The three faces of business model innovation: challenges for established firms: established firms frequently have difficulty with business model innovation. The business model innovation typology defines the challenges

OVERVIEW: Business model innovation represents a significant opportunity for established firms, as demonstrated by the considerable success of Apple's iPod/iTunes franchise. However, it also represents a challenge, as evidenced by Kodak's failed attempt to dominate the digital photography market and Microsoft's difficulty gaining share in the gaming market, despite both companies 'huge financial investments'. We developed a business model innovation typology to better explain the complex set of factors that distinguishes three types of business model innovations and their associated challenges.