Generic Business Model Research Articles

Effectuation logic in digital business model transformation

Purpose The purpose of this paper is to study how digital business models evolve when entrepreneurs move to new digital platforms and how this evolution is related to effectuation and causation logics. Design/methodology/approach This study applies a multiple case study approach to investigate how digital business models change in small, Japanese high-tech firms providing their innovations through different digital platforms. To investigate digital business models, this study considers the elements that comprise general business models. The case firms were selected based on size, products and transitions from physical to various digital platforms. Semi-structured interviews were conducted with the key decision-makers from the case firms. Findings The findings show that through digital transformation, the case firms’ digital business models evolved by following effectuation logic as well as causal logic. All the firms employed causal logic when moving to new platforms, among other actions. The case firms used effectual logic with success for product development and adjustments to their network. Especially firms providing video games relied on effectuation for high impact products. Effectual logic did not play a role at all in changes to value delivery and had only little impact on revenue structures. Originality/value This research helps understand how digitalization of platforms and subsequent moves to newer digital platforms improve a firm by changing the business model elements through effectuation and causation logics. This research extends the understanding of digital business model transformation to a more granular level, business model elements.

Developing a generic retail business model – a qualitative comparative study

PurposeGlobal trends like digitalization and verticalization increase the complexity within the retail industry and decrease the explanatory power of prevailing retail concepts. This paper responds to the call for new ways of understanding retailers’ business activities. The purpose of this paper is to structure and stimulate the emerging conceptual debate about retail business models (RBM) by developing a literature-based and empirically-substantiated generic retail business model framework (generic RBM).Design/methodology/approachThe research is based on a systematic literature review and a qualitative study with 16 expert interviews in the German retail industry.FindingsThe paper identifies six core elements and respective sub-elements of a generic RBM. Contrasting the literature with empirical data, it confirms some common elements (e.g. “value proposition”) but invalidates others (e.g. “organization” or “governance”). The empirical findings add retail specifics like “horizontal integration,” “vertical integration” and “partners and networks” as core elements of a generic RBM.Originality/valueThe paper is the first to develop a generic RBM based on a systematic literature review and an empirical study across retailers. The resulting generic RBM can be used as a retail concept for systemizing and typifying the appearances of retailers in retailing theory. It can also be used for building, analyzing and comparing RBMs in retailing practice. The paper further provides a guideline for generic business model design with a hybrid approach based on literature and qualitative data.

New opportunities for the development of smart cities in Italy: the role of banking foundations

The present study represents a theoretical contribution in the field of smart cities and banking foundations and, in particular, the paper aims to underline the opportunities and the potential benefits of banking foundations supporting the development of smart cities in Italy. We analysed the reports on strategic business plan of the period between 2017-2019, published by the eighty-eight banking foundations, the corporate governance and the internal organisation model, the notes to the financial statements and the websites of the Italian banking foundations and, through a deductive approach, we elaborated their general business model. This research, thanks to its multidisciplinary approach, contributes to the body of knowledge by providing a virtuous example of interactions and synergies between smart cities and banking foundations in Italy. This work represents the first step of a far deeper analysis and consequently future developments will constitute valid tests of core arguments deeply analysed in this context.

Business Models for Industrial Smart Services – The Example of a Digital Twin for a Product-Service-System for Potato Harvesting

Modern agricultural machinery manufacturers develop an increasing number of smart services to combine their already excellent physical products with an ever-growing number of physical and digital services to product-service-systems. However, this causes problems for the manufacturers, as these combinations of physical goods, services and digital services are still relatively new, and suitable business models are lacking. This paper presents a morphological framework based on a literature review and expert interviews to develop business models for product service systems. Based on the morphological framework, six different types of general business models for smart services were identified and will be described. The types were validated within the German-based research project Smart-Farming-World along with experts from agriculture and farmers. This paper discusses the first results of the validation with farmers and shows the potential of a business model for a digital twin in the context of potato harvesting.

