ABSTRACT
This chapter deals with a discussion of the fundamental elements of a business model and then dives into the challenges of business model transformation. It presents the dynamic capability framework and stakeholder theory as providing the theoretical lenses for addressing this central tension of business model innovation, as business model innovators interact with their environment to challenge established industry players. TomTom is a Dutch multinational company specialized in developing personal navigation systems, location technology and consumer electronics. The traditional innovation research has been focusing on managing the balance between exploitation and exploration of technological development. Technology ignition means creating value by introducing a new technology, and the subsequent development of new business models that center on the invention, interpretation and delivery of the new technology. Many firms with great technological endowment struggled to justify their existence, while other seemingly mediocre firms took the helm and reign.
