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Showing papers on "Business model published in 2012"


Journal ArticleDOI
Xun Xu1
TL;DR: Some of the essential features of cloud computing are briefly discussed with regard to the end-users, enterprises that use the cloud as a platform, and cloud providers themselves.
Abstract: Cloud computing is changing the way industries and enterprises do their businesses in that dynamically scalable and virtualized resources are provided as a service over the Internet. This model creates a brand new opportunity for enterprises. In this paper, some of the essential features of cloud computing are briefly discussed with regard to the end-users, enterprises that use the cloud as a platform, and cloud providers themselves. Cloud computing is emerging as one of the major enablers for the manufacturing industry; it can transform the traditional manufacturing business model, help it to align product innovation with business strategy, and create intelligent factory networks that encourage effective collaboration. Two types of cloud computing adoptions in the manufacturing sector have been suggested, manufacturing with direct adoption of cloud computing technologies and cloud manufacturing-the manufacturing version of cloud computing. Cloud computing has been in some of key areas of manufacturing such as IT, pay-as-you-go business models, production scaling up and down per demand, and flexibility in deploying and customizing solutions. In cloud manufacturing, distributed resources are encapsulated into cloud services and managed in a centralized way. Clients can use cloud services according to their requirements. Cloud users can request services ranging from product design, manufacturing, testing, management, and all other stages of a product life cycle.

1,588 citations


Posted Content
TL;DR: In this paper, the authors review the current literature on business models in the contexts of technological, organizational, and social sustainability innovations and propose examples of normative 'boundary conditions' that business models should meet in order to support sustainable innovations.
Abstract: The aim of this paper is to advance research on sustainable innovation by adopting a business model perspective. Through a confrontation of the literature on both topics we find that research on sustainable innovation has tended to neglect the way in which firms need to combine a value proposition, the organization of the upstream and downstream value chain, and a financial model, in order to bring sustainability innovations to the market. Therefore, we review the current literature on business models in the contexts of technological, organizational, and social sustainability innovations. As the current literature does not offer a general conceptual definition of sustainable business models, we propose examples of normative 'boundary conditions' that business models should meet in order to support sustainable innovations. Finally, we sketch the outline of a research agenda by formulating a number of guiding questions.

1,477 citations


Journal ArticleDOI
TL;DR: In this article, a framework for business model innovation is proposed as a means to strategically create business cases on a regular basis as an inherent, deeply integrated element of business activities, which may be required to support a systematic, ongoing creation of business cases for sustainability.
Abstract: A considerable body of literature deals with the creation of economic value while increasing corporate environmental and social performance. Some publications even focus on the business case for sustainability which aims at increasing corporate economic value through environmental or social measures. The existence of a business case for sustainability is, however, mostly seen as an ad hoc measure, a supplement to the core business, or simply a coincidence. As a contrast, this paper argues that business model innovations may be required to support a systematic, ongoing creation of business cases for sustainability. A framework for business model innovation is proposed as a means to strategically create business cases on a regular basis as an inherent, deeply integrated element of business activities.

717 citations


Journal ArticleDOI
TL;DR: In this paper, the authors identify the bottom of the pyramid (BOP) markets as a new source of radical innovation and suggest that external constraints can be utilized to build an innovation sandbox within which new products and business models can be created.

