- Supplementary Content
- 10.25394/pgs.12118197.v1
A System Perspective on Business Models
- Apr 17, 2020
- Figshare
- Jucun Liu
A System Perspective on Business Models
From Business Model to Contribution Model
A System Perspective on Business Models
A System Perspective on Business Models
A uniform approach for access control and business models with explicit rule realization
Access control is an important part of security in software, such as business applications, since it determines the access of users to objects and operations and the constraints of this access. Business and access control models are expressed using different representations. In addition, access control rules are not generally defined explicitly from access control models. Even though the business model and access control model are two separate modeling abstractions, they are inter-connected as access control is part of any business model. Therefore, the first goal is to add access control models to business models using the same fundamental building blocks. The second goal is to use these models and define general access control rules explicitly from these models so that the connection between models and their realizations are also present. This paper describes a new common representation for business models and classes of access control models based on the Resource---Event---Agent (REA) modeling approach to business models. In addition, the connection between models and their represented rules is clearly defined. We present a uniform approach to business and access control models. First, access control primitives are mapped onto REA-based access control patterns. Then, REA-based access control patterns are combined to define access control models. Based on these models, general access control rules are expressed in Extended Backus---Naur Form.
Read more"Green Multi Business Models” How to Measure Green Business Models and Green Business Model Innovation?
Ever since the branching of the sustainable and circular literature on business models of the late 2000s and early 2010´s, academia´s, businesses and societies have been experimenting with how to measure green business models. Green Business Model design—creating, capturing, delivering, receiving and consuming TO BE Business Models, Business Model Reconfiguration—focusing on changing AS IS Business Models into becoming or being green and Green Business Model Development—focusing on the tactical parameters of Green Business Models are 3 very different areas of measuring green related to business models and business model innovation. Several tools and actions can in these cases be taken into consideration, when measuring Green Business Models and Green Business Model Innovation. However, it seems as if there is a gap in literature and practice on how to really measure these Green BM Parameters. More specifically—How to measure green related to business models and How to measure green related to business model innovation. None seems yet to be able to measure green business models in real time and none seems to offer green business model measurement on all Green Business Model Parameters in symbiosis with monetary business model parameters. One of the reasons is that there is no clear definitions of green business model parameters although numerous green certificates exist, and several consultancies capitalise heavily on the billion dollar green business model certificate ecosystem for measuring and validating transformation of “AS IS” and “TO BE” business model ecosystems, businesses and their related business models into green. Most definitions and certificates also seem to be pure static and adapted as copies of former iso measurement standards. Very few offer and use advanced technologies to measure the green business model parameters in real-time. Further there is a lack of advanced measurement technologies that are able to measure on all green business model parameters within internet time together with monetary business model parameters. The paper presents some preliminary work on green business model measuring based on data from 240 SME businesses and reports on some preliminary work on a Green Business Model Dashboard in the EU Interreg, Kask GREENBIZZ project aimed at measuring—How green a business and its related business models really are?—and in real time.
