Showing papers on "Business model published in 2009"

Open R&D and open innovation: exploring the phenomenon

Abstract: There is currently a broad awareness of open innovation and its relevance to corporate R&D. The implications and trends that underpin open innovation are actively discussed in terms of strategic, organizational, behavioral, knowledge, legal and business perspectives and its economic implications. This special issue aims to advance the R&D, innovation, and technology management perspective by building on past and present studies in the field and providing future directions. Recent research, including the papers in this special issue, demonstrates an increasing range of situations where the concept is regarded as applicable. Most research to date has followed the outside-in process of open innovation, while the inside-out process remains less explored. A third coupled process of open innovation is also attracting significant research attention. These different processes show why it is necessary to have a full understanding of how and where open innovation can add value in knowledge-intensive processes. There may be a need for a creative interpretation and adaptation of the value propositions, or business models, in each situation. In other words, there are important implications for new and emerging methods of R&D management.

Bike-sharing: History, Impacts, Models of Provision, and Future

Abstract: This paper discusses the history, impacts, models of provision, and future of bike-sharing, or public bicycle programs. The author covers the history of bike-sharing from the early 1st generation program to present day 3rd generation programs, presenting a detailed examination of models of provision, with benefits and detriments of each, and a description of capital and operating costs. In the government model, the locality operates the bike-sharing program must as it would any other transit service. The university model has the educational institution providing the service, most likely in a campus setting. The non-profit model has an organization that was either expressly created for the operation of the bike-sharing service or one that folds the bike-sharing service into its existing interests. With the advertising company model, companies offer a bike-sharing program to a jurisdiction, usually in exchange for the right to use public space to display revenue-generating advertisements. And in the for-profit model, a private company provides the service with limited or no government involvements. The author maintains that there is no one ideal model that is appropriate for all situations. The third-generation of bike-sharing brought the use of smartcards, mobile phones, and kiosks with screens; the fourth generation will be distinguished by improved efficiency, sustainability, and usability. This will be achieved by improving distribution of bikes, installation, powering of stations, tracking, offering pedal assistance bikes, and new business models. The author discusses each of these improvements and concludes that the era of bike-sharing has just begun.

Building social business models : lessons from the Grameen experience

Abstract: The social business idea borrows some concepts from the capitalist economy, and therefore the implementation of social businesses can likewise borrow some concepts from conventional business literature. As an illustration, the notion of business model, which is currently attracting much attention from researchers, can be revisited so as to enable the building of social businesses. Social business models are needed alongside conventional ones. After defining what a social business is, the authors will describe the first endeavors to create such businesses within the Grameen Group. This in turn will lead to a discussion of the social business model.

The Business Model in Practice and its Implications for Entrepreneurship Research

Abstract: While the term “business model” has gained widespread use in the practice community, the academic literature on this topic is fragmented and confounded by inconsistent definitions and construct boundaries. In this study, we review prior research and reframe the business model with an entrepreneurial lens. We report on a discourse analysis of 151 surveys of practicing managers to better understand their conceptualization of a business model. We find that the underlying dimensions of the business model are resource structure, transactive structure, and value structure, and discuss the nature and implications of dimensional dominance for firm characteristics and behavior. These findings provide new directions for theory development and empirical studies in entrepreneurship by linking the business model to entrepreneurial cognition, opportunity co-creation and organizational outcomes.

A 'business opportunity' model of corporate social responsibility for small- and medium-sized enterprises

Abstract: In their book ‘Corporate Social Opportunity’, Grayson and Hodges maintain that ‘the driver for business success is entrepreneurialism, a competitive instinct and a willingness to look for innovation from non-traditional areas such as those increasingly found within the corporate social responsibility (CSR) agenda’. Such opportunities are described as ‘commercially viable activities which also advance environmental and social sustainability’. There are three dimensions to corporate social opportunity (CSO) – innovation in products and services, serving unserved markets and building new business models. While small- and medium-sized enterprises (SMEs) have traditionally been presented as non-entrepreneurial in this area, this paper demonstrates how SMEs can take advantage of the opportunities presented by CSR. Using data from 24 detailed case studies of UK SMEs from a range of sectors, the paper explores the numerous CSR opportunities that present themselves to SMEs, such as developing innovative products and services and exploiting niche markets. There are inevitable challenges for SMEs undertaking CSR, but by their very nature they have many characteristics that can aid the adoption of CSR; the paper explores these characteristics and how the utilisation of positive qualities will help SMEs make the most of CSOs. Integrating CSR into the core of a company is crucial to its success. Using the case studies to illustrate key points, the paper suggests how CSR can be built into a company's systems and become ‘just the way we do things’. There are a number of factors that characterise the CSO ‘mentality’ in an organisation, and Grayson and Hodges's book describes seven steps that will move a company in the direction of a ‘want to do’ CSO mentality. This paper adapts these steps for SMEs, and by transferring and building on knowledge from the 24 detailed case studies, it develops a ‘business opportunity’ model of CSR for SMEs.

