Business Model Agility: A Solution for Business Model Innovation

Inactively responding to the environmental changes is not what the todays' businesses are looking for. They look for taking advantage of these changes and turn such threats to opportunities to have a competitive advantage. In this regard, this study conducted to present a conceptual model for designing an agile business model which is flexible and fast enough to be adjusted with the environment changes. To reach this goal, the wide literature of business model, business model innovation, and agility were reviewed. Findings have revealed that the concept of agility can help organizational decision makers to react properly to the environment changes. And finally, this study proposes a conceptual model to design agile business model. This model recommends four steps to enable the businesses to have an agile business model. The first step is identifying business model innovation drivers. The second step is determining the agility level of the company. The next step is gap analysis between the agility needs and the agility level of the company. And finally, the fourth step is strategy formulation.