Business Model Options Research Articles

Supply Strategies and Business Model Options for Online Retailers of Agricultural Products

Supply Strategies and Business Model Options for Online Retailers of Agricultural Products

The Development of Mobility as a Service in China and its Impact on Automobile Manufacturers: A Business Model Innovation

Mobility as a Service (MaaS) is the latest buzzword and a driver for disruptive change in the automotive industry. The aim of this paper is to suggest new business models for automobile manufacturers to capture the opportunities and overcome the threats due to the development of MaaS. We first analyze the current situation of the Chinese MaaS market based on three different levels: country level, industry level, and customer level. Based on all the findings, three new business model options: B2B asset provider, Mobility service provider, and Autonomous mobility experience pioneer, are proposed using the 4I framework. After examining the three proposed business models, it is essential to mention that they are not mutually exclusive but complementary and can be used by automobile manufacturers, though not all at the same time. In the short term, automobile manufacturers can modify the business model to become the B2B asset provider. Once the company’s IT infrastructure is developed and ready, it can become a Mobility service provider by offering digital car rental services. In the long-term, autonomous mobility experience pioneers may help to address the issue of declining demand for human-driving vehicles.JEL Codes: M10, M13

Understanding Business Models for the Adoption of Electric Vehicles and Charging Stations: Challenges and Opportunities in Brazil

Although electric vehicle (EV) sales have been increasing over the years, worldwide EV adoption is still low. In Brazil, the key factors influencing this are the EV high acquisition cost and the reduced charging infrastructure. Therefore, traditional business models may not be adequate for Brazil and stagnate EV diffusion. Thus, designing innovative business models can be crucial to accelerate the transition to electric mobility in the region. In this way, this article aims to critically review business models for EV adoption and charging stations worldwide and discuss its application in Brazil. Then, the challenges and opportunities for some business model options are highlighted through the SWOT matrix. One can conclude that EV sharing is a promising business model for Brazil, given the series of advantages such as access to cutting-edge technology at an affordable price, reduction of vehicles on the streets, and given convenience for users (no concern with charging, EV degradation, and parking). However, public policies, subsidies, and coordination between different agents are crucial for the proliferation of this model. On the other hand, for the proposed CS models, the more traditional option is the less risky for investors in Brazil until the number of EVs increase.

Business model options for passenger urban air mobility.

While technological progress towards passenger urban air mobility (UAM) receives high attention, relevant business models for the deployment of these increasingly sophisticated passenger-carrying air vehicles for urban applications get less attention. However, especially in early market stages with high risks of investment and in respect to an often envisioned implementation of transport services in the proximity of urban settlements, it is important that the technology adds value to society. In this paper relevant perspectives to comprehend the current UAM business environment are presented. Possible operator models and customer segments are compiled and matched in three concrete business model approaches for passenger UAM. Scrutinising UAM Airport Shuttle Services shows that even concepts with sufficient demand might still not be adequate for a valid business case due to incomplete and a so far insufficient critical analysis of the overall operational environment. Second, a so far often unconsidered business model for a Company Shuttle Service is introduced, addressing the problem of scaling up UAM services with a dynamically expandable Business-to-Business (B2B) concept. Third, UAM will be discussed as part of public transport, introducing a business model that is inclusive and in strong line with public demands. Finally, these rather different implementation concepts unlock the space for an open-minded discussion on business models in the field of passenger UAM in general.

