Existing Business Models Research Articles

Incumbents and business model innovation for the sharing economy: Implications for sustainability

In addition to fostering the rise of new players in various sectors, the sharing economy has attracted the attention of established companies, the so-called ‘incumbents’. Some incumbents have joined the sharing economy to both reap its emerging opportunities and tackle newcomers' competition. The entry of incumbents comes at a time in which the sharing economy, still in its initial stages, is the ‘battlefield’ between actors defending its original sustainability promise, based on the efficient use of resources, social bonding, non-monetized relationships and power of the communities, and those supporting the need to compromise on the principles, to ensure the sharing economy's expansion. Given incumbents' size and power, their entry is likely to significantly affect the shape of the sharing economy. Our study explores the implications for environmental, social and economic value creation of the different ways in which incumbents are changing their existing business models to join the sharing economy. We develop a typology of business model innovation for sharing, which stems from the literature on sustainable business models in particular, and present illustrative cases of incumbents' entry in the sharing economy. For every type adopted by incumbents, the sustainability dimensions are subsequently explored, considering both the benefits and drawbacks of incumbents' entry in the sharing economy. The final section concludes, and discusses implications for research, practice and policy.

Strategic guidelines for the development of bioenergy potential of agricultural enterprises in the transition to a circular economy

Given the limited volume of natural resources and the trend towards population growth, the existing linear model of take-use-recycling economy needs rethinking. The idea that underlies the circular model of the economy, according to which goods of today are to become resources of tomorrow, is becoming increasingly relevant. Under these conditions, the agricultural sector must, first of all, ensuring food security, intensify the production of biomass as a renewable source of energy, since bioresources and biomass make up the highest share in agriculture. The article summarizes and proposes the strategic goals and guidelines for the development of the bioenergy component of agriculture. In Ukraine, a significant amount of biomass is produced annually, which is not used efficiently. Instead of addressing the needs of the energy sector, the lion’s share of waste is recovered through incineration, which in itself causes significant damage to the environment in general and the economy in particular. It has been researched that the potential of bioenergy largely depends on the geographical distribution and availability of existing waste and by-products on the one hand, and on the overall strategic orientations of the sector’s development on the other. The article analyzes the strategic goals of the rational use of agricultural waste for bioenergy production, which would certainly be economically viable and contribute to the sustainable development of the state’s economy. Strategic guidelines that are formulated in terms of the requirements and constraints of the circular economy are also offered. They are: 1) Use biomass that is obtained only on the basis of the principle of sustainability; 2) Promote the use of research, development and innovation at various stages; 3) Adhere to the principles of optimal use of bioresources; 4) Transformation of business models of players in the bioenergy market. Successful implementation of the circular business model in the agricultural sector must take into account the interests of all market participants, based on the principle of sustainable development. At the stage of transformation from a linear to a circular economy, the agricultural sector needs to change its existing business models in order to increase its innovation component, improve its logistics processes, develop a strategy for realizing its existing bioenergy potential and sustainable economic development in general. It should be understood that the benefits expected from the bioenergy sector are only possible in the long run.

(De)Mystifying the information and communication technology business model concept

Modern enterprises are currently experiencing volatile and rapid information and communication technology (ICT) change. A key challenge for business leaders is to ensure their organisations are ready for that change. This is particularly challenging when it comes to emerging ICT that may disrupt the management of existing enterprise information systems or business processes. The business model has been cited as an effective tool which organisations can use to prepare for ICT related change. However, there is evidence to suggest that the business model remains largely a nebulous concept to most organisations. This is compounded by the siloed nature of existing business model research. Using a content analysis research approach, this paper provides a holistic review of contemporary academic literature to ascertain and classify the various approaches to the study of ICT enabled business models. The literature examined is classified into nine specific thematic descriptors which underpin these specific business models. A comprehensive definition is also developed for ICT business models. This paper therefore extends our understanding of the business model concept and can be used to guide and coalesce future research on illuminating how organisations can operationalise effective business models in order to leverage new digital ICT.

