This paper focuses on the challenges related to, and the risk management neededin, the process of business model innovation. Business model innovation mayinvolve hefty investments, high levels of uncertainty, complexity and, inevitably,risk. Although many firms follow a first mover strategic approach, arguing from a“no risk no reward” aphorism, a sloppy implementation approach towardsbusiness model innovation may result in catastrophic, sometimes even fatal,consequences to a firm’s core business. Based on four unsuccessful business modelinnovation experiences, which took place in three industrial firms, we discuss thereasons that led to these failures, and outline various possible solutions forpractitioners to manage business model innovation adequately.
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