Article

Balancing customer and network value in business models for mobile services

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Abstract

Designing business models for mobile services is complex. A business model can be seen as a blueprint of four interrelated components: service offering, technical architecture, and organisational and financial arrangements. In this paper the connections among these components are explored by analysing the critical design issues in business models for mobile services, e.g., targeting and branding in the service domain, security and quality of service in the technology domain, network governance in the organisation domain, and revenue sharing in the finance domain. A causal framework is developed linking these critical design issues to expected customer value and expected network value, and hence, to business model viability.

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... Several authors have attempted to represent business models. By extending the work presented in [170], we can see that authors have referred to the business model as a statement [145]; a description [9], [158]; a representation [109], [138]; an architecture [150], [43]; a tool or model [53], [120]; a method [7]; a framework [3]; a pattern [26]; a set [136]; a path [77]; a template [168]; a blueprint [61]; and an abstraction [23]. In Table 2.5, we illustrate the many representations adopted by authors for each of the approaches mentioned above. ...
... 2006 "A pattern of organizing exchanges and allocating various costs and revenue streams so that the production and exchange of goods or services becomes viable." Haaker et al. [61] 2006 "A blueprint collaborative e↵ort of multiple companies to o↵er a joint proposition to their consumers." Seelos & Mair [136] 2007 "A set of capabilities that is configured to enable value creation consistent with either economic or social strategic objectives." ...
... Year Definition Gordijn & Akkermans [55] 2001 "Are designed to help define how economic value is created and exchanged within a network of actors" Shafer et al. [138] 2005 "A representation of a firm's underlying core logic and strategic choices for creating and capturing value" within a value network Haaker et al. [61] 2006 "A blueprint collaborative e↵ort of multiple companies to o↵er a joint proposition to their consumers" Tian et al. [149] 2008 "The roles and relationships of a company, its customers, partners, and suppliers, as well as the flow of goods, information, and money among these parties and the financial benefits for those involved" Zott & Amitt [167] 2009 "A firm's business model depicts the content (goods and information exchanged), structure (players and how they are linked), and governance of the transaction of the firm in relation to the networks in which is embedded (including the control of information, resources, and goods, as well how the value is shared)." Palo & Tahtinen [122] 2011 "A network perspective on business models for emerging technology-based services" From the works in the literature presented in Table 2.7, we found that e3Value [55] and BEAM [149] include a graphical representation. ...
Thesis
Full-text available
This disertiation introduces the service-dominant business design framework for designing service businesses. The framework consist on four layers: strategy, business models, service compositions and business services. These layers are implementend in four tools: the service-dominant strategy canvas, the business model radar, the business service composition blueprint and the service catalogue
... Business Model) ist in der Literatur nicht ein--heitlich definiert. Verschiedene Autoren - z. B. Wirtz (2011), Bouwman et al. (Haaker et al. 2006;Bouwman et al. 2008 ...
... mobile Geschäftsmodelle gerichtet ist der Ansatz vonBouwman et al., die diese anhand der Kategorien Service, Technology, Organization und Finance (STOF) beschreiben(Bouwman et al. 2008, S. 31ff.;Haaker et al. 2006). Damit gehen sie als einzige spezifisch auf technische Fragen ein, was eine konkrete Umsetzung funktioneller Anforderungen als Architekturen, Dienste, Anwendungen oder Endge--räte unterstützt. Dies beinhaltet u. a. Daten---sicherheit und ---schutz, Personalisie--rungsfragen oder die Integration in bestehende Systeme(Haaker et al. 2006). ...
... Damit gehen sie als einzige spezifisch auf technische Fragen ein, was eine konkrete Umsetzung funktioneller Anforderungen als Architekturen, Dienste, Anwendungen oder Endge--räte unterstützt. Dies beinhaltet u. a. Daten---sicherheit und ---schutz, Personalisie--rungsfragen oder die Integration in bestehende Systeme(Haaker et al. 2006).8 Fritz et al. (2011) fassen passend zu allen vorgestellten Ansätzen zusammen, es herr--sche in der Literatur "eine weitgehende Übereinstimmung, dass die zentral zu beschreiben--den Bereiche eines Geschäftsmodells die Architektur der Wertschöpfung, das Nutzenangebot sowie Erlösmodelle darstellen". ...
Technical Report
Full-text available
Die Nachfrage nach mobil erbrachten Gesundheitsdienstleistungen steigt an. Dabei ist IT-­Unterstützung verfügbar, Dienstleistungsorganisationen in der Domäne müssen aber mit knappen Budgets und einem Engpass an Fachkräften zurechtkommen. Gleichzeitig wird eine hohe Servicequalität vorausgesetzt. Es sind Hilfestellungen nötig, damit die Dienstleister die Versorgung hochwertig gestalten können. Im vor-liegenden Beitrag wird hierzu ein Bezugsrahmen entwickelt, der die konfigurative Gestaltung entsprechender Geschäftsmodelle unterstützt.
... The fourth paragraph explains Chesbrough's view on business modeling. Haaker, Faber and Bouwman (2006) wrote: "The field of business models has developed over the past few years from defining business models (Afuah and Tucci, 2001, Bouwman and Van der Ham, 2003, Hedman and Kalling, 2003, Mahadevan, 2000, Osterwalder and Pigneur, 2002, Timmers, 1998, Weill and Vitale, 2001, Chen and Nath, 2004) via exploring business model components into categories, to developing descriptive models of business models (see for an overview: Pateli and Giaglis, 2003). The majority of researchers focus on actors, relationships, and value objects exchanged (see e.g. ...
... Haaker, Faber and Bouwman focus on business models for service offerings which require crosscompany or multi-actor collaboration. A business model is considered a networked enterprise: "A collaborative effort of multiple companies to offer a joint proposition to consumers" (Haaker et al, 2006). Within the Freeband program the STOF model was developed by researchers from the Telematica Institute and TU Delft (Haaker et al 2004). ...
... They use six functions while referring to a business model: 1. Identify a market segment, that is, the users to whom the technology is useful and for what purpose; 2. Articulate the value proposition, that is the value created for users by the offering based on technology; 3. Define the structure of the value chain, that is the network of activities within the firm required to create and distribute the products or services offered to customers; 4. Estimate the cost structure and profit potential of producing the offering, given the value proposition and value chain structure chosen; 5. Describe the position of the firm within the value network linking suppliers and customers, including identification of potential complementors and competitors; 6. Formulate the competitive strategy by which the innovating firm will gain and hold advantage over rivals. Both Chesbrough and Rosenbloom (2002) and the STOF model (Haaker et al, 2004) adopt the view that a business model is a blueprint that describes how a network of organizations cooperates in creating and capturing value from new innovative services or products (Haaker, Faber and Bouwman, 2006). ...
... (a) The ways in which an organization, along with its suppliers and partners (business actors), creates value for its customers Petrovic et al. 2001;Dubosson-Torbay et al. 2002;Stähler 2002;Haaker et al. 2006). (b) The ways in which an organization, along with its stakeholders (business actors), creates value for each party involved (Bouwman 2002;Stähler 2002;Haaker et al. 2006;Andersson et al. 2006). ...
... (a) The ways in which an organization, along with its suppliers and partners (business actors), creates value for its customers Petrovic et al. 2001;Dubosson-Torbay et al. 2002;Stähler 2002;Haaker et al. 2006). (b) The ways in which an organization, along with its stakeholders (business actors), creates value for each party involved (Bouwman 2002;Stähler 2002;Haaker et al. 2006;Andersson et al. 2006). ...
... 6. A way in which an organization enables transactions through the coordination and collaboration among parties and multiple companies Bouwman 2002;Haaker et al. 2006). 7. ...
Book
This book offers a strategic analysis of current and future perspectives of Foreign Direct Investment (FDI) inflows into the South East European media market. The author develops a hybrid FDI business model strategy to guide media companies wishing to more effectively position and leverage their media infrastructure within the increasingly globalized and expanding media market. By conducting sixteen comparative and exploratory case studies of the South East European media market, the author explores how specific microeconomic factors influence spillover effects, absorption capacities and investment incentives between local and foreign firms through FDI inflows. The book is directed towards researchers and students, as well as practitioners/professionals involved with media organizations.
... In this thesis, I apply the Service, Technology, Organisation, Finance (STOF) model (Haaker et al., 2006;Bouwman et al., 2008). The STOF model is a conceptual framework that helps to design or describe a business model. ...
... One of the main reasons for the selection of STOF is the fact that this model is specifically tailored to the specifics of mobile services. It looks beyond the individual firm and considers the multi-actor collaboration needed to provide a mobile service (Haaker et al., 2006). This way, the model helps to analyse 'a collaborative effort of multiple companies to offer a joint proposition to their customers' (Haaker et al., 2006, p. 647). ...