(De)Mystifying the Information and Communication Technology Business Model Concept

Modern enterprises are currently experiencing volatile and rapid information and communication technology (ICT) change. A key challenge for business leaders is to ensure their organisations are ready for that change. This is particularly challenging when it comes to emerging ICT that may disrupt the management of existing enterprise information systems or business processes. The business model has been cited as an effective tool which organisations can use to prepare for ICT related change. However, there is evidence to suggest that the business model remains largely a nebulous concept to most organisations. This is compounded by the siloed nature of existing business model research. Using a content analysis research approach, this paper provides a holistic review of contemporary academic literature to ascertain and classify the various approaches to the study of ICT enabled business models. The literature examined is classified into nine specific thematic descriptors which underpin these specific business models. A comprehensive definition is also developed for ICT business models. This paper therefore extends our understanding of the business model concept and can be used to guide and coalesce future research on illuminating how organisations can operationalise effective business models in order to leverage new digital ICT.

Blockchain Disruption and Decentralized Finance: The Rise of Decentralized Business Models

Block-chain technology can reduce transaction costs, generate distributed trust, and empower decentralized platforms, potentially becoming a new foundation for decentralized business models. In the financial industry, block-chain technology allows for the rise of decentralized financial services, which tend to be more decentralized, innovative, inter-operable, border-less, and transparent. Empowered by block-chain technology, decentralized financial services have the potential to broaden financial inclusion, facilitate open access, encourage permission-less innovation, and create new opportunities for entrepreneurs and innovators. In this article, we assess the benefits of decentralized finance, identify existing business models, and evaluate potential challenges and limits. As a new area of financial technology, decentralized finance may reshape the structure of modern finance and create a new landscape for entrepreneurship and innovation, showcasing the promises and challenges of decentralized business models.

The Opportunities of Using Business Models in Service Management - A Review and Classification of Business Model Artefacts

Through increased globalization and fast changing customer demands companies need to adapt their service management constantly. Business model approaches can provide a suitable base to comprehend the service management of a company. However, existing knowledge about the business model artefacts and the possibilities in service management is very diffuse. With this work, we want to shed light on the state-of-the-art of business model research with a specific focus on the different possibilities for a use in service management. We perform a systematic literature review and present a comprehensive overview of different existing business model artefacts including constructs, models, methods and instantiations. This can be possibly used to support service management and for future research this field. This demands requirements of suitable tool support from theory and practice both. It furthermore strengthens the relation between business modeling and service management. Overall, this research should strengthen the awareness of using the available business model capabilities for service management in order to create powerful management tools.

Market orientation of business schools: a development opportunity for the business model of University Business Schools in transition countries

The adoption of market orientation practices at the Higher Education Institutions is a rising trend, since the challenges of changing the global higher education environment raise a growing issue for meeting the needs of the global market. Developing an appropriate strategy to cope with all of the requirements of the global education market changes and competitive pressures is especially challenging for University Business Schools in transition countries. The paper is based upon an identification of a variety of theoretical perspectives about the global education market, its trends and influences on those schools in the aspects of market orientation. Conceptual Framework analysis was used to characterise the market orientation of Business Schools as an opportunity for the strategic business model of University Business Schools in transition countries. Key factors and indicators for understanding their environment were identified, structured and categorised within a theoretical framework. These factors reflect the evolving context of reformation of the existing business model of University Business Schools in transition countries in a comprehensive way, since the framework outlines the complexity of their adaptation, considering the linkages and dependencies of all the crucial global external in internal environment trends and aspects. The authors suggest that, in order to align their business model more adequately to the global market needs and develop a sustainable competitive position, University Business Schools from transition countries have to follow the market orientation principles, taking into account also the limitations and challenges from a wider social and institutional environment.

