Dynamic Business Model Research Articles

Enterprise Architecture: Twenty Years of the GERAM Framework

Apart from the 20-year anniversary in 2014 of the first publication of the GERAM ('Generalised Enterprise Reference Architecture and Methodology') Enterprise Architecture Framework, the timeliness of this paper lies in the new interest in the use of systems theory in Enterprise Architecture (EA), and consequently, 'light-weight' architecture frameworks (AFs). Thus, this paper is about the use of systems thinking and systems theory in EA and about how it is possible to reconcile and understand, based on a single overarching framework, the interplay of two major enterprise change endeavours: on the one hand enterprise engineering (i.e. deliberate change) and on the other hand evolutionary, organic change. The paper also attempts to show how such change processes can be illustrated by employing systems thinking to construct dynamic business models: the evolution of these concepts is exemplified with some past applications in networked enterprise building and more recent proposals in environmental, disaster and healthcare management. Finally, the paper attempts to plot the way GERAM will continue to contribute to society in the context of future challenges and emerging opportunities.

DYNAMIC BUSINESS MODEL BASED ON RESEARCH IN POWER ELECTRONICS INDUSTRY

Abstract The recent global economic crisis has caused an uncertain and challenging business environment and has battered managements that are running businesses all over the world. This paper focuses on new capabilities that can be used successfully in a fast changing business environment for improving firms’ efficiency. This research utilizes constructive approach including interviews and case studies. The relevant findings of the study are the elements of the key success factors: entrepreneurial strategy, R&D to market performance, dynamic operational excellence and innovativeness with links to the key actions which have led to new business model called dynamic business model (DBC). This research focuses on power electronics business industry which at the same time is a limitation. This research helps directors and managers to think more widely and make better decisions for the success of the company. This research results bring additional value of the previous studies regarding a firm’s key success factors and dynamic capabilities.

The transition from products to solutions: External business model fit and dynamics

This article provides empirical evidence and contributes to theory building concerning business model fit and dynamics in the area of solutions business. Business models are seen in this context as going beyond considerations such as offerings and internal processes or even relationships, and as including network and market considerations. Indeed the paper highlights the fact that a business model is not firm-focused, nor dyad-focused, but rather network-, and even market-focused, demonstrating that a business model is not static, but dynamic. Manufacturer and customer continuously shift form and content of their respective business models to adapt both to the needs of the counterpart and to market context. A qualitative case study approach is adopted, with subsequent content analysis. The case study relates to the aerospace industry with focus on a complex engineering firm, one of the largest aircraft manufacturers in the world, its customer — a national airline — and their network partners of various kinds. The data were collected through multiple face-to-face interviews with managers in both companies, as a part and parcel of a network of actors that influences and is influenced by the supplier–buyer relationship. Relationships over time between these firms and network partners are described, highlighting the interplay of products and services related to the provision of solutions. Findings highlight the dynamic nature of business models over the relationship lifecycle between supplier and customer in a complex engineering environment, and the need for reciprocal adjustment of models.

Dynamic Business Model Innovation: Proposing an Integrated Organizing Framework

In today’s global competitive landscape business model innovation (BMI) is a top priority for executives as well as an appealing field of study for researchers. Despite this point, this field is still in its infancy both theoretically and practically. With respect to this fact, this article proposes a model for organizing business model innovation in a dynamic manner based on the principles of three contemporary theories, dynamic capabilities, strategic entrepreneurship and value networks within the context of new market discovery and design. Therefore, this framework synthesizes three dimensions of modern competitiveness and sheds light on a conceptual architecture for creating new businesses. As a consequence, this essay provides a new set of insights for both executives and researchers and streamlines understanding of BMI from a broader perspective .Hence, this study contributes to the existing body of strategic management knowledge by enriching the body of business modeling and strategic positioning literature and opening new avenues for further conceptualizations and empirical scrutinizes.

Developing and manipulating business models applying system dynamics approach

PurposeConsidering the significant necessity of organization's conformity with environmental changes and also the importance of predicting the result of managerial decisions, this research has been accomplished with the purpose of designing a dynamic business model. In today's ever changing business environment, the simulation of different decision making scenarios is obligatory for managers in order to create the possibility of studying the effects of decision results on business model (BM) components, interrelation of component and total benefits in an organization. Therefore, the purpose of this paper is to take advantage of the dynamic system approach as an operational, quantitative and flexible approach for business model simulation.Design/methodology/approachBased on this purpose, related literature was thoroughly reviewed and proportionate with the level of study and research approach, Business Model Ontology (BMO) was chosen. The model designed using the system dynamics approach and its structure was evaluated via expert judgment. In the next step, some scenarios were developed and executed to confirm the behavior of the model and also to evaluate the importance of applying the dynamic approach in business model simulation.FindingsThese results show that decision making for a BM change leads to complexities and dynamic behavior of business components and also other actor reactions which are usually nonlinear and complex. In this regard this paper suggests dynamic simulation utilization to predict and analyze the results.Originality/valueThe system dynamic approach has precedents in business studies; however, this research makes this approach operational in BM design and analysis.

