FACULTY AND RESEARCH

Business model innovation has arguably become a critical way to innovate, but its success factors are poorly understood. A lack of tools allowing the examination of business models in their entirety combined with the complex relationship between business model changes and market outcomes makes this especially difficult. This article introduces a comprehensive framework that addresses these two issues, by providing an integrated, value-based view of all of the critical components of the business model. The framework is applied to two well-known cases—Netflix and Spotify—to demonstrate how the tool can be used to highlight the critical differences in business models that may at first seem very similar and show how the framework enables managers to envisage the dynamics of business model innovation.