What strategic challenges are faced by both start-ups and incumbent firms, and what opportunities do these challenges create for business model innovation? Focusing on the underpinning theory and concepts of business models, this book identifies new business models capable of creating sustainable competitive advantage, and guides readers through their implementation. A detailed introduction outlines current research in business model innovation (including directions for future research) and global business cases are applied throughout to illustrate key issues. Topics covered include market creation, leadership, digital technology adoption, small- and medium-sized enterprises, start-ups, sustainability, socio-economic development and conduct risk. Also discussed are the principles of the architecting economic systems, the role of government in influencing business models design, and how organisational structures must adapt in the context of business model innovation.

‘A good business plan can be worth billions, but how do you find one? Chander Velu explains why business model innovation is the most important and valuable innovation for your company and shows you the route to your new business model. Fascinating and enjoyable - buying this book is possibly the best investment you can make!’

Stuart Madnick - John Norris Maguire Professor of Information Technologies at the MIT Sloan School of Management, and Professor of Engineering Systems at the MIT School of Engineering

‘Fascinating and highly relevant. Chander’s book is valuable inspiration, particularly for anyone concerned with how we can boost growth and productivity, on which so much of society depends. Conventional economics assume that markets (and, by definition, those people who operate within them) are rational, moving quickly to optimise returns. In reality, businesses often aren’t rational. They’re full of inertia born out of the tensions between the short and long term and the way rewards are assessed and distributed. Many business leaders have good strategic instinct but transmission to results is often compromised by failure to overcome the inertia that stands in the way of changing a business model. Chander’s work addresses this reality head on with a rich analysis of how business model innovation is key to successful execution of strategy.’

Sir Charlie Mayfield - Chairman of Be the Business, former Chairman of the John Lewis Partnership, and member of the Industrial Strategy Council

‘Choosing a business model means choosing a particular way to compete and, for aspiring entrepreneurs as well as seasoned executives, I have found that there is nothing more important to focus on first. Professor Velu’s meticulous research and focus on the role of innovation in the design of business models and the dynamics that influence business models are extremely insightful, and what sets his work apart is his ability to seamlessly bridge academic rigour with real-world examples of the link between technology advances and business model innovation. I wholeheartedly endorse this book for anyone seeking to understand the importance of business model innovation in building a competitive business today.’

Lee Olesky - Founder of Tradeweb and former CEO and Chairman of the Board

‘The publication of this book is very timely as the latest wave of digital technologies is challenging virtually every business model in every type of firm across the globe. The time lag in adoption and the need for greater absorptive capacity are often mentioned as barriers to firms seeing productivity gains fast. Chander Velu opens the black box on how firms can innovate their business models to obtain lasting benefits from those new technologies. His years of study of the topic come together in this comprehensive book, from which not only scholars and students of business will learn - it also shows the way for practitioners to get beyond the hype.’

Bart van Ark - Professor of Productivity Studies at the Alliance Manchester Business School, and Managing Director of The Productivity Institute

‘A concise account of research on the relationship between business models and organisational performance. Recommended to anyone looking to gain a thorough understanding of the drivers, obstacles, and performance impacts of business model innovation.’

Panos Desyllas - Professor of Strategy at the University of Bath School of Management

‘A comprehensive guide that sheds light on business model initiatives for sustained competitive advantage. This book expertly takes the business model perspective to navigate the complexities of market dynamics, digital transformation, sustainable development, and organisational adaptation, making it a must-read for academics, practitioners, and policymakers. The use of real-world examples from contemporary businesses and practical frameworks brings the principles of business model innovation to life, providing actionable strategies for today's ever-evolving digitally enabled business landscape.’

René Bohnsack - Professor for Strategy and Innovation at Católica-Lisbon, and Director of the Smart City Innovation Lab

‘The book is firmly tethered to existing research (each chapter has several pages of references), and yet it is practical in its recommendations. In the particularly valuable and much-needed chapter 9, Velu also identifies the downside of business models that lead to conflicts of interest and other negative outcomes, and takes the reader through a powerful parsing of what went wrong at Lehman Brothers … Recommended.’

R. Subramanian Source: CHOICE