Viable Business Model Research Articles

Custom Hire Service Business of Rice Combine Harvester in Haor Basin of Bangladesh

Mechanization is a vital issue to modernize agriculture. The entrepreneurship development is imperative to provide service to the farmers at an affordable price, especially in haor areas. The study was conceived to estimate the combine harvester's rental charge and payback period. Data were collected from 86 rice fields harvested by a whole-feed combine harvester (Model: Zoomlion) in Mithamain upazila under the Kishoreganj district representing haor area of Bangladesh. Land size, operational time, loss time, repair time, idle time, daily area coverage and constraints of harvester machine were also recorded to predict the business viability of combine harvester. The rental charge and payback period was calculated following standard protocol to make business venture profitable. The perception of farmers regarding the prospect of using combine harvester in harvesting has been recorded through personal interviews. The field capacity of combine harvester was observed as 0.20 ha hr-1. Field efficiency of combine harvester depended on the land size. The daily area coverage can be increased after careful selection of the plots. Fuel consumption was found 4.18 l ha-1. Operational consolidation is the best approach to reduce the time of movement resulting in increased daily area coverage. Seasonal use of combine harvester in one locality of the study area was observed for 22 days. The rental charge of the machine was estimated as 10,000 Tk ha-1 and payback period was 3.5 years for the area coverage of 40 ha rice fields. Farmers would be able to save 40% harvesting cost for the rental charge of Tk 10,000 ha-1. Combine harvester rental service has emerged as a viable business model in the haor basin. Whole-feed (Zoomlion model) combine harvester appeared as an effective, economical, and labour-saving harvesting machine in the haor region land tenure system.
 Bangladesh Rice j. 2019, 23(2): 65-75

Wood works: how local value chains based on urban forests contribute to place-based circular economy

ABSTRACT Wood is abundant in cities around the world, but its potential contribution to circular urban economies has received little attention. Whereas current practices are mostly limited to low-value uses in the form of mulch or firewood, we document the emergence of an “urban wood movement” that successfully created local value chains in cities across the United States, Canada, The Netherlands and Belgium. Value chains for urban wood vary in their production capacity, professionalism and institutional set-up. Common features include a need for effective local cooperation across diverse actors and the development of storylines akin to the principle of value cascading. We suggest three avenues for further research that are concerned with the potential contribution of urban wood initiatives to: 1) the provision of positive economic and environmental impacts; 2) debates on sustainable forestry focusing on decentralization and local control; and 3) knowledge on viable business models in short-circuit economies.

Business Models for Carbon Capture, Utilization and Storage Technologies in the Steel Sector: A Qualitative Multi-Method Study

Carbon capture, utilization, and storage (CCUS) is a combination of technologies capable of achieving large-scale reductions in carbon dioxide emissions across a variety of industries. Its application to date has however been mostly limited to the power sector, despite emissions from other industrial sectors accounting for around 30% of global anthropogenic CO2 emissions. This paper explores the challenges of and requirements for implementing CCUS in non-power industrial sectors in general, and in the steel sector in particular, to identify drivers for the technology’s commercialization. To do so we first conducted a comprehensive literature review of business models of existing large-scale CCUS projects. We then collected primary qualitative data through a survey questionnaire and semi-structured interviews with global CCUS experts from industry, academia, government, and consultancies. Our results reveal that the revenue model is the most critical element to building successful CCUS business models, around which the following elements are structured: funding sources, capital & ownership structure, and risk management/allocation. One promising mechanism to subsidize the additional costs associated with the introduction of CCUS to industry is the creation of a ‘low-carbon product market’, while the creation of clear risk-allocation systems along the full CCUS chain is particularly highlighted. The application of CCUS as an enabling emission reduction technology is further shown to be a factor of consumer and shareholder pressures, pressing environmental standards, ethical resourcing, resource efficiency, and first-mover advantages in an emerging market. This paper addresses the knowledge gap which exists in identifying viable CCUS business models in the industrial sector which, with the exception of a few industry reports, remains poorly explored in the academic literature.

Viable business models for city logistics: Exploring the cost structure and the economy of scale in a Swedish initiative

This paper addresses the challenge of achieving profitable city logistics initiatives. A case study examines the financial continuity of one such initiative in Sweden by exploring its cost structure, the relative importance of its revenue variables, and the variables that determine the economy of scale. The results show the potential of obtaining a viable business model and provide new insights into the economy of scale for city logistics. The paper presents a detailed cost-benefit analysis of the implementation of a six-month pilot programme for a city logistics initiative. The initiative combines the consolidation of transportation of goods for both private enterprises and municipalities, and shows that the relationship between goods volumes and profitability is not linear, but rather follows a logarithmic shaped curve. A sensitivity analysis highlights the impact of goods volumes and pricing on the financial performance of the business model.