Dynamics of Business Models – Strategizing, Critical Capabilities and Activities for Sustained Value Creation

Much progress has been made recently in developing the business model concept. However, one issue remains poorly understood, despite its importance for managers, policy makers, and academics alike, namely, how companies change and develop their business models to achieve sustained value creation. Companies which manage to create value over extended periods of time successfully shape, adapt and renew their business models to fuel such value creation. Drawing on findings from a research program on continuously growing firms, this paper identifies three critical capabilities, namely an orientation towards experimenting with and exploiting new business opportunities; a balanced use of resources; as well as achieving coherence between leadership, culture, and employee commitment, together shaping key strategizing actions. Moreover, we illustrate how each of these capabilities is supported by different sets of specific activities. Jointly, these three capabilities, their activities and the strategizing actions act as complementarities for value creation. We conclude the paper by suggesting implications for research and practitioners, providing a tool for managers which allows them to reflect on and identify critical issues relevant for changing and developing their business model to sustain value creation.

Mobile Business Intelligence for Small and Medium Sized Mobile Enterprises

Business intelligence has a key part in every business. It gives information to support the business decisions. All businesses go through lots of data and information exchange every day. There is a wealth of valuable information in this data. This information can be needed at different places and time, depending upon type of business. Some businesses works from local site while some from remote site. Some businesses even run from the mobile vans. Thus, in this dynamic business model, it is hard to manage the information. The existing legacy systems and their architecture lacks the potential to support these functionalities. Moreover, they are complex and expensive which makes it out of reach for Small and Medium Sized Enterprises (SME). By using the power of current mobile technology and open source software API (Application Program Interface), the SMEs can be served with the power of business intelligence at cheap cost.

Beyond high tech: the pivotal role of technology in start-up business model design

Technology plays an important role for any start-up – as an opportunity to be exploited, as well as an enabler to structure the start-up’s activities to better generate value. The business model is a useful tool in these settings to keep track of technology and understand its potential value for the start-up. To analyse the interrelation between business model development and technology change, a multiple case study approach was conducted. Using a maximum variation strategy, three cases of start-ups depicting the range of technological discontinuity were selected. Analysis of these resulted in three different ways in which technology use in new ventures influenced business model development and vice versa. In addition, this paper introduces the business model dynamics framework as a tool for pro-active, continuous business modelling and analysis.

Business model dynamics and innovation: (re)establishing the missing linkages

PurposeThis paper aims to discuss the need to dynamize the existing conceptualization of business model, and proposes a new typology to distinguish different types of business model change.Design/methodology/approachThe paper integrates basic insights of innovation, business process and routine research into the concept of business model. The main focus of the paper is on strategic and terminological issues.FindingsThe paper offers a new, process‐based conceptualization of business model, which recognizes and integrates the role of individual agency. Based on this, it distinguishes and specifies four different types of business model change: business model creation, extension, revision, and termination. Each type of business model change is associated with specific challenges.Practical implicationsThe proposed typology can serve as a basis for developing a management tool to evaluate the impact of specific changes to a firm's business model. Such a tool would be particularly useful in identifying path dependencies and resistance at the process level, and would therefore allow a firm's management to take focused action on this in advance.Originality/valueThe paper makes two main contributions: first, it offers a new, process‐based conceptualization of business models; second, it is the first paper to establish a direct link between business model change and the degree of innovation (such as “incremental” vs “radical”), and which distinguishes and specifies different types of business model change.

Dynamic capabilities, collaborative network and business model: An empirical analysis of Taiwan HTC Corporation

In the era of hypercompetition in knowledge and technology, the unique capability of high technology industry that is built upon conventional resource-based theory no longer suffices for its operation. Therefore, how companies make use of dynamic capabilities and collaborative network is the primary focus of this study. The study discovers that: 1. In terms of competitive advantages in the high technology industry, besides developing unique skills using corporate resources, companies should also combine dynamic capabilities and collaborative network to ensure the sustainability of such advantages; 2. The determining factors of success of companies lie in the continuous innovation in functional strategies and capabilities regarding research and development, marketing and production; 3. It is crucial to the successful operation of businesses that strategic collaborative relationships are developed among both upstream and downstream companies of the industry in a highly competitive and dynamic business environment; and 4. Companies must continue to revamp their business model in response to industry competitions and product life cycle. The case study of the business model of HTC Corporation and the implications of its management can be used as reference for future studies and actual operation. Key words: Mobile phones, dynamic capabilities, collaborative network, business model, financial performance.

Dynamic Business Model Innovation: Proposing an Integrated Organizing Framework

Dynamic Business Model Innovation: Proposing an Integrated Organizing Framework

Cloud economics: dynamic business models for business on demand

Cloud computing is currently the new buzzword in the Information and Communication Technology (ICT) industry. Early adopters in the market have already established quite stable and reliable offers of cloud-based services. From an economic perspective, each of these services is based on a certain business model. These models are in general used to describe the value-creating logic of organisations within a certain market, e.g., how a company or network of companies aims to make money and create consumer value with cloud offers. Thus, they should be the basis for every company's business. In this work, dynamic business models are introduced. Static, conventional models do not reflect the real world and lack substantial elements of changing market environments, whereas dynamic models express a time-variant view of the market. A key factor for success for the whole cloud-service market will be to avoid confusion about different offers, differentiators and functionality, which may occur during the (ICT-)traditional hype cycle, and could definitely blur essence and usefulness of market offers. The introduced dynamic perspective will allow pointing out the most important limitations and challenges at each hype phase that clouds have to face before becoming real, broad mainstream for enterprises.