... It is notable that researchers agree regarding some key aspects . For example, business models generally refer to the ways firms create and capture value from a service, product, or technology (Amit and Zott, 2001;Chesbrough and Rosenbloom, 2002;Gordijn et al., 2000;Haaker et al., 2006;Johnson et al., 2008;Magretta, 2002). Business models also reflect the logic used by a firm in order to create and deliver value to customers (Casadeus-Masanell and Ricart, 2010;Magretta, 2002;Osterwalder et al., 2005). ...
Thesis
[Link to the full text: http://www.diva-portal.org/smash/get/diva2:1199256/FULLTEXT01.pdf ] Mobile payments are transforming the payments industry. These services open up the opportunity for non-banking actors to enter the market. In order to embrace this challenge, banks, traditional payments market players, are forced to launch mobile payments. However, in Europe and most developed economies, a big number of launched services get terminated soon after their introduction in the market. Hence, the ability of different actors to act locally calls for additional research. The main objective of this thesis is to broaden knowledge and nderstanding about the ways mobile payment service providers address the opportunities and challenges of mobile payment services. In order to investigate this problem, this research (i) explores factors stimulating and hindering the introduction of mobile payments using perspectives of different types of service providers (i.e., banks, independent providers, direct operator billing providers, retailers, and public transport companies) and (ii) seeks to explain the importance of these factors for each type of provider. The primary data collected using interview method. More than 40 industry representatives in six countries were contacted. The Service, Technology, Organisation, and Finance (STOF) model was used as a theoretical research framework. This is a business modelling framework that specifies a set of critical design issues that have to be considered within each model’s domain. Research findings highlight that the organisation domain is the key domain, which affects all other domains and has an impact on the general viability of the business model. A comparison of the approaches used by different service providers to address each of the critical design issues helped to identify the factors that are most important within each domain. These factors stimulate or hinder development of a viable business model within each category of service providers. This research contributes to a better understanding of challenges and success factors associated with the design of business models for new mobile services and uses the lens of the STOF model. The contributions to the academic research on mobile payments are: (i) collection and analysis of a rich empirical data set on mobile payment services implemented in six Northern European countries, (ii) discussion of a bigger picture by connecting research findings to the context of the existing payment system, (iii) extension of knowledge on business models for mobile ticketing, and (iv) extension of knowledge on the value of mobile ticketing services in the business-to-business (B2B) context.
... This paper addresses the following research question: What are the factors negatively affecting the penetration of mobile ticketing services? In order to answer this research question, we applied the STOF (Service, Technology, Organisation, and Finance) model [25], [27] and analysed issues related with each of its elements. ...
... The majority of business model definitions seek to define its structural components. Different authors [17], [21], [23], [24], [25] emphasise different components of business model. ...
... For the purpose of this research, we use the STOF model ( Fig. 1) [25], [27]. This model is specifically adapted for analysis of mobile services that require collaboration of different actors [25]. ...
... Stensaker, (2006);Haaker et al., (2006);Scomavacca and Barnes, (2006);Zeidler et al., (2008); de Reuver et al., (2009); de Reuver and Haaker, 2007);Gurau and Ranchhod, (2009); Giray et al., (2009);Samanta et al., (2009); Huang (2008); Elmufti et al., (2008); Gerpott, al., (2006);Turel and Yuan, (2006);Smith, (2006); Ngai and Gunasekaran, (2007A); Ngai and Gunasekaran, (2007B); Tsai and Gururajan (2007); Dahlberg et al., (2008); Hsieh et al., (2008); Parveen et al., (2009); Kivi, al., (2006); Junglas (2007); Choi, (2007); Junglas et al., (2008); Gidofalvi et al., (2008);Xu and Gupta, (2009); Vijayalakshmi and Kannan, (2009); Lee et al., (2009)' Xu et al., Tripathi, (2006); Merisavo et al., (2006); Mahmoud and Yu, (2006); Kautonen et al., (2007); Molina, (2007); Xu et al., (2008); Barnes and Scomavacca, (2008); Idwan et al., (2008); Leppaniemi and Karjaluoto, (2008); Cudmore and Patton, (2008); Venkatesh and Balasubramanian, 2008); Lim, (2008); Hassinen et al., (2008); Kousaridas et al., (2008); Laukkanen et al., (2008); Chang, (2009); Zarifopoulos and Economides, al., (2006); Kung et al., (2006); Fitch and Adams (2006); Andersson et al., (2007); Susilo and Win, (2007); Wickramasinghe and Goldberg, (2007); Gururajan et al., (2008); Jokela et al., (2009); Hafeez-Biag and Gururajan, al., (2007); Schierholzand et al., (2007); Lee and Jun, (2007); Sinisalo et al., (2007);Valsecchi et al., et al., (2006);Zhong and Yang, (2006);Veijalainen et al., (2006);Wei et al., (2006);Siddigi et al., (2007); Lee et al., ...
... These dependencies essentially affect the structure of business models and emphasize the dynamic of the concept (Demil and Lecocq, 2010). When updating a business model architecture, it is therefore important to consider and maintain an equilibrium of the components (Al-Debei and Avison, 2010; de Reuver and Haaker, 2009), i.e. no single component should be regarded or changed in isolation (Haaker, Faber and Bouwman, 2006; Kindström, 2010). Figure 2shows the discovered dependencies between business model components. ...
Article
The growing commercial use of modern information and communication technology with the simultaneous transition of traditional to digital businesses led to the realization of many innovative business ideas forming a new digital competitive landscape. As an appropriate means to analyze this new competitive landscape, the business model concept has prevailed in research and business practice for almost two decades. To describe business models, they are typically broken down into single business model components. Recent business model research criticizes a lack of knowledge of the structural relations between them. Without knowledge of their internal behavior, it is difficult to transform and innovate them in a successful manner. Thus, this paper tackles this research gap by conducting a comprehensive analysis of business model literature with the objective of discovering structural relations between business model components and mapping them on a unifying business model component framework which was developed prior to this study. © (2013) by the AIS/ICIS Administrative Office All rights reserved.
... Hence it is important to consider and maintain an equilibrium of the components when updating a business model architecture [20,23,51]. Thus, no single component should be regarded or changed in isolation [34,52,53]. An equilibrium of this type can be attested if business models are consistent with regard to an internal and external "fit" [54]. ...
Article
Since the mid-1990s, in the course of the rising commercial use of modern Information and Communication Technologies (ICT) and the transformation of traditional to digital business, the business model concept has prevailed as a promising unit of analysis. To describe business models, they are typically broken down into single business model components. However, there is a lack of knowledge on the dynamics between them, i.e. which dependencies and interdependencies exist between business model components. Hence, a successful transformation and innovation of business models still remain a heavy task without having such knowledge on the internal behavior. Thus, this paper provides a comprehensive analysis of business model literature aiming to discover structural relations between business model components. This was achieved by analyzing numerous individual literature sources. In pursuing this explorative approach, a large number of dependencies and interdependencies could be discovered and mapped onto the unifying Business Model Component Framework, which was developed prior to this study. (This paper is a revised and expanded version of a paper entitled “Interdependencies between Business Model Components— A Literature Analysis,” [65] presented at the 19th Americas Conference on Information Systems (AMCIS 2013), Chicago, Illinois, August 15–17, 2013, AIS Electronic Library (AISeL), pp. 1–9.)
... A broad array of literature proposes differing definitions, lists of components, taxonomies and evaluation models for BMs (e.g. Timmers, 1998;Amit & Zott, 2001;Gordijn et al., 2000;Osterwalder & Pigneur, 2002;eFactors, 2002;Magretta, 2002;Faber et al., 2003;Osterwalder, 2004;Haaker et al., 2006;Lambert, 2008;DaSilva & Trkman, 2014). However, research on BM and BM Innovation (BMI), based on cases or on cross-sectional research has been rather limited. ...
Conference Paper
Full-text available
There is a multitude of tools available for Business Model Innovation (BMI). However, Business models (BM) and supporting tools are not yet widely known by micro, small and medium sized companies (SMEs). In this paper, we build on analysis of 61 cases to present typical BMI paths of European SMEs. Firstly, we constructed two paths for established companies that we named as 'I want to grow' and 'I want to make my business profitable'. We also found one path for start-ups: 'I want to start a new business'. Secondly, we suggest appropriate BM toolsets for the three paths. The identified paths and related tools contribute to BMI research and practise with an aim to boost BMI in SMEs.
... Chakravorti and Roson indicated that the market of mobile payment is two-sided [17] . Haaker et al. pointed out that enjoying high value but low (even zero) price characterizes customers who adopt ICT services [18] . Consumers are not willing to pay for mobile payments, for alternative payment methods are available, including traditional payment services and new electronic payment services. ...
