CREATING INNOVATION THROUGH A BUSINESS MODEL FRAMEWORK AND ITS IMPLICATIONS FOR THE SIAM CEMENT GROUP

Abstract

The adjustment of the organization to be in line with the business environment is crucial and should be emphasized by every organization, especially in rapidly changing business environments. However, firms are capable of coping with the critically changing environment through the strategy of innovation through employing a business model. The main objective of this article is to propose a Business Model Framework as a tool for the business practitioner for application to new business model creation. The author has divided this article into three main parts: the review of literature on the business model, the proposal of the Business Model Framework, and the implications of the framework based on a case study of HYPERLINK “http://www.siamcement.com/” the Siam Cement Group Company (SCG).

The Business Model Framework is a framework showing the process of creating business model innovation consisting of three main stages: 1) Defining the existing business model, 2) Reconfiguring the business model, and 3) Defining the types of Business Model Innovation. Within the stage of reconfiguration, five main components to create business model innovation are introduced, namely customer value proposition, profit formula, key resources, value chain/networks, and competitive strategy.