616 citations


Journal ArticleDOI
TL;DR: The Business Model Canvas provides a flexible template for capturing the nine essential parts of a business model, which can best be described through nine basic building blocks that show the logic of how a company intends to make money.
Abstract: “Design Tomorrow’s Enterprises” Upstart technologies and lightning-fast implementation drive various new business models that are radically altering industries and commerce. Just look at how Apple’s iPod has revolutionized the music industry, how Skype has turned the telecommunications field upside down and how Grameen Bank has “popularized microlending” as a new form of finance. A business model – defined as “the rationale of how an organization creates, delivers and captures value” – can launch an entrepreneur’s new idea or readjust the thrust of an existing company. The Swatch Group is a case in point: Previously specializing in high-end watches, the Swiss company diversified into the production of the low-priced Swatch line of watches in response to Asian rivals. The Swatch Group has thrived in both the upper and lower segments of its market largely because it chose to serve these segments by using different business models. Swatch is an example of a company that manages not just one but a “portfolio” of business models. Constructing a Business Model Strategizing an innovative business model, a process which sometimes can resemble structured chaos, demands a fresh approach to creativity. The “Business Model Canvas” delivers a framework for focused brainstorming and staff inspiration. Major companies such as Ericsson, IBM and Deloitte have adopted it for their “business model generation.” The Business Model Canvas provides a flexible template for capturing the nine essential parts of a business model. The “canvas” is usually a large piece of paper with sections “In today’s climate, it’s best to assume that most business models, even successful ones, will have a short lifespan.” “A business model can best be described through nine basic building blocks that show the logic of how a company intends to make money.”

604 citations


Journal ArticleDOI
TL;DR: Investigating how cloud computing is understood by IT professionals and the concerns that IT professionals have in regard to the adoption of cloud services suggest that most IT companies in Taiwan will not adopt cloud computing until the uncertainties associated with cloud computing are reduced and successful business models have emerged.

488 citations


Posted Content
TL;DR: In this article, the authors propose that retail business models are best viewed as changes in three design components: (1) the way in which the activities are organized, (2) the type of activities that are executed, and (3) the level of participation of the actors engaged in performing those activities.
Abstract: A retail business model articulates how a retailer creates value for its customers and appropriates value from the markets. Innovations in business models are increasingly critical for building sustainable advantage in a marketplace defined by unrelenting change, escalating customer expectations, and intense competition. Drawing from extant strategy and retailing research, we propose that innovations in retail business models are best viewed as changes in three design components: (1) the way in which the activities are organized, (2) the type of activities that are executed, and (3) the level of participation of the actors engaged in performing those activities. We propose six major ways in which retailers could innovate their business models to enhance value creation and appropriation beyond the levels afforded by traditional approaches to retailing. We also describe the drivers of business model innovations, the potential consequences of such innovations, and numerous examples from retail practice that highlight our concepts and arguments. In doing so, we provide a starting point for academic research in a domain that is deficient in theoretical and empirical research, and offer retailing managers a framework to guide retail business model innovations for sustainable competitive advantage.

434 citations


Book
25 Oct 2012
TL;DR: In this paper, the authors present a case study of a company that may serve as a role model for spiritual leadership and present a general process for maximizing the triple bottom line through the development of the motivation and leadership required to simultaneously optimize employee wellbeing, social responsibility, organizational commitment, and financial performance.
Abstract: O ne of the greatest challenges facing leaders today is the need to develop new business models that accentuate ethical leadership, employee well-being, sustainability and social responsibility without sacrificing profitability, revenue growth, and other indicators of financial performance. This article seeks to address top managers’ need to simultaneously maximize the so-called triple bottom line, or ‘‘People, Planet, Profit.’’ In doing so, we draw from the emerging fields of workplace spirituality, spiritual leadership, and conscious capitalism. Research conducted with Interstate Battery System of America, Inc. (Interstate Batteries) is offered as a case study of a company that may serve as a role model for spiritual leadership. We also present a general process for maximizing the triple bottom line through the development of the motivation and leadership required to simultaneously optimize employee wellbeing, social responsibility, organizational commitment, and financial performance. Enron Corp., Adelphia Communications Corp., Arthur Andersen, Tyco International and WorldCom Inc. are but some of the many scandals that have cast a chilling pall over the way business is conducted. These companies have given people the perception that corporations are amoral, corrupt, and lack both ethical leadership and a sense of social responsibility. Michael Douglas’ Oscar winning performance in Wall Street claiming that ‘‘greed is good’’ still appears to be the mantra of most businesses big and small. However, there are companies, such as SAS Institute, Google, Shell Oil Co., NEC Corp., and Procter & Gamble Co., that have committed themselves to a course of developing business models that accentuate ethical leadership, employee well-being, sustainability and social responsibility. These companies believe this can be done without sacrificing profitability, revenue growth, and other areas of financial and performance excellence. In effect, they are experimenting with new business models and adopting sustainable business strategies that have a positive economic, social, and environmental impact, often referred to as the triple bottom line.