Read moreInnovative Technology Model to Enable Social Media Users to Control and Monetize Personal data
Social media users cannot protect privacy or control the use of internet activity and other personal data collected by social media enterprises. Numerous studies and surveys confirm that social media users and the public at large are increasingly concerned about privacy and activities of social media companies. This author examined what are the societal and user concerns about privacy self-management (PSM), data security, and social media company actions and asks if this suggests that there might be potential market interest in a social media platform to ensure user PSM, control, and monetization their data. The author then reviewed what market-driven applications using existing technology could be used to develop a social media platform to allow the user to ensure privacy and control of PSM and Personal Data, and to monetize activity and static user data. It then developed a conceptual functional model of the platform using existing technology.Social media enterprise business models and technologies drive the revenue strategies of the enterprise. Those models benefit the enterprise’s customers, such as advertisers and merchants, and drive technology design and development to more effectively user data to evaluate, track, and influence those individuals. The users, and their personal data, are the products, not the customers; they have little control or even knowledge about the collection and use of their personal data; and do not realize direct value from its use. These business models create profit for social media enterprises, and increasing concern is being expressed by individuals and governments that commercial excesses do not benefit individuals, create risk, and, through behavior modification, cause actual harm. Yet, the very business models that use free or cheaply acquired personal data to influence individuals make it impossible, or highly difficult, for the industry to become more sensitive to the users’ (in particular, non-paying users) needs, rights, desires, and wellbeing.The author provided a background on the current state of the social media market space. The researcher reviewed published statistics on social media use and privacy, government and legislative actions to regulate social media enterprise activities, and business and technology models that social media enterprises employ to collect and exploit social media user data. The author also provided a background on user preferences and societal concerns about privacy and control of personal data. The researcher conducted a survey of late Millennial and Generation Z (18-39) social media users to gauge market interest in social media services that would safeguard their personal data and enable these users to monetize their data. The author investigated whether there is sufficient interest in an alternative business model supported by existing and new technology that could disrupt the existing social media industry by enabling individuals to gain control, secure, establish ownership of their own user data and create value for themselves by monetizing their own data.The author illustrated a conceptual systems engineering model that integrates existing technology (e.g., open source and licensed software, and commercial services). The researcher examined the feasibility of the model using four methods: conducting a literature search on relevant, existing technologies to protect privacy, control, and monetize social media user data; building a high-level systems model; validating technology choices by review of an expert panel; and validating model functionality by simulating several use cases. The author established that there is almost universal concern about privacy and increasing concern about behavioral manipulation and actual harm caused by social media as well as a desire by users to be able to control their private data. The author concluded that there is a market opportunity for a platform that would enable social media users to control and monetize personal data.The author also determined that there are numerous off-the-shelf open source and commercial technologies available to integrate into a privacy-forward social media platform with a minimum of capital, appropriate for a start-up enterprise. The author concluded by developing a systems model using available technology that a platform that could be built that would enable social media users to control and monetize personal data. <br>
Read moreCan profit and sustainability goals co-exist? New business models for hybrid firms
PurposeThis paper aims to discuss hybrid organizations whose business models blur the boundary between for-profit and nonprofit worlds. With the aim of understanding how hybrid organizations have developed commercially viable business models to create positive social and environmental change, the authors contend that hybrids are altering long-held business norms and conceptions of the role of the corporation in society. Building on an analysis of the most updated literature on hybrid organizations and with the use of case study approach, the purpose of this paper is to derive managerial lessons that traditional businesses may apply to innovate their business models.Design/methodology/approachThis paper has a practical focus to help organizations to develop successful business strategies and design innovative business models. It applies emerging thinking on hybrid business models to provide new insights and ideas on the use of business models as tools for innovating and delivering value. To comply with this, first, the authors discuss the distinctive characteristics of hybrids and the hybrid business model through a concise but comprehensive review of all the literature on hybrid organization, which is still very recent. Second, we relied on a short case study that introduces information technology and digital innovation as the premises of the emergence of a new hybrid business model that adds additional elements to traditional business managers on how to learn from hybrid organizations’ avenues to innovate their business models.FindingsIn this paper, the authors aimed to shed light on the management of any organization or initiative that aims to embrace multiple and competing yet potentially synergistic goals, as is increasingly the case in modern corporations. Spotting hidden complementarities of antagonistic assets can be arduous, time-consuming, costly and risky, but businesses driven by innovation may want to keep a close eye on the expanding hybrid sector as a source of future entrepreneurial opportunities. To this