Green energy management in India for environmental benchmarking: from concept to practice

PurposeThis study examines various aspects of green energy management operations in India and reports the current state, potential avenues and barriers for green energy management.Design/methodology/approachThis study performs an extensive literature review and covers the several aspects of green energy management operations.FindingsThe findings report the current state of various aspects of green energy management operations such as: procurement, manufacturing and distribution and provides the viable business models. It further explains the various facilitators and barriers of green energy management and reports the opportunities and challenges that exist in developing and managing green energy supply chain.Originality/valueThe study is pioneer in providing a comprehensive view of developing and managing green energy operations in India. The study is useful to various organisations on drafting strategies to effectively adopt and manage green energy. The study is also useful in policy formulation for promoting green energy use. This article also set as a base for future researchers working in the area of green energy.

An Exploratory Agent-Based Modeling Analysis Approach to Test Business Models for Electricity Storage

Electricity storage systems (ESSs) are potential solutions to facilitate renewable energy transition. Lack of viable business models, as well as high levels of uncertainty in technology, economic, and institutional factors, form main barriers for wide implementation of ESSs worldwide and in the Netherlands. Therefore, the design of business models for an ESS is necessary for the development of ESSs. We elaborated on this problem before, and developed a design space for business models of ESSs in the context of the Netherlands. This conceptual paper provides a further view on barriers and uncertainties of ESS development in the Netherlands through the involvement of a business practitioner, elaboration of goals, objectives, and testing of ESS business model designs, suggests and provides a theoretical foundation for combining agent-based modeling and exploratory modeling analysis as a method to test and explore ESS business models, and provides an abstract conceptual agent-based model design thereof. This work can be used as a foundation of detailed design and implementation of models for testing ESS business models in the Netherlands and worldwide.

Business models for dedicated container freight on Swedish inland waterways

Modal shift from land to water is prioritized in transport policies throughout Europe. As indicated in earlier research on intermodal shift, new business models are needed for intermodal services to get a foothold in challenging markets. The purpose of the paper is to analyze business model development for inland waterway transport (IWT) in order to identify principal characteristics that support the switch from land to water. This paper reports on the development, and testing, of new business models for IWT services targeting containerized goods in West Sweden. The research is based on case studies of two recent entrepreneurial attempts to establish such services. From the case studies three business models were developed for stakeholders to evaluate. The tests were conducted through a stakeholder oriented multi-actor multi-criteria analysis (MAMCA). The results revealed strengths and weaknesses with the business models that have implications for the Swedish setting as well as general support for intermodal shift. The paper ends by discussing how stakeholders can support the development of viable business models for IWT.

Towards a viable business model for the management of professional football in Africa

Towards a viable business model for the management of professional football in Africa

Analytical models for comparing Demand Responsive Transport with bus services in low demand interurban areas

ABSTRACT As new shared mobility services emerge there is an increasing need for better understanding of the role and potential markets of these services which would result in viable business models. The current research aims at exploring Demand Responsive Transport (DRT) services, as a case of efficient mobility service provision for low demand interurban areas. Analytical models are developed and applied in a real case identifying critical demand thresholds for the alternative modes. Finally, the analysis points out the trade-offs between costs and level of service a transport operator or mobility provider needs to consider to implement a successful service.

Frugal innovation in, by and for Europe

In recent years, the notion of frugal innovation has gained greater prominence in both the academic sphere and in political discussion but, so far, been mostly associated with emerging or developing economies. However, frugal innovation does not only describe particular products, or, more generally, products for a particular group of very low income customers. At least as importantly, it designates a way of innovating that focuses functionalities smartly and uses resources wisely. In that, it is very much in line with needs also, and increasingly, pertinent to European markets. Most importantly, it harbours the potential of reconciling viable business models with the much needed ambitions of addressing long-term societal as well as imminent social challenges. In doing so, a particular emphasis needs to be put on quality and sustainability rather than cheapest possible prices.

