A Conceptual Framework for Business Model Innovation of South African Smart Aerotropoli

Abstract

AbstractTraditional airport business models of state-owned and regulated airports rely on aeronautical and non-aeronautical revenue streams using standard technologies. Aeronautical revenue is derived from airline landing and parking fees as well as passenger fees while non-aeronautical revenue is derived from property rentals, car parking charges, retail concessionaires, car rental companies, and so forth. Traditional business models limit the revenue streams for airport profits and while Airport 4.0 business models have been proposed, traditional business models for airports remain in use, following a low-cost business model. The wake of the 4th Industrial Revolution (4IR) holds much promise for the airport industry to rejuvenate their business models and create a larger profit margin on the way to becoming a smart aerotropolis. This article formulates a set of qualitative propositions through an analyses of business model innovations (BMIs) and 4IR theories, amongst other, smart cities, the Internet of Things (IoT), Artificial Intelligence (AI), BMI and technology roadmapping. On the strength of the said propositions a framework for business model innovation for smart aerotropoli is developed. The framework is validated via considerations from Airports Company South Africa (ACSA) as part of their endeavor to improve on the value proposition for customers. Future work in this area will follow a longitudinal research time horizon by validating and enhancing the framework during the unfolding of the ACSA plan for South African aerotropoli.KeywordsAerotopoliArtificial Intelligence (AI)Business Model Innovation (BMI)Internet of Things (IoT)Philosophy of technologySmart cityTechnology roadmapping