Showing papers on "Business model published in 2008"

Reinventing Your Business Model

Abstract: When does an established company need a new business model to capture a game-changing opportunity? Only companies that understand how - and why - their current model works can answer that question.

The business model: an integrative framework for strategy execution

Abstract: We have many useful frameworks for formulating business strategy, i.e., devising a theory of how to compete. Frameworks for strategy execution are comparatively fragmented and idiosyncratic. This paper proposes a business model framework to link the firm's theory about how to compete to its execution. The framework captures previous ideas about business models in a simple logical structure that reflects current thinking in strategy. The framework is a useful tool for the strategist, for teaching, and for research on business models in strategy. Copyright © 2008 John Wiley & Sons, Ltd.

The End of Corporate Imperialism

Abstract: As they search for growth, multinational corporations will have no choice but to compete in the big emerging markets of China, India, Indonesia, and Brazil. But while it is still common to question how such corporations will change life in those markets, Western executives would be smart to turn the question around and ask how multinationals themselves will be transformed by these markets. To be successful, MNCs will have to rethink every element of their business models, the authors assert in this seminal HBR article from 1998. During the first wave of market entry in the 1980s, multinationals operated with what might be termed an imperialist mind-set, assuming that the emerging markets would merely be new markets for their old products. But this mind-set limited their success: What is truly big and emerging in countries like China and India is a new consumer base comprising hundreds of millions of people. To tap into this huge opportunity, MNCs need to ask themselves five basic questions: Who is in the emerging middle class in these countries? How do the distribution networks operate? What mix of local and global leadership do you need to foster business opportunities? Should you adopt a consistent strategy for all of your business units within one country? Should you take on local partners? The transformation that multinational corporations must undergo is not cosmetic--simply developing greater sensitivity to local cultures will not do the trick, the authors say. To compete in the big emerging markets, multinationals must reconfigure their resources, rethink their cost structures, redesign their product development processes, and challenge their assumptions about who their top-level managers should be.

Business Process Modeling Notation

Abstract: Die Business Process Modeling Notation (BPMN) liefert einen Standard zur graphischen Beschreibung von Geschäftsprozessen. Der Standard wird von der Object Management Group (OMG) gepf legt und hat insbesondere im internationalen Raum eine erhebliche Aufmerksamkeit erlangt (Finkelstein 2005, S. 14). Der Namensbestandteil „Notation“ ist insofern irreführend, als dass die BPMN nicht nur ein System von Zeichen und Symbolen zur visuellen Repräsentation von Geschäftsprozessen beinhaltet, sondern auch Vorgaben zur Bedeutung und zur Verwendung der Zeichen und Symbole unterbreitet. Folglich ist die BPMN als eine Modellierungssprache zu verstehen. Hauptmotivation für die Entwicklung der BPMN war es, die unterschiedlichen Sprachen zur Geschäftsprozessmodellierung zu vereinheitlichen und so eine einzige, standardisierte Sprache zur Beschreibung von Geschäftsprozessen zur Verfügung zu stellen. Bei der Entwicklung der BPMN wurden unter anderem Aktivitätsdiagramme der Unified Modeling Lan­ guage (UML), IDEF, ebXML BPSS, RosettaNet und ereignisgesteuerte Prozessketten (EPK) explizit berücksichtigt (White 2004, S. 9). Darüber hinaus wollten die Entwickler der BPMN eine Prozessbeschreibungssprache schaffen, die es nicht nur ermöglicht, Prozessmodelle für den Fachanwender zu beschreiben, sondern die auch eine automatisierte Transformation fachlicher in technische Prozessmodelle unterstützt. Auf diesem Weg können Entwicklungsfehler vermieden und die Anwendungsentwicklung beschleunigt werden. Die BPMN wurde seit Anfang der 2000er-Jahre von der Business Process Management Initiative Notation Working Group (BPMI) unter der Führung von St. A. White, einem IBM-Mitarbeiter, entwickelt und 2004 erstmalig in der Version 1.0 vorgestellt. Im Jahr 2005 wurde die BPMI in die OMG integriert, wobei nur 2 Prozent der BPMI-Mitgliedsorganisationen das Standardisierungskonsortium verlassen haben. Die Arbeiten werden in der OMG vom BPMI Steering Commitee überwacht und im Rahmen der Business Mode­ ling & Integration (BMI) Domain Task Force (DTF) weiterentwickelt. Die aktuelle Version 1.0 der BPMN wurde im Jahr 2006 von der OMG verabschiedet. Zurzeit wird an einer umfassenden Überarbeitung des Standards gearbeitet, der in einer BPMN 2.0 münden soll (siehe Tab. 1).

