Hypothesis-driven Adaptation of Business Models based on Product Line Engineering

The continuous innovation of its business models is an important task for a company to stay competitive. During this process, the company has to validate various hypotheses about its business models by adapting to uncertain and changing customer needs effectively and efficiently. This adaptation, in turn, can be supported by the concept of Software Product Lines (SPLs). SPLs reduce the time to market by deriving products for customers with changing requirements using a common set of features, structured as a feature model. Analogously, we support the process of business model adaptation by applying the engineering process of SPLs to the structure of the Business Model Canvas (BMC). We call this concept a Business Model Decision Line (BMDL). The BMDL matches business domain knowledge in the form of a feature model with customer needs to derive hypotheses about the business model together with experiments for validation. Our approach is effective by providing a comprehensive overview of possible business model adaptations and efficient by reusing experiments for different hypotheses. We implement our approach in a tool and illustrate the usefulness with an example of developing business models for a mobile application.