358 citations


Journal ArticleDOI
TL;DR: In this paper, the authors present a review of the business model literature from which a generic business model framework is derived, identifying and introducing the main elements of these processes as the firms' focus, modus and locus.
Abstract: New technology-based firms, particularly those that develop their business around a new technological platform, are likely to be impacted by globalization, in terms of both pace of innovation and pressure of competition. For these firms, strategic decisions and growth processes are characterized by a deep inter-relationship amongst the processes of internationalization, innovation and entrepreneurship; processes which have tended to be examined independently in distinct bodies of literature. In practice strategic decisions concern each of these processes and address issues such as organizational boundaries, location of the operational activities, what activities to focus on and selection of value partners. The business model by which firms operate needs also to accommodate the spatial dimensions indicated by globalization; and the emergence of global technology markets. Little is known to date about the extent to which business models accommodate or are adapted to internationalization, innovation and entrepreneurship. This paper presents a review of the business model literature from which a generic business model framework is derived, identifying and introducing the main elements of these processes as the firms’ focus, modus and locus. This contribution makes a clear distinction between the business model and the strategy concepts and highlights the relevance of location decisions—not considered by extant business model literature to date. While our discussion draws on the high technology new venture as our primary example, we believe our business model conceptualization has general applicability.

347 citations


Journal ArticleDOI
TL;DR: In this paper, the authors introduce the concept of intrapreneurial bricolage to show how middle manager innovators may promote pro-poor business models despite these obstacles.
Abstract: It is often argued that multinational corporations (MNCs) are in a unique position to innovate business models that can help to alleviate poverty. This empirical study into intra-organizational aspects of pro-poor business innovation in two MNCs suggests, however, that certain elements of their management frameworks – such as short-term profit interests, business unit based incentive structures, and uncertainty avoidance – may turn into obstacles that prevent MNCs from reaching their full potential in this respect. We introduce the concept of intrapreneurial bricolage to show how middle manager innovators may promote pro-poor business models despite these obstacles. We define intrapreneurial bricolage as entrepreneurial activity within a large organization characterized by creative bundling of scarce resources, and illustrate empirically how it helps innovators to overcome organizational constraints and to mobilize internal and external resources. Our findings imply that intrapreneurial bricolage may be of fundamental importance in MNC innovation for inclusive business. In addition to the field of inclusive business, this study has implications for the study of bricolage in large organizations and social intrapreneurship, as well for managerial practice around innovation for inclusive business.

336 citations


Journal ArticleDOI
TL;DR: In this paper, the authors investigate similarities and differences between product and business model innovation to assess the potential of transferring insights and best practices and derive implications for an improved management of business model innovations based on the cases analysed.
Abstract: Although business model innovations are decisive for a company's long-term success or failure, they are still poorly understood compared to product innovations. Thus, their execution is imperfectly supported, and their organizational accountability is insufficiently regulated. In this paper, we systematically investigate similarities and differences between product and business model innovation to assess the potential of transferring insights and best practices. Therefore, we condense key findings of product innovation management into a framework as a basis for the analysis of 11 current cases of business model innovation. This paper intends to contribute to a better understanding of the options that exist for business model innovation. We derive implications for an improved management of business model innovation based on the cases analysed. For the innovation process and its organizational anchoring, we disclose potential benefits of a more structured and holistic approach.