Bank Involvement with SMEs: Beyond Relationship Lending

Abstract: The conventional wisdom in academic and policy circles argues that, while large and foreign banks are generally not interested in serving SMEs, small and niche banks have an advantage in doing so because they can overcome SME opaqueness through relationship lending. This paper shows that there is a gap between this view and what banks actually do. Banks perceive SMEs as a core and strategic business and seem well positioned to expand their links with SMEs. The recent intensification of bank involvement with SMEs in various emerging markets documented in this paper is neither led by small or niche banks nor highly dependent on relationship lending. Rather, all types of banks are catering to SMEs and larger, multiple-service banks have in fact a comparative advantage in offering a wide range of products and services on a large scale, through the use of new technologies, business models, and risk management systems.

Disruptive Innovation In Health Care Delivery: A Framework For Business-Model Innovation

Abstract: Disruptive innovation has brought affordability and convenience to customers in a variety of industries. However, health care remains expensive and inaccessible to many because of the lack of business-model innovation. This paper explains the theory of disruptive innovation and describes how disruptive technologies must be matched with innovative business models. The authors present a framework for categorizing and developing business models in health care, followed by a discussion of some of the reasons why disruptive innovation in health care delivery has been slow.

Emerging themes in international business research

Abstract: This study is motivated by two research questions: (1) Which recent contributions have been driving the research agenda in international business? (2) Which emerging themes in the literature are likely to set the stage for future work? To examine these questions, the study examined scholarly work in international business over the time period 1996–2006 in six leading international business journals (Journal of International Business Studies, Management International Review, Journal of World Business, International Marketing Review, Journal of International Marketing, and International Business Review). Next, a Delphi study of the most prolific authors in these journals over the same time period was conducted to delineate a future research agenda in international business. Addressing these two research questions provides us with a more complete understanding of the progress made to date in international business research, and provides a glimpse of the future.

Business Process Analysis and Optimization: Beyond Reengineering

Abstract: There is an abundance of business process modeling techniques that capture and address different aspects of a business process. A limited number of these process models allow further quantitative analysis, and only a few enable structured process improvement. This paper reviews and classifies the main techniques for business process modeling with regard to their analysis and optimization capabilities. Three primary groups are identified, and a selection of representative business process modeling techniques is classified based on these. Similar classification is also presented for the analysis and optimization approaches for business processes that were identified in relevant literature. The main contribution of the paper is that it identifies which types of business process models are suitable for analysis and optimization, and also highlights the lack of such approaches. This paper offers a state-of-the-art review in the areas of business process modeling, analysis, and optimization-underlining that the latter two have not received enough coverage and support in the literature.

The Financial Turmoil of 2007-?: A Preliminary Assessment and Some Policy Considerations

Abstract: The unfolding financial turmoil in mature economies has prompted the official and private sectors to reconsider policies, business models and risk management practices. Regardless of its future evolution, it already threatens to become one of the defining economic moments of the 21st century. This essay seeks to provide a preliminary assessment of the events and to draw some lessons for policies designed to strengthen the financial system on a long-term basis. It argues that the turmoil is best seen as a natural result of a prolonged period of generalised and aggressive risk-taking, which happened to have the subprime market at its epicentre. In other words, it represents the archetypal example of financial instability with potentially serious macroeconomic consequences that follows the build-up of financial imbalances in good times. The significant idiosyncratic elements, including the threat of an unprecedented involuntary reintermediation wave for banks and the dislocations associated with new credit risk transfer instruments, are arguably symptoms of more fundamental common causes. The policy response, while naturally taking into account the idiosyncratic weaknesses brought to light by the turmoil, should be firmly anchored to the more enduring factors that drive financial instability. This essay highlights possible mutually reinforcing steps in three areas: accounting, disclosure and risk management; the architecture of prudential regulation; and monetary policy.

Experience, Service Operations Strategy, and Services as Destinations: Foundations and Exploratory Investigation

Abstract: This paper explores the customer experience paradigm as it pertains to service operations strategy and design. First, we operationally define and discuss the concept of customer experience. In this context, we propose a reframing of the strategic role of operations strategy as one of choreographing experience-centric services. We then introduce the concept of services as destinations as an emerging business model for classifying experiential service strategies. Our conceptual typology of experience-based strategies uses two dimensions: (1) the depth of use of experience as a source of value creation, ranging from brand experience to the services as a destinations business model, and (2) the degree of integration of experience internally within the firm. Using this conceptual typology, we develop five propositions and use multiple cases to illustrate firms' use of these experience strategies. Laying the groundwork for future research, we highlight insights from the qualitative, multiple-case data as they pertain to service operations strategy and the business model that employs services as destinations. A number of questions for further research are suggested.