Study on business models of distributed generation in China

Along with the implementation of electricity sales-side reform and incremental power distribution investment liberalization under China’s new round of electricity market reform, the main subjects of distributed generation investment, construction, and operations have become more various, and the approaches as well as the ways that distributed generation takes part in the market have been more flexible. How to operate distributed generation economically and efficiently in this market environment has become an urgent issue to be addressed. Based on the domestic development situation of China’s distributed generation, this paper introduces typical existing business models of distributed generation, and elaborates the correlation between electricity market reform and business models of distributed generation in depth in combination with the contents of electricity market reform. At last, several business models of distributed generation which are feasible to be implemented in China have been proposed under the new electricity market reform based on successful international distributed generation operation experiences in the terms of stimulating stakeholders’ participation in the investment and operations of distributed generation. Characteristics of these recommended models are compared and analyzed as well.

Business model innovation: a review and research agenda

Purpose This paper aims to review and synthesise the recent advancements in the business model literature and explore how firms approach business model innovation. Design/methodology/approach A systematic review of business model innovation literature was carried out by analysing 219 papers published between 2010 and 2016. Findings Evidence reviewed suggests that rather than taking either an evolutionary process of continuous revision, adaptation and fine-tuning of the existing business model, or a revolutionary process of replacing the existing business model, firms can explore alternative business models through experimentation, open and disruptive innovations. It was also found that changing business models encompasses modifying a single element, altering multiple elements simultaneously, and/or changing the interactions between elements in four areas of innovation: value proposition, operational value, human capital and financial value. Research limitations/implications Although this review highlights the different avenues to business model innovation, the mechanisms by which firms can change their business models and the external factors associated with such change remain unexplored. Practical implications The business model innovation framework can be used by practitioners as a “navigation map” to determine where and how to change their business models. Originality/value Because conflicting approaches exist in the literature on how firms change their business models, this review synthesises these approaches and provide a clear guidance as to the ways through which business model innovation can be undertaken.

Perspectives on Disruptive Innovations

AbstractEveryday experiences speak to the accelerated pace of innovation in this era of continual change. Sometimes, innovations enhance the value of existing products and services. At other times, they render existing business models obsolete, disrupt value‐networks, prompt providers to rethink who their customers are, and lead customers to rethink what they value. What does it mean to manage in such a world of disruptive changes, and how might we research this phenomenon? Together with the contributors to this special issue, we anchor, explore and extend the meanings associated with the concept of disruptive innovation. In particular, we discuss several perspectives on disruption – evolutionary, relational, temporal and framing – that culminate in a performative (as opposed to a predictive) approach to thinking about the phenomenon. In doing so, our intention is to open up the agenda for both researchers and practitioners.

Emerging technologies and new business models: a review on disruptive business models

Purpose This paper aims to conduct a review on disruptive business models. Considering that competition among companies will not only happen through new products, services or technologies but also through innovative business models, the disruptive business models arise to replace the existing business models, adapting the organizational structures to the products and services offered and emphasizing the proposition of unique value. Design/methodology/approach The literature on this topic was revised, allowing the obtaining of the state of the art and the construction of a research agenda. The analyzed literature was obtained from systematic searches by the term disruptive business model in some databases. For the analysis of the data, the content analysis strategy was used through categorizations in the material exploration phase, and, later, for the processing of the results, the authors made use of inference and interpretation regarding the content analyzed. Findings The collected literature made it possible to obtain a set of data formed by different views of authors on disruptive business models, which was analyzed and categorized to make new inferences and interpretations. Originality/value Considering that the literature on the disruptive process of business models is emerging and addressing an important phenomenon in the market that lacks the theoretical basis to sustain it, this paper contributes by presenting a consolidated examination on this subject, thus deepening the theoretical analyzes on this topic and reducing this lack in the literature. This study also presents a research agenda, which clarifies the disruptive business model gap and reveals some opportunities for future empirical researches.

Criteria for Empowering Innovation in Higher Education

ABSTRACTAlthough academic staff have a key role to play in innovation at higher education institutions (hEIs), current innovation adoption among academic staff is disappointing. Most curricula at hEIs are stalled in the traditional pedagogical model of knowledge transmission for teaching and learning with little exploration of technologies for innovative/inventive outputs. This article explores the essential issues of innovation/invention in higher education and provides criteria for empowering innovation. Starting from reflections and perspectives on innovation at South African hEIs and the theories on innovative problem solving, the article provides arguments on multiple issues of innovation/invention that culminate in crucial criteria for innovation. The real dilemma for innovation is caused by external and macro-level factors that require the analysis of existing business models. The management of HEIs have to take into account the underlying barriers, such as knowledge of patenting and academic valorisation, when they create policies that encourage academic staff to explore innovative endeavours.