The Internet of Things in an Enterprise Context

Abstract: This paper puts the Internet of Things in a wider context: How it relates to the Future Internet overall, and where the business value lies so that it will become interesting for enterprises to invest in it. Real-World Awareness and Business Process Decomposition are the two major paradigms regarding future business value. The major application domains where the Internet of Things will play an important role and where there are concrete business opportunities are highlighted. But there are also many technical challenges that need to be addressed. These are listed and it is shown how they are tackled by existing research projects with industrial participation.

Cloud Computing – A Classification, Business Models, and Research Directions

Abstract: Lately, a new computing paradigm has emerged: “Cloud Computing”. It seems to be promoted as heavily as the “Grid” was a few years ago, causing broad discussions on the differences between Grid and Cloud Computing. The first contribution of this paper is thus a detailed discussion about the different characteristics of Grid Computing and Cloud Computing. This technical classification allows for a well-founded discussion of the business opportunities of the Cloud Computing paradigm. To this end, this paper first presents a business model framework for Clouds. It subsequently reviews and classifies current Cloud offerings in the light of this framework. Finally, this paper discusses challenges that have to be mastered in order to make the Cloud vision come true and points to promising areas for future research.

A sense of community: A research agenda for software ecosystems

Abstract: Software vendors lack the perspective to develop software within a software ecosystem. The inability to function in a software ecosystem has already led to the demise of many software vendors, leading to loss of competition, intellectual property, and eventually jobs in the software industry. In this paper we present a research agenda on software ecosystems to study both the technical and the business aspects of software engineering in vibrant ecosystems. The results of such research enable software vendors to develop software that is adaptable to new business models and new markets, and to make strategic choices that help a software vendor to thrive in a software ecosystem.

Vehicular Networks: Techniques, Standards, and Applications

Abstract: Critical, Cutting-Edge Insight to Speed Deployment of Vehicular NetworksAs Vehicular Networks technology enters a critical phase in its evolution, academic institutions, industry, and governments worldwide are investing significant resources into large-scale deployment of such networks in order to leverage its benefits to communication, road safety, and improved traffic flow. Despite the current proliferation of conferences to address the technical, policy, and economic challenges associated with this exciting new technology, notably absent is a self-contained book that integrates and covers these topics in sufficient detail.Vehicular Networks: Techniques, Standards and Applications examines the latest advances in the evolution of vehicular networks, presenting invaluable state-of-the-art ideas and solutions for professionals and academics at work on numerous international development and deployment projects. A versatile text, it cross-references all key aspects, including medium access, scheduling, mobility, services, market introduction, and standard specifications. This informative guide:Describes the roles of networks operators, car manufacturers, service providers, and governmental authorities in development of vehicular technologyIllustrates the benefits and real-life applications of vehicular networksAnalyzes possible business models for network deploymentExamines potential services and possible deployment architecturesExplores the technical challenges of deployment, including use of MAC protocols, routing, data dissemination, dynamic IP autoconfiguration, mobility management, security, and driver/passenger privacy Illustrative Figures to Clarify Both Basic and Advanced ConceptsUsing simplified language, this book elucidates the distinct behavior and characteristics that distinguish vehicular networks from other types of mobile networks. It is an invaluable resource for those working with or studying vehicular networks and other wireless or mobile communications systems.

Service, services and products: rethinking operations strategy

Abstract: Purpose – This paper proposes a new approach to operations and supply strategy in the light of recent developments in the analysis of the respective roles of products and services in delivering benefits to customers.Design/methodology/approach – Reviews and synthesises concepts from operations management (OM), marketing, economics and related areas. Examples of product and service combinations are considered, drawing attention to the ways in which services may be distinguished from products. An institutional basis for defining services is favoured over IHIP. A corollary of this is how services are made tradable: the modularity theory of the firm is used to do this. The paper then outlines, considers and compares various approaches to the combination of products and services: “service‐dominant logic”, support services, product‐service systems, systems integration, performance‐based logistics, bundling and, finally, the notion of “the offering”.Findings – It is found that the notion of the business model is...

