Towards successful business model management with analytic network process-based feasibility evaluation and portfolio management

Despite the great importance of designing innovative business models, a validated methodology that helps related process is still not available. To fill this gap, this research introduces business model management concepts that consider business models as individual entities that can be systematically developed and managed by utilizing science based methodology. This study mainly focuses on proposing business model evaluation and deployment framework by applying analytic network process (ANP), a multi multiple criteria decision-making method and portfolio matrix strategy. The proposed evaluation method is designed to consider both internal and external perspectives where internal perspective is measured through ANP method by employees, while external perspective is measured through customer survey by in-depth interview. The obtained values from ANP and customer survey are then used to construct the business model portfolio matrix for continuous business model management. To this end, this study identifies 12 criteria within three different categories employed in ANP analysis and business model portfolio matrix, respectively. The proposed framework for managing business models provides new insights to both practitioners and academics. It regards business models as individual entities and introduces a way to practically apply the business model concept. It also provides managers with guidelines to manage business model alternatives in terms of evaluation, selection, and continuous management. Finally, because this study is, to the best of our knowledge, one of the first attempts to employ the portfolio management concept in business model research, it can function as the foundation for future applied business model research.