business strategy.
Praise for Business Model Innovation Strategy
Grounded in decades of rigorous research, Amit and Zott provide THE definitive guide to innovating a winning business model. Perfect for the boardroom or the classroom!
In their new book, Professors Amit and Zott provide entrepreneurs with actionable and hands-on frameworks to help founders build and implement innovative, robust, and disruptive business models.
The book clears the fog on finding a way forward through business model innovation, engaging the right partners, and making astute commitments—all while keeping the lights on.
Kathleen M. Eisenhardt, Professor of Strategy School of Engineering, Stanford University and Coauthor of Simple Rules
Josh Kopelman, Founding General Partner, First Round Capital; Founder, Half.com
Anita McGahan, University Professor and Professor of Strategic Management, Rotman School of Management, University of Toronto
A business model is a core element of every entrepreneur and senior manager’s strategy. Amit and Zott’s book is an up-to-date, comprehensive, insightful, and action-oriented manuscript on formulating and implementing business model innovation strategy.
This rigorous and insightful book features concrete business model innovation strategy techniques that complement the traditional scope of how to conduct business—a topic every company must urgently address to sustain itself long term.
Amit and Zott’s groundbreaking book has a very practical orientation and is a must read for every entrepreneur and manager.
Garth Saloner, Former Dean, Stanford Graduate School of Business; Botha-Chan Professor of Economics, Stanford University
Dr. Johannes Sommerhäuser, Senior Vice President Innovation, Robert Bosch GmbH
Tao Zhang, Chairman, Internet Plus Holdings Ltd., Founder, CEO and Chairman, Dianping.com
RAPHAEL AMIT is a widely cited, award-winning researcher on business models. He is the Marie and Joseph Melone Professor and a Professor of Management at the Wharton School, University of Pennsylvania.
CHRISTOPH ZOTT is a business model innovation expert and full professor of Entrepreneurship at the prestigious IESE Business School. Professor Zott's research on business models has appeared in top publications around the world.
Supplementary Online Materials
Instructors who adopted our book as required reading for their course can contact the authors to obtain access to password-protected supplementary materials, including course slides, embedded videos, exercises, and notes on the recommended business cases. They can also view sample syllabi.