The Changing Software Business: Moving from Products to Services

Abstract: The dramatic changes in the software business over the past few years have important implications for both users and producers of software products and services. Traditional product sales and license fees have declined, and product company revenues have shifted to services such as annual maintenance payments that entitle users to patches, minor upgrades, and often technical support. A dramatic shift is under way in the enterprise-software industry as established vendors embrace services in the wake of declining product revenues. It remains to be seen whether life-cycle dynamics or business-model choices are behind the long-term trend.

Quality of Experience in Communications Ecosystem

Abstract: Communications ecosystem covers a huge area from technical issues to business models and human behaviour. Due to this extreme diversity various societies need to discuss with each other, each of them using their own language. Engineers talk about network performance and quality of service, business people talk about average revenue per user and customer churn while behavioural scientists talk about happiness and experiences. Thus, everyone who wants to understand, or even analyze, the whole ecosystem, has to deal with all these diverse issues. In addition to the apparent communication problems, the main challenges of ecosystem analysis are to realistically model human behaviour, and to efficiently combine the models developed for different domains. A central concept when solving these problems is quality of experience (QoE). This paper sheds light on the role of QoE by means of a common framework that covers the whole communications ecosystem. Additionally, a research agenda for a holistic ecosystem analysis is outlined.

Defining the business model in the new world of digital business

Abstract: 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.

An interpretive examination of the development of cultural sensitivity in international business

Abstract: Cultural sensitivity is assumed to be important in international business, yet little empirical work explores how cultural sensitivity actually develops. In-depth interviews with buyers from the Asian Pacific Rim were conducted, and support was found for a four-stage model of cross-cultural sensitivity in which buyers move through the stages of romantic sojourner, foreign worker, skilled worker, and partner. This paper explores the development and evolution of cultural sensitivity as it interacts with trust and development of international business relationships.

Learning to Build a Supply Network: An Exploration of Dynamic Business Models

Abstract: Firms are confronted with the challenge of learning how to develop and manage supply networks, which reduce their operating costs and maximize their effectiveness in the marketplace. In pursuit of such goals they are increasingly turning to the use of dynamic business models. Dynamic business models represent continuous change and therefore make firms learn constantly new and better ways of doing things. These changes are manifestations of inter-firm knowledge transfer. The aim of this research is to explore dynamic business models as an example of inter-firm knowledge transfer. Adopting a case study approach, we examine three components of dynamic business models – network structure, inter-firm routines and knowledge forms – and describe their integration through a problem solving approach to building an offshore supply network. Our empirical findings suggest that dynamic business models help organizations identify and link key actors with each other (at the firm and individual level), and aid the identification and specification of appropriate knowledge types and knowledge transfer mechanisms for different actors, in different contexts.

P2P Networking and Applications

Abstract: Peer-to-Peer (P2P) networks enable users to directly share digital content (such as audio, video, and text files) as well as real-time data (such as telephony traffic) with other users without depending on a central server. Although originally popularized by unlicensed online music services such as Napster, P2P networking has recently emerged as a viable multimillion dollar business model for the distribution of academic and clinical information, telecommunications, and social networking. Written at an accessible level for any reader familiar with fundamental Internet protocols, Peer-to-Peer Networking and Applications explains the conceptual operations and architecture underlying basic P2P systems using well-known commercial systems as models. The book also delineates the latest research directions, thereby providing not only a sophisticated understanding of current systems, but also the means to improve upon these systems with innovations that will better performance, security, and flexibility. Peer-to-Peer Networking and Applications is thus both a valuable starting point and an important reference to those practioners employed by any of the 200 companies with approximately $400 million invested in this new and lucrative technology. Uses well-known commercial P2P systems as models, thus demonstrating real-world applicability. Discusses how current research trends in wireless networking, high-def content, DRM, etc. will intersect with P2P, allowing readers to account for future developments in their designs. Provides online access to the Overlay Weaver P2P emulator, an open-source tool that supports a number of peer-to-peer applications with which readers can practice.

The dynamics of IT boundary objects, information infrastructures, and organisational identities: the introduction of 3D modelling technologies into the architecture, engineering, and construction industry

Abstract: In recent years, more companies engage in collaborative cross-organisational practices to achieve their business objectives. To cooperate effectively across boundaries requires organisations to ove...

