Networked enterprise business model alignment: A case study on smart living

One of the first steps in innovation projects and entrepreneurial initiative involves formulating a Business Model (BM) that describes the value creation, delivery and capturing logic of a business idea. However, when formulating a BM for networked enterprises, the alignment of the collective BM, supporting the joint service or product on offer, and the underlying operational processes of the networked businesses, need to be taken into account. This paper analyses the concept of Business Model Alignment (BMA) based on qualitative case studies of two Smart Living projects in Finland and China. To begin with, a Business Model framework (STOF) is applied to describe the high-level BM. Next, the Value, Information and Process (VIP) framework is applied to analyse BMA. The case studies show that an analytical framework, such as the VIP model, helps reveal the hurdles that may undermine BMA and, as a result, obstruct BM implementation. This paper contributes to existing BM literature by identifying the steps that are necessary to move from an abstract, often strategy-driven BM, of collaborating enterprises towards an aligned BM that can be implemented. This paper also contributes to theory formation by identifying the issues that play a role in achieving BMA.