Design of customised products and manufacturing networks: towards frugal innovation

ABSTRACTAs manufacturing companies move towards frugal innovation, more and more tools that take into account regional customer requirements and regionalisation practices are emerging. Information and communication technologies (ICT) are considered as a means to integrate customers into product design phase. Moreover, digitalised solutions that provide seamless decision-support tools that consider multi-conflicting criteria have emerged and are integrated in existing business models to provide holistic solutions. This paper presents a unified framework of an augmented reality product customisation application, which supports realistic product visualisation so as to extract end users’ requirement that provides input to a web-based supplier selection and the network design tool that considers frugal criteria. The two tools are connected and supported by a product lifecycle management (PLM) tool. The proposed framework is applied in a white-good industry case study and meaningful performance indicators provided by the industry are used to evaluate the proposed framework.

Value Creation Processes in Artificial Intelligence Platforms

Technological innovation is one of the key elements for economic development and new value creation. Artificial Intelligence has the potential of transforming existing business models and value cre...

Creating and capturing value from Big Data: A multiple-case study analysis of provider companies

Big Data has recently emerged as a new digital paradigm, one that companies adopt in order to both transform existing business models and nurture their innovation activities. The peculiarities of Big Data applications span different fields such as customer need identification, risk management and decision-making, data-driven knowledge, product and service design, quality management, and opportunity recognition and creation. However, while these have resulted in the emergence of a rich research domain focusing on the managerial and practical implications typically addressed from the user perspective, there is still a lack of complete understanding of how companies that provide Big Data solutions can create and capture value from them. This paper explores the question of how provider companies create and capture value from Big Data, drawing on a multiple-case study analysis of provider companies that offer solutions and services based on Big Data. The results illustrate a theoretical framework on value creation and capture by relying on Big Data and identify two main innovation service strategies based on Big Data used by provider companies. In addition, this paper provides valuable insights as to how the network of involved stakeholders influences the design and implementation of the innovation service strategy by the provider companies.

BUSINESS MODEL CANVAS PERUSAHAAN PENGOLAH RUMPUT LAUT

Winner Perkasa Indonesia Unggul is a SME that sells product based on seaweed processing. The enterprise is trying to improve their business activity on seaweed processing products. The purposes of this research are to identify the existing business model at the enterprise, to evaluate the model, and to generate a new business model prototype with the Business Model Canvas method analysis. This research is a case study on a company, and conducted in March-May 2016. The data used are primary data in the form of interviews and internal company data, while qualitative analysis used to evaluate the business model, and the SWOT analysis method used to help generating new business model prototype. The results of this research were two alternative of business model prototype for the enterprise’s development in the future. The first alternative is trying to classify new customer segment, and followed by creating the new value proposition. With the additional of new customer segment and the new value proposition, it caused the enterprise to extend the channels by optimalizing technologies, and eventually increase the revenue stream of the enterprise. The second alternative is trying to increase the customer relationship by creating the new value proposition. It will raise the opportunity to make an alliance or partnership for helping the business activity of the enterprise. However, the changes on some parts of the business model will affect the enterprise’s cost structure.

Selling Remanufactured Products under One Roof or Two? A Sustainability Analysis on Channel Structures for New and Remanufactured Products

Even though many manufacturers integrate remanufacturing into existing business models, it should be noted that such efforts are usually accompanied by a major concern for cannibalization of new product sales from remanufactured products. To deal with this problem, many manufacturers, such as Dell, adopt a “two-roof policy” where the sale of new products takes place in a store and their remanufactured products in another. However, in contrast, some manufacturers, including Apple and HP, adopt a “one-roof policy”, by which all new and remanufactured products are sold through one store/chain. Although the literature on remanufacturing has extensively addressed sustainability issues within operations management, little attention has been paid to how “differentiated roof policy” for the marketing of remanufactured products affects sustainability issues. To fill this gap, in this paper, the authors develop two theoretical models in which manufacturers have the flexibility to distribute new and remanufactured products (1) through a one-roof policy (Model O) or (2) through a two-roof policy (Model T), respectively, and strive to address the question of how differentiated roof policies impact sustainability issues related to remanufacturing operations. Among other results, the central result suggests that, if the manufacturers care about economic performance, distributing both products through a two-roof policy is an advantageous strategy. Conversely, if they care about environmental sustainability, one roof is the preferred strategy.