Conference Paper
Full-text available
Mobile payments as a special area of mobile financial services require the cooperation of several entities including financial institutions, telecommunication operators, and intermediaries and other supporters. These entities, together with customers and merchants, form the mobile payment ecosystem where both cooperation and competition are taking place. The mobile payment ecosystems consist of several asymmetrical competitors; they create various payment platforms and systems and negotiate to create a cooperative network. During the last decade, dramatic growth but also numerous failed solutions of mobile payment services have been witnessed in different regions. In this paper we study a few selected regions in order to gain better understanding of the factors affecting the success or failure of mobile payment ecosystems, as well as helping in understanding how the maturity of different markets affects the development of mobile payment solutions. Specifically we study following markets: China, Finland, Japan, and Kenya. It appears that successful solutions are found both in highly developed economies, like Japan, as well as in developing regions, like Kenya. By taking some of the earlier frameworks for analyzing mobile payment systems, we have identified elements that could be used to extend them for enabling a more comprehensive analysis and comparison of the various mobile payment solutions. Such a framework would facilitate studies that involve both relationships of the key actors but also the surrounding environment.
... Although present for over half a century, the concept has only gained prominence in the last decades, especially during the dot-com revolution of the 2000s (El Sawy and Pereira, 2013). As Ballon (2009) explains, as digitization progressed the concept gradually shifted from mainly dealing with the 'logic of creating and capturing value' (Keen and Qureshi, 2006;Magretta, 2002) towards 'the development of an unambiguous ontology that can serve as the basis for business process modelling and business case simulations' (Haaker, Faber, and Bouwman, 2006;Osterwalder and Pigneur, 2010). As a result, business models developed towards encompassing a complex set of design choices concerning a specific value network, functional architecture, financial models, and eventual value propositions made to the user (Ballon, 2009). ...
Article
Full-text available
Today's media industry is characterized by disruptive changes and business models have been acknowledged as a driving force for success. Current business model research manages only to grasp static descriptions while in reality media managers are struggling with the dynamics of the industry. This article aims to close this gap by investigating a new paradigm of online media business models. Based on three video game case studies of the massively multiplayer online role-playing game genre, this article explores a novel theoretical approach to explain the changes that can be made within business models. The article highlights the importance of changing processes within online media business models and emphasises that the video game sector is at the forefront of business innovation. Finally, it demonstrates that online media business model change is in a trade-off paradigm between capturing or offering potentially higher value per player vs. accessing a potentially larger player-base.
... Mass collaboration of fully consciousness is an important foundation to demonstrate the human wisdom. [5] Through the support of the tools such as unified communications, shared agenda and collaborative work, integrated and multitudinous communication and collaboration services are provided for teachers and students ubiquitously, supporting the individual and group cooperation, online and offline interaction, extend study and discussion from in-class to out-class, and the collaborative research from laboratory to cyberspace. ...
... The service domain, which focuses on customer value, is a description of the service being provided, the value proposition (added value of the service offering) and the market segment at which the service is targeted (Haaker et al., 2006). By looking at four critical design issues (targeting, creating value elements, branding and customer retention) in Table 1, we determine which characteristics of m-payment services create value to consumers, and what aspects of consumer technology acceptance should be managed by MNOs when understanding consumer value perceptions. ...
Article
Despite the predicted success of mobile payment, the market remains immature in most countries. Major concerns are the relationship between push and pull technologies, and the role of platforms, service innovation, power and control in ecosystems. As the first step in their mixed-method research approach, using Analytic Hierarchy Process (AHP) as a research approach and the STOF business model as a research framework, the authors aim to identify design issues for m-payment services from mobile network operators’ perspectives. Furthermore, the authors compare insights from semi-structured interviews with experts in the field to the empirical findings, to assess how the actual business model of Chinese m-payment services can be improved based on design issues derived from the business model. The results show that components such as building customer trust on payment services, innovative payment experience, and extend market to new segments, guarantee security and privacy issues, user profile management, and hardware problems involving existing infrastructure, customer/merchant relationship, platform interoperability, and cost saving on fraud detection need to be improved to enhance the potential of m-payment, supported by a viable and sustainable business model. There is also a role for policy and regulation to be played.
... The articles that are classified under this category adopt a strategic perspective and mostly focus on design issues in mobile business models, identification of the extended structure of the mobile value chain, revenue increasing models for mobile marketing, firm-level adoption of mobile technologies, effectiveness of cross-media integration, and critical success factors and effectiveness of mobile marketing campaigns in stimulating consumer response and as a brand vehicle. Some examples from the selected articles are as follows : Haaker, Faber, and Bouwman (2006) investigated critical design issues in business models for mobile services and developed a causal framework which links these critical design issues to expected customer value and expected network value, and finally to business model viability. Scharl, Dickinger, and Murphy (2005) and Scornavacca and McKenzie (2007) explored the critical success factors of SMS based campaigns from a managerial perspective. ...
... Part of the complexity can be attributed to the dynamic network-driven context of contemporary businesses (Haaker et al., 2006;Solaimani et al., 2015). Most BM frameworks take a single firm perspective and in that way ignore the fact that more often than not firms operate as multi-actor cross-industry networked enterprises. ...
Article
Full-text available
In many entrepreneurial projects, the concept of the business model (BM) is used to describe a business idea at a high-level and in a holistic way. However, existing literature pays less attention to implementation (or execution) of BM. Implementation becomes more complex when a BM is proposed by or requires a network of collaborating enterprises. The aim of this paper is to provide an approach based on empirical research that supports BM transition from design to implementation. The empirical data used in this paper is based on a case study involving an innovative project in the pharmaceutical sector in Finland. The case analysis demonstrates how a high-level BM needs careful consideration of its operational components from a network perspective to secure both value creation and capture. Drawing on the analysis, six concluding propositions on BM implementation in networked settings are put forward.
... Through the combined effort of several companies and partners, value is created and passed on to their customers. (Haaker, Faber and Bouwman 2006) Finally, to capture all dimensions of the business model, the pattern of Burkhart, et al. needs to be taken into account. With this compelling work, they were able to identify patterns across the different business model definitions ( (Burkhart, et al. 2011 draw an own framework pointing out the identified patterns and themes of business models that have been compiled during the literature review. ...
Thesis
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“Digital Transformation” evolved from a fancy buzzword to a revolution of businesses and whole industries. While it offers many chances, it is threatening the business models of traditional companies at the same time. The field of business model research alone is a rather new science practice. This thesis not only summarizes the state of research around the term “Business Model” but also discusses the evolution towards a digital business model. Characteristics and components of digital business models are in the focus of management research but lacking an in-depth evaluation on what it makes them successful. Here this thesis tries to contribute by identifying patterns that increase the probability of a successful outcome. In the absence of quantitative data, 14 high profile senior executives from various companies and organizations were interviewed. As a result, 52 pattern were identified out of which 23 success factors for digital business models could get derived. Apart from the theoretical evaluation, this thesis takes the automotive industry as an example, to explain digital business models and what makes them successful in an applicable context. The start of this research project was the hypothesis that successful digital business model and their strategies have concurring patterns. Based on that, a research question was formulated, asking what factors are there, that might determine the success of digital business models. To lay out the theoretical grounding, necessary terms like “Digitalization” and “Digitization” were defined, followed by a literature review around business models in general. To better highlight key characteristics, the author created an own framework based on the various definitions and publications of business models. This framework was developed as a tool to a) guide through the thesis and b) to draw the evolution towards a digital business model. After a summary of digital business models in management research, this framework was altered to reflect the specifics of digital business models. Throughout the literature review, examples of the automotive industry were used to illustrate captured concepts. The next part of this thesis describes the empirical approach, how the data set was created and analyzed to derive the patterns. The research design concentrates on four main areas. Firstly, it discusses which data gathering approach would be appropriate and why. Secondly, a questionnaire was designed and an underlying interview strategy formulated. To better structure, not only the data gathering process but also to support the consecutive analysis, the whole survey and research was divided into clusters. These clusters resulted from the created framework, which was developed based on the literature review. The evaluated clusters are architecture, routines, culture, technology, value chain and external factors. Thirdly, an interviewee selection framework was created, considering that experts from all 6 relevant areas are interviewed to ensure a 360 degree view on digital business models. Fourthly, a technique was discussed, how the gathered data will be analyzed. Here, a three- step approach was conducted. As a first step, patterns per cluster were identified. During the second step, these patterns were categorized in either static, like an asset or capability or behavioral, like a routine or ongoing process. The last step assessed these patterns on their impact on the success of the outcome. Based on that, the 52 identified patterns were further sub-categorized in 23 success factors that have a direct impact on the outcome of digital business models and 29 supporting factors. The last part of this thesis discusses the implication of these factors for managers that operating digital business models in the automotive industry. The thesis ends with reflecting that research of success factors for digital business models is only at the beginning and gives recommendations for further researches by highlighting the limitation of this thesis. As a next step, a quantitative evaluation of single factors is recommended to assess and measure their impact on the success.
... The cross-company (inter-organization) perspective represents a third perspective from which the BM concept has been examined. Researchers have illustrated the concept as a way in which an organization enables transactions through the coordination and collaboration among parties and multiple companies (Gordjin and Akkermans, 2003;Haaker et al., 2006). A final view is that a BM is a way in which organizations generate revenue (e.g. ...