The Potential Short- and Long-Term Disruptions and Transformative Impacts of 5G and Beyond Wireless Networks: Lessons Learnt From the Development of a 5G Testbed Environment

The capacity and coverage requirements for 5th generation (5G) and beyond wireless connectivity will be significantly different from the predecessor networks. To meet these requirements, the anticipated deployment cost in the United Kingdom (UK) is predicted to be between £30bn and £50bn, whereas the current annual capital expenditure (CapEX) of the mobile network operators (MNOs) is £2.5bn. This prospect has vastly impacted and has become one of the major delaying factors for building the 5G physical infrastructure, whereas other areas of 5G are progressing at their speed. Due to the expensive and complicated nature of the network infrastructure and spectrum, the second-tier operators, widely known as mobile virtual network operators (MVNO), are entirely dependent on the MNOs. In this paper, an extensive study is conducted to explore the possibilities of reducing the 5G deployment cost and developing viable business models. In this regard, the potential of infrastructure, data, and spectrum sharing is thoroughly investigated. It is established that the use of existing public infrastructure (e.g., streetlights, telephone poles, etc.) has a potential to reduce the anticipated cost by about 40% to 60%. This paper also reviews the recent Ofcom initiatives to release location-based licenses of the 5G-compatible radio spectrum. Our study suggests that simplification of infrastructure and spectrum will encourage the exponential growth of scenario-specific cellular networks (e.g., private networks, community networks, micro-operators) and will potentially disrupt the current business models of telecommunication business stakeholders – specifically MNOs and TowerCos. Furthermore, the anticipated dense device connectivity in 5G will increase the resolution of traditional and non-traditional data availability significantly. This will encourage extensive data harvesting as a business opportunity and function within small and medium-sized enterprises (SMEs) as well as large social networks. Consequently, the rise of new infrastructures and spectrum stakeholders is anticipated. This will fuel the development of a 5G data exchange ecosystem where data transactions are deemed to be high-value business commodities. The privacy and security of such data, as well as definitions of the associated revenue models and ownership, are challenging areas – and these have yet to emerge and mature fully. In this direction, this paper proposes the development of a unified data hub with layered structured privacy and security along with blockchain and encrypted off-chain based ownership/royalty tracking. Also, a data economy-oriented business model is proposed. The study found that with the potential commodification of data and data transactions along with the low-cost physical infrastructure and spectrum, the 5G network will introduce significant disruption in the Telco business ecosystem.

Frugal innovation in, by and for Europe

In recent years, the notion of frugal innovation has gained greater prominence in both the academic sphere and in political discussion but, so far, been mostly associated with emerging or developing economies. However, frugal innovation does not only describe particular products, or, more generally, products for a particular group of very low income customers. At least as importantly, it designates a way of innovating that focuses functionalities smartly and uses resources wisely. In that, it is very much in line with needs also, and increasingly, pertinent to European markets. Most importantly, it harbours the potential of reconciling viable business models with the much needed ambitions of addressing long-term societal as well as imminent social challenges. In doing so, a particular emphasis needs to be put on quality and sustainability rather than cheapest possible prices.

Impact of startups on indian economic growth

A start-up company (start-up or start-up) is an entrepreneurial venture which is typically a newly emerged, rapidly-growing business that aims to meet a marketneed by developing or offering an innovative and extraordinary product, process or service. A start-up is usually a company such as a small business, apartnership or an organization deliberately designed to rapidly develop a commercially viable business model. More often than not, start-up companiesdeploy technologies, such as Internet, e-commerce, computers,telecommunications, or robotics to make a niche for them in the market.

On-Demand Telemedicine as a Disruptive Health Technology: Qualitative Study Exploring Emerging Business Models and Strategies Among Early Adopter Organizations in the United States.

BackgroundOn-demand telemedicine is increasingly adopted by health organizations to meet patient demand for convenient, accessible, and affordable services. Little guidance is currently available to new entrant organizations as they consider viable business models and strategies to harness the disruptive potential of on-demand telemedicine services (in particular, virtual urgent care clinics [VCCs] as a predominant and catalyst form of on-demand telemedicine).ObjectiveWe recognized on-demand telemedicine as a disruptive technology to explore the experiences of early adopter organizations as they launch on-demand telemedicine services and deploy business models and strategies. Focusing on VCC service lines, this study addressed the following research questions: (1) what is the emerging business model being deployed for on-demand telemedicine?; (2) what are the core components of the emerging business model for on-demand telemedicine?; and (3) what are the disruptive business strategies employed by early adopter organizations as they launch on-demand telemedicine services?MethodsThis qualitative study gathered data from 32 semistructured phone interviews with key informants from 19 VCC early adopter organizations across the United