Implementing new business models: What challenges lie ahead?

What strategic choices do business leaders make when implementing new business models? This study tries to answer this question by analyzing the development of several business model innovations that were new to the industry. We find that business model innovators face four strategic tradeoffs during the implementation of their business model innovation process and that they deal with resulting tensions concerning: (1) the level of independence granted to the developer, (2) the degree to which the roadmap is planned in advance, (3) the degree to which the value proposition challenges the status quo, and (4) the rigor to which business model innovators preserve the logic of the initial value proposition. Our in-depth analysis reveals that business model innovators make pragmatic decisions that may deviate from the guidelines offered by the literature, and it offers insights into the drivers behind these decisions.