Wikinomics and its discontents: a critical analysis of Web 2.0 business manifestos:

Abstract: 'Collaborative culture', 'mass creativity' and 'co-creation' appear to be contagious buzzwords that are rapidly infecting economic and cultural discourse on Web 2.0. Allegedly, peer production models will replace opaque, top-down business models, yielding to transparent, democratic structures where power is in the shared hands of responsible companies and skilled, qualified users. Manifestos such as Wikinomics (Tapscott and Williams, 2006) and 'We-Think' (Leadbeater, 2007) argue collective culture to be the basis for digital commerce. This article analyzes the assumptions behind this Web 2.0 newspeak and unravels how business gurus try to argue the universal benefits of a democratized and collectivist digital space. They implicitly endorse a notion of public collectivism that functions entirely inside commodity culture. The logic of Wikinomics and 'We-Think' urgently begs for deconstruction, especially since it is increasingly steering mainstream cultural theory on digital culture.

Business Model Innovation: Creating Value In Times Of Change

Abstract: We highlight business model innovation as a way for general managers and entrepreneurs to create and appropriate value, especially in times of economic change. Business model innovation, which involves designing a modified or new activity system, relies on recombining the existing resources of a firm and its partners, and it does not require significant investments in R&D. We offer managers and researchers a conceptual primer on business model innovation, emphasizing the importance of system-level thinking.

Resilience of the Cooperative Business Model in Times of Crisis

Abstract: What began as a crisis in finance markets has rapidly become a global jobs crisis. Unemployment is rising. The number of working poor is increasing. Businesses are going under. Concern is growing over the balance, fairness and sustainability of the sort of globalization we have had in the run up to the financial crash. The International Labour Organization, representing actors of the real economy, that is governments, working together with representatives of employers and workers organizations, is playing its role within the UN and multilateral system to support its constituents as they seek to weather the crisis, prepare for recovery and shape a new fair globalization. The Decent Work Agenda provides the policy framework to confront the crisis. In this series of brief publications, the ILO's Sustainable Enterprise Programme reflects on impacts of the global economic crisis on enterprises and cooperatives, provides examples of policy and enterprise-level responses, and indicates how constituents can be supported by the ILO. Resilience of the Cooperative Business Model in Times of Crisis

Business Process Modeling: Current Issues and Future Challenges

Abstract: Business process modeling has undoubtedly emerged as a popular and relevant practice in Information Systems. Despite being an actively researched field, anecdotal evidence and experiences suggest that the focus of the research community is not always well aligned with the needs of industry. The main aim of this paper is, accordingly, to explore the current issues and the future challenges in business process modeling, as perceived by three key stakeholder groups (academics, practitioners, and tool vendors). We present the results of a global Delphi study with these three groups of stakeholders, and discuss the findings and their implications for research and practice. Our findings suggest that the critical areas of concern are standardization of modeling approaches, identification of the value proposition of business process modeling, and model-driven process execution. These areas are also expected to persist as business process modeling roadblocks in the future.

Business Models in the Service World

Abstract: The authors provide a criteria catalogue to characterize cloud computing and their own Cloud Business Ontology Model to classify current product offerings and pricing models.

Petri Net Transformations for Business Processes --- A Survey

Abstract: In Process-Aware Information Systems, business processes are often modeled in an explicit way. Roughly speaking, the available business process modeling languages can be divided into two groups.Languages from the first group are preferred by academic people but shunned by business people, and include Petri nets and process algebras. These academic languages have a proper formal semantics, which allows the corresponding academic models to be verified in a formal way. Languages from the second group are preferred by business people but disliked by academic people, and include BPEL, BPMN, and EPCs. These business languages often lack any proper semantics, which often leads to debates on how to interpret certain business models. Nevertheless, business models are used in practice, whereas academic models are hardly used. To be able to use, for example, the abundance of Petri net verification techniques on business models, we need to be able to transform these models to Petri nets. In this paper, we investigate a number of Petri net transformations that already exist.For every transformation, we investigate the transformation itself, the constructs in the business models that are problematic for the transformation and the main applications for the transformation.

Intelligent cities: towards interactive and global innovation environments

Abstract: Intelligent cities (communities, clusters, districts, multi-cluster territories) outline a new planning paradigm pertinent for urban-regional development and innovation management. This paper attributes the rise of intelligent cities in the globalisation of innovation networks, which appears in multiple forms in global technology markets, innovation and R&D offshoring, global technology transfer, new product co-development and the subsequent needs for online environments of global collaboration. By developing sector-focused, cluster-based or more complex intelligent city strategies, territories can set in motion innovation mechanisms of global dimensions and enhance substantially their innovation systems. Within these environments, new knowledge functions and business models appear relying on collective intelligence, technology transfer and collaborative innovation outspread globally. However, in developing augmented innovation environments, organisational issues of innovation management prevail over the technological ones of virtual communication. ICT is just the facilitator for creating this new type of innovation environment, which requires the balanced development of human creative skills, innovation institutions, broadband networks and virtual collaborative spaces to succeed.

