A dynamic business modelling approach to design and experiment new business venture strategies

Dynamic business modeling for sustainability: Exploring a system dynamics perspective to develop sustainable business models

“…Therefore, the systemic and dynamic aspects of the DBMfS approach, proposed in this paper, directly tackles these fundamental limitations pointed by Geissdoerfer et al (), shown above. With an approach that characterizes the complexity of the BMs explicitly by adequately capturing the feedback loops and the dynamic behavior of important performance measures, organizations are better equipped to follow up on their innovation ideas (e.g., workshop outputs), to more quickly implement promising sustainability concepts and, finally, to reduce the likelihood of implementing an unsuccessful BM due to its capability of testing multiple strategies and what‐if scenarios (Abdelkafi & Täuscher, ; Cosenz, ; Cosenz & Noto, ). These aspects are further addressed in the Discussion section.…”

“…SD models are tailored to specific managerial challenges/phenomena and built by mapping the relevant business system structure in order to generate and convey an understanding of behavior driving processes, as well as a quantification of its causal interactions so as to produce a set of equations that lay the groundwork for simulating possible system behaviors over time (Warren, ). In particular, SD models entail an endogenous and feedback view of a BM, seen as a closed boundary, that is, encompassing all the main variables associated with the business system under observation (Cosenz & Noto, ). More specifically, SD identifies the complex interactions among feedback loops, rejects notions of linear cause and effect, and requires the business analyst to view a complete system of relationships whereby the “cause” might also be affected by the “effect.” This means that a variable—other conditions being equal—may influence another variable: (a) positively (i.e., an increase of the one corresponds to an increase of the other and vice versa), (b) negatively (i.e., an increase of the one corresponds to a decrease of the other and vice versa), or (c) according to a nonlinear relation between them.…”

“…An SD simulation model is calibrated by comparing model output with empirical data and, in case of discrepancies or inconsistencies, by refining the model and input parameters where adequate data do not exist. As suggested by Cosenz and Noto (, p. 129), “[o]nce the simulation model has been developed, calibrated, and tested whether it realistically behaves, inputs are modified to conduct what if ” analyses of how short‐ and long‐term outcomes would change in response to alternative strategy scenarios” (Kunc & O'Brien, ; Torres et al, ). When real BM experimentation is too costly or complex, simulation becomes a valuable tool to discover how complex business systems work and where high leverage points may lie (Cosenz & Noto, ; Davis et al, ).…”

“…The business model is affected by the company's resources (tangible and intangible), the supply chain and the company's stakeholders (internal, interconnecting and external), including the environment (inside and outside the company).” Therefore, a systemic perspective to develop BMfS may provide decision makers and managers with a lean strategy design tool—to be used on a regular basis—which not only lists the key elements shaping a sustainable BM (i.e., social, environmental, and economic value forms) but also outlines the causal interdependencies among them (Casadesus‐Masanell & Ricart, ; Demil & Lecocq, ). In fact, framing the causal interdependencies among BM components within a lean systemic framework enables to trace how results are affected by performance drivers and associated strategic resources, thus offering a more effective perspective to promptly undertake corrective actions and/or strategy reversals (Cosenz, ; Cosenz & Noto, ).…”

Developing a fuzzy inference system to devise proper business strategies: a study on carpet industry

“…Some of the proposed The dynamic strategic management is a process through which the members of a future organization are visualized and the process creates the procedures and actions required to achieve them (Pesonen 2009). The dynamic strategic management is a decisionmaking process which can relate the environment within the organization to the opportunities and threats coming from the outside of the organization in such a way that the value of each factor will be completely obvious (Cosenz and Noto 2018). Propa et al (2018) examined the performance of handwoven carpet using Business Performance Evaluation Technique I (BPET I).…”