Business Model Innovation : Pervasiveness of Mobile Banking Ecosystem and Activity System – An Illustrative Case of Telenor Easypaisa

Information and Telecommunication Technology has played an important role in business model innovation. This argumentative research paper presents an overview of business model innovation with the perspective of business ecosystem and activity system in mobile banking sector in Pakistani industry. This research paper aims to extend arguments raised in Zott and Amit (2013) that business models constructs are inherent in strategic networks and anchored in activity systems, thus making boundary spanning viable and innovating with respect to changing environmental forces. This paper suggests that patterns of business model innovation can be located within set of interdependent activities among business partners of mobile banking ecosystem. Each stakeholder performs its set of activities which are interdependent on other stakeholders' activities. Telenor Easypaisa is presented as an illustrative case for describing business model innovation patterns in mobile financial service industry. Telenor Easypaisa's illustrative case in this paper revealed that relying on existing strengths and opportunities, a firm's business model creates value in a network through sharing its limitations and strengths with partner organizations