The twenty‐first‐century HR organization

Abstract: Like any value-creating staff function, HR departments should operate as a business within a business. Others have focused on the strategy and direction of HR departments. This article examines the next evolution for how HR department organization structure can deliver value based on two premises: (1) HR organization should be structurally aligned with the organization structure of the business and (2) because diversified/allied business models prevail, it is important to lay out the five roles and responsibilities of HR that respond to this organization model: service centers, corporate, centers of expertise, embedded HR, and operational HR. The article lays out the duties of each role, the relationship among these roles, and suggestions for implementing this new HR structure. © 2008 Wiley Periodicals, Inc.

Handbook of Research on Family Business

Abstract: During the previous decade, the multi-disciplinary field of family business has advanced significantly in terms of advances in theory, development of sophisticated empirical instruments, systematic measurement of family business activity, use of alternative research methodologies and deployment of robust tools of analysis. This second edition of the Handbook of Research on Family Business presents important research and conceptual developments across a broad range of topics. The contributors - notable researchers in the field - explore the frontiers of knowledge in family business entrepreneurship and stimulate critical thinking, enriching the repository of theoretical frameworks and methodologies.

Remanufacturing and product design

Abstract: This article is the result of long-standing research in eco-design, and builds directly on a report produced in 2007 for South East England Development Agency (SEEDA) on 'Remanufacturing and Production' and particularly 'Design for Remanufacturing' (DfR). Although DfR is an under-researched area, there is growing interest worldwide in 'cradle to cradle', 'closed loop' and 'circular economy' concepts, thinking and practice. While remanufacture has been a consideration of much of my research since the mid-1990s, not least within the areas of 'producer responsibility', legislation (such as the WEEE Directive) and eco-design, this article draws together a diverse body of research for the first time around this theme. Drawing on desk research, personal interviews and an expert workshop, undertaken as part of the aforementioned SEEDA project that I developed and led, the article focuses on DfR as a new business model that needs to incorporate a more holistic perspective, including design principles, reverse logistics, manufacturing, marketing and business strategy. On the basis of research undertaken through two DTI missions and an EC funded project concerned with eco-design, recycling, and electronics manufacture in Japan, China, Hong Kong and Taiwan, the paper argues that DfR is a strategic rather than an operational design concept, one that has been implemented successfully by only a few global leadership companies. As the senior researcher, I led the conception, structuring and writing of this paper based substantially on my personal research activities, previous reports and presentations in this area. My co-author provided specific details derived from desk research.

A process-oriented perspective on differential business value creation by information technology: An empirical investigation

Abstract: The relationship between information technology investments and firm value as an area of inquiry has sustained interest among IS researchers over the past decade. More recently, some have challenged the notion differential value among firms through Information Technology (IT) as it evolves into a ubiquitous utility-like set of technologies. This study examines the relationship between IT and business value from a process-oriented perspective, and also helps to identify the underlying links between IT and its differential business value to firms. By drawing upon economic and organizational theories, this paper develops a process framework to assess the intermediate organizational process capabilities and overall performance of firms that effectively deploy and use IT. Using data from over 80 firms, the study finds empirical support for the differential business value created by IT along a number of process oriented dimensions. These findings are discussed as these results set an optimistic tone for IT as a major causal driver of differentiation.

A Software as a Service with Multi-tenancy Support for an Electronic Contract Management Application

Abstract: In most commercial electronic contract management applications available today, different customized code base has to be developed, deployed and operated to support each tenant. Few advanced commercial electronic contract management applications use a single code base with configuration options to support multi-tenants. However, a separate instance of the code base still has to be deployed and operated for each tenant even in these applications. The business model of having to support a single application instance for each tenant makes an electronic contract management application and other critical business applications out of reach for most small and medium businesses (SMBs), in particular, the very small businesses (SVBs) because of its high development and maintenance cost. Recently, a new business model of a single application instance supporting multi-tenancy based on software as a service (SaaS) has emerged making expensive business applications more affordable for SMBs and SVBs for multi-tenancy [1]. In this paper, we present the first of a kind multi-tenancy SaaS electronic contract management application. We also describe several novel methods used in the metadata, security and shared services, as well as customization and tenant extensions modules to support multi-tenancy SaaS in this application. This multi-tenancy SaaS application has shown to benefit both the application service providers as well as their tenants. This new multi-tenancy SaaS model can reduce the application hosting cost and make the application more affordable to the tenants because of its capabilities in customization and scalability while continuing to support an increasing number of tenants. It furthers benefits tenants by saving their money and time with immediate access to the latest IT innovations and infrastructure improvements on a single application code base. Most end users of tenants have found their productivities increased, the contract transaction time accelerated, contractual errors reduced in using this multi-tenancy SaaS electronic contract management application as demonstrated in several ongoing IBM pilot programs serving more than ten tenants with over 3000 end users.