Article
Full-text available
Purpose – The purpose of this paper is to define critical design and evaluation factors of business models (BM) for mobile network operators (MNOs) in general, and more specifically for mobile data services. Design/methodology/approach – This paper follows a qualitative approach. Aiming to identify critical design factors for mobile BMs, this research, as a part of larger research, examines three real-life cases related to mobile data service BM design and engineering. These cases are Orange Business Services (OBS); Apple’s iPhone services and applications, and NTT DoCoMo’s i-mode service. Findings – In this paper, the authors provide a framework for designing and developing Market-Aligned, Cohesive, Dynamic, Explicit, and Unique BMs with Fitting Network-Mode, which, if adopted by MNOs, would ensure their long-term success by improving the sustainability and innovation capabilities of their BMs. These critical design factors address different spheres of the mobile business: “Cohesion” and “Explicitness” are operator-oriented, whereas “Market-Alignment,” “Dynamicity,” “Uniqueness,” and “Fitting Network-Mode” are industry-oriented. Research limitations/implications – Although the paper provides in-depth analysis of three case studies in the context of mobile telecommunications, the authors cannot claim that the developed framework can be generalized to all services in the mobile telecommunications industry. Further validation through empirical testing is preferred and this could be done in future research. Practical implications – The developed framework is of value to MNOs as it provides them with a holistic approach for designing and also evaluating successful BMs over time. This is because the developed framework defines critical design factors for BMs in the contexts of their environments. Originality/value – The domain of BMs is still emerging within the field of information systems. The majority of prior studies either tackled the issue of BM definition or provided taxonomies and classifications of this concept. The originality of this paper comes from the fact that it takes further steps in developing the concept by providing a comprehensive framework which encapsulates critical design and evaluation factors of mobile BMs.
... and linear value chains-to an emerging realm of digital business opportunities, which is more complex and distinguished by increasing levels of uncertainty and multilateral value chain networks (Haaker et al. 2006;Bilgeri et al. 2015). Research on digital transformation shifts from a technological perspective in earlier years, to a now economic paradigm with an increased importance of the aspect of developing and innovating new digital business models (Loebbecke and Picot 2015). ...
Chapter
Business model innovation (BMI) in the digital era is subject to more complex value chain networks and ecosystems which leads to an increased amount of uncertainties to deal with. Hence, well-established evaluation tools are questioned in this context. This paper examines quantitative evaluation tools and explores their role with a single case study of a company from the technology sector. Thereby, a methodological approach to incorporate conjoint analysis—exemplary to quantitative evaluation tools—is elaborated. Within the single case study, the methodological approach is applied to evaluate strategic options in a strategic stage of a digital BMI project. As a contribution to research, the paper at hand shows how quantitative evaluation tools have a tremendous impact on the development of a superior business model as a competitive advantage.
... A significant number of different definitions, for BMs have been introduced in the academic literature, (e.g. Timmers, 1998;Amit & Zott, 2001;Gordijn et al., 2000;Osterwalder & Pigneur, 2002;Magretta, 2002;Faber et al., 2003;Osterwalder, 2004;Haaker et al., 2006;Lambert, 2008;Christensen, Bartman, and van Bever 2016). According to the definition introduced by Osterwalder and Pigneur a business model is "the rationale of how an organization creates, delivers and captures value it describes how a company creates value for itself, while delivering products or services to customers" (Osterwalder and Y. Pigneur 2010). ...
Conference Paper
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Business Models (BM) and their recent evolution have shaped the way in Business Strategy. It is widely accepted that the formulation and implementation of business strategies, and the need for the development of competitive advantages, is directly related to BM. Within this context, a variety of theories, approaches, and tools has emerged with significant impact on both academia and the business world. Despite the plethora of important theories and approaches, the important questions that have arisen after many years of research and business activity have not yet been answered. The main issue has proven to be the dispute on the general view of what success means and how can be measured. The profit models/formulas that are incorporated in every Business model and have been used extensively to measure BM success, as well as the overall business success, raise ambiguity over the results of such measurements. Moreover the profits, and profit based valuations, are criticized, on the basis that they fail to capture the long term dynamics, and the long-run success perspectives of every Business model, and thus incite the overall success of the Business Strategy employed. New approaches are more concentrated on the mechanics and the dynamics of the processes utilized to create and capture value and not in the ways that this value is turned to profits. The need for a new approach, based on the processes of creating and capturing value, is more evident for Greek Companies. The special characteristics of the Greek economy, and its developments in the last 12 years, along with the inherited inability of Greek companies, to create and implement appropriate BM, and overall Business Strategies, constitutes the perfect environment for research in an effort to address the issue of processes based vs. profit based, BM. In this economic and business environment, that had a significant impact on the characteristics of Greek companies, the mechanics and dynamics of creating and capturing value can be seen as key-features in the construction and implementation of BM. In such a case, processes can be defined as a key measurement of business success, while the profits pursue turns to be misleading and biased, constituting a totally wrong approach in formulating and implementing an overall business strategy. The analysis is based on an extensive literature review putting into perspective the concept of BM and its evolution, as well as an extensive overview of the models used by Greek companies, resulting on conclusions about whether they need to construct and implement processes-based BM, highlighting the process of creating and capturing value, instead of concentrating on the fallacy of profit-based BM. Finally, the study suggests directions of further research.
... However it does not combine technology solutions or asset management tools. The financial implications in balancing customers and major assets in different environments have been presented by Haaker et al. (2006). However there is no overall solution, the discussion is around a flexible framework for integrating the different components. ...
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Improving customer satisfaction and loyalty is increasingly becoming a great challenge globally. Regulated markets, competition from other service providers, customer habits of having more than one cell phone, complex standards and benchmarks are some of the major reasons for the mobile service companies to adopt new strategies to retain their customer base. Most service providers continue to use smart marketing strategies combined with attractive tariff schemes to capture the market. However, mobile telephone customer satisfaction and loyalty depend on several elements such as network coverage, availability/usability of new handsets, call centre quality, and online support. In this paper, an effective asset management strategy to improve the satisfaction of mobile telephone customers is presented. A state-of-art web-enabled information system is designed and developed to integrate the activities of different units in a typical mobile company.
... 2002 ; Osterwalder. 2005 ;Haaker et al. 2006 ;March et Hevner. 2007). ...
Thesis
La start-up, définie comme un état transitoire durant lequel un individu ou un groupe d’individus en manque de ressources et en condition de forte incertitude est à la recherche d’un business model scalable doit faire face à de nombreux enjeux. Les collaborations avec des entreprises matures apparaissent comme un catalyseur pour le développement de ces jeunes entreprises innovantes. Accompagnée pour la majorité d’entre elles par des incubateurs, cette thèse propose de plonger dans les pratiques de ces structures en termes d’accompagnement des entrepreneurs sur le sujet de la collaboration. Ainsi à travers une méthodologie empirique basée sur une étude de cas nous montrons que les collaborations impactent la start-up suscitant des changements de Business Model importants tout au long de son développement. Notre seconde étude empirique sur une population d’incubateurs en France montre qu’il ne se dégage aucune tendance générale dans les pratiques d’accompagnement sur le sujet de la collaboration. En parallèle, il se dessine qu’au sein d’une même structure chaque pratique est dépendante de l’accompagnant. Nos résultats permettent dans un premier temps de mettre en avant les impacts que peuvent avoir les collaborations sur le développement de la start-up à travers les changements de Business Model qu’elles engendrent. Notre étude permet également de mieux appréhender les différentes pratiques d’accompagnement mises en place par les incubateurs et de proposer des recommandations à l’attention des dirigeants de structures d’accompagnement.
... Generally, a business model describes how a firm creates and captures value (Haaker et al., 2006). Afuah (2004) defines a business model as a framework for money-making and explains business models as a strategic management approach. ...
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Purpose; The purpose of this conceptual study is to synthesise a theoretical view for describing business ecosystems based on stakeholders’ business models, to aid new product development ecosystems. Design/methodology/approach; The research approach of this study is constructive. This study is founded on a thorough literature review clarifying how business ecosystems are covered in academic writings in conjunction with new product development. The literature findings are analysed and synthesised to obtain a theory-based view on business ecosystems. Findings; This study indicates that a business ecosystem can be described via the business models of participating actors, and that business model elements can portray the structure of an ecosystem. Business actors are connected to each other and to ecosystem’s customers via relationships characterised by offering and revenue. An ecosystem offering is the composition of the actors’ offerings. The value creation structure of an ecosystem is described by linkages between actors. Based on the experiences of this study, describing semiconductor ecosystem via business model elements is a tangible way to perceive an ecosystem and the roles of different actors. Research limitations/implications; This study is purely conceptual and is based on the existing literature; hence some aspects are potentially ignored. Academics and company managers may benefit of utilising the results of this study in describing, and analysing different ecosystems, understanding which business actors are required, and what their role is in new product development. Originality/value; Business model elements have not been utilised to describe an ecosystem in previous studies.