Journal ArticleDOI
TL;DR: The authors used responses from 107 multinational firms to reveal CEO perceptions of the drivers of strategic flexibility during business model innovation, finding that structural flexibility requires structural simplification while retaining control of non-core functions.
Abstract: This study uses responses from 107 multinational firms to reveal CEO perceptions of the drivers of strategic flexibility during business model innovation. While the positive effect of creative culture is confirmed, partner reliance reduces strategic flexibility during business model innovation. Further, structural change is disaggregated into efforts that either focus managerial attention on core activities or reconfigure existing activities. CEOs perceive that structural flexibility requires structural simplification while retaining control of non-core functions. We find that the relative magnitude of business model innovation effort moderates the effect of reconfiguration on strategic flexibility. The implications for theories of organizational design and dynamic capabilities are discussed.

Journal ArticleDOI
TL;DR: Hybrid organizations as mentioned in this paper are a new form of organization that is able to compete not only on the quality of goods and services, but also on the ability to effect positive social and environmental change.

Journal ArticleDOI
TL;DR: In this paper, the authors identify and portray three salient dimensions of value-based selling, namely (1) understanding the customer's business model, (2) crafting the value proposition, and (3) communicating customer value.

Journal ArticleDOI
TL;DR: In this article, the authors focus on absorptive capacity in the context of strategic innovation and suggest that a follower strategy and participative role in the knowledge network, instead of a first-mover strategy and a dominant role, do indeed promote strategic innovation.

Journal ArticleDOI
TL;DR: In this article, the authors build on the exposition by Thomas et al. and focus on analyzing cause and effect in international business research, and discuss the importance of explicitly identifying how the chosen research design best approximates a randomized-controlled experiment.
Abstract: This essay builds on the exposition by Thomas et al. and focuses on analyzing cause and effect in international business research. We attempt to explain how endogeneity problems occur and why they are so prevalent in international business research in a non-technical fashion. We then discuss the importance of explicitly identifying how the chosen research design best approximates a randomized-controlled experiment. Finally, we provide some guidelines on achieving this goal and emphasize the practices that seem most relevant to JIBS reviewers in evaluating high-quality international business research.


Journal ArticleDOI
TL;DR: In this article, a review of business model literature shows that two basic choices exist: utility-side business models and customer side business models, which follow a very different logic of value creation.
Abstract: The transformation of today's electric power sector to a more sustainable energy production based on renewable energies will change the structure of the industry. Consequently, utilities as the major stakeholders in this transformation will face new challenges in their way of doing business. They will have to adapt their business models to remain competitive in the new energy landscape. The present review of business model literature shows that two basic choices exist: utility-side business models and customer-side business models. The two approaches follow a very different logic of value creation. While the former is based on a small number of large projects, the latter is based on a large number of small projects. The article reveals that blueprints for utility-side business models are available, whereas customer-side business models are in an early stage of development. Applying the business model framework as an analytical tool, it is found that existing utility-side business models comprise a series of advantages for utilities in terms of revenue potential and risk avoidance. This study provides new insights about why utilities will favor utility-side business models over customer-side business models and why they also should engage in customer-side business models in their quest for more sustainable future business models.

Book
01 Oct 2012
TL;DR: In this paper, the authors present cutting-edge theory, research and case studies of web 2.0 applications and tools that transform the role and behaviour of the new generation of travellers.
Abstract: Written by an international group of researchers widely known for their expertise in the field of the Internet and tourism, this book presents cutting-edge theory, research and case studies. It investigates web 2.0 applications and tools that transform the role and behaviour of the new generation of travellers, as well as examining the ways in which firms reengineer and implement their business models and operations, such as new service development, marketing, networking and knowledge management.

Journal ArticleDOI
Keith Slack1
TL;DR: The Marlin gold mine in Guatemala provides a concrete example of these sharp contradictions between stated CSR commitments and actual performance as mentioned in this paper, which can be seen in assessments of projects' costs and benefits, project and technology selection, respect for community consent, and performance incentive structures.

