Making Business Models Dynamic

By Guido Noto
Located in Pisa, Italy

Post-Doc at Institute of Management, Sant’Anna School of Advanced Studies

Business Models, intended as formal conceptual representations of how an organization functions, are designed to offer a static perspective of value creation processes. This prevents start-up entrepreneurs from framing the complexity, uncertainty and unpredictability of the business sectors in which they operate, experimenting how their business reacts to strategic changes, and sharing experimentation results with other stakeholders (e.g., potential investors). In a recently published article, together with Federico Cosenz from University of Palermo, we argued that combining conventional Business Model schemas with System Dynamics modelling results in a strategy design tool that may overcome these limitations. The resulting Dynamic Business Models (DBMs) provide useful insights to strategy formulation and business venturing by capturing how critical Business Model elements interact to produce enduring competitive advantages over time.



This blog is a community platform for students and young professionals where we can all learn from each other – that’s why YOUR thoughts matter! What did you learn from this article? Are there any open questions? Do you have suggestions for further research or ideas for practical work with businesses? Leave a comment and let Guido know what you think!


Passionate about systems thinking, traveling and social change initiatives. Learn more at

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