Determining Business Model Options in Serious Games

Tüm toplumlar için en önemli sorunlardan biri nitelikli insan yetiştirebilmektir. Bu sebeple dünyada eğitimin niteliğini ve öğrencilerin derse olan ilgisini artırmaya çalışılmaktadır. Oyunlaştırma teknikleriyle (çoğunlukla teknoloji kullanılarak) öğrenmenin etkinliğinin artırılabileceğine yönelik değerlendirmeler yapılmaktadır. Oyunlaştırmayla eğitim daha eğlenceli ve katılımcı hale getirilebilmektedir. Oyunlaştırmanın bir alt dalı ise eğitim amaçlı oyunlardır (serious games). Eğitim amaçlı oyunlar okul öncesi eğitimden üniversite eğitimine, toplumu bilinçlendirme çalışmalarından mesleki eğitimlere kadar her düzeydeki eğitimde kullanılma kapasitesine sahiptir. Bu makalenin konusu eğitim amaçlı oyunların iş modellerinin neler olduğunun tespit edilmesidir. Eğitim amaçlı oyunların iş modelleri hedef kitle (oyun kimin için geliştirilecek?), değer önerisi (hedef kitle neden bizi tercih edecek?), dağıtım kanalı (hedef kitleye nasıl ulaşılacak?) ve gelir modeli (masrafları karşılayacak gelir nasıl elde edilecek?) incelenmiştir. Sonuç olarak eğitim amaçlı oyunlar tasarlanırken hedef kitlenin incelenerek değer önerisinin müşterilerin satın alma tercihlerine göre belirlenmesi gerektiği, gelir modeli belirlenirken sadece müşterilerden elde edilecek gelirin değil aynı zamanda eğitime katkı sunacak sponsorların ve hedef kitleye ulaşmak isteyen reklam verenlerin de göz önüne alınması gerektiği tespit edilmiştir.

Business Models as Artefacts Driving Temporal Segmentation and Logic Consolidation

We investigated coexistence of alternative business logics by studying business model differences as manifestations of the underlying logic. We build on institutional complexity by studying the ways in which existing and entering actors rationalize the external and internal drivers of change and turn these into business models. Our results show the close connection between business model and the underlying logic that confines the available business model options for institutionalized actors. The study contributes to the institutional logic theory by illustrating the institutional foundation of a business model, identifying key characteristics of competing business logics, and suggests novel mechanisms of temporal segmentation and logic consolidation for managing the co-existence of the alternative logics.

REDESIGN BUSINESS MODEL OPTIONS FOR "UNIVERSITY OF THE FUTURE" AND STAYING RELEVANT IN THE FOURTH INDUSTRIAL REVOLUTION AGE

Several key studies have shown that the higher education sector is in need of new business models in order to stay relevant and sustainable in the New Digital Age. Pressures and drivers of change – funding, changes in the technology and Fourth Industrial Revolution (4IR), digital socio-economy, and business model, to name a few – that demand institutional change by re-examine its existing business model and value proposition, if success is to be sustained over the long term. The digital changes are dynamic and complex. This paper adopted the design and system thinking approach. Strategy canvas with business modeling tools such as the Environmental Map (EM), Business Model Canvas (BMC) and Value Proposition Design Canvas (VPC) are modeling tools used to design, evaluate alternative business models and value propositions. The tools allows us to design business model options that create value for the business, and value propositions that create value for the customers, thus enabling the creation of sustainable businesses. In this paper we explore the use of business modeling tool to analyse, formulate, and design sustainable business models for the University of the Future (UotF) in facing the New Digital Age challenges and opportunities. Depending on the value proposition offered to targeted customer segments, this paper has established generic business model prototypes for UotF in the facing the challenges and opportunities created by the New Digital Age and 4IR. In our opinion these generic prototype options will help university decision makers, planners and relevant stakeholders to continuously enhance and customise sustainable, agile, and competitive business models.

Business Models for Local 5G Micro Operators

5G will change the mobile communication business ecosystem by introducing location specific high-quality wireless networks that can be operated by different stakeholders. This development will change the traditional business models and ecosystem roles, as well as open the market for new local mobile network operators. These operators, such as recently introduced micro operators, can target specific customers in different vertical sectors with closed 5G networks, serve mobile network operator’s (MNO) customers in high-demand areas on behalf of the MNO as a neutral host with open 5G networks, or mix different types of customers and offerings through various hybrid platform business models. This paper discusses business model options for local 5G micro operators, addressing also the different network deployment options and ecosystem constellations. Three generic 5G business models and respective value ecosystems are presented: 1) vertical business model and ecosystem; 2) horizontal business model and ecosystem; and 3) oblique business model and ecosystem. These business models are compared against the opportunities they address, drivers and boundaries of value they may generate, and sources and sustainability of advantages they represent. Finally, scalability, adaptability, and sustainability of the business models and ecosystems are examined.