Journal ArticleDOI
TL;DR: In this article, the authors develop an understanding of new approaches to innovation management required to take account of the growing pressures and emerging opportunities in the "sustainability" agenda, drawing on case studies of a variety of organisations to help answer the question of what practical actions might be taken beyond the rhetoric of moving towards greater sustainability or "greening" of business.
Abstract: ‘Sustainability’ is a major and growing driver of business change. Its implications for innovation are clear – living and working in a world of up to 9 billion people with rising expectations, providing energy, food and resource security, dealing with climate change, ecosystem degradation, a widening economic divide and a host of other interdependent issues will require massive change in products, services, processes, marketing approaches and the underlying business models which frame them. The focus of this paper is to develop an understanding of new approaches to innovation management required to take account of the growing pressures and emerging opportunities in the ‘sustainability’ agenda. In particular, it draws on case studies of a variety of organisations to help answer the question of what practical actions might be taken beyond the rhetoric of moving towards greater sustainability or ‘greening’ of business.

Journal ArticleDOI
TL;DR: In this article, the authors identify two key sources of value creation in knowledge-based ecosystems: facilitation of the innovation process for individual companies and creation of an innovation community, and the coevolution of the ecosystem's business model with firm-level business models explains why technology-based firms join, stay in or leave the ecosystem at a certain point in time.
Abstract: A growing number of research and development-driven companies are located in knowledge-based ecosystems. Value creation by these ecosystems draws on the dynamics of single firms (interacting and partnering) as well as the ecosystem at large. Drawing on a field study of a Dutch high-tech campus, two key sources of value creation are identified: (1) facilitation of the innovation process for individual companies and (2) creation of an innovation community. Furthermore, the coevolution of the ecosystem's business model with firm-level business models explains why technology-based firms join, stay in, or leave the ecosystem at a certain point in time. A remarkable finding is that ecosystem managers have to deliberately facilitate exit routes for companies that no longer fit the ecosystem in order to enhance and reinforce its business model. As such, this study suggests a dynamic capability perspective on knowledge-based ecosystems that need to develop a business model at the ecosystem level to create sufficient innovative capacity and entrepreneurial fitness.

Journal ArticleDOI
TL;DR: In this article, the authors explore the geographical and policy context for an emergent business model from Better Place to deliver battery electric car mobility in Denmark, and argue that the combination of radically different technologies and a highly complex multi-agency operating environment theoretically provide the conditions and requirements for such an emerging business model.

Journal ArticleDOI
TL;DR: A survey of PEV technology trends and other factors is provided and a likely scenario for PEV-grid interaction over the next decade is provided.
Abstract: Over the past decade key technologies have progressed so that mass-market viable plug-in electric vehicles (PEVs) are now set to reach the first of many major vehicle markets by 2011. PEV-grid interactions comprise a mix of industries that have not interacted closely in the past. A number of these commercial participants have utilized the same basic business model for nearly a century. The various participants include vehicle manufacturers, utilities, and supplier firms who have radically different business models, regulatory and legal environments, geographical scope, and technical capabilities. This paper will provide a survey of PEV technology trends and other factors. From an analysis of these factors this paper synthesizes and provides a likely scenario for PEV-grid interaction over the next decade.

Journal ArticleDOI
TL;DR: In this paper, the role of innovation and business models for the link between the integration of sustainable management with other corporate functions and the economic and environmental performance of companies was analyzed, and a positive association was found between integration of strategic issues and environmental management.
Abstract: Innovation has been widely regarded as a panacea for sustainable development, but there remains considerable uncertainty about how it will lead to a more sustainable society. We analyze the role of innovation and business models for the link between the integration of sustainable management with other corporate functions and the economic and environmental performance of companies. Drawing on survey data in the manufacturing sector, we apply structural equation modeling to compare differences between business models and the role of different stakeholder groups in a moderation analysis. We find a positive association of the integration of strategic issues and environmental management with the economic and environmental performance of firms. The results also suggest differences in the link between integration and economic and environmental performance, respectively, depending on the type of business model or innovation pursued, and that secondary stakeholders influence sustainability integration. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.