... We therefore define a business model as a description of the way an organization or a network of organizations aims to make money and create customer value. 12,13 Business model components ...
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The objective of this study was to design a viable business model for commercially deploying an e-health service innovation – i.e. a so-called myofeedback-based teletreatment service – in the R&D deployment phase. In this paper, the business model and regulatory validation strategy used to conceptualise the deployment of this e-health service innovation is described, analysed and evaluated. Insights from surveys, desk research, expert interviews, workshops and quantitative modelling were combined to engineer the business model and consequently refine it in four design cycles. The business model engineering strategy led to critical deployment insights that would otherwise be unknown or learned at a much later phase of the development process. Based on this result, it is concluded that our approach may lead to substantial risk reduction as well as substantial savings in costs and resources related to service innovation deployment.
... Teece (2018) noted that it can be defined as a regrouping of an organization's mechanisms to capture, create, and deliver value. The business model makes it possible to create profit through stakeholder satisfaction, which influences the achievement of the company's goals (Haaker, Faber, & Bouwman, 2006). ...
Article
Faced with a proliferation of initiatives like corporate accelerators, entrepreneurial ecosystems see emerge new spaces that we can call entrepreneurial micro‐ecosystems. A micro‐ecosystem is a local open system interacting with the entrepreneurial ecosystem and driven by an actor or group of actors capable of fostering dynamics of innovation and entrepreneurship. The literature has tended to focus on the macro and meso levels leaving behind the microlevel and the strategies implemented by the actors that could lead to the creation of micro‐ecosystems. In this study, we consider corporate accelerators, still little studied, as entrepreneurial micro‐ecosystems. We propose to take a structural and strategic approach in order to better understand the attributes and the strategies put in place by these actors from a multilevel approach. A qualitative study was conducted on a corporate accelerator and the results reveal the importance of strategic attributes in terms of legitimacy, coopetition, and business model.
... The service domain, which focuses on customer value, is a description of the service being provided, the value proposition (added value of the service offering) and the market segment at which the service is targeted (Haaker et al., 2006). By looking at four critical design issues (targeting, creating value elements, branding and customer retention) in Table 1, we determine which characteristics of m-payment services create value to consumers, and what aspects of consumer technology acceptance should be managed by MNOs when understanding consumer value perceptions. ...
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Despite the predicted success of mobile payment, the market remains immature in most countries. Major concerns are the relationship between push and pull technologies, and the role of platforms, service innovation, power and control in ecosystems. As the first step in their mixed-method research approach, using Analytic Hierarchy Process (AHP) as a research approach and the STOF business model as a research framework, the authors aim to identify design issues for m-payment services from mobile network operators' perspectives. Furthermore, the authors compare insights from semi-structured interviews with experts in the field to the empirical findings, to assess how the actual business model of Chinese m-payment services can be improved based on design issues derived from the business model. The results show that components such as building customer trust on payment services, innovative payment experience, and extend market to new segments, guarantee security and privacy issues, user profile management, and hardware problems involving existing infrastructure, customer/merchant relationship, platform interoperability, and cost saving on fraud detection need to be improved to enhance the potential of m-payment, supported by a viable and sustainable business model. There is also a role for policy and regulation to be played.
... Although present for over half a century, the concept has only gained prominence in the last decades, especially during the dot-com revolution of the 2000s (Sawy & Pereira, 2012). As Ballon (2009) explains, with the progression of digitization, the concept gradually shifted from mainly dealing with the 'logic of creating and capturing value' (Keen & Qureshi, 2006;Magretta, 2002) towards 'the development of an unambiguous ontology that can serve as the basis for business process modelling and business case simulations' (Haaker, Faber, & Bouwman, 2006). As a result, business models developed towards encompassing a complex set of design choices concerning a specific value network, functional architecture, financial models, and eventual value propositions made to the user. ...
... Besides, Hedman & Kalling (2003) illustrate the BM as power, recognizing the violent nature of today's businesses. Haaker et al. (2006) typify it as a blueprint. Janssen et al. (2008) explain the BM as a process of representing an entity from its mission viewpoint as well as the products and services portfolio. ...
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Business Model (BM) literature is growing with many contributions from academics and practitioners. Interestingly, despite a large number of studies focused on BM, we found a lack of consistency in the definition of what a BM is. Using content analysis, this study aims to investigate previous studies searching for a shared definition of BM. A relevance assessment allows understanding most common elements that shape BM, allowing us to draw a definition of BM. Four main dimensions are derived to define the BM: the value dimension, the modeling principles dimension, the functional dimension, the strategy dimension. Finally, results show further needs of development.
... Customer is intended to be dependent on service/product Self service Product/service characteristics Service/product has a high degree of usability Access to service/product can be guaranteed Service/product can be used without involvement of provider Company/project and market characteristics -Customer and partner characteristics and relationships -and linear value chains-to an emerging realm of digital business opportunities, which is more complex and distinguished by increasing levels of uncertainty and multilateral value chain networks (Haaker et al. 2006;. Research on digital transformation shifts from a technological perspective in earlier years, to a now economic paradigm with an increased importance of the aspect of developing and innovating new digital business models (Loebbecke and Picot 2015). ...
Chapter
Large manufacturing companies will in future be continuously challenged to develop and implement new IoT-related business models. Existing research offers interesting insights on high-level stages of business model innovation (BMI) processes in general. However, only little is known about the presence of main gates in BMI processes and even less about the underlying decision criteria applied at these gates. To shed more light on this research field, 27 expert interviews with employees from eight companies across the IoT ecosystem were conducted. The expert interviews reveal that, despite the increasing popularity of (radically) new innovation approaches, two main decision points can be identified across BMI processes. These findings are a first explorative step towards a better understanding of IoT adoption and provide a starting point for interesting future research avenues.
Chapter
In this chapter, we want to determine the factors and risks that affect the viable business model for pervasive healthcare systems - with an emphasis on sleep treatment devices. We used a hybrid analysis utilizing, i) Porter’s Five Forces, to determine the competitive advantages of the pervasive healthcare industry and ii) Delta Model, to determine the three strategic options related to customer bonding and adaptive processes which support these options. We have found that with the hybrid analysis pervasive healthcare industry will be highly competitive and strive to meet customer needs making it the next big trend in the medical industry overall. In particular, the ability to customize accordingly to the patients individual conditions is a key differentiator in such an industry. In addition, the major players and value chain of the sleep treatment industry are illustrated.
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Der Bedarf an mobilen Gesundheitsdienstleistungen wächst stetig. Gesundheitsdienstleister sind mit den Herausforderungen knapper Budgets und des Fachkräftemangels konfrontiert. Gleichzeitig wird eine hohe Dienstleistungsqualität erwartet, weshalb Unterstützungspotenzial besteht, das auch durch (mobile) Informationstechnologien realisiert werden kann. Eine umfassende Adressierung dieser Herausforderungen erfordert die Konzeption neuer, tragfähiger, sowie die Analyse existierender, Geschäftsmodelle. Hierzu präsentiert der vorliegende Beitrag einen Bezugsrahmen, der die konfigurative Gestaltung ebendieser Geschäftsmodelle sowie modellhafte Betrachtungen der aufstrebenden Branche unterstützt.
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In this exploratory case study, we examine Sedo, one of the world's leading domain trading and parking companies in its efforts of going mobile. We introduce domain parking services and investigate the opportunities and challenges resulting from the company's innovation efforts due to the trend towards the mobile Internet. Based on Henderson and Clark [1] and Atuahene-Gima and Ko [2], we find that incremental and architectural innovations mark Sedo's efforts to strengthen its mobile profile and to complement its desktop business. We discuss whether modular or radical innovations, which overturn the existing business could be an alternative recipe for success in mobile parking. Yet, our data lets us conclude that the peculiarities of domain parking limit the transferability of the parking business to the mobile world. This seemingly negative finding helps us to rethink business model contexts and contingencies in the overall hype for the mobile Internet.
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The hype surrounding the mobile social game business started in 2009 and peaked in 2012. This rise and decline provides two sets of lessons learned in the game business in Japan. The author provides a retrospective view of the mobile social game business during this period of hype until its decline. From the lessons learned, the author presents the challenges of service engineering in the era of social services.
Book
This book describes the trends in digital innovation that are of most importance for businesses and explores the key challenges. The book is in three parts, the first of which focuses on developments in digital systems. Here, the ever-growing relevance of big data, cloud computing, and mobile services for business is discussed, and detailed consideration is given to the importance of social listening for understanding user behavior and needs and the implications of IT consumerization. In the second part, trends in digital management are examined, with chapters devoted to work practice, digital business identity as well as branding and governance. The final part of the book presents and reviews case studies of digital innovation at the global level that provide a benchmark of best practices, with inclusion of instructive fact sheets. While the book offers academic coverage of the digital transformation of business organizations and the associated challenges, it also describes concrete, real-world issues in clear, easy-to-understand language and will serve as a toolbox for managers that can be readily consulted. The text is supported by informative illustrations and tables, and practitioners will also benefit from the reported case studies and highlighted insights and recommendations. © 2014 Springer International Publishing Switzerland. All rights are reserved.