Telecommunication access business model options in Maluku and Papua, the less-favored business regions in Indonesia

PurposeThis paper aims to provide feasible business model options that benefit all stakeholders; the government, the investor and especially the inhabitants in Maluku and Papua, the less-favored business regions in Indonesia.Design/methodology/approachThree feasible business model options result from ICT for development literature, current role of the government, other models and investment scheme review, statistical analysis, technology analysis and investment simulations.FindingsThis paper proposes three different feasible business model options. The infrastructure subsidy model, which combines 20 per cent private investment and 80 per cent government subsidy, is the most feasible business model based on investment simulations. This model which combines 20 per cent private investment and 80 per cent government subsidy provides stronger determination of Indonesian Government for serving rural and remote people. The revenue subsidy and the mixed project subsidy are alternative models that may provide more attractive schemes from the standpoint of investors.Research limitations/implicationsHowever, current paper has limitation which is subject to enhance for better analysis in future research such as implementation of the in-depth assessment of risk management system to deal with all exposed risks.Practical implicationsThis paper provides that setting up a complete telecommunication access infrastructures in eastern Indonesia is feasible under new proposed models.Social implicationsThe new proposed models provide stronger determination of Indonesian Government for serving rural and remote people and minimizing the digital divide in eastern area.Originality/valueUnder the new proposed models, the role and capacity of the government is adjusted. The government should dominate and be less dependent on private investment. Also, the government should shift from triggering service penetration into developing a complete infrastructure set up.

Systematic assessment of triticale‐based biorefinery strategies: investment decisions for sustainable biorefinery business models

AbstractStrategic investments in biorefinery projects are increasingly being made, and involve non‐traditional decision making, especially considering the technology and market risks involved. From the investor's perspective, the decision‐making process leading to product/process combinations for implementation as a biorefinery to achieve a sustainable business model and good economic returns is not obvious. Typical metrics used for investment decision making have some limitations regarding the recognition of acceptable technology risks relative to economic returns. They often do not appropriately consider factors and analyses related to, for example, environmental impact and the longer term competitive position of new product portfolios. The methodology presented in this article is an approach to identifying a ‘practical’ set of multi‐disciplinary decision‐making criteria to enable the selection of the preferred product/process biorefinery implementation strategy. The case of investment options in the triticale (X Triticosecale Wittmack) biorefinery is used as an example. Through this risk‐based methodology, technology risks as well as economic, environmental, and competitive benefits associated with different business model options are identified. This methodology leads to the development of a series of multi‐criteria decision‐making (MCDM) panels to define a set of practical criteria suitable for a final MCDM for the identification of triticale‐based biorefinery alternatives leading to long‐term and sustainable business models. © 2018 Society of Chemical Industry and John Wiley & Sons, Ltd

The developing role of telecommunication firms from technology enablers to strategic players in the smart factory

Purpose of the paper: The aim of this research is to investigate the role of telecommunication firms as technology partners in smart factory deployment and the potential impact on their own business model. Methodology: We adopted a qualitative methodology based on multiple-case study analysis with the purpose of theory-building. Results: i) Identification of three business model trajectories that are triggered by smart factory deployment both for recipient firms and for technology enabling firms; (ii) proposition of a directional framework that enables both smart factory recipient firms and technology partners to understand their options both in terms of Smart factory deployment and business model options and of the interconnections between them. Research limitations: Selected cases have been used according to the state of development of the project. A larger number of cases, as well as a more in depth analysis, would increase confidence in the findings. Practical implications: Identification of unexplored opportunities in the new, smart factory deployment paradigm that could transform the business model of the recipient firm as well as the role of the technology partners. Originality of the paper: We identify the central role of the technology partners focusing on Telecommunication companies, who can enable the evolution of the business model transformation of recipient firms as well as its own. Moreover, the identification of the ownership and accessibility of data produced by the Smart factory is considered the main barrier for technology partners to make their business model evolve beyond business model trajectories.

