Showing papers on "Business model published in 2015"
04 Aug 2015
TL;DR: An important approach is to formulate a digital transformation strategy that serves as a central concept to integrate the entire coordination, prioritization, and implementation of digital transformations within a firm.
Abstract: In recent years, firms in almost all industries have conducted a number of initiatives to explore new digital technologies and to exploit their benefits. This frequently involves transformations of key business operations and affects products and processes, as well as organizational structures and management concepts. Companies need to establish management practices to govern these complex transformations. An important approach is to formulate a digital transformation strategy that serves as a central concept to integrate the entire coordination, prioritization, and implementation of digital transformations within a firm. The exploitation and integration of digital technologies often affect large parts of companies and even go beyond their borders, by impacting products, business processes, sales channels, and supply chains. Potential benefits of digitization are manifold and include increases in sales or productivity, innovations in value creation, as well as novel forms of interaction with customers, among others. As a result, entire business models can be reshaped or replaced (Downes and Nunes 2013). Owing to this wide scope and the far-reaching consequences, digital transformation strategies seek to coordinate and prioritize the many independent threads of digital transformation. To account for their company-spanning characteristics, digital transformation strategies cut across other business strategies and should be aligned with them (Fig. 1). While there are various concepts of IT strategies (Teubner 2013), these mostly define the current and the future operational activities, the necessary application systems and infrastructures, and the adequate organizational and financial framework for providing IT to carry out business operations within a company. Hence, IT strategies usually focus on the management of the IT infrastructure within a firm, with rather limited impact on driving innovations in business development. To some degree, this restricts the product-centric and customer-centric opportunities that arise from new digital technologies, which often cross firms’ borders. Further, IT strategies present systemcentric road maps to the future uses of technologies in a firm, but they do not necessarily account for the transformation of products, processes, and structural aspects that go along with the integration of technologies. Digital transformation strategies take on a different perspective and pursue different goals. Coming from a business-centric perspective, these strategies focus on the transformation of products, processes, and organizational aspects owing to new technologies. Their scope is more broadly designed and explicitly includes digital activities at the interface with or fully on the side of customers, such as Accepted after one revision by Prof. Dr. Sinz.
1,258 citations
TL;DR: A critical research agenda is outlined to explore and conceptualize evident changes in business models and society arising from these technological advances and the potential effects of digitization and big data analytics on employment - especially in the context of cognitive tasks.
Abstract: In the era of accelerating digitization and advanced big data analytics, harnessing quality data for designing and delivering state-of-the-art services will enable innovative business models and management approaches (Boyd and Crawford, 2012; Brynjolfsson and McAfee, 2014) and yield an array of consequences. Among other consequences, digitization and big data analytics reshape business models and impact employment amongst knowledge workers - just as automation did for manufacturing workers. This Viewpoint paper considers the mechanisms underlying how digitization and big data analytics drive the transformation of business and society and outlines the potential effects of digitization and big data analytics on employment - especially in the context of cognitive tasks. Its aim is to outline a critical research agenda to explore and conceptualize evident changes in business models and society arising from these technological advances.
743 citations
Posted Content•
TL;DR: In this paper, the authors propose a digital transformation strategy that serves as a central concept to integrate the entire coordination, prioritization, and implementation of digital transformations within a firm, which can be used to coordinate and prioritize the many independent threads of digital transformation.