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With the rapid growth of mobile data services in China, the competition between mobile data service providers become more intense. To gain advantage in the fierce competition, it is very critical to manage service quality effectively, thus a comprehensive measurement instrument of service quality is needed. However, there are few studies dedicated to measure service quality of mobile data services. Our study proposes a conceptual framework derived from technical acceptance model. Based on the framework, we develop and validate an instrument to measure perceived service quality of mobile data services in rigorous process. Finally, we have gotten a service quality instrument with six-dimensions: content quality, usability, reliability and speed, interaction, entertainment/enjoyment, and security/privacy. This scale provides a useful instrument for researchers who wish to measure the service quality of mobile data services and for marketing managers who want to improve their service performance.
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e-Business modelling is a prevalent term now days as it converts technology into economic value. The sustainability of the business is another global contemporary issue. Although e-business modelling and sustainability are the two major global trends now but still there is no common understanding about the elements that need to be used for a sustainable e-business model. Surprisingly, none of the e-business modelling approaches even consider sus-tainability as a major element. In this paper, therefore, after extensive literature review on e-business modelling and sustainability of the business we carefully identify and determine the required elements for a sustainable e-business model. The elements are three dimensional and selected from customer value area, business value area, and process value area so that the modelling elements safeguard the interests of all stakeholders (customer, business, society, and environment) while maintaining the sustainability.
Book
Modern economies depend on innovation in services for their future growth. Service innovation increasingly depends on information technology and digitization of information processes. Designing new services is a complex matter, since collaboration with other companies and organizations is necessary. Service innovation is directly related to business models that support these services, i.e. services can only be successful in the long run with a viable business model that creates value for its customers and providers. This book presents a theoretically grounded yet practical approach to designing viable business models for electronic services, including mobile ones, i.e. the STOF model and based on it the STOF method. The STOF model provides a 'holistic' view on business models with four interrelated perspectives, i.e., Service, Technology, Organization and Finance. It elaborates on critical design issues that ultimately shape the business model and drive its viability. © 2008 Springer-Verlag Berlin Heidelberg. All rights are reserved.
Chapter
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Chapter
This Part of the book explores digital innovation in practice presenting in the Chap. 10 some of the most interesting innovative ideas of 2013, based on observation and continuous scouting of research projects. However, digital business innovation is a multi-facets concept, which has received different interpretations over the years. As a consequence, in this Chapter we discuss the underlying issues and the most relevant concepts for understanding Business Model Innovation (BMI), providing general insights on the state of the art and basic constructs of this research stream, suitable to support an understanding of its evolution in current digital business innovation experiences and practices.
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The intersection of mobile marketing and shopper marketing, known as mobile shopper marketing, is a rapidly evolving area. We formally define mobile shopper marketing as the planning and execution of all mobile-based marketing activities that influence a shopper along and beyond the path-to-purchase: from the initial shopping trigger, to the purchase, consumption, repurchase, and recommendation stages. However, not much is known about mobile shopper marketing. We plug this gap by first discussing mobile shopper marketing and its scope in depth and then presenting a process model that connects the mobile shopping journey with four key entities, i.e., shopper, employee, organization, and mobile technology. For each of these themes, we identify the challenges that offer future research opportunities.
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In this paper, a multi-dimensional quantitative model is firstly founded for evaluating communication network value, and the quantification of the abstract concept of network value is realized. By analyzing various factors that influence the evaluation of network value from multiple perspectives, an index system of multi-dimensional network value evaluation is established. By adopting the analytic hierarchy process (AHP) method, not only the weight of each dimension is reasonably determined, but also the weight of different indicators in the second dimension is determined. By the characteristics of each dimension and its weight in the evaluation system, a multi-dimensional quantitative model for evaluating communication network value is constructed. By analyzing the value of Ethernet passive optical network (EPON), the rationality of the proposed quantitative model is demonstrated.
Chapter
Designing meaningful innovations that create value for users, organizations, ecosystems and society requires a holistic view to integrate seemingly conflicting needs and requirements into compelling solutions. This chapter describes and illustrates with examples the way of thinking, the process and the tools to reach an integrative value proposition and its accompanying value formula. It shows that innovation projects of this kind typically have higher uncertainties, which translates into the need to integrate knowledge and experience from various disciplines, and to follow a more explorative approach in the initial phases of the projects. Building on the literature from design, marketing, business and innovation management, as well as extensive practical experience in projects in the field, an approach is defined that describes pragmatically how to define and realize meaningful innovations. It contains descriptions of methods and ways of working, together with examples.
Chapter
Meaningful innovations that provide sustainable value for people and society are often systems of various products and services. That means in most cases a number of organizations are needed to realize the innovation. Thus apart from the products and services themselves, the total ecosystem needs to be designed. This has to include all the relevant social and economic actors required for a successful launch of the innovation in the market, but also for sustained service in the long run. The design of the ecosystem needs to ensure a return on investment of tangible and intangible value for all the relevant business parties and other stakeholders. This chapter shows how new ecosystems can be designed for solutions that require combinations of products and services from different organizations. It presents a method to identify the relevant stakeholders and the important values for these stakeholders, and to balance the value in the total system. The method has proved to be valuable in enriching value propositions, but also in building commitment from the different business actors to make the investments required for implementation. An approach to visualize these value flows is presented that enables the balancing of value across the different parties to ensure sustainable value for all.
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Business Model (BM) literature is growing with many contributions from academics and practitioners. Interestingly, despite a large number of studies focused on BM, we found a lack of consistency in the definition of what a BM is. Using content analysis, this study aims to investigate previous studies searching for a shared definition of BM. A relevance assessment allows understanding most common elements that shape BM, allowing us to draw a definition of BM. Four main dimensions are derived to define the BM: the value dimension, the modeling principles dimension, the functional dimension, the strategy dimension. Finally, results show further needs of development.
Chapter
Organizations are increasingly inter-connected as they source talent, goods and services from other organizations located in disparate parts of the world and enable social and economic development to take place. They seek new ways of creating value for themselves, customers and partners, increasingly operating outside and across traditional industry boundaries and definitions. These innovations have lead to a focus on business models as a fundamental statement of direction and identity as they enable development to take place. This chapter considers the fundamental tenets of the business model concept and ways in which value can be created for development efforts. The contribution of this chapter is the application of Global Capability Sourcing Model to enable businesses to compete globally. This chapter concludes with insights into the sustainability of business models for development.
Chapter
Organizations are increasingly inter-connected as they source talent, goods and services from other organizations located in disparate parts of the world and enable social and economic development to take place. They seek new ways of creating value for themselves, customers and partners, increasingly operating outside and across traditional industry boundaries and definitions. These innovations have lead to a focus on business models as a fundamental statement of direction and identity as they enable development to take place. This chapter considers the fundamental tenets of the business model concept and ways in which value can be created for development efforts. The contribution of this chapter is the application of Global Capability Sourcing Model to enable businesses to compete globally. This chapter concludes with insights into the sustainability of business models for development.
Chapter
This chapter tackles the definition of New Economy, its main elements and its transformation, a theoretical perspective, the economics of digital information; negligible marginal costs, network externalities and barriers and enablers of business model change. Digital Business Models; origins, concept, guidelines to develop a consensus for the business models and Digital Business Models best practices identified are also outlined. The chapter draws to a close with the key information regarding the main characteristics for E-Business Environment: generic e-Business Strategies, new Strategies for E-Organizations and new Digital Business Models for E-Organizations.
Chapter
The concept of the BM first appeared over half a century ago in an article investigating the construction of business game revenue source model for training purposes (Bellman et al. 1957; Desmarteau and Saives 2008). The term is mentioned just once: “And many more problems arise to plague us in the construction of these business models than ever confronted an engineer” (Bellman et al. 1957: 474). The term did not see widespread use for decades. Until its reappearance in 1970s in computer science journals. Among the first who used the term business models in the context of data and process modeling were Konczal (1975) and Dottore (1977). In information management, business models were used to model a firm with all its processes, tasks, data, and communication links to build an IT system to supporting the firm in its daily work.
