Abstract
This article critically appraises business model challenges in implementing remote management functionalities. Remote management is believed to create new service opportunities and foster convergence between previously dissociated islands of end user devices. Conflicting business logics from disparate industries, however, run counter to this attempt at centralization. We introduce a generic business modeling methodology that aims to move beyond traditional ICT investment appraisal techniques by combining four critical dimensions of design. We develop four business model scenarios based on the organizational design choice of ‘degree of vertical integration’ and the product design choices of ‘degree of product modularity’ and ‘distribution of intelligence’ and offer a description of the effect of these design choices on the intended customer value.
Highlights
Our research problem originated from considering the architectural premise that several technical islands of user devices could generate a variety of remotely managed services such as video-on-demand, music-on-demand, personal video recorder (PVR), or remote metering, and could be remotely managed
As the technical silos of end user devices are breaking down, industrial actors are moving from closed loop installations models to customer driven service models
After having conducted a literature review of existing business cases that are relevant for the study of remote management, we provided exploratory questionnaires to all company partners of the cross-industrial project [9]
Summary
Our research problem originated from considering the architectural premise that several technical islands of user devices (for example, the television set, the personal computer, or even the electricity meter) could generate a variety of remotely managed services such as video-on-demand, music-on-demand, personal video recorder (PVR), or remote metering, and could be remotely managed. Providing these services would require implementing a remote service platform (or autoconfiguration server) that performs functions such as service quality control, punctuality and integrity, or installs entirely new functionalities. The on-demand business model allows for a more focused, responsive, variable and resilient response to sudden changes in demand
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