Proceedings Article
01 Jan 2012
TL;DR: The conclusion is that the business analytics success model is likely to be a useful basis for future research.
Abstract: This paper presents a model, synthesized from the literature, of factors that explain how business analytics contributes to business value. It also reports results from a preliminary assessment of that model. The model consists of two parts: a process and a variance model. The process model depicts the analyze‐insight‐decision‐action process through which use of an organization's business analytic capabilities is intended to create business value. The variance model proposes that the five factors in Davenport et al.'s DELTA model of business analytics success factors, six from Watson & Wixom and three from Seddon et al.'s model of organizational benefits from enterprise systems, assist a firm to gain business value from business analytics. A preliminary assessment of the model was conducted using data from 100 customer success stories from vendors such as IBM, SAP and Teradata. Our conclusion is that the business analytics success model is likely to be a useful basis for future research.

Journal ArticleDOI
TL;DR: In this paper, the authors identify and characterize three triggers of change that can create disruptive business models in the drug industry and suggest that, in mature industries experiencing strong discontinuities and high technological uncertainty, entrants' business models initially tend to fit into the industry's established dominant logic and its value chains remain unchanged.

Journal ArticleDOI
TL;DR: Testing the alignment–performance relationship in a developing country setting and investigating the moderating roles of environmental uncertainty and strategic orientation on the performance effects of strategic alignment using survey data collected in Turkey show a positive effect is statistically significant in highly uncertain environments and varies across performance measures.
Abstract: Aligning information technology (IT) strategy with business strategy has been one of the top concerns of practitioners and scholars for decades. Although numerous studies have documented positive effects of IT-business alignment on organizational performance, our knowledge about this relationship is still limited due to the complexity of contingent factors. The extant literature is largely based on research in the context of developed countries and few studies have explicitly considered the effects of contextual factors such as market environment and competitive strategy on this relationship. In this study, we attempt to fill these gaps by testing the alignment–performance relationship in a developing country setting and investigating the moderating roles of environmental uncertainty and strategic orientation on the performance effects of strategic alignment using survey data collected in Turkey. Our analyses show that this positive effect is statistically significant in highly uncertain environments and varies across performance measures. Our results also show that the strategic alignment between IT and business has a significant impact on performance across all choices of strategic orientation – defender, prospector, or analyzer. Theoretical and practical implications are discussed and future research directions are explored.

Journal ArticleDOI
TL;DR: In this paper, the role of innovations in terms of partnerships and business models to enhance energy access, especially for those living at the so-called bottom of pyramid, is discussed, and the need for new forms of public and private sector partnerships, especially the pro-poor ones that are effective in enhancing energy access is suggested.

Journal ArticleDOI
TL;DR: It is argued that, whatever the theoretical perspective at the level of the firm, analyses must reach beyond that level to grasp the important causal forces affecting capability development, firm boundaries, and structural features more generally.
Abstract: This paper examines conceptual issues and reviews empirical results bearing on the relationship between research approaches emphasizing organizational capabilities and those based in transaction cost economics (TCE)—or in organizational economics more generally. Following a review of conceptual fundamentals—what capability is and why organizations differ in capability—it assesses recent progress toward an integration of the capabilities and transaction cost approaches, primarily in the context of the analysis of vertical structure and related phenomena. This review suggests that progress has been substantial and that the key elements of a promising dynamic synthesis have been identified. The paper then considers issues that call for attention if further progress is to be achieved. The first of these is the role of agency, which must be seen in expansive terms (relative to standard economic rationality) if its evolutionary significance is to be fully appreciated. The second is the role of structure, or more specifically, industry architecture, which affects capability development by way of its effect on the feedback that firms receive. After drawing on the recent financial crisis for an illustration of these ideas, this paper considers the rise of interest in business models as a useful field of application, and it concludes with a discussion of the role of organizational economics (beyond TCE). We argue that, whatever the theoretical perspective at the level of the firm, analyses must reach beyond that level to grasp the important causal forces affecting capability development, firm boundaries, and structural features more generally.