Abstract: In recent years, firms in almost all industries have conducted a number of initiatives to explore new digital technologies and to exploit their benefits. This frequently involves transformations of key business operations and affects products and processes, as well as organizational structures and management concepts. Companies need to establish management practices to govern these complex transformations. An important approach is to formulate a digital transformation strategy that serves as a central concept to integrate the entire coordination, prioritization, and implementation of digital transformations within a firm. The exploitation and integration of digital technologies often affect large parts of companies and even go beyond their borders, by impacting products, business processes, sales channels, and supply chains. Potential benefits of digitization are manifold and include increases in sales or productivity, innovations in value creation, as well as novel forms of interaction with customers, among others. As a result, entire business models can be reshaped or replaced (Downes and Nunes 2013). Owing to this wide scope and the far-reaching consequences, digital transformation strategies seek to coordinate and prioritize the many independent threads of digital transformation. To account for their company-spanning characteristics, digital transformation strategies cut across other business strategies and should be aligned with them (Fig. 1). While there are various concepts of IT strategies (Teubner 2013), these mostly define the current and the future operational activities, the necessary application systems and infrastructures, and the adequate organizational and financial framework for providing IT to carry out business operations within a company. Hence, IT strategies usually focus on the management of the IT infrastructure within a firm, with rather limited impact on driving innovations in business development. To some degree, this restricts the product-centric and customer-centric opportunities that arise from new digital technologies, which often cross firms’ borders. Further, IT strategies present systemcentric road maps to the future uses of technologies in a firm, but they do not necessarily account for the transformation of products, processes, and structural aspects that go along with the integration of technologies. Digital transformation strategies take on a different perspective and pursue different goals. Coming from a business-centric perspective, these strategies focus on the transformation of products, processes, and organizational aspects owing to new technologies. Their scope is more broadly designed and explicitly includes digital activities at the interface with or fully on the side of customers, such as Accepted after one revision by Prof. Dr. Sinz.
643 citations
01 Jan 2015
TL;DR: In this article, a triple layered business model canvas is proposed to support organizations to innovate upon their current business model and create concepts of more sustainable business models, with the assumption that business model innovation that takes into account a triple bottom line approach will be more sustainable over time.
Abstract: A creative approach to sustainability can be applied upon an organization's business model. We begin our research with the assumption that business model innovation that takes into account a triple bottom line approach will be more sustainable over time. We focus our research on the conceptual stage when business model ideas are generated, and more precisely its creative tools. Our goal is to support, with a structured canvas, organizations whom wish to innovate upon their current business model and create concepts of more sustainable business models. In this paper, we present and discuss the tool we have named the "Triple layered business model canvas". We endeavoured to ensure that business models create, deliver and capture multiple forms of value by adding a second layer with nine environmental elements that follow a lifecycle approach, and by adding a third layer with nine social elements that follow a stakeholder approach. We share this new triple layered business model canvas and exemplify its use with a Nespresso case. In the end, we find new dynamics for analysis and new relationships for innovation. We conclude with limits and future research for more sustainable business model patterns.
631 citations
TL;DR: In this article, a systematic literature review is conducted related to understanding implementation of Product-Service Systems business models and five sets of tactical practices, including contracts, marketing, networks, product and service design, and sustainability operational practices.
613 citations
01 Jan 2015
TL;DR: In this paper, the authors discuss the impact, challenges and opportunities of digitization and conclude with examples of recommended policy action in the Age of Industrie 4.0, where the two key instruments for enhanced value creation are platform-based cooperation and dual innovation strategy.
Abstract: Digitization—the continuing convergence of the real and the virtual worlds will be the main driver of innovation and change in all sectors of our economy. The exponentially growing amount of data and the convergence of different affordable technologies that came along with the definite establishment of Information and Communication Technology are transforming all areas of the economy. In Germany, the Internet of Things, Data and Services plays a vital role in mastering the energy transformation, in developing a sustainable mobility and logistics sector, in providing enhanced health care and in securing a competitive position for the leading manufacturing industry. This article discusses the impact, challenges and opportunities of digitization and concludes with examples of recommended policy action. The two key instruments for enhanced value creation in the Age of Industrie 4.0 are platform-based cooperation and a dual innovation strategy.
556 citations
TL;DR: Techniques essential to the functioning of an STE are described and it is argued that data emerging from these technologies are the driver for new business models, interaction paradigms and even new species.
494 citations
TL;DR: In this article, the economic tradeos that drive organizations to position themselves closer to or further away from a multi-sided platform (MSP) business model relative to three traditional alternatives: vertically integrated, vertically integrated and MSP-based.