Building Better Business Cases for IT Investments

Abstract: While most organizations today demand a robust business case justifying investments in information technology (IT), our research finds that few are satisfied with their ability to identify and quantify the expected benefits from these investments. Surprisingly, we found that many organizations don't demand rigorous evidence to support the justification for investment-thus allowing benefits to be overstated and projects oversold. Based on our work with organizations over many years, we have developed a new approach for building a business case. It differs from conventional approaches because it recognizes different types of benefit, identifies measures for all benefits, and gathers evidence for the size of the expected benefits. The approach also requires that a benefit owner is identified for each benefit, to ensure commitment and aid benefit delivery. Benefits are explicitly linked to both the IT and the business changes that are required to deliver them. Responsible individuals are also identified for ensuring the necessary business changes occur. Our research also identifies a wider role for the business case. Typically, the main objective in building the business case for an IT project is to obtain approval for the financial spend. But a comprehensive and robust business case also: (1) Enables priorities to be set for investing in different projects; (2) Identifies how the combination of IT and business changes will deliver each of the benefits; (3) Ensures commitment from business managers; and (4) Creates a basis for reviewing the investment when it is complete. We surveyed over 100 European organizations to understand current practices in developing business cases and to identify how those practices relate to the success of IT investments. The results show that organizations that adopt our suggested approach to building business cases are more successful in delivering value from their IT investments.

ERP is Dead, Long Live ERP

Abstract: Enterprise resource-planning (ERP) systems, relational databases, and other mature information technologies are undergoing commoditization and facing challenges from software-as-a-service (SaaS) players moving into front-end enterprise applications. Yet, such systems are likely to be around for a long time because they are reliable and have lengthy life cycles. That said, investing in disruptive markets and business models and exploring innovative technologies in high-performance computing, pervasive connectivity, Web services, and other trends will be vital if ERP vendors wish to survive well in the unfolding future.

Gearing Six Sigma into UK manufacturing SMEs: results from a pilot study

Abstract: Approaches to business improvement have evolved and grown since the early 1900s and today the process focused, statistically driven Six Sigma methodology has been widely used by companies such as GE, Motorola, Honeywell, Bombardier, ABB, Sony, DuPont, American Express, Ford and many other companies in improving the business performance and optimizing the bottom-line benefits. Although Six Sigma business management strategy has been exploited by many world class organizations as mentioned above, there is still less documented evidence of its implementation in small and medium-sized enterprises (SMEs). This paper reports the key findings of a Six Sigma pilot survey in UK manufacturing SMEs. The results of the study are based primarily on descriptive statistics. The results of the study show that many of the SMEs are not aware of Six Sigma and do not have the resources to implement Six Sigma projects. It was also found that Lean Sigma was not generally popular among SMEs. Management involvement and participation, linking Six Sigma to customers and to business strategy are the most critical factors for the successful deployment of Six Sigma in SMEs.

A strategy for third-party logistics systems: A case analysis using the blue ocean strategy

Abstract: One of today's most frequently discussed topics in the business world is how to escape from the intense Red Ocean and how to create an uncontested Blue Ocean. However, because there are few practical guidelines available on this topic, we will introduce a case study of a third-party logistics (3PL) provider, CJ-Global Logistics Service (CJ-GLS), to show how it aspires to be a leader in the newly introduced 3PL industry in South Korea. CJ-GLS is a latecomer in the logistics industry, and its resources, such as the number of trucks and warehouses, are relatively small in comparison to those of established companies. But, it has achieved a distinct competitive advantage through innovative information technology (i.e., RFID—radio frequency identification), which has enabled it to create an uncontested market space, electronic logistics business. One remarkable fact about CJ-GLS is that its swift growth comes not from attracting competitors’ customers from the existing Red Ocean market but from creating a Blue Ocean market (3PL market), which previously existing incumbents ignored, and also from constructing a new business model founded on a RFID-based, ubiquitous-oriented 3PL system. Analyzed through a Four Actions Framework and characterized as Blue Ocean, this case study provides valuable information on how a company reinforces its competitive advantage from the Red Ocean while it transitions into a Blue Ocean by utilizing advanced information communication technologies.