Integrated Model and Study on the Prominence of Social Entrepreneurship

Social entrepreneurship is an activity with an embedded social purpose, has been on the ascendancy in recent decades. A partial index of this surge is revealed by the increase in the number of nonprofit organizations. The key focus for social entrepreneurship is addressing the social problem and taking action to eliminate this problem from society. This article analyzes the impact of social concern with a new wing of the general business model which will include CSR and Social entrepreneurship. Organizations can deliver social goods with business acumen by this model and we can ensure employment, poverty reduction, and attain a balance within our community. We find that social business brings the competitive advantage on CSR to achieve long-run social balance in our society, and a new business model will deliver more impact rather than existing giving system. The social business scenario in Bangladesh can also contribute to fulfilling of the social demand and secure work and property reduction in the long run.

The development of generic business models of online retailers

The analysis of templates of the business models which are actively used during an analog era is presented in article and the author's template of a business model of an online retail including the following elements is offered: value for target groups of clients; the products/service made by the company, their quality, functionality, the created additional value; interaction with clients; technological platforms; innovations; services; digital chains of creation of value; the suppliers ready to interact in a digital format; technologies of management; risks. The presented techniques which are used during an analog era have certain shortcomings. On the one hand, they are universal, and with another – do not consider the certain specifics characteristic of business models of a digital era. In particular, there are no such elements as the technological platform and also the technologies used not only for the organization of digital chains of creation of value, but also for further effective digital control. On the basis of the analysis of the existing techniques of creation of business models and key elements of business models of world leaders in the field of production and sales of production the business model template adapted for creation of an online retail in the conditions of digital transformation is offered. The developed template of a business model can be used for start of a startup of the online retail or the translation existing offline business in an online format.

Business models in tourism: a review and research agenda

PurposeBusiness models and the business model concept have become a fixture of scholarly and managerial attention. With a focus on how actors create, capture and disseminate value, business model research holds the promise to inform the tourism sector’s search for ways to innovate and change outdated business practices. Yet, the concept has inspired little research tackling the contingencies of the tourism context. The purpose of this paper is to address this gap in this review and research agenda on business models in tourism.Design/methodology/approachIn this paper, the authors review and synthesize contributions from publications in EBSCO, Emerald Insight, ProQuest and Science Direct databases, that make explicit use of the business model concept in tourism (anytime up to September 2016). We conceptualize the identified articles as a coherent body of knowledge on business models in tourism with the objective of identifying common themes that characterize existing contributions.FindingsFrom the review of 28 qualified articles, the authors identify four emergent themes: sector-specific configurations, the role of different value types, design themes for consistency and regulatory contingencies. These themes inform three domains in which the authors present avenues for tourism-specific studies on business models, as well as their management and innovation that the authors position in relation to the general business model literature.Originality/valueThis review details how researchers across disciplines conceptualize the business model. Together with the identified directions for further research, this literature review thus establishes a common conceptual basis and stock of knowledge for the study of business models in tourism research.

Business Model Concept: An Integrative Framework Proposal

Every firm employs a particular business model seeking competitive advantage. However, this pursuit is difficult, and sometimes unsuccessful. The reasons for failure should be sought in the managers’ lack of understanding of their organisations’ business models, their unique building blocks, and the potential that they have. To help managers better understand business models, this paper reviews the extant literature and identifies the elements of business models cited therein. Further, considering the new needs on the changing markets and the prevailing search for sustainability beyond profit, this paper portrays essential business model elements in an integrated framework. An updated generic business model framework consists of four primary categories, namely, value proposition, value capture, value creation, and value network, and could be useful for a variety of organisations, profit and non-profit, with various mission and vision orientations and interaction with the environment.

