A PROCESS-BASED FRAMEWORK AROUND “LIGHTHOUSE PROJECTS” FOR BUSINESS MODEL INNOVATION

Despite the extant literature studies on business model innovation in response to a single (rather than multiple) strategic goal, entrepreneurs mostly approach the business model innovation process as a portfolio of parallel initiatives and solutions to the problems that are to be implemented. In the VUCA (i.e., volatile, uncertain, complex, ambiguous) context, a problem-solving roadmap for business model innovation is particularly relevant. However, the process is far from being easy, and most research focusses on the organisational level of analysis. By building on the cognitive perspective of business model innovation, this study implements an action research methodology to develop a framework that aims to help entrepreneurs structure a business model innovation roadmap that entails the exploitation and exploration activities. The framework has three steps. The first step attempts to build consistency in the problems, strategic goals, and initiatives. The second clusters the initiatives around “Lighthouse Projects”. The last step establishes a timeline and an action plan.