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Peter Kesting

SMEs and new ventures need business model sophistication

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SMEs and new ventures need business model sophistication. / Kesting, Peter; Günzel-Jensen, Franziska.

In: Business Horizons, Vol. 58, No. 3, 2015, p. 285.

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@article{ef0df11613194bdf8b5a7993810641aa,
title = "SMEs and new ventures need business model sophistication",
abstract = "Business models are a current hot topic, and their design has become a keyto performance. In fact, business model design is often associated with innovation.Many firms, though, fail to realize the full potential of their current business modelsimply because they are not aware of it. Nevertheless, Google succeeded in realizingits business model’s full potential by offering its main service, Internet search,completely for free while capturing value from secondary opportunities such asGoogle AdWords. Especially for new ventures and SMEs, capturing value from secondary opportunities or business model sophistication is of critical importance toward increasing the pool of resources at hand and giving momentum to the firm’s development. But what are these opportunities, and where can they be found? Based on various examples including Google, Ryanair, the Super Girl Contest on Hunan TV, and Spreadshirt, this article develops a framework that introduces five business modelsophistication strategies: (1) uncover additional functions of your product, (2)identify strategic benefits for third parties, (3) take advantage of economies ofscope, (4) utilize cross-selling opportunities, and (5) involve users and the crowd. Allfive strategies place a strong emphasis on stakeholder commitment.",
keywords = "business model sophistication, value capturing, SME strategy, new venture strategy, valueholder, social media",
author = "Peter Kesting and Franziska G{\"u}nzel-Jensen",
year = "2015",
doi = "10.1016/j.bushor.2015.01.002",
language = "English",
volume = "58",
pages = "285",
journal = "Business Horizons",
issn = "0007-6813",
publisher = "Elsevier Inc",
number = "3",

}

RIS

TY - JOUR

T1 - SMEs and new ventures need business model sophistication

AU - Kesting, Peter

AU - Günzel-Jensen, Franziska

PY - 2015

Y1 - 2015

N2 - Business models are a current hot topic, and their design has become a keyto performance. In fact, business model design is often associated with innovation.Many firms, though, fail to realize the full potential of their current business modelsimply because they are not aware of it. Nevertheless, Google succeeded in realizingits business model’s full potential by offering its main service, Internet search,completely for free while capturing value from secondary opportunities such asGoogle AdWords. Especially for new ventures and SMEs, capturing value from secondary opportunities or business model sophistication is of critical importance toward increasing the pool of resources at hand and giving momentum to the firm’s development. But what are these opportunities, and where can they be found? Based on various examples including Google, Ryanair, the Super Girl Contest on Hunan TV, and Spreadshirt, this article develops a framework that introduces five business modelsophistication strategies: (1) uncover additional functions of your product, (2)identify strategic benefits for third parties, (3) take advantage of economies ofscope, (4) utilize cross-selling opportunities, and (5) involve users and the crowd. Allfive strategies place a strong emphasis on stakeholder commitment.

AB - Business models are a current hot topic, and their design has become a keyto performance. In fact, business model design is often associated with innovation.Many firms, though, fail to realize the full potential of their current business modelsimply because they are not aware of it. Nevertheless, Google succeeded in realizingits business model’s full potential by offering its main service, Internet search,completely for free while capturing value from secondary opportunities such asGoogle AdWords. Especially for new ventures and SMEs, capturing value from secondary opportunities or business model sophistication is of critical importance toward increasing the pool of resources at hand and giving momentum to the firm’s development. But what are these opportunities, and where can they be found? Based on various examples including Google, Ryanair, the Super Girl Contest on Hunan TV, and Spreadshirt, this article develops a framework that introduces five business modelsophistication strategies: (1) uncover additional functions of your product, (2)identify strategic benefits for third parties, (3) take advantage of economies ofscope, (4) utilize cross-selling opportunities, and (5) involve users and the crowd. Allfive strategies place a strong emphasis on stakeholder commitment.

KW - business model sophistication

KW - value capturing

KW - SME strategy

KW - new venture strategy

KW - valueholder

KW - social media

U2 - 10.1016/j.bushor.2015.01.002

DO - 10.1016/j.bushor.2015.01.002

M3 - Journal article

VL - 58

SP - 285

JO - Business Horizons

JF - Business Horizons

SN - 0007-6813

IS - 3

ER -