Presentation of our research results: Business Model Innovation in Business-to-Business Markets - Procedure and Examples, Proceedings of the 3rd ISPIM Innovation Symposium: "Managing the Art of Innovation: Turning Concepts into Reality", Quebec City, Kanada, 12-15. Dezember 2010.

1. Business Model Innovation in Business-to-Business
Markets - Procedure and Examples
Daniel R.A. Schallmo, MBA
Prof. Dr. Leo Brecht
Helmholtzstraße 22
89081 Ulm, Germany
Phone: +49 731 50-32302
Fax: +49 731 50-32309
daniel.schallmo@uni-ulm.de
http://www.uni-ulm.de/itop

2. Business Model Innovation in Business-to-Business Markets - Procedure and Examples
Introduction
Research Objectives and Research Questions
Research objectives
¡ procedure for business model development
¡ generic business models for business-to-business markets
Research questions
¡ How can customer needs be derived for industries and included into
customer driven industry business model innovation?
¡ What do generic business models in business-to-business markets
look like?
¡ What does future and customer-driven company business model
innovation look like and how can business models for an industry be
integrated?
© Schallmo, D. and Brecht, L. 2

3. Business Model Innovation in Business-to-Business Markets - Procedure and Examples
Introduction
Research Approach
¡ Case study research was made via desk research (homepage, brochures,
press releases) for companies in business-to-business markets and
structured within a data base.
¡ Action research and focus group interviews were embedded in workshops
of the “Centre of Excellence for Sales Management in Business-to-Business
Markets”.
¡ 7 to 10 practitioners from 3 companies
¡ Different fields of expertise (market development, strategic
planning and sales management)
¡ 7 workshops were conducted from May 2010 to
October 2010, 4-8 hours
¡ Two interviewers permanently involved
© Schallmo, D. and Brecht, L. 3

4. Business Model Innovation in Business-to-Business Markets - Procedure and Examples
Industry Business Model Innovation Stage Gate Process
Development of the Procedure
Customer needs Customer needs Industry business Industry business
review focus review model vision model review
• Evaluate customer • Evaluate customer review • Evaluate industry
needs need focusses • Evaluate industry business model
• Gate result is produced • Gate result is produced business model vision • Gate result is produced
• Gate result is produced
rework rework rework rework
go go go Industry
Initiation Gate 1 Stage 1 Gate 2 Stage 2 Gate 3 Stage 3 business
model
kill kill kill
Customer needs Customer needs Industry business Industry business
derivement in focus development model vision model development
industry • Cluster customer development • Integrate ideas from
• Analyze drivers needs • Derive industry literature
(PESTEL) in macro • Describe customer business model visions • Integrate ideas from
environment need custers • Describe reason, cases
• Choose industry and • Derive tension pair intention and • Develop business
derive forces in micro • Analyze customer sustainability of model elements
environment need focus business model
• Derive customer
challenges and needs
© Schallmo, D. and Brecht, L. 4

5. Business Model Innovation in Business-to-Business Markets - Procedure and Examples
Industry Business Model Innovation Stage Gate Process
Application of the Procedure
Provides market access in development, sourcing, production and
sales; example: “German Centres” of three regional state lenders
provide offices, legal advice, contacts etc. (German Centre, 2010).
Market
Provider
Provides access to a network in order to Provides loans, leasing opportunities and
Network Finance subsidies; example: “Trumpf” provides
gain contacts and information; example: Provider Provider
“Trumpf” provides a platform to customers advice for customers to access subsidies
in order to buy/sell used machinery or “Rolls-Royce” provides pay per hour for
(Trumpf, 2010). airplane engines (Trumpf, 2010 and Rolls-
Royce, 2010).
Provides qualified personnel, trainings Provides products and services that
and know-how; example: consultancies enable customers to act in a
People Sustain-
provide customers know-how for Provider ability sustainable way, uphold their code of
several topics. “Manpower” provides Provider conduct and behave according to
services such as trainings, test and compliance requirements; example:
selection systems, temporary work and “Better Place” provides a network for
recruitment of personnel. (Manpower, renting automobile batteries (Better
2010). Place, 2010).
Service Product
Provider Provider
Provides product-related services along the Provides a modular system in order to fulfil
complete value chain; example: “Implenia” individual needs; example: “Azo” provides
provides services before, while and after modular food machines that are easy to
the construction of a building and clean and quick to install (Azo, 2010).
coordinates partners (Implenia, 2010).
© Schallmo, D. and Brecht, L. 5

6. Business Model Innovation in Business-to-Business Markets - Procedure and Examples
Summary
Contributions and Practical Implications
¡ Industry business model innovation stage-gate process
¡ Generic business models for business-to-business markets
¡ Ideas for companies in order to adjust and innovate business models
¡ Current understanding of business models, business model levels,
business model environment and business model innovation
¡ Application of procedure for other industries
© Schallmo, D. and Brecht, L. 6

7. Business Model Innovation in Business-to-Business Markets - Procedure and Examples
Summary
Limitations and Further Research
Limitations
¡ research design challenges generalizability
Further Research
¡ Study à analyze the current procedure of companies on BMI and existing
business models in B2B markets.
¡ Detailed development of the company business model innovation stage-
gate process à financial and risk/opportunity issues.
¡ Development of a procedure in order to derive processes for the business
models developed.
© Schallmo, D. and Brecht, L. 7

8. Business Model Innovation in Business-to-Business Markets - Procedure and Examples
Summary
Research objectives
¡ procedure for business model development
¡ generic business models for business-to-business markets
© Schallmo, D. and Brecht, L. 8

9. Business Model Innovation in Business-to-Business Markets - Procedure and Examples
Daniel Schallmo, MBA Prof. Dr. Leo Brecht
Ulm University
Faculty of Mathematics and Economics
Institute of Technology and Process Management
Daniel Schallmo, MBA
Prof. Dr. Leo Brecht
Helmholtzstraße 22
89081 Ulm, Germany
Phone: +49 731 50-32302
Fax: +49 731 50-32309
daniel.schallmo@uni-ulm.de
http://www.uni-ulm.de/itop
© Schallmo, D. and Brecht, L. 9