490 citations
TL;DR: This work contributes to the cognitive perspective in strategy by analyzing business models as schemas that organize managerial understandings about the design of firms' value-creating activities and exchanges and theorizing how they can be innovated through processes for proactive schema change.
Abstract: We advance a theory of how business models can be innovated proactively in the absence of exogenous changes, through processes of generative cognition. We contribute to the cognitive perspective in strategy by analyzing business models as schemas that organize managerial understandings about the design of firms' value-creating activities and exchanges and by theorizing how they can be innovated through processes for proactive schema change. Drawing on cognitive psychology research on two major cognitive processes through which individuals change their schema to cope with novelty, analogical reasoning and conceptual combination, we theorize firm-level strategic processes for designing innovative business models. Copyright © 2015 Strategic Management Society.
389 citations
TL;DR: In this paper, the authors highlight a typology of social business hybrids and discuss how each of the four proposed types of hybrid organizations can be managed in order to avoid the danger of mission drift and better achieve financial sustainability.
Abstract: Hybrid organizations pursuing a social mission while relying on a commercial business model have paved the way for a new approach to achieving societal impact. Although they bear strong promise, social enterprises are also fragile organizations that must walk a fine line between achieving a social mission and living up to the requirements of the market. This article moves beyond generic recommendations about managing hybrids in order to highlight a typology of social business hybrids and discuss how each of the four proposed types of hybrid organizations can be managed in order to avoid the danger of mission drift and better achieve financial sustainability.
313 citations
TL;DR: In this article, the authors propose a contingency model of open business models by systematically linking open innovation strategies to core business model dimensions, notably the content, structure, and governance of transactions.
Journal Article•
TL;DR: Weill and Woerner as mentioned in this paper found that companies focused on value chains were at a disadvantage compared with those that thought more broadly about their business ecosystems, and that companies with ecosystem drivers as their dominant business model had the highest margins and growth of all the four options in the companies the authors studied.
Abstract: The business world is rapidly digitizing, breaking down industry barriers and creating new opportunities while destroying long-successful business models. Given the amount of turmoil digital disruption is causing, authors Peter Weill and Stephanie L. Woerner of the MIT Center for Information Systems Research say its time for companies to evaluate these threats and opportunities and create new business options for the more-connected future of digital ecosystems. In recent research, board members at large companies estimated that 32% of their companys revenue would be under threat from digital disruption in the next five years; 60% of board members felt their boards should spend significantly more time on this issue next year. Despite the threats from companies including Uber, Airbnb and Amazon, increasing digitization offers opportunities for companies to leverage strong customer relationships and increase cross-selling, the authors argue. The authors offer a framework, supported by examples, for helping managers think about their competitive environments. The combination of moving from value chains to ecosystems and increasing consumer knowledge, the authors write, provides business leaders with four distinct business models, each with associated capabilities and relationships. Companies can choose to operate as (1) suppliers, (2) omnichannel businesses, (3) modular producers or (4) ecosystem drivers. The authors found that businesses focused narrowly on value chains were at a disadvantage compared with those that thought more broadly about their business ecosystems. Companies that had 50% or more of their revenues from digital ecosystems and understood their end customers better than their average competitor saw 32% higher revenue growth and 27% higher profit margins than their industry averages. As they prepare for growing digital disruption, companies have two major decisions to make. First, they need to decide the extent to which they want to control the value chain or become part of a more complex ecosystem. Second, they need to decide how much they want to invest in knowing their end customers. Companies with ecosystem drivers as their dominant business model had the highest margins and growth of all the four options in the companies the authors studied
TL;DR: In this paper, possible business models for energy efficiency (EE) and demand response (DR) providers in different electricity market segments are analyzed and reviewed, and the analysis covers three types of characteristics: DSM transaction characteristics, renewable energy correlation and DSM load control characteristics.
