7Designing and Transforming Business Models
Stephan von Delft1
1 University of Glasgow, Adam Smith Business School
Over the course of my career, I’ve come to see business model innovation not as a static process but as a systemic and reliable capability, one that leaders need to build, strengthen, and eventually turn into a sustainable competitive advantage.
A.G. Lafley, Chairman and CEO of Procter & Gamble
Since its spinoff from Bayer in 2004, the German chemical company Lanxess has experienced several years of upward momentum: rising sales, increasing earnings and the admission to the DAX 30 blue‐chip index in 2012 are only a few examples that indicate its success. In March 2013, Axel Heitmann, then CEO of Lanxess, explained that the company had just experienced “the best in our growth story so far,” and further explicated “our business model proved itself once again” [1]. Only one year later, the situation had dramatically changed. Lanxess’s customers were destocking, prices declining, its balance sheet for 2013 showed a net income loss of €159 million, and Heitmann was replaced. Lanxess’s new CEO, Matthias Zachert, concluded after a corporate‐wide analysis in August 2014, that the “role‐out of a new business model” is necessary, meanwhile asserting that Lanxess needs to become “significantly more competitive” and customer oriented [2].
As the case of Lanxess illustrates, determining the competitiveness of a business model, sustaining a successful business model, and transforming ...
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