Institute for Clinical Evaluative Sciences (ICES) Exploratory Data & Analytic Services Private Sector Pilot Project

ABSTRACTObjectivesPrior to the launch of ICES Data & Analytic Services (DAS) in March 2014, only ICES scientists and analysts could access ICES data, and data could only be accessed at physical ICES locations. The DAS infrastructure, which allows public sector researchers to work with coded record level data remotely through a secure virtual environment, together with broader trends including high profile reports that call for increased access to data and the Ontario government’s Open Data initiative, prompted ICES to launch a pilot project to explore potential DAS work with the private sector.
 ApproachThree mandatory principles were established for all work with the private sector: (i) alignment with ICES’ mission, vision and values; (ii) transparency; (iii) private sector work must not detract from ICES’ research institute work. The pilot included: a jurisdictional scan; informal conversations with private sector organizations to determine potential services/studies of interest; extensive discussions with data partners; the selection and conduct of two pilot studies; focus groups with members of the general public and scientists; external advice on business model options; and an external evaluation of the pilot. No changes to data sharing agreements or ICES processes were required as work with the private sector and public sector are equally allowed under Ontario law.
 ResultsThe two pilot studies were successfully completed. The first study “The disease burden of gout in Ontario: A real world data retrospective study” was performed by researchers at IMS Brogan (a healthcare analytic services provider) who were provided with access to coded record-level data using the DAS iDAVE environment and performed their own analyses. In the second pilot study, “The impact of adherence to biologics on healthcare resource utilization in rheumatoid arthritis”, Janssen researchers established the research question and study design, and DAS staff and scientists provided advice about data holdings, performed the analyses, and provided Janssen and three government-funded decision making bodies with results tables. Research Ethics Board approval was required for both studies, and both private sector organizations are in the process of publishing findings.
 ConclusionsICES was able to work with private sector organizations without compromising the three principles. Based on the evaluation of the private sector pilot, and the findings from the focus groups, ICES will begin offering limited analytic services to private sector researchers beginning June 2016 under ICES’ existing corporate structure, and bring recommendations regarding ongoing operations to the ICES Board in June 2017.

Re-distributed Manufacturing to Achieve a Circular Economy: A Case Study Utilizing IDEF0 Modeling

The minimization of energy, waste, and emissions in operations are the foremost sustainability goals in industry. The shift from a linear product lifecycle to a circular one is required, along with increased energy efficiency and reduced resource use, to achieve these goals. This paper examines how the use of Re-Distributed Manufacturing (RdM) and a Product-Service System (PSS) approach, while leveraging the latest digital manufacturing technologies, enables the shift to this new economic model. A case study illustrates this new approach and relates it to the shoe manufacturing industry. The ShoeLab case study includes an outline of the business model options supporting this new approach to sustainable production highlighting the circularity that may be achieved in employing RdM and the latest digital manufacturing technologies in the form of 3-D printing. The research conducted indicates that using IDEF0 modelling could help to realize the full potential of RdM such as the manufacturing and transport of products involving less material, energy and waste.

Business model innovation processes: Looking forward and looking backward

Business model innovation processes in established firms that are running profitable businesses are currently poorly investigated. By drawing on the problem-solving perspective, this papers shows that the identification and formulation of problems guide business model innovation processes. Findings from case studies of three world leading manufacturing firms show that the main encountered business model problems included product-market fit, value capture failure, and customers’ lack of trust and risk aversion towards novel solutions. Based on the empirical evidence, this paper proposes determinants necessary for progression of the business model innovation process: (1) By theoretically equating business model innovation processes with search, to profit firms shift from experiential or backward-looking search to forward-looking or cognitive search to create or discover new business model options. This shift is not sufficient for business model innovation; (2) To progress there may be a need for changes in the complexity of the problems, altering the firm’s fitness landscape allowing for backward- looking problem-solving by drawing on existing knowledge and capabilities, and (3) Firms need to ‘risk their business’ by moving from offline evaluation to online evaluation for the business model innovation to come to fruition. In the general case, each of the main problems may need to progress across (1)-(3) for a business model innovation to emerge. The contribution of the paper is a change in the unit of analysis by focusing on problem formulation and problem solving, and introduces a mechanism for explaining how business model innovation processes unfolds. This mechanism is also able to handle prior explainations on business model innovation processes; the sequential and experimental approaches.

