This paper presents a theory of business model innovation (BMI) within incumbent firms. The process of business model change is examined, with particular attention to business units in a multibusiness enterprise. The paper expands upon past definitions of business models. It identifies four...

We present a model that suggests possible explanations for the observed proliferation of "pay-per-use" (PPU) business models over the last two decades. Delivering "fractions" of a product as a service off ers a cost advantage to customers with lower usage but requires extra delivery costs....