“A European developed eHealth technology does not lead to a European implementation strategy towards (business) exploitation: a tale of two countries”

Introduction: Telemedicine is becoming increasingly important for delivering top-quality care to European citizens to cope the aging populations, rising costs and higher demand of care [1]. It is already established that telemedicine adoption varies among different countries [2]. Furthermore, the increased need for effective business models to implement eHealth solutions is already shown [3]. A one-size-fits-all implementation strategy (derived from a generic business model) for a Pan-European e-Health innovation, will most likely not succeed without either adapting the technology and services or differentiating the business models, according to differing health and social systems [4]. This is already indicated in similar studies with Electronic Health Record cases [5]. This case study examines a European, ICT-supported e-Health service in two different health and social systems and the subsequent implementation strategies. Methods: The PERSSILAA project was chosen as a case. This community-based, ICT supported service model was developed to detect and prevent frailty and functional decline in older adults [6]. We identified differences in a descriptive between-case-analysis for Italy and The Netherlands. Five steps were taken: 1) an inventory of the barriers, 2) review of the evidence 3) tailoring of the business models 4) implementation of the innovation and 5) assessment of the effects. Results: A one-size-fits-all business model and hence implementation strategy turned out to fail due to differences in adoption and implementation possibilities in the two different health and social systems. We present the Italian and Dutch and implementation strategy for the PERSSILAA eHealth solution and compare the differences in the business models. These differences results in different strategies, as example how to use the innovation when Dutch users use it privately at home on a multiple devices while the innovation in Italian is community-based and use one device in a group meeting. Conclusion and discussion: A pan-European eHealth business model and implementation strategy is an illusion. We reflect on the necessity of tailoring business models to regional context in order to allow further (business) exploitation and scale-up of eHealth solutions.

Business models in the business-to-business and business-to-consumer worlds – what can each world learn from the other?

PurposeThe purpose of this research is to identify how managers can apply the results of academic research into the concept of business models for creating and evaluating possible models for their businesses.Design/methodology/approachA review of the literature is followed by two case studies, from the airline and logistics industries, followed by recommendations based on both.FindingsThe findings are that there is relatively weak consensus among academics as to the definition and meaning of a business model and its components, and that the notion of generic business model applies better within rather than between industries, but that the discussion is a very fertile one for developing recommendations for managers.Practical implicationsThe managerial implications of the study are that in their planning and strategizing, managers should factor in a proper analysis of the business model they currently use and one that they could use.Originality/valueThe study provides a useful addition to the literature on the practical implications of business models.

General Business Model Patterns for Local Energy Management Concepts

The transition towards a more sustainable global energy system, significantly relying on renewable energies and decentralized energy systems, requires a deep reorganization of the energy sector. The way how energy services are generated, delivered and traded is expected to be very different in the coming years. Business model innovation is recognized as a key driver for the successful implementation of the energy turnaround. This work contributes to this topic by introducing a heuristic methodology easing the identification of general business model patterns best suited for Local Energy Management concepts such as Energy Hubs. A conceptual framework characterizing the Local Energy Management business model solution space is developed. Three reference business model patterns providing orientation across the defined solution space are identified, analyzed and compared. Through a market review a number of successfully implemented innovative business models have been analyzed and allocated within the defined solution space. The outcomes of this work offer to potential stakeholders a starting point and guidelines for the business model innovation process, as well as insights for policy makers on challenges and opportunities related to Local Energy Management concepts.

Prototyping Business Models for IoT Service

The Internet of Things (IoT) generates new business opportunities by connecting physical objects with a multitude of sensors. IoT research mainly focused on technology and business models are relatively unexplored, although developing IoT business models is important for successful IoT service. The existing literature on IoT business models are industry or context-dependent. The aim of this research is to develop a generic business model framework for IoT business through literature analysis and interviews. To test the proposed business model framework, we undertake case studies of current IoT companies. The findings suggest that capability for data analytics is an essential element for IoT service. Also, open ecosystems help companies provide new integrated service and offer greater value for consumers. This research acts as a starting point for designing or developing business models for IoT services.