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Abstract Asthe,evolution of e-business,technology,has passed,from,the early phase,of hype,and innovation to the mature phase of adoption and use, the research interest of both the academic,and business,communities,is shifting to investigating opportunities,for market exploitation of e-business technologies. As a result, the debates around established ebusiness models, as well as the way to achieve business model innovation, are ever increasing. However, while many researchers and practitioners are contemplating business models, there is a distinct lack of appropriate theoretical tools in the literature to structure,and ,codify ,the ,extant ,knowledge ,in the ,area. The ,existing ,research contributions are featured by a great degree of diversity, which is due to the existence of Adamantia G. Pateli, George M. Giaglis a variety of reasons and motives for making research on business models. Thus, some researchers try to define business models, others to specify their primary elements, while others have proceeded further to introduce methodologies for developing, changing, or assessing business models. In this paper, we draw on a great number of research contributions,in the ,field of e-business ,models to propose ,a framework ,that further
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The success of Internet based businesses in the Business to Customer segment in recent years is an indication of the events to unfold at the dawn of the new millennium. It is widely projected that the Business to Business segment is poised for a spectacular growth. However, a consistent definition and a framework for a business model for the Internet based business is still non-existent. This paper is an effort to fill in this gap. We propose a three dimensional framework for defining a business model and apply it to the emerging market structure. Furthermore, we also identify certain factors that would guide organizations in their choice of an appropriate business model. We also identify possibilities for further theory building in this area.
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Purpose – This research paper aims to identify and rank critical issues in IT outsourcing relationships. Design/methodology/approach – A total of 11 management theories were applied in this research: theory of core competencies, resource‐based theory, neo‐classical economic theory, transaction cost theory, contractual theory, agency theory, partnership and alliance theory, relational exchange theory, stakeholder theory, social exchange theory and theory of firm boundaries. The main method used is case studies and survey. Case studies were conducted in three IT outsourcing relationships: ABB‐IBM, SAS‐CSC, and RR‐EDS. Findings – Core competence management and stakeholder management were found to be the most critical success factors. Future research should focus on one or two theories, explicitly laying out expectations with respect to the theories, and organizing rich data to test expectations. Originality/value – This paper demonstrates that a holistic approach to IT outsourcing is needed that recognizes and emphasizes the combination of several critical success factors. The theory‐based factors have both divergent and convergent implications for management.
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The business model concept is becoming increasingly popular within IS, management and strategy literature. It is used within many fields of research, including both traditional strategy theory and in the emergent body of literature on e-business. However, the concept is often used independently from theory, meaning model components and their interrelations are relatively obscure. Nonetheless, we believe that the business model concept is useful in explaining the relation between IS and strategy. This paper offers an outline for a conceptual business model, and proposes that it should include customers and competitors, the offering, activities and organisation, resources and factor market interactions. The causal inter-relations and the longitudinal processes by which business models evolve should also be included. The model criticises yet draws on traditional strategy theory and on the literature that addresses business models directly. The business model is illustrated by an ERP implementation in a European multi-national company.
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Electronic commerce over the Internet may be either complementary to traditional business or represent a whole new line of the new features of the Internet, critical questions to be answered include: ♦ what are the emerging business models; and related to this ♦ which strategic marketing approaches are applied, or emerging. This article addresses the first question above by providing a framework for the classification of Internet electronic commerce business models. This framework has been developed on the basis of current commercial Internet business and experimental work in European R&D programmes.
Chapter
The recent so-called dot corn crash cast many doubts on the future of electronic commerce, but it also highlighted business models as an issue. This paper begins by assessing the dot corn crash critically, suggesting that e-commerce came through the crash in a much better condition than often is supposed. It then defines business modelling in terms of the amalgamation or integration of various economic processes, process and organisational models with technological architectures. Drawing upon recent original research, the paper then examines the role of business models in the electronic marketplace. It proposes that business models play a complex range of roles and that they can even become products in their own right, often creating or transforming markets, but at the same time increasing investment risks. The case is made that developing a better understanding of business model dynamics may help to moderate investment volatility in Internet-enterprises as well as provide new avenues for commercial activity.
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Understanding sources of sustained competitive advantage has become a major area of research in strategic management. Building on the assumptions that strategic resources are heterogeneously distributed across firms and that these differences are stable over time, this article examines the link between firm resources and sustained competitive advantage. Four empirical indicators of the potential of firm resources to generate sustained competitive advantage-value, rareness, imitability, and substitutability are discussed. The model is applied by analyzing the potential of several firm resources for generating sustained competitive advantages. The article concludes by examining implications of this firm resource model of sustained competitive advantage for other business disciplines.
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In buyer–seller relationships, the focus has moved beyond individual firms to value-creating networks formed by key firms in the value chain that deliver value to the end consumer. The article develops a rationale for value-creating networks using three core building blocks: superior customer value, core competencies, and relationships. The rationale is developed based upon an understanding of the value-creation process and its links to core capabilities of firms in the network. The importance of inter-firm relationships in realizing the true potential of the value-creation networks is also highlighted. The authors argue based on their sample analysis of some examples that competition in the future will shift to the network level from the firm level. The influence of some emerging business tools such as electronic commerce on redefining value creation is also discussed.
Article
After explaining why business executives and academics should consider thinking about a rigorous approach to e-business models, we introduce a new e-Business Model Ontology. Using the concept of business models can help companies understand, communicate and share, change, measure, simulate and learn more about the different aspects of e-business in their firm. The generic e-Business Model Ontology (a rigorous definition of the e-business issues and their interdependencies in a company's business model), which we outline in this paper is the foundation for the development of various useful tools for e-business management and IS Requirements Engineering. The e-Business Model Ontology is based on an extensive literature review and describes the logic of a "business system" for creating value in the Internet era. It is composed of four main pillars, which are product innovation, infrastructure management, customer relationship and financials. These elements are then further decomposed.
Article
In buyer–seller relationships, the focus has moved beyond individual firms to value-creating networks formed by key firms in the value chain that deliver value to the end consumer. The article develops a rationale for value-creating networks using three core building blocks: superior customer value, core competencies, and relationships. The rationale is developed based upon an understanding of the value-creation process and its links to core capabilities of firms in the network. The importance of inter-firm relationships in realizing the true potential of the value-creation networks is also highlighted. The authors argue based on their sample analysis of some examples that competition in the future will shift to the network level from the firm level. The influence of some emerging business tools such as electronic commerce on redefining value creation is also discussed.
Chapter
This chapter presents an ontology for e-Business models that is based on an extensive literature review. It aims to present the fusion of the ideas in the business model literature. These ideas of enterprise ontologies create an appropriate basis for the development of a range of new management tools in the e-Business domain. By merging the conceptually rich business model approach with the more rigorous ontological approach and by applying them to e-Business, an appropriate foundation for tools can be achieved that would allow the understanding, sharing and communication, change, measuring and simulation of e-Business models. The chapter proposes an e-Business model ontology that highlights the relevant e-Business issues and elements that firms have to think of to operate successfully in the Internet era.
Article
So far fourth generation (4G) has not been well defined technically, functionally or commercially despite conceptual research having been quietly under way since 1998. But as we have not fully rolled out and digested 2.5G, let alone 3G, why on earth should we be interested in a still further mobile technology? And how will WiFi, WiMAX and existing networks figure in all of this? The answer is that 4G will fundamentally advance the way we use mobile and existing networks and repair the problems of 3G. If allowed to, 4G can take us from radio technologies and concepts of the 1920s into the next era of radio communications using “open spectrum”. And 4G may be able to answer many cost and technical problems of the earlier mobile systems. Once its technical blueprint is worked out, 4G faces enormous challenges, far more than the technical, in commercial/political battles with what it could replace. We examine its challenges here, also considering regulatory policy, which would require that the mobile element is seen as only one of at least six components. The different scenarios for its early development are also briefly reviewed.
Article
From the Publisher:Although the potential of information technology (IT) is beyond dispute, it proves to be very difficult to evaluate its true business value. In the present competitive business arena, modern IT provides the enabling infrastructure for efficient and effective business operations, leveraging business improvements and securing a competitive edge." "This book provides a unique perspective on assessing and creating business value from investments in IT-based infrastructure and, more importantly, it shows how the role of IT-based infrastructure is critical to obtain the full benefits of IT.
Chapter
In this paper we will discuss the state of the art of the e-commerce business model as presented in the relevant literature. We address the following questions: What business models are being distinguished? What exactly is a business model? What are the criteria on the basis of which the performance of business models can be assessed? Business models are often abstract models of everyday practice. In theory it is easy to classify and describe them, but until a model is tested at the level of a business case its true value remains academic. A business model can be ever so useful for a company, a certain economic sector, industry or branch, or a certain geographical market, and at the same time be utterly useless in a different context. We describe a business case as the specific application of a (combination of) business model(s) by an individual company in a specific context. To assess the value of a business case we need metrics. In this paper we therefore also deal with a second set of questions, i.e. how can we measure the performance of business cases and what are relevant performance indicators? An analysis of individual business cases can offer insight into the relevance of the more generic business model concept.
Article
This article presents an exploratory study of a conceptual model of perceived customer value in a business-to-consumer e-commerce setting. Key precursors of perceived customer value included in the model are valence of on-line shopping experience, perceived product quality, perceived risk, and product price. Relationships among these variables (as well as mediating variables) and their relationship to on-line shoppers' value perceptions are explored. The theoretical framework proposed in this work expands on previous efforts on perceived customer value by including new variables relevant to an e-commerce setting and by integrating several key variables into one model. The preliminary findings lead to several implications. © 2003 Wiley Periodicals, Inc.
Chapter
This paper introduces the important role of networks of interfirm ties in examining fundamental issues in strategy research. Prior research has primarily viewed firms as autonomous entities striving for competitive advantage from either external industry sources or from internal resources and capabilities. However, the networks of relationships in which firms are embedded profoundly influence their conduct and performance. We identify five key areas of strategy research in which there is potential for incorporating strategic networks: (1) industry structure, (2) positioning within an industry, (3) inimitable firm resources and capabilities, (4) contracting and coordination costs, and (5) dynamic network constraints and benefits. For each of these issues, the paper outlines some important insights that result from considering the role of strategic networks. Copyright © 2000 John Wiley & Sons, Ltd.
Article
In the last years, a variety of concepts for service integration and corresponding systems have gained momentum. On one hand, they aim at the inter-working and integration of classical telecommunications and data communications services. On the other hand, they are focusing on universal service access from a variety of end user systems. All these systems are driven by the concept of providing several technologies to users by keeping the peculiarity of each service. From the service point of view, the participants of WWRF Working Group 2 (Wireless World Research Forum: http://www.wireless-world-research.org/) believe that the service architectures of the Wireless World will be based on service personalization, service integration, and IP-based reachability. The paper presents the rationales the framework and the architecture proposed by WWRF-WG2 based on numerous contributions (WWRF: Book of Visions (2001)) from research and industry world wide.
Article
The telecommunications industry is undergoing a radical transformation, creating exciting new opportunities and new challenges for infrastructure and service providers. The established value chain is increasingly being deconstructed, with the entry of powerful new players and radical restructuring of the industry. Rapid technological developments and increasing market turbulences have added new dimensions to an already complex scenario. Many tested business models, as well as related frameworks, tools and techniques, have become obsolete. The paper uses recent evidence to illustrate the evolving telecommunications value chains and market structure, examine the underlying theoretical and practical reasons for such changes, and highlight the strategic implications for the various players involved. The paper concludes that some of the current changes in the telecommunications industry are very radical, and all players need to re-evaluate their strategies and market positions and make hard decisions as to where to go next. The value chains are rapidly evolving into value networks, with multiple entry and exit points, creating enormous complexity for all the players involved. Further research is urgently needed to map out the telecommunications value chains and value networks that are possible in the context of the new economy; identify the different players and the possible strategies and business models that they can adopt; develop new conceptual frameworks for understanding the current changes in the telecommunications and related industries; and create new tools and techniques for identifying opportunities and threats and for making new strategies.
Conference Paper
The mobile telecommunications industry is undergoing rapid change, which is increasing the interdependency of firms in the sector. Mobile information and entertainment services will be delivered through inter-organizational networks of firms. This means the problems of service design must be resolved in the context of a complex value network. To shed light on these problems we present a case study of a ringtone service and from this develop guidelines for the design of similar services.
Article
Ubiquitous commerce or u-commerce is the combination of traditional e-commerce and wireless, television, voice and silent commerce. U-commerce implies ubiquity, universality, uniqueness and unison. It is not a replacement for other types of commerce, but an extension of them. While bringing many benefits, there are challenges and impediments to overcome. Research is needed to assess the value of u-commerce and to address its related issues and challenges. Questions that need to be addressed are: What is the value of u-commerce? What are the ways to maximize the benefits and value of u-commerce? Is it the right technology and what directions need to be considered? What are the privacy issues and risks involved? What about trust and security? What are the strategies for businesses in utilizing and implementing u-commerce? The research issues presented in this article will help create a better understanding of u-commerce and prepare us for challenges facing it.
Article
New services in 3G will require new business models. Interdependent market players need to identify their roles before presenting user-friendly services with underlying complex technology and billing principles. This study identifies weak links in the theoretical value chains with focus on streamed video to mobile terminals. The factual background is based on the Swedish market combined with a case study of existing Japanese 3G video services. Conceivable new value chains are presented from the perspective of Sweden's dominant operator Telia. In-depth interviews present consumer's expectations in content and availability. The presentation highlights that consumers expects a full solution before using mobile video services. Telia owns several parts of the value chain except for content creation and terminals. Existing business models between concerned parties could not be identified. These results indicate that Telia itself owns the potential of establishing large parts of the value chains. Generally, market players need to create new business models to take an overall approach on how to create most availability of these new composite services.
Article
Many predict that mobile business (m-business) will revolutionise modern corporations as e-commerce did in the last decade. However, many unresolved technical, application, and global issues relevant to m-business are preventing companies from adopting m-business as a prudent business model. Furthermore, little academic research in this area has been attempted to provide practitioners with guidance to more effective utilisation of wireless technologies. To partially fill this void, this paper presents a framework for m-business applications that is designed to give managers a systematic approach to discovering m-business opportunities in their organisations.
Article
Although the rapid growth of the mobile phone market makes companies very excited about the great potential of m-commerce, after the "dot.com" crisis people are more sceptical and think it might just be more hype. There is still no single answer to justify either of these two opposite opinions. To achieve m-commerce success, people are looking for innovative "killer applications" or extensions of existing e-commerce applications in a mobile environment. It is not, however, the application but the business model behind the application that really determines the success. So far, we still do not fully understand what is the appropriate business model that could lead to the success of m-commerce. To search for a solution, we need to identify the fundamental technology differences between m-commerce and internet based e-commerce. Based on this understanding, we develop a framework to analyse m-commerce business models along two dimensions the key components and the taxonomy. We hope our framework can be used to help businesses in developing their m-commerce strategies and turning hype into real profit.
Article
Among the most widely cited books in the social sciences, The External Control of Organizations has long been required reading for any student of organization studies. The book, reissued on its 25th anniversary as part of the Stanford Business Classics series, includes a new preface written by Jeffrey Pfeffer, which examines the legacy of this influential work in current research and its relationship to other theories. The External Control of Organizations explores how external constraints affect organizations and provides insights for designing and managing organizations to mitigate these constraints. All organizations are dependent on the environment for their survival. As the authors contend, “it is the fact of the organization’s dependence on the environment that makes the external constraint and control of organizational behavior both possible and almost inevitable.” Organizations can either try to change their environments through political means or form interorganizational relationships to control or absorb uncertainty. This seminal book established the resource dependence approach that has informed so many other important organization theories.
Article
This paper explores the role of the business model in capturing value from early stage technology. A successful business model creates a heuristic logic that connects technical potential with the realization of economic value. The business model unlocks latent value from a technology, but its logic constrains the subsequent search for new, alternative models for other technologies later on--an implicit cognitive dimension overlooked in most discourse on the topic. We explore the intellectual roots of the concept, offer a working definition and show how the Xerox Corporation arose by employing an effective business model to commercialize a technology rejected by other leading companies of the day. We then show the long shadow that this model cast upon Xerox's later management of selected spin-off companies from Xerox PARC. Xerox evaluated the technical potential of these spin-offs through its own business model, while those spin-offs that became successful did so through evolving business models that came to differ substantially from that of Xerox. The search and learning for an effective business model in failed ventures, by contrast, were quite limited. Copyright 2002, Oxford University Press.
Business models for personalised real-time traffic information in cars: which route to take
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Faber, E., Haaker, T., Bouwman, H. and Rietkerk, O. (2003b) 'Business models for personalised real-time traffic information in cars: which route to take', Proceedings of the First International E-services Workshop, ICEC'03, Pittsburg, 1 October.
Understanding IT', Financial Times
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Collaborating to Compete: Using Strategic Alliances and Acquisitions in the Global Market Place
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Designing metrics for business models describing Mobile services delivered by networked organisations
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Designing business models for mobile sevices. Exploring the connections between customer value and value networks Business Paradigms: Strategic Transformation and Partnerships
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Faber, E. and Bouwman, H. (2003) 'Designing business models for mobile sevices. Exploring the connections between customer value and value networks', 3rd International Conference on Electronic Business, Business Paradigms: Strategic Transformation and Partnerships. ICEB 2003, Singapore, 10–12 December.
Presence and instant messaging: cross case analysis
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Communities of interest: cross case analysis
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Rietkerk, O. and Timmerman, W. (Eds.) (2003) 'Communities of interest: cross case analysis', Internal Deliverable B4U Project, Telematica Instituut: TI/RS/2003/110.
Anywhere, anytime, anyplace or here and now, in this context: 3rd generation mobile information and entertainment services, a vignet-study
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Bouwman, H. (2004) 'Anywhere, anytime, anyplace or here and now, in this context: 3rd generation mobile information and entertainment services, a vignet-study', Proceedings of 54th Annual Conference of the ICA, Communication Research in the Public Interest, New Orleans, 27-31 May.
Exploring value networks enabling the delivery of back office content to mobile workers
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Bouwman, H. and van den Ham, E. (2003a) 'Exploring value networks enabling the delivery of back office content to mobile workers', ITI'03 Europrix Conference, Tampere, 13-14 November, www.mindtrek.fi.