regard, hybrid social ventures have the potential to shed light on ways to innovate traditional business models. The essence of studying hybrids is that firms may learn how to innovate their business models in ways that go beyond current conceptualizations, making their mission profitable, rather than making profit their only mission! The research design (literature analysis and case study) allowed the authors to disentangle different innovative business models that hybrids suggest highlight strengths and weaknesses of such business models, understand strategies and capabilities associated with hybrids and transpose all these lessons learned to traditional business managers who constantly struggle for innovation.Research limitations/implicationsThe main implication is that hybrid organizations may serve as incubators for new practices that can gain scale and impact by infusion into existing corporations. The authors can assist to a process of “hybridization” of incumbent firms, pushing the boundaries of corporate sustainability efforts toward strategies in which profit and social purpose share more equal footing.Practical implicationsFirms interested in benefiting from antagonistic assets that can have a dramatic impact on their business model innovation may want to consider some lessons: firms can attempt to build antagonistic assets into their mission, asking themselves what activities they can undertake with the potential to create (or erode) social, environmental and economic value and how these activities might be mediated by the context/environment in which they operate; they can partner with hybrids to benefit from them and absorb competencies from them, so to increase their likelihood to generate value-creating activities and to impact on wider range of stakeholders, including funders, partners, beneficiaries and communities; they can mimic hybrids on how to innovate their business model through the use of the “deliberate resource misfit” dynamic capability, mitigating negative impacts and trade-offs and maximizing positive value spillovers, both for the firms themselves and for the community.Social implicationsSharing know-how with hybrids opens up to ways to innovate business models, and hybrids are much more open to sharing lessons and encouraging others to copy their approaches in a genuine open innovation approach.Originality/valueThe main lesson businesses can take away from studying hybrids is that antagonistic assets – and not only profitable complementary ones, as the resource-based view would suggest – do not have to be a burden on profits. Hybrids ground their strategy first and foremost on their beneficiaries, thus dealing with a bundle of antagonistic assets. The primary objective of hybrids is thus to find imaginative ways of generating profits from their given resources rather than acquiring the resources that generate the highest profit. Profit is the ultimate goal of traditional businesses’ mission, but by making profit their only mission, firms risk missing out on the hidden opportunities latent in antagonistic assets. Learning from hybrids about how to align profits and societal impact may be a driver of long-term competitive advantage.
Read moreBusiness Models and Strategic Management: A New Integration
<p><b><i>Business Models and Strategic Management</i> provides a unique yet simple and powerful approach to understand the business model and the critical role strategic management has in supporting it.</b> Its value is in business model thinking and brings you a combination of the best contributions of academe and industry that will help build business model-centric organizations.</p><p>Inside, you'll learn about strategy from a business model perspective. What does that mean? It means that you'll first have to think rigorously about your value proposition; your current or future competencies; and your revenue streams and cost structure before developing, adopting, or modifying your strategies. What is the difference between a business model and a strategy? A business model is how a company operates, and a strategy is how a company competes. When the basis of competition changes because a new model disrupts the economics in the industry, it requires an adjustment in business models before any new strategy can work.</p><p>This book adds a business model level to the traditional strategic management process that is more consistent with current 'real-world' practices in strategic thinking and analysis. It takes you deeper into the intricacies of what constitutes a business model and how current strategy derives from it, and offers 7 modules that will show you the key components to manage your business model, to help conduct business model analysis, and to assess the financial viability of a business model, just to name a few.</p>
Read moreNavigating Manufacturing Firms to Service-led Business Models: A multi-case study from the capital goods industry
This thesis tackles an increasingly popular phenomenon – servitization of manufacturing – a growth opportunity for industrial firms through a service-led business model. However, implementing a servitization strategy in industrial firms triggers multifaceted challenges and requires further research. The thesis builds on extensive studies of world leading multinational capital equipment manufacturers that develop a successful service business model. The dissertation builds on three closely interconnected studies. The first study is an in-depth exploratory case study of a Swedish industrial firm by cross-comparing two servitization initiatives—one that was highly successful, and one that was less so. The second study juxtaposes 10 worldwide subsidiaries of the same Swedish industrial firm to compare and contrast how the servitization process unfolded. This study focuses on the management of service capability development, as well as the management of emerging tensions between the product business units and service business units. The third study extends the research scope by analyzing four industrial firms that successfully developed advanced services (e.g. outcome-based contracts). Finally, the fourth study focuses on 12 case studies of product providers that shifted to open business models. This thesis contributes to the servitization literature and business model literature by demarcating three business model archetypes for industrial firms: product business model, service business models and outcome business model. This thesis unpacks the content of the business model elements that underpins business model archetypes as well as the configuration and the relationship between the business model elements.