Updating systems concepts in family businesses: A focus on values, resource flows, and adaptability

Abstract: This article extends and expands current systems views of family business and provides a framework for interpreting family business holistically. The framework extends the definition of family-first and business-first systems and adds three categories that typify the gradations of firms that represent balanced systems emphases. In addition, this article discusses the goals, resource transfers, strengths, and limitations of each type of system and describes how firm adaptability and resource flows influence and change these family business systems; it argues that to understand family business health, one must understand the values and goals that guide the family, business, and ownership systems, as well as the overall family business system; and it presents an inclusive definition of family and business based on systems membership.

Grid and Cloud Computing: A Business Perspective on Technology and Applications

Abstract: In todays dynamic business environment, IT departments are under permanent pressure to meet two divergent requirements: to reduce costs and to support business agility with higher flexibility and responsiveness of the IT infrastructure Grid and Cloud Computing enable a new approach towards IT They enable increased scalability and more efficient use of IT based on virtualization of heterogeneous and distributed IT resources This book provides a thorough understanding of the fundamentals of Grids and Clouds and of how companies can benefit from them A wide array of topics is covered, eg business models and legal aspects The applicability of Grids and Clouds in companies is illustrated with four cases of real business experiments The experiments illustrate the technical solutions and the organizational and IT governance challenges that arise with the introduction of Grids and Clouds Practical guidelines on how to successfully introduce Grids and Clouds in companies are provided

Designing Your Future Business Model: An Activity System Perspective

Abstract: Building on the received literature, we conceptualize a firm's business model as a system of interdependent activities that transcends the focal firm and spans its boundaries. The activity system enables the firm to create value in concert with its partners but also to appropriate a share of the value created. Anchored on theoretical and empirical research, we suggest two sets of parameters that activity systems designers need to consider: design elements - content, structure and governance - that describe the architecture of an activity system; and design themes - novelty, lock-in, complementarities and efficiency - that describe the sources of the activity system's value creation.

A new business model for sustainable development: an exploratory study using the theory of constraints in Nordic organizations

Abstract: The business model in use by many large companies has changed significantly from that of a decade ago and has incorporated environmental and social aspects of performance. However, given these achievements, are there unavoidable inhibitions in the contemporary business model that mean that even exemplar corporations cannot become sustainable? A key issue is consumption without limits, but can businesses do anything about this? The UK Government's Sustainable Development Commission identifies this as an issue. There is a need for an open-minded consideration of business fundamentals to consider this issue as part of an identification of criteria for a sustainable business model. This is an account of an exploratory study undertaken to identify a new business model for sustainable development. The theory of constraints was adapted to provide the project's methodology that made use of semi-structured interviews and secondary material. The cloverleaf account of sustainable development was used to structure and analyse sustainable development information. The organizations studied are all located in Nordic countries, since these countries are globally recognized for sustainable development achievements. Conclusions of the study acknowledge that, whilst specific new management tools and approaches of Nordic organizations do help sustainable development, it is the social context in which these organizations function that is a critical factor. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.

Business Models for Monetizing Internet Applications and Web Sites: Experience, Theory, and Predictions

Abstract: Almost all attempts to date to monetize Internet applications targeted at individuals have focused on natural extensions of traditional media or traditional retailing Most are either some form of consumer-focused advertising or of consumer-focused e-commerce And yet the Net is far more powerful than traditional media on one hand, and far more liberating and thus inappropriate as an alternative to traditional media on the other There are numerous potential online business models that are not based on advertising This paper explores several such areas and divides them into two basic categories, those that sell some product, experience, content, or service and earn revenues from the sale, and those that provide access to consumers and charge for access It further divides each of these major categories into subcategories, and for each subcategory reviews current experience, places it in the context of the relevant literature in competitive strategy, and uses that theory to make predictions The paper concludes with strategic recommendations for corporations as well as with suggestions for further research

