135 Journal of Business Models (2021), Vol. 9, No. 4, pp. 135-137 BOOK REVIEW Business Model Innovation Strategy: Transformational Concepts and Tools for Entrepreneurial Leaders. By Raphael Amit and Christoph Zott, John Wiley and Sons, Inc., Hoboken New Jersey Reviewed by Professor Robin Roslender for Journal of Business Models Please cite this paper as: Roslender, R. (2021), Book Review off “ Amit, R., Zott, C., Business Model Innovation Strategy: Transforma- tional Concepts and Tools for Entrepreneurial Leaders. John Wiley and Sons, Inc., Hoboken New Jersey”., Vol. 9, No. 4, pp. 1-3 ISSN: 224-2465 DOI: https://doi.org/10.5278/jbm.v9i4.7020 When two of the founding figures in a field decide to author a textbook, readers’ expectations are inevita- bly extremely high. In this instance these expecta- tions are not simply met, they are greatly exceeded in an addition to the business model literature that both managers and entrepreneurs, and students and their teachers will find of great value. The authors are able to draw on two decades of their own research, some of which has achieved seminal status, skilfully combining it with the broader business model liter- ature to produce an readily accessible volume that delivers a continuous stream of insights on business model innovation strategy. The book is divided into three parts, the first of which is entitled “Foundation and Mindset for Business In- novation”. Its four chapters document the broad foundation for the business model innovation topic, doing so by reviewing three sets of theoretical un- derpinnings: on understanding business models; on the value creation interface; and on the substance of the business model mindset, which together are identified as the prerequisite for successful busi- ness model innovation. In chapter 1 the authors set out their preferred definition of a business model as an activity system or “system of independent activi- ties that are performed by a focal firm and by its part- ners and the mechanism that link these activities to each other.” (p13). Following this the authors discuss the “What, How, Who, and Why” conceptual frame- work they have developed in the course of their own research careers and which is employed throughout the whole book. Chapter 2 sets out the relationship which exists between the business model concept and the traditional foci of strategy thinking, argu- ing that the former offers a new means of creating value. The necessity for developing a business model mindset is explored in some depth in chapter 3. The authors conclude Part 1 by drawing together these insights to provide a detailed overview of the busi- https://doi.org/10.5278/jbm.v9i4.7014 Journal of Business Models (2021), Vol. 9, No. 4, pp. 1-3 136136 ness model innovation topic together with a formal definition of it. While these chapters are the most theoretical in emphasis, it would be misleading to represent them as constituting the theory chapters, since in common with the whole text use is made of a portfolio of empirical cases and insights to illustrate the various points. Each chapter offers a concise summary of what are regarded to be its key takea- ways together with a list of references that readers are encouraged to explore. Part 2 is entitled “Strategic Design and Evaluation of Business Model Innovation” and is composed of five chapters. The content of these five chapters is marginally more practical in content than that evident throughout Part 1 but for the most part the style of its presentation is not discernibly different. The authors themselves identify what is on offer in chapter nine as an essential “toolkit”, a designation which also arguably neatly characterises all five of these chapters. In chapter five the authors argue that in designing innovative business models, man- agers and entrepreneurs can learn much from en- gaging with the design literature and embracing a design approach. They direct attention to six busi- ness model design drivers, captured in the DESIGN acronym, each of which resonates with key design concepts. Those responsible for designing novel business models in particular initially require to rec- ognise the Deployable resources that are available to them and the External environment in which the business seeks to operate. The third design driver is that of Stakeholders’ activities performed within the business model. Incumbent templates, or estab- lished business models in use within an industry pro- vide the fourth design driver, The final pair of design drivers are identified as a firm’s Goals and custom- ers’ Needs. Complementing these drivers as deter- minants of successful business model innovation is a concern with mindfulness and robustness. Chapters six and seven provide an introduction to a number of extant methods of business model design. Designing a new business model using a dynamic design approach focused on process is explored in chapter six. Within such an approach the work of the IDEO design firm plays a central role. Originally the IDEO design company developed a design process for use in new product design, its insights subse- quently being incorporated into the design process of both new services and new businesses. The au- thors