Abstract for: Systemic Business Model Innovation: Developing a method to innovate B2B business models using System Dynamics modelling

Business model innovation is a challenging task. Especially in B2B contexts where the value of a solution is often co-created with customers in value-networks. Decision makers have to find a profitable business model for their own company and for their customers. Existing methods and tools largely support designing but do not sufficiently facilitate comparing and deciding upon the most suitable business model. To overcome this gap, we developed a novel business model innovation method in an Action Design Research project with a start-up. Therefore, we merged the approaches of business model innovation, service design and SD modelling. The value of the new method is clearly demonstrated in the following three issues: First, applying systems and design thinking methods in a digital group model building workshop led to a holistic systemic problem-understanding which builds the basis for various innovation endeavours e.g. value proposition and sales strategy. Second, an actor-centric modelling of the value-network in stock-and-flow notation enabled experimentation with different business model alternatives which resulted in profitability and customer satisfaction being increased simultaneously. Third, the SD model enables a continuous business model innovation process by functioning as a performance controlling tool as well as a virtual testbed for decision-making.