Joint Development of Novel Business Models

Changing competitive environment forces companies to innovate and renew their business models towards a more value-adding and customer-centric direction. Often, a prerequisite for this is that the companies are willing to combine their capabilities by co-operating and creating long-term strategic networks with each other. The formation of networks is a cyclical learning process, along which the infrastructure and strategies emerge incrementally through mutual adjustment.We analyze such network formation process among three companies that are operating in separate but complementary industries. They are seeking to expand their service offering through the use of ICT. We reflect upon this development with the state-of-the-art research on the networked organizations and business models. It seems that business models are necessary and useful in depicting the areas of adjustments within and between the organizations in the networked setting.