BUSINESSMODELINNOVATION.PDFVIP

Working Paper WP-870 July, 2010 BUSINESS MODEL INNOVATION: CREATING VALUE IN TIMES OF CHANGE Raphael Amit Christoph Zott IESE Business School – University of Navarra Av. Pearson, 21 – 08034 Barcelona, Spain. Phone: (+34) 93 253 42 00 Fax: (+34) 93 253 43 43 Camino del Cerro del águila, 3 (Ctra. de Castilla, km 5,180) – 28023 Madrid, Spain. Phone: (+34) 91 357 08 09 Fax: (+34) 91 357 29 13 Copyright ? 2010 IESE Business School. IESE Business School-University of Navarra - 1 BUSINESS MODEL INNOVATION: CREATING VALUE IN TIMES OF CHANGE Raphael Amit 1 Christoph Zott2 Abstract We highlight business model innovation as a way for general managers and entrepreneurs to create and appropriate value, especially in times of economic change. Business model innovation, which involves designing a modified or new activity system, relies on recombining the existing resources of a firm and its partners, and does not require significant investments in RD. We offer managers and researchers a conceptual primer on business model innovation, emphasizing the importance of system-level thinking. JEL Classification: L22, L26, M10 Keywords: Business model, innovation, activity system, design, value creation. Note: Raffi Amit acknowledges support from the Robert B. Goergen Chair in Entrepreneurship at the Wharton School. Christoph Zott acknowledges financial support from the IESE Research Division. Both autho