General business model for product modularity

A general business model is presented to analyse the strategic 'business case' for modularity in new product development NPD. This model for assessing modular value is presented and applied to telecommunication industry customer premise equipment CPE. Content service provider CPE production decisions present major investments with lasting impacts. CPE, including the commonly familiar 'set top box', delivers digital content to consumer households and businesses. Typically millions of CPE units are fielded for extended time periods of up to ten years or more. Analysis results indicate a potential net present value NPV increase for modular compared to baseline 'integral' systems when technology innovation occurs during CPE lifetime; and upgrade supply interactions increase modular system NPV at median new technology 'take-rates'. General model theory, application, contributions and limitations are described. We suggest use of the model as an investment decision tool and for heuristic research investigating modular value structures and processes.

Cost Structures of Information Technology Products and Digital Products and Services Firms: Implications for Financial Analysis

Academic studies investigating the financial management of companies routinely segment data by broad industry groups to facilitate an “apples to apples” comparison and remove possible industry effects. One common segmentation method is to group all information technology (IT) companies into a single category. However, not all IT companies are created equal and their financial management differs greatly due to differences in cost structure, growth potential, products delivered, and general business model. In this study we address the differences between mature publicly-traded digital product and service (DPS) firms and information technology product (ITP) firms using equity market data from 1991-2011. We compare the characteristics of the two firm types and find that DPS firms are significantly less risky, less reliant on physical assets, and outperform the ITP firms. We also find that the market returns for ITP firms are more reactive to costs than DPS firms, yet the reaction to revenue changes appear to be similar. The overall conclusion is that DPS and ITP firms are different and should not be combined into a general information technology category when analyzing their financing needs or strategic decision making. Ignoring these differences will lead to inappropriate or misleading conclusions.

E-LEARNINGOVÉ OBCHODNÍ MODELY

E-learning is the word which is used especially for discussion of education activities, trends and problems. However, principles of electronic education are fitness for use also within business activities in the area of a support for reaching business goals and as a part of marketing activities. These ones are examples that e-learning is not understood only in its primary form – as a tool of increasing quality of human resources. As well, applying it within supply or demand business relationships is also possible in the form of a tool increasing these processes’ efficiency. The necessity of suitable framework model existence is clear.In this paper a set of issues influencing a development of business models within e-learning area is discussed. On these basics three general e-learning business models are specified. All models are universal and that is why there is no barrier for applying their utilization within various business branches.

On studying business models in mobile social networks based on two-sided market (TSM)

In contrast to the huge popularity of Mobile Social Network (MSN) services, not sufficient attention has been reserved to the dynamics of revenue streams and business models in MSN. In this paper, we investigate how a two-sided market (TSM) formulation can be used to provide insight for the problem above from the perspective of MSN platform. Intuitively, MSN service platform could be described as a two-sided market, in which the critical feature is indirect value flow (indirect network externality): one/both sides of the market benefit from increasing adoption and/or consumption of the other side. For instance, participants, like consumers and the third service providers (or advertisers), are the "two sides" of MSN platform. In this paper, our contributions are threefold. First, we thoroughly characterize the economic features of MSN as TSM, including mobility, network externalities and herd effect, as well as long tail property. Second, we provide the various revenue streams within the framework of TSM, including advertising, subscription, and transactions, and characterize the basic components of general business model in MSN. Finally, the free plus premium (Freemium) business model in MSN is formally analyzed. Specifically, we quantitatively characterize the relationship of participation levels among free and premium users as well as service providers, and illustrate the mutual enhancement among those participants. And moreover, Freemium is theoretically compared with the traditional business model with no free users (NF model). The numerical results show that, in Freemium, the participation levels of premium users and service providers, as well as the profit of MSN platform always exceed the corresponding terms in NF model.

Practice nurse involvement in general practice clinical care: policy and funding issues need resolution.