The Enterprise Organizational Structure Change Strategy in Internet Times

As the most dynamic business model in the 21st century, Electronic commerce has brought enormous opportunities and challenges for the enterprise development and growth. This article has analyzed the traditional enterprise organizational structure limitations and the requirements of enterprise organizational structure by e-commerce, proposed enterprise organizational structure strategic orientation in Internet times.

Business model dynamics: a case survey

In the turbulent world of e-commerce, companies can only survive by continuously reinventing their business models. However, because most studies look at business models as snapshots in time, there is little insight into how changing market-related, technological and regulatory conditions generally drive revisions in business models. In this paper, we examine which types of external drivers are strongest in forcing business models to change throughout their life cycle. To do so, we study 45 longitudinal case descriptions on business model dynamics of (networks of) organizations in various industries. The results of this survey indicate that technological and market-related forces are the most important drivers of business model dynamics, while regulation plays only a minor role. In particular for start-ups, the effect of technological and market-related drivers is the strongest in the early stages of a new business model, while the effects are moderate over time for established, large companies. Our results provide clues to practitioners on what external factors to take into account in different stages of business model design and redesign.

Business model dynamics

In the turbulent world of e-commerce, companies can only survive by continuously reinventing their business models. However, because most studies look at business models as snapshots in time, there...

Business models dynamics for start-ups and innovating e-businesses

As technology, market and regulation conditions change rapidly, e-business companies frequently have to reinvent their business models. This paper examines which external drivers are most decisive in changing business models during the phases of service development, roll-out and commercialisation. After a qualitative study, 45 longitudinal case descriptions were surveyed on the business model dynamics of start-up and established e-business companies. Technology and market forces turned out to be more decisive, while regulation plays only a minor role. While external drivers are moderately important over time for established companies, their impact on start-up business models is largest during service development and it fades over time.

Learning to Build a Supply Network: An Exploration of Dynamic Business Models

abstract Firms are confronted with the challenge of learning how to develop and manage supply networks, which reduce their operating costs and maximize their effectiveness in the marketplace. In pursuit of such goals they are increasingly turning to the use of dynamic business models. Dynamic business models represent continuous change and therefore make firms learn constantly new and better ways of doing things. These changes are manifestations of inter‐firm knowledge transfer. The aim of this research is to explore dynamic business models as an example of inter‐firm knowledge transfer. Adopting a case study approach, we examine three components of dynamic business models – network structure, inter‐firm routines and knowledge forms – and describe their integration through a problem solving approach to building an offshore supply network. Our empirical findings suggest that dynamic business models help organizations identify and link key actors with each other (at the firm and individual level), and aid the identification and specification of appropriate knowledge types and knowledge transfer mechanisms for different actors, in different contexts.

The Financial Accounting Model from a System Dynamics' Perspective

This paper explores the foundation of the financial accounting model. We examine the properties of the accounting equation as the principal algorithm for the design and the development of a System Dynamics model. Key to the perspective is the foundational requirement that resolves the temporal conflict that resides in a stock and flow model. Through formal analysis the accounting equation is redefined as a cybernetic model by expressing the temporal and dynamic properties of its terms. Articulated in that form the accounting equation is enabled to be defined as a dynamic stock and flow model expressing the two dimensions of the double-entry accounting system. With that formal foundation it is argued that the accounting model is capable to simulate financial dynamics as well as be integrated with models that express operational and world dynamics. Thus we prove that it is possible to design and build a dynamic business model that can meet requirements of management accounting (ex ante, before the fact) as well as financial accounting (ex post, after the fact). We conclude that the dynamic accounting model can be made relevant for strategic planning and control purposes and be integrated within a System Dynamics model designed for such purposes.

Jamaica's Social Pact for Social Impact: Unlocking Jamaica's Potential

Most members of the Private Sector Organization of Jamaica (PSOJ) are operating on a Static Competitive Business Model (SCBM) as opposed to a Dynamic Competitive Business Model (DCBM), which is what is required for firms to survive in the nano-second thinking era of the Knowledge Based Society And Economy (KBSE); Will those survive who are ignoring the new model and does the Government of Jamaica have a role to play?

The PSOJ: Jamaica's Engine of Growth in the 21st Century?

Most members of the Private Sector Organization of Jamaica (PSOJ) are operating on a Static Competitive Business Model (SCBM) as opposed to a Dynamic Competitive Business Model (DCBM), which is what is required for firms to survive in the nano-second thinking era of the Knowledge Based Society And Economy (KBSE); Will those survive who are ignoring the new model and does the Government of Jamaica have a role to play?