An Unstable State: Conflict and Institutional Change in the Electric Industry

Resolution of conflicts among innovation, customer options, and fixed-cost recovery requires building new capabilities for regulatory and other institutions through leadership and learning. Interviews with stakeholders revealed strategic components for enhancing capabilities: incorporating multiple perspectives, establishing a vision, developing trust, addressing low-income issues, assessing impacts of new practices, understanding customer demand, and evaluating business model options.

Analysis of business models for potential 3Mode transport corridor

This paper focuses on a potential, sustainable, intermodal transport option in the EU connecting two geographical areas: the Nordic and Southeast European countries. The different parties included in this potential corridor constitute a complex, intermodal transport corridor network. In this paper our aim is not to focus on the infrastructure itself; rather, it is to discuss potential business models for this corridor based on a combination of three modes of transport: road, sea and rail. In this study the potential corridor is referred to as the 3ModeCorridor, and the study examines potential business models for this type of corridor. We use four business model options from the literature for intermodal transport and describe their content. Then, based on the case study findings, we describe which of the business models are realistic and which can exist at the same time. We also analyze the starting model with the most potential and the possible evolution of the business models in a 5-year time frame. For the analysis we use results from in-depth interviews conducted in 51 companies from Norway, Finland, Poland, the Czech Republic, Austria, Hungary, Bulgaria, Romania and Greece. The interviewed companies represent potential service buyers and transport service operators for the potential corridor. Based on the results, most of the interviewees believe a balanced model (the Operator-3PL Model) will be the starting business model with the most potential. In this model, the logistics service providers (LSPs) and operators have a rather equal relationship and there are few customers using the service. Concerning evolution, the results indicate that the models with the most potential will be those that cater for the needs of different clients. As a consequence, the role of LSP would seem to grow over time. It seems that in this type of business model the operators (rail, shipping and trucking companies) will increasingly focus on their basic function, transport.

An Exploratory Study of Business Model Options in Heterogeneous Networks

An Exploratory Study of Business Model Options in Heterogeneous Networks

Changing the Rules of the Game: Nonlinear Business Models for IT Services

The rule of the game is changing with high pace in all spheres of life. In IT business where change is the only unchangeable, uncertainty and unforecastable future are quite common in this competitive arena. A business model can be defined as the mechanism by which a business intends to generate revenue and profits. It describes how a company plans to serve its customers and involves both strategy and implementation. Business model converts innovation to economic value for the business. For example, In the Aviation industry “No-frill Business model” had made huge impact around the world. In the field of Information technology there are two models widely discussed i.e. linear and Non-linear business models. Linear business options will be in operational, when the vendor delivers new service to existing clients or new clients by increasing head counts proportionately. Here, the revenue comes from new projects/service depends on the number of people involved. Non-linear business model will be developed when the vendor delivers new service to both existing customers and new customers by effective utilization of existing resources. New services/projects will be delivered even with out recruiting more headcounts. Traditionally, linear business model has been adopted by all IT majors. In a widely adopted linear business model, revenue is effort based (more the number of people working, more the revenue).Linear business model is inadequate in facing the new challenges facing the IT landscape. Rising staffing cost, Skill shortage and attrition are the major challenges which make the IT companies to think about non-linear business models. IT services companies are looking for smarter ways to boost revenue without boosting staff numbers. In this respect the Indian IT industry will continue to explore non-linear business models which will shift the terms of engagement away from headcount. This article shows light on promising non-linear business model options for Indian IT industry.