Equilibrium Analysis of Service Ecosystems for Labor-Intensive Services Using Multi-Agent Simulation

The value of a service system should be evaluated using multiple indicators, such as company profitability, consumer satisfaction, or employee satisfaction to realize an ecosystem in society. This study examines the mechanisms of service systems with a multi-agent simulation model consisting of a company, employees, and consumers based on game theory. The proposed model is intended for a basic service business in which employees provide services to consumers directly based on their skill. In this model, first, a company player sets the price of a service and salary of employees. Then, employees decide whether to acquire resources, such as skills, with their efforts (costs) to satisfy either consumers’ needs or not. Then the employees acquire their profits (equivariant of satisfaction) not only from acquired salary but also from the reflection of consumer satisfaction. However, consumers have their needs structure, as gain tables, and decide whether and from whom to purchase. A consumer’s profit is calculated using his/her satisfaction with the service provided using a certain employee and the price paid for the service. Based on the model proposed above, we conducted a multi-agent simulation where company, employee consumer players make decision to maximize their own profits. From the basic simulation results, two convergent patterns are acquired according to the initial values of price and salary. In the second simulation, the heterogeneity of consumer needs is considered in the model based on questionnaire survey results on actual consumer behaviors related to hair salons (n=2472). With a factor analysis of 13 questionnaire items on lifestyles, four lifestyle factors are extracted. Based on the survey results, consumer players of four types are introduced into the simulation to analyze which services are selected in the service system. Through the simulation, four convergent patterns are acquired. In those patterns, consumers of different types are included according to the types of services. With those results, this paper presents a discussion of the design of a new service ecosystem through the comparison between acquired convergent solutions and existing business models.

The Role of the Internet of Things in the Improvement and Expansion of Business

The Internet of Things (IOT) has been examined in several perspectives based on the goals and visions of the present report. First, in this report based on previous studies, the general framework of business models in the Internet of Things has been analyzed, and then the suggested framework is presented. In the following, the business models of the Internet of Things and the impact of Internet of Things on the existing business models are studied. Thus, first of all, recognizing the elements of business models related to the Internet of Things is essential which has been addressed in the report. The results of different studies led to recognition of almost all business models in this field and to stating the most important components of the business models affected by the Internet of Things. The authors are still in the beginning of the process of Internet of Things. Most of the companies are willing to offer and sell the connected products and in near future, the majority of organizations will adopt more complex and ecosystem models. The purpose of this report is to offers social and business ideas to innovators so they can improve business models using the Internet of Things. This report examines the business models and proposed existing frameworks along with the economic energy of Internet of Things according to the successful projects in this scope, and offers the general logic for services or products that can be used as the basis of specific elements and patterns of business models of IOT.

Individual Incentive Based Reward Policy for an Ad Exchange to Mitigate the Threat of Ad Blocking

This article investigates the fairness of the existing business model of advertisement blocking and ad exchange companies by using exchange frameworks and equity theory. It then provides an individual-centric approach for an ad exchange, which aims to provide a fair compensation to individuals in exchange for their information and effort in the targeting and viewing/filtering of online advertisements. In this article, it is shown that by providing a higher value proposition to individuals in an online advertisement ecosystem, the ad exchange can not only increase individuals' equity in the system, but it can also mitigate the threat of ad blocking for publisher websites and advertisers. An efficient algorithm that estimates the monetary impact of the proposed approach and determines a fair monetary incentive—compensation—for individuals' personal information and actions—engagement—is presented in this article.