In Australia, primary care-based funding initiatives have been implemented to encourage general practices to employ practice nurses. The aim of this paper is to discuss limitations of the current funding and policy arrangements in enhancing the clinical role of practice nurses in the management of chronic conditions. This paper draws on the results of a real-world economic evaluation, the Primary Care Services Improvement Project (PCSIP). The PCSIP linked routinely collected clinical and resource use data to undertake a risk-adjusted cost-effectiveness analysis of increased practice nurse involvement in clinical-based activities for the management of diabetes and obesity. The findings of the PCSIP suggested that the active involvement of practice nurses in collaborative clinical-based activities is cost-effective, as well as addressing general practice workforce issues. Although primary healthcare organisations (e.g. Medicare Locals) can play a key role in supporting enhanced practice nurse roles, improvements to practice nurse funding models could further encourage more efficient use of an important resource.

IoT Testbed Business Model

The Internet-of-Things (IoT) is today one of the hypes in the technological world but despite the enormous attention and research investment, the clear business value is still hard to perceive. IoT deployments are costly to be installed, managed and maintained, and need to provide a very clear value to justify the investments. For another viewpoint, IoT technologies need to be proven before deployment, which implies the need to test and assess IoT solutions in real settings and involve the actual target users. And as such, this presents an opportunity to have IoT deployments with a clear business model mainly focused on real-life large-scale research and technological experimentation. This would mean having a sustainable IoT infrastructure in-place based on the provision of experimentation services and a trial environment to industry and research, which then could also present an opportunity to establish added-value (business) services. This is the exact idea of the flagship SmartSantander testbed facility and especially its major deployment in the city of Santander, Spain. The SmartSantander facility business model is built around experimentally-driven research and technology development thus attracting many experimenters from industry and European research projects. This model makes it possible to sustain an outstanding large-scale IoT deployment of around 12,000 sensors and on top of it the development of new the development of new services and applications especially targeting the needs of users (citizens, businesses, authorities) in smart-cities. This paper studies the business model of outstanding SmartSantander facility in order to provide a generic Business Model for IoT testbeds that can provide guidance and be adapted by owners (or owners to-be) wishing to exploit their IoT deployments as facilities supporting experimentation and trials of IoT solutions.

Optima: a domain-specific model for prioritization and conflicts management in requirements engineering for services intermediaries

New business models are set up, thanks to Web technologies. In this work, we focus on services intermediary companies. They generate value through the (automatic) selection of third-party services and the (automatic) delivery of the combinations of these services to consumers. Such companies face the problem of deciding which services to select and deliver in order to maximize their profit. The two main paper objectives are (i) to design the generic business model of services intermediaries and (ii) to propose an optimization model. The latter enables to choose the consumer requirements that will be satisfied in order to maximize profit. This model ranks implementable solutions based on various financial aspects. They are related to cost and revenue information that is associated with the requirements. It can support the decision-making process that aims at selecting a profit-maximizing set of requirements for services intermediaries' system-to-be. Indeed, the proposed model solves the conflicts between requirements and prioritizes the optional requirements. We argue for the relevance of the optimization model via an example and simulations.

Business models in industrialized building of multi-storey houses

The business model construct has been widely used during the last decade, partly because of its potential to provide a holistic view of how companies do business. A test of how prefabrication could form the basis of a construction firm’s business model can lead to an understanding of the potential for the competitiveness and profitability of industrialized building. The aim is to adapt a general business model construct and use it to empirically identify the most frequently used and the most viable business model. The theoretical perspective is employed to examine how a company does business and which activities and resources are mobilized through the distinction between strategic and operational effectiveness. The multiple case studies include five major Swedish companies that produce prefabricated timber building systems and the analysis is grounded in pattern-finding. The business model construct includes: market position, offering, and operational platform. The result indicates five business model elements: prefabrication mode, role in the building process, end-user segments, system augmentation and complementary resources. Applying this construct to the five case companies revealed that one out of seven models was found to be viable in terms of both ‘market share’ and decision-makers’ opinions. One important conclusion is to take the prefabrication mode as the starting point for business model design and then adapt the other elements to a good fit.