explain how it might be further adapted for the purpose of designing new business models. The three fundamental stages within the IDEO approach now become BMIdeate, BMIterate and BMImplement, with the BMI designation intimating business model innovation as a possible outcome. Building on the ideas set out in the chapter, chapter 7 provides an overview of three complementary design methodol- ogies that are widely used by entrepreneurs in their business model innovation activities. Each is char- acterised by a simple strapline. Discovery-Driven Planning permits a business to “Fail Soon, and Fail Fast”; Effectuation is underpinned by the imperative to “Just Do It”; and the Lean Startup methodology requires users to “Test, Test, Test” in the pursuit of a low-cost indication of possible feasibility. Through- out this pair of chapters there is evidence of exten- sive borrowing of insights from across the business and management literature, thereby reinforcing the strong theoretical credentials of the text previously acknowledged. Chapter eight focuses on the core concept of busi- ness model thinking, the value proposition, identify- ing a more complex construct than is often identified in the literature. Initially the authors argue that when talking about value propositions it is necessary to re- fer to stakeholders as opposed to the more conven- tional customer focus. In this way sustainable busi- ness models should offer a value proposition to all the stakeholders that are involved in the business model and not simply customers. It is then possible to distin- guish between the value proposition of a product and the value proposition of a business model, which itself is separate from but complementary to the former value proposition. The value proposition of a service is much less distinguishable from the value proposition of a business model, with the pair of them combining to provide the total value proposition to the customer, as represented in exhibit 8.1. As a consequence of this, the co-creation of value process identified in recent marketing management literature assumes a more complex nature that is presently understood. In the second half of the chapter the NICE framework is discussed. The framework identifies four generic Journal of Business Models (2021), Vol. 9, No. 4, pp. 1-3 137137 drivers of value, which in combination maximise the value created for stakeholders. These drivers of value are designated Novelty, Lock-In, Complementarities and Efficiency, each of which is discussed by the au- thors. In the final chapter of Part 2 the authors detail a 13-item toolkit for business model analysis, which they see to form a complement to the content of the previous eight chapters. In introducing this toolkit the authors make reference to the Business Model Can- vas and Business Model Navigator, both of which have provided the focus for two of the most influential vol- umes within the extent business model literature. The third and final part of the text is entitled “Making Business Model Innovation Happen”, and comprises three chapters. These chapters the most practically oriented in the book, and provide a neat balance with its prior content. They focus on the inherent chal- lenges associated implementing business models and business model innovation, and provide an over- view of how it is possible to successfully overcome them. Chapter ten examines how business model innovation might be implemented in established organisations, initially identifying resistance from participants and organisational inertia as funda- mental obstacles to affecting change, both of which might be engaged by a variety of mechanisms. A comprehensive and robust change management programme should always be in place complement- ed by the visible involvement of top management. Business model innovation in “young” undertakings provides the focus for chapter 11. In such cases a dif- ferent set of obstacles are often encountered, in ad- dition with a range of generic risks that all start-ups face, including leadership and governance issues. The authors discuss a series of risk mitigation strat- egies that have been identified as contributing to a successful launch of new ventures. The concluding chapter provides a synthesis of the various contents of the text by rehearsing the case for adopting a well-conceived business model innovation strategy that is designed to easily complement the various other elements of an organisation’s corporate strat- egy. The authors seek to impress upon readers that the existence of such a business model innovation strategy has become increasingly necessary in the digital age and will present a continuing challenge to those who they designate “entrepreneurial leaders”. In addition to the highly useful end-of-chapter sum- maries and reference lists, the text incorporates an integrated index, combining concepts, cases and authors. At a length of 20 pages, it readily merits the description of being comprehensive, and serves to further increase the accessibility that characterises the whole volume, which will surely quickly become a must-read for anyone interested in the business model field, and much beyond. Robin Roslender, Aalborg University Business School.