Toward a Theory of Business Model Innovation within Incumbent Firms

Abstract: This paper presents a theory of business model innovation (BMI) within incumbent firms. The process of business model change is examined, with particular attention to business units in a multibusiness enterprise. The paper expands upon past definitions of business models. It identifies four separate but interrelated components in a business model: * A set of elemental activities. * A set of organizational units that perform the activities (some of these units are internal to the firm, others external). * A set of linkages between the activities, made explicit by an isomorphic set of physical transactions (between the organizational units that perform the activities) and human relationships among the individuals who supervise and/or manage the linked organizational units. * A set of governance mechanisms for controlling the organizational units and the linkages between units. A business model thus juxtaposes two systems: a system of activities and a system of relationships. It is only by considering the social contexts in which the internal and external transactions occur that executives can fully appreciate the critical dynamics of organizational change that must accompany BMI. In focusing on business units within large multibusiness corporations, the paper suggests that those business units can be more likely to produce BMI than freestanding business units if the corporation is able to create a favorable context. The dimensions of that context - what is called the BMI-Conducive Corporation - are explored, as are the transformational organizational changes required to produce such conduciveness. Finally, the paper presents implications for both managers and researchers of the proposed theory of BMI within incumbent firms.

A Transaction Cost Perspective of the Software as a Service Business Model

Abstract: Application service providers (ASP), which host and maintain information technology (IT) applications across the Internet, offer an alternative to traditional models of IT service for user firms. We build on prior literature in transaction cost economics (TCE) to argue that the contract design should address ex post transaction costs that result due to contractual incompleteness and opportunism. We argue that contract design is multidimensional, and that it is necessary to design governance structures that can protect user firms from shirking and monitoring costs, as well as provide for efficient adaptation when requirements are incompletely specified at the start of the initiative. Our empirical analysis suggests that factors such as uncertainty in specifying service requirements, interdependence between the ASP application and IT systems in the client organization, and the need for specific investments favor time and materials contracts, whereas fixed prices are desirable when strong incentives are needed for cost reduction. We also find that contracts that are aligned with transaction attributes in a transaction cost-economizing manner are significantly less likely to experience budget overruns and realize better ex post performance than those that are not. These results hold normative implications for both user and provider firms to assess the performance implications of choosing contracts in line with prescriptions of TCE.

Measuring business performance in the high-tech manufacturing industry: A case study of Taiwan's large-sized TFT-LCD panel companies

Abstract: The nature of competition in the high-technology manufacturing industry has changed dramatically over the last two decades, and any of the traditional indicators of business performance are insufficient today. We have identified a new set of financial and non-financial performance indicators that can be used by high-tech manufacturing companies and have developed a business performance evaluation model. A data envelopment analysis (DEA), an analytic hierarchy process (AHP), and a fuzzy multi-criteria decision-making approach are used in the model. Data from large-sized thin-film transistor liquid-crystal display panel companies in Taiwan were collected via a field survey and from various published databases and were fed into the model to determine the relative business performance of the companies. We hope that our findings will help high-tech manufacturing executives determine their companies’ strengths and weaknesses and lead to future improvements in business operations.

A Global Review of Insurance Industry Responses to Climate Change

Abstract: A vanguard of insurers is adapting its business model to the realities of climate change. In many ways, insurers are still catching up both to mainstream science and to their customers, which, in response to climate change and energy volatility, are increasingly changing the way they construct buildings, transport people and goods, design products and produce energy. Customers, as well as regulators and shareholders, are eager to see insurers provide more products and services that respond to the ‘‘greening’’ of the global economy, expand their efforts to improve disaster resilience and otherwise be proactive about the climate change threat. Insurers are increasingly recognising the issue as one of ‘‘enterprise risk management’’ (ERM), one cutting across the domains of underwriting, asset management and corporate governance. Their responses are becoming correspondingly sophisticated. Based on a review of more than 300 source documents, plus a direct survey of insurance companies, we have identified 643 specific activities from 244 insurance entities from 29 countries, representing a 50 per cent year-over-year increase in activity. These entities collectively represent $1.2 trillion in annual premiums and $13 trillion in assets, while employing 2.2 million people. In addition to activities on the part of 189 insurers, eight reinsurers, 20 intermediaries and 27 insurance organisations, we identified 34 non-insurance entities that have collaborated in these efforts. Challenges and opportunities include bringing promising products and services to scale, continuing to identify and fill market and coverage gaps and identifying and confirming the veracity of green improvements. There is also need for convergence between sustainability and disaster resilience, greater engagement by insurers in adaptation to unavoidable climate changes and to clarify the role that regulators will play in moving the market. It has not yet been demonstrated how some insurance lines might respond to climate change and a number of market segments have not yet been served with a single green insurance product or service. As insurer activities obtain more prominence, they also will be subject to more scrutiny and expectations that they are not simply greenwashing. The Geneva Papers (2009) 34, 323–359. doi:10.1057/gpp.2009.14