Abstract: Demand side management (DSM) can be defined as modifications in the demand side energy consumption pattern to foster better efficiency and operations in electrical energy systems. DSM activities, which are classified into “energy efficiency (EE)” and “demand response (DR)” are becoming more popular due to technological advances in smart grids and electricity market deregulation. However, it can be argued that ensuring DSM sustainability requires creating suitable business models. Business models are influenced by different factors such as electricity market regulation, mechanisms, power system characteristics and infrastructure. The proliferation of smart grid infrastructure, distributed generation, intermittent renewable energy resources and energy storage devices has affected DSM business models considerably. Therefore, in this paper, possible business models for EE and DR providers in different electricity market segments are analyzed and reviewed. The analysis covers three types of characteristics: DSM transaction characteristics, renewable energy correlation and DSM load control characteristics. In DSM transaction characteristics, the value proposition of DSM such as added value offered to the DSM purchaser and transaction triggers are discussed. In renewable energy correlation, the effect of increased renewable energy penetration on the business model is evaluated. In DSM load control characteristics, load control and aggregation aspects such as response speed, duration, advance notice, location sensitivity and actual usage frequency are analyzed.
TL;DR: In this article, the authors explore the use of value mapping for broader sustainable business thinking, by reflection on its use in workshop settings and identify a range of new applications which are expected to be of interest to business practitioners, policy makers, and academic researchers.
Abstract: Pressures on business to operate sustainably are increasing. This requires companies to adopt a systemic approach that seeks to integrate consideration of the three dimensions of sustainability - social, environmental, and economic - in a manner that generates shared value creation for all stakeholders including the environment and society. This is referred to as sustainable business thinking. The business model concept offers a framework for system-level innovation for sustainability and provides the conceptual linkage with the activities of the firm such as design, production, supply chains, partnerships, and distribution channels. A value mapping tool has been presented in the literature to assist in sustainable business model innovation. This study explores the use of value mapping for broader sustainable business thinking, by reflection on its use in workshop settings. A range of new applications is identified which is expected to be of interest to business practitioners, policy makers, and academic researchers.
TL;DR: In this paper, the authors derive four antecedents of business model design: goals, templates, stakeholder activities, and environmental constraints from interview data from nine new ventures in the peer-to-peer lending space.
Abstract: Anchored in the broad design literature, we derive four antecedents of business model design: goals, templates, stakeholder activities, and environmental constraints. These business model design antecedents are illustrated using interview data from nine new ventures in the peer-to-peer lending space. We proceed with the theoretical development to link the design antecedents to the design themes of business models and conclude with implications for business model research and entrepreneurial leaders. Copyright © 2015 Strategic Management Society.
TL;DR: In this article, the effects that can be achieved through business model innovation, in particular organizational sustainability, are explored, and the ways by which organizational performance is influenced by different business models are also explored, aiming to shed light on this theoretical gap.
Abstract: The concept of business models and consequently business model innovation has its foundation in corporate practice, strategic management, and industrial economics. However, business models are not a strategy but constitute the core and driver of a strategy as well as the key for decoding, understanding, and effectively communicating a strategy both within an organization as well as across its business ecosystem. As with Business Model, the Business Model Innovation literature is not well developed. This paper focuses on the effects that can be achieved through business model innovation, in particular organizational sustainability. In this regard, the paper focuses on the organizational design and governance and the role different stakeholders, predominantly customers and partners play in the innovation process towards organizational sustainability. Finally, the ways by which organizational performance is influenced by different business models are also explored, aiming to shed light on this theoretical gap. The results provide insights to manufacturers in developing countries, overcoming their dependence on commoditized products and OEM manufacturing while maintaining a sustainable ecosystem. Finally, implications for theory, policy, and practice are outlined along with the suggestions for future research.
TL;DR: In this article, the characteristics and commonalities between particular bike-sharing systems in urban areas, with a view to deriving influences on the sustainability of such systems, are explored.
DOI•
19 Mar 2015TL;DR: Osterwalder and Pigneur as discussed by the authors further explored the link between business models and value propositions in the 2014 publication Value Proposition Design (VPD) and published a Book Review on the new publication.
Abstract: Leading on from the bestselling 2010 book Business Model Generation (VPD), Alexander Osterwalder and Yves Pigneur, this time flanked by Greg Bernarda, Alan Smith and Trish Papadakos, set out to further the intricate link between business models and value propositions in the 2014 publication Value Proposition Design (VPD). This is a Book Review on the new publication.
29 Aug 2015
TL;DR: In this paper, the authors review the main conceptual developments of the past two decades and highlight three contributions that business model research is poised to make to the domain of strategic entrepreneurship, and, by extension, to its constituent disciplines of strategy and entrepreneurship: reconnecting strategy with entrepreneurship; suggesting a more central place for customers in our frameworks and analyses; and emphasizing the importance of implementation.
Abstract: The study of business models involves exploring how firms do business at the system level. It lies at the intersection of strategy and entrepreneurship research and is, therefore, a topic of interest for scholars of strategic entrepreneurship. The purpose of this special issue is to publish work that develops theory on business models, or empirically investigates the phenomenon, and to inspire future research on the topic. In our introduction, we briefly review the main conceptual developments of the past two decades. We highlight three contributions that business model research is poised to make to the domain of strategic entrepreneurship, and, by extension, to its constituent disciplines of strategy and entrepreneurship: (1) reconnecting strategy with entrepreneurship; (2) suggesting a more central place for customers in our frameworks and analyses; and (3) emphasizing the importance of implementation. We subsequently present the articles in this special issue and explain how they relate to these themes. We conclude with suggestions for future research. Copyright © 2015 Strategic Management Society.
TL;DR: In this paper, a theoretical framework was developed to identify two types of incumbent assets, complementary and conflicting, and highlight the influence of two managerial choices that create opportunities to translate the potential provided by incumbent assets into higher performance.
Abstract: Many incumbent firms respond to the emergence of a disruptive business model by adding the business model into their existing ones. But, not all incumbents perform better after adding new business models to their existing ones; that raises the question about the conditions under which adding a new business model improves incumbent performance. We develop a theoretical framework to address that question. After identifying two types of incumbent assets, complementary and conflicting, we highlight the influence of two managerial choices—timing and organizational mode of the new business model addition—that create opportunities to translate the potential provided by incumbent assets into higher performance. The proposed discriminating alignment thesis states that incumbent performance after new business model addition improves when the incumbent firm aligns complementary assets with earlier addition of the new business model and conflicting assets with an autonomous business unit for the new business model. To test these hypotheses, we analyzed the performance change of those physical store-based retailers that added online retailing as a new business model. The test results supported all hypotheses, and key theoretical and managerial implications are presented. Copyright © 2015 Strategic Management Society.
02 Apr 2015
TL;DR: An IoT E-business model is proposed, which is specially designed for the IoTE-business, which redesign many elements in traditional E- business models; and the transaction of smart property and paid data on the IoT with the help of P2P trade based on the Blockchain and smart contract is realized.
Abstract: Nowadays, the development of traditional business models become more and more mature that people use them to guide various kinds of E-business activities. Internet of things(IoT), being an innovative revolution over the Internet, becomes a new platform for E-business. However, old business models could hardly fit for the E-business on the IoT. In this article, we 1) propose an IoT E-business model, which is specially designed for the IoT E-business; 2) redesign many elements in traditional E-business models; 3) realize the transaction of smart property and paid data on the IoT with the help of P2P trade based on the Blockchain and smart contract. We also experiment our design and make a comprehensive discuss.
TL;DR: In this article, the authors examine initial design approaches in the areas of qualifications, leadership and demography-resistant work architectures to achieve a positive influence on key performance indicators, organizational approaches to enterprise architecture should not be restricted to purely technical aspects but should instead put the focus firmly on employees.
01 Mar 2015
TL;DR: The International Integrated Reporting Council (IIRC) has recently produced a reporting framework for the preparation of a concise, user-oriented corporate report which expands the scope of a company's reporting using a multiple capitals concept as mentioned in this paper.
Abstract: This paper provides insights into salient issues in the development of the Integrated Reporting ( ) Framework, and emerging issues in the implementation of this Framework, with the aim of identifying opportunities for future research The International Integrated Reporting Council (IIRC) has recently produced a reporting framework for the preparation of a concise, user-oriented corporate report which expands the scope of a company’s reporting using a multiple capitals concept and requires a description of a company’s business model, allowing a better communication of its value creation proposition To gain international acceptance, the market-based benefits of adopting the framework must be demonstrated
TL;DR: In this article, the authors propose four central propositions about the purpose, accountability, control and success of business, and close with a consideration of several important theoretical issues and practical opportunities that await us in the future.
TL;DR: In this article, the authors define service triads, both as a phenomenon and a research topic, and provide a review of different strands of existing research and various theoretical frameworks that can inform their study.
Posted Content•
TL;DR: The authors developed a typology of incumbent adaptations to emerging disruptive business model innovations, based on two generic strategies: (i) explorative adoption of disruptive business models, (ii) exploitative strengthening of the existing business model.
Abstract: We develop a typology of incumbent adaptations to emerging disruptive business model innovations, based on two generic strategies: (i) explorative adoption of a disruptive business model, (ii) exploitative strengthening of the existing business model. We derive and test hypotheses concerning the cognitive antecedents of managerial intentions to embrace each of the two adaptation strategies. The results from our study of the real estate brokerage industry show that the explorative intentions are driven by opportunity perception, perceived performance-reducing threat, and risk experience. Exploitative intentions are negatively associated with perceived critical threat and industry tenure, and positively associated with risk experience. We contribute to the literature on disruptive business models by combining prior research into a definable framework, and by testing the cognitive influences on strategic response.
TL;DR: This paper developed a typology of incumbent adaptations to emerging disruptive business model innovations, based on two generic strategies: (1) explorative adoption of disruptive business models; and (2) exploitative strengthening of the existing business model.
Abstract: We develop a typology of incumbent adaptations to emerging disruptive business model innovations, based on two generic strategies: (1) explorative adoption of a disruptive business model; and (2) exploitative strengthening of the existing business model. We derive and test hypotheses concerning the cognitive antecedents of managerial intentions to embrace each of the two adaptation strategies. The results from our study of the real estate brokerage industry show that the explorative intentions are driven by opportunity perception, perceived performance-reducing threat, and risk experience. Exploitative intentions are negatively associated with perceived critical threat and industry tenure and positively associated with risk experience. We contribute to the literature on disruptive business models by combining prior research into a definable framework and by testing the cognitive influences on strategic response. Copyright © 2015 Strategic Management Society.
TL;DR: In this article, the authors examined the factors that affect firm performance in a sample of 376 small and medium-sized Italian enterprises over the period 2000-2010 and found that a modification of the business model has a positive effect on the ability of the firm to perform well.
Abstract: This paper examines the factors that affect firm performance in a sample of 376 small- and medium-sized Italian enterprises over the period 2000–2010. It looks in particular at changes in business models and investments in intangibles. We compared firms that continued to be managed through an existing business model with matched firms that changed their business model over the period. We found that a modification of the business model has a positive effect on the ability of the firm to perform well. There was also a positive complementary effect on performance of business model change and intangibles. These results are even more evident when business model changes were categorised by their degree of innovation, suggesting that business model innovation is core to firm performance and that intangibles are positive moderators. They play a crucial role in shaping the firm’s competences, which favour the success of an innovative business model configuration.
01 Jan 2015
TL;DR: It is found that digital transformation is more than just a technological shift, and these transformations have had an impact on the business models, the operational processes and the end-users experience.
Abstract: Digital market has never been so unstable due to more and more demanding users and new disruptive competitors. CEOs from most of industries investigate digitalization opportunities. Through a Systematic Literature Review, we found that digital transformation is more than just a technological shift. According to this study, these transformations have had an impact on the business models, the operational processes and the end-users experience. Considering the richness of this topic, we had proposed a research agenda of digital transformation in a managerial perspective.