Read moreThe Analysis of Grab's Business Model and Revenue Strategies
With the development of technology and the times, the global economy and business environment are constantly changing. Relying on the introduction of new business models to maintain continuous transformation and innovation capability is significant for companies to survive and thrive in a rapidly changing business environment. In an increasingly competitive business environment, the business model is a very effective conceptual strategic analysis tool. Operating a business with the right business model can accelerate the accumulation of wealth. The global market after the pandemic is filled with new challenges and opportunities, but without a perfect business model, it will be equally difficult to make money. From a business operator's or an investors view, learning about business models and pricing strategies is significant. A good pricing strategy can reflect the value of a business model, while the business model can address commercial issues. In this article, the author will analyze the business model and pricing strategy of a specific company. This research includes three aspects: Multi-Sided Platform Model, Service Expansion and Diversification (two aspects studying business models), and Revenue Strategies (studying pricing strategies). These parts show that, the new business model and revenue strategy effectively protect Grab's interests.
Read moreBusiness models in global competition
Research SummaryMultinational enterprises create and capture value through appropriate business models that fit both distinctive capabilities and dynamic markets. The key elements of a global business model include propositions for adding customer value and capturing a share of that value, methods to control, deploy, and utilize critical resources, and integrated processes that deliver value to target global customers. These factors explain the diversity in business models, with international competition in geographically dispersed markets further fortifying this diversity and complexity. This article demonstrates ways forward in theorizing about business models, applying these models in the global context, discussing capabilities and strategies necessary for value generation from a global business model, and relating the choice of model to the strategic context of the modern multinational firm.Managerial SummaryMNEs seek value in the global marketplace through distinctive business models, as is the case in other markets. Global markets add layers of complication, as the MNE needs both a global umbrella business model and a local business model for each product and international host market. Because the global business environment is highly dynamic and each host market offers unique contextual characteristics, simple and fixed business models are not feasible. This article offers insights into how aspects of the business model and the multinational firm must be adapted to locational characteristics.A video abstract is available at https://www.youtube.com/watch?v=YGSNWO4zk2Q.
Read moreCrafting business models for conflicting goals: Lessons from creative service firms
Crafting business models for conflicting goals: Lessons from creative service firms
IMPROVEMENT OF AGRIBUSINESS ENTERPRISE BUSINESS MODELS TO ENSURE STRATEGIC DEVELOPMENT
The development of an enterprise often requires a change in the business model. Therefore, assessing the effectiveness of current business models and searching for opportunities for their transformation and optimization should be a constant element of strategic management. This is relevant for both industrial and agricultural enterprises. Improving business models based on innovative technologies is the key to their strategic development. This makes the topic of the article relevant. The article uses methods of analysis and comparison. The canvas method was used to display the business model in the example of Syngenta LLC. The integral strategy success indicator assessed the strategy's effectiveness under the current business model. The article addresses the issue of improving the business models of agribusiness enterprises as a crucial tool for ensuring strategic development in the modern market environment. It outlines enterprises' critical challenges, including digitalization, increasing competition, market instability, and the need to implement environmental standards. An analysis of modern approaches to business model improvement is presented, focusing on resource optimization, integration of innovative technologies, enhancement of business process flexibility, and improvement of management decisions. The example of Syngenta LLC illustrates the process of analyzing a business model with an assessment of the effectiveness of the current strategy. Particular attention is given to defining strategies to increase agribusiness enterprises' competitiveness and adaptability to external changes. The article provides practical recommendations for adapting and implementing new business models that promote sustainable enterprise development, enhance operational efficiency, and achieve long-term strategic goals. The research findings have practical significance and can be utilized by managers, analysts, and strategic management professionals to develop and implement practical approaches for modernizing business models.
