A Unified Framework for Classification of Business Model Transformations of Established Firms

Dr. Dror Yeger & Dr. Aaron J. Shenhar


Business Model, Business Model Transformation


This study presents a framework for assessing and classifying Business Model Transformation (BMT) of established firms. Using Teece’s definition of interlinked BM dimensions, we propose a diamond model to describe a change in a given firm’s BM based on the following four dimensions: Target market; Value Proposition; Value Delivery and Value Capture. The extent of change on each dimension is quantified as No change, Medium change and High change. Aggregating change on all dimensions enables classifying a specific BMT as Incremental, Semi-Radical, or Radical. Such modeling may provide better insights into the nature of a firms’ transformation.