Recent rapid advances in Information and Communication Technologies (ICTs) have highlighted the rising importance of the Business Model (BM) concept in the field of Information Systems (IS). Despite agreement on its importance to an organization's success, the concept is still fuzzy and vague, and there is little consensus regarding its compositional facets. Identifying the fundamental concepts, modeling principles, practical functions, and reach of the BM relevant to IS and other business concepts is by no means complete. This paper, following a comprehensive review of the literature, principally employs the content analysis method and utilizes a deductive reasoning approach to provide a hierarchical taxonomy of the BM concepts from which to develop a more comprehensive framework. This framework comprises four fundamental aspects. First, it identifies four primary BM dimensions along with their constituent elements forming a complete ontological structure of the concept. Second, it cohesively organizes the BM modeling principles, that is, guidelines and features. Third, it explains the reach of the concept showing its interactions and intersections with strategy, business processes, and IS so as to place the BM within the world of digital business. Finally, the framework explores three major functions of BMs within digital organizations to shed light on the practical significance of the concept. Hence, this paper links the BM facets in a novel manner offering an intact definition. In doing so, this paper provides a unified conceptual framework for the BM concept that we argue is comprehensive and appropriate to the complex nature of businesses today. This leads to fruitful implications for theory and practice and also enables us to suggest a research agenda using our conceptual framework.

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Developing a unified framework of the business model concept

The business model concept, although a relatively new topic for research, has garnered growing attention over the past decade. Whilst it has been robustly defined, the concept has so far attracted very little substantive research. In the context of the wide-spread digitization of businesses and society at large, the logic inherent in a business model has become critical for business success and, hence, a focus for academic inquiry. The business model concept is identified as the missing link between business strategy, processes, and Information Technology (IT). The authors argue that the BISE community offers distinct and unique competencies (e.g., translating business strategies into IT systems, managing business and IT processes, etc.) that can be harnessed for significant research contributions to this field. Within this research gap three distinct streams are delineated, namely, business models in IT industries, IT enabled or digital business models, and IT support for developing and managing business models. For these streams, the current state of the art, suggest critical research questions, and suitable research methodologies are outlined.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID2471635_code1552391.pdf?abstractid=2471635&mirid=3

Business Models: An Information Systems Research Agenda

Business is increasingly employing sustainability practices, aiming to improve environmental and social responsibility while maintaining and improving profitability. For many organizations, profit-...

/pdf/an-ontology-for-strongly-sustainable-business-models-1cxzb4zvn2.pdf

An Ontology for Strongly Sustainable Business Models: Defining an Enterprise Framework Compatible With Natural and Social Science

Business models are developed and managed to create value. While most business model frameworks envision value creation as a uni-directional flow between the focal business and its customers, this article presents a broader view based on a stringent application of stakeholder theory. It provides a stakeholder value creation framework derived from key characteristics of stakeholder theory. This article highlights mutual stakeholder relationships in which stakeholders are both recipients and (co-) creators of value in joint value creation processes. Key findings include that the concept and analysis of value creation through business models need to be expanded with regard to (i) different types of value created with and for different stakeholders and (ii) the resulting value portfolio, i.e., the different kinds of value exchanged between the company and its stakeholders. This paper details the application of the stakeholder value creation framework and its theoretical propositions for the case of business models for sustainability. The framework aims to support theoretical and empirical analyses of value creation as well as the management and transformation of business models in line with corporate sustainability ambitions and stakeholder expectations. Overall, this paper proposes a shift in perspective from business models as devices of sheer value creation to business models as devices that organize and facilitate stakeholder relationships and corresponding value exchanges.

A Stakeholder Theory Perspective on Business Models: Value Creation for Sustainability

Recent rapid advances in ICTs, specifically in Internet and mobile technologies, have highlighted the rising importance of the Business Model (BM) in Information Systems (IS). Despite agreement on its importance to an organization’s success, the concept is still fuzzy and vague, and there is no consensus regarding its definition. Furthermore, understanding the BM domain by identifying its meaning, fundamental pillars, and its relevance to other business concepts is by no means complete. In this paper we aim to provide further clarification by first presenting a classification of definitions found in the IS literature; second, proposing guidelines on which to develop a more comprehensive definition in order to reach consensus; and third, identifying the four main business model concepts and values and their interaction, and thus place the business model within the world of digital business. Based on this discussion, we propose a new definition for the business model that we argue is more appropriate to this new world.

/pdf/defining-the-business-model-in-the-new-world-of-digital-3ipect1aw4.pdf

Defining the business model in the new world of digital business

Ontologies are viewed as increasingly important tools for structuring domains of interests. In this paper we propose a reference ontology of business models using concepts from three established business model ontologies; the REA, BMO, and e3-value. The basic concepts in the reference ontology concern actors, resources, and the transfer of resources between actors. Most of the concepts in the reference ontology are taken from one of the original ontologies, but we have also introduced a number of additional concepts, primarily related to resource transfers between business actors. The purpose of the proposed ontology is to increase the understanding of the original ontologies as well as the relationships between them, and also to seek opportunities to complement and improve on them.

/pdf/towards-a-reference-ontology-for-business-models-1n8s5thrm2.pdf

Towards a reference ontology for business models

In this paper we discuss the problem of how to go from a business model to a process model in a systematic way. Business models are economic models used for business analysis, while process models ...

/pdf/from-business-to-process-models-a-chaining-methodology-1atopnttr6.pdf

From business to process models : A chaining methodology

This position paper introduces means of designing business processes that fit a more strategic busine ss model. Our proposal focuses on value webs and risk mitigation as important forces for process design and management. Value web s are defined as a constellation of value exchanges, and risks are defined on flows of different kinds, such as financ ial flow and goods flow. In this article we try to move from business models to process models in a systematic way based on depende ci s between activities and risk mitigation choices.

Integrated Methodology for Linking Business and Process Models with Risk Mitigation

The paper introduces an approach to the specification, the verification and the validation of B2B transactions. Based on the usage of a subset of formally defined UML diagrams complemented with business rules, we introduce two facilities offered by the supporting Efficient toolset, namely the checking of formal properties expected from the produced models as well as the animation tool allowing business experts to understand and ‘play' with business transactions models before they are implemented. The overall approach is illustrated through the experiences gained in the performance of a real transactional Import/Export business case.

/pdf/efficient-a-toolset-for-building-trusted-b2b-transactions-1hvsk67tx7.pdf

Efficient: a toolset for building trusted B2B transactions

In this paper we investigate the development of an appropriate business model associated with B2B transactions, designed according to the newly introduced ebXML standards. We explain the added value of such business model in complement to the more technical models defined by ebXML. In particular we explain the importance of achieving a better definition of the economic value associated with a B2B transaction. Together with the proposed business model ontology we also introduce a tool for supporting its management as well as a simulation tool for supporting decision making between different models.

/pdf/if-business-models-could-speak-efficient-a-framework-for-1o09fb1u6h.pdf

Bertrand Grégoire

Papers

Towards a reference ontology for business models

From business to process models : A chaining methodology

Integrated Methodology for Linking Business and Process Models with Risk Mitigation

Efficient: a toolset for building trusted B2B transactions

If Business Models Could Speak! Efficient: a Framework for Appraisal, Design and Simulation of Electronic Business Transactions