Read moreService Logic Business Model Canvas
PurposeThe purpose of this study is to develop a service logic oriented framework for business model development. “Service logic” covers the basic principles of the three contemporary customer value focused business logics: service-dominant logic, service logic and customer-dominant logic.Design/methodology/approachThis study is based on an empirical qualitative research and deployed the focus group method. The data are generated in a series of interactive co-creative focus group workshops involving both practitioners and academics.FindingsAs the outcome, a new tool was developed, called Service Logic Business Model Canvas. The new canvas is a modified version of the original Business Model Canvas (Osterwalder and Pigneur, 2010).Research limitations/implicationsThis study adopts service logic in business model thinking and increases knowledge on how to keep the customer needs in the centre of business model development.Practical implicationsThe developed canvas makes the theory of service-dominant logic tangible and easily applicable in practice. It enables service innovation truly based on customer value by ensuring that the customer is in the centre of all the elements of a business model. It can function both as a rapid prototype of a new business model and as a communication tool that quickly illustrates the company’s current business model. It can also help in creating a customer-centred business culture. It is designed to be applied to each customer profile separately, thus enabling a deeper understanding of the customer logic of each relevant profile.Originality/valueEarlier business model frameworks tend to be provider-centric and goods-dominant, and require further development and adaptation to service logic. This study adopts service logic in business model thinking. It embeds the true and deep customer understanding and customer value in each element of the business model, and contributes to both business model and service-dominant logic literature.
Read moreAn analytical framework for evaluating e‐commerce business models and strategies
Electronic commerce or business is more than just another way to sustain or enhance existing business practices. Rather, e‐commerce is a paradigm shift. It is a “disruptive” innovation that is radically changing the traditional way of doing business. The industry is moving so fast because it operates under totally different principles and work rules in the digital economy. A general rule in e‐commerce is that there is no simple prescription and almost no such thing as an established business or revenue model for companies even within the same industry. Under such conditions, an analytical framework is needed to assist e‐commerce planners and strategic managers in assessing the critical success factors when formulating e‐commerce business models and strategies. This research develops an analytical framework based on the theories of transaction costs and switching costs. Both demand‐side and supply‐side economies of scale and scope are also applied to the development of this framework. In addition, e‐commerce revenue models and strategies are also discussed. Based on the analytical framework developed by this research, this paper discusses the five essential steps for e‐commerce success. They are: redefine the competitive advantage; rethink business strategy; re‐examine traditional business and revenue models, re‐engineer the corporation and Web site; and re‐invent customer service. E‐commerce planners and strategic managers will be able to use the framework to analyze and evaluate the critical successful factors for e‐commerce success.
Read moreBusiness Modeling & Entrepreneurship Education: Friends or Foes?
Imagine a New Venture Creation class full of enthusiastic young students. Soon, you will divide them into groups and set them the task of coming up with innovative business ideas and models, which they will later need to implement in practice. How can you help your students to explore and learn about their intrinsic, subconsciously generated motivation, aspirations, persistence, intuition, drive, desire, and passion? What tools and frameworks should you use to facilitate your students in their pursuit of creating new ventures? Many entrepreneurship educators turn to all-inclusive business modeling tools (e.g., the Business Model Canvas) to help their students in the process of New Venture Creation. The results of our case study, however, indicate the difficulties faced by entrepreneurship students in learning and developing “soft” skills when they rely on such tools. This is indicative of the instrumental focus in modern entrepreneurship education, highlighting a need to identify tools and techniques to f...
Read moreCompetitive dynamics and business models in service business: a promising research subject
Successful firms create substantial value by doing things in ways that differentiate them from the competition. Business models reflect choices and their operating implications. They facilitate the analysis, testing, and validation of the cause-and-effect relationships that flow from the strategic choices. Due to business models are one of the main forces driving strategic renewal efforts of businesses around the world, we focus on service industry companies and their unique characteristics, with regard to new business and competition models that service companies use for strategic management and on how such models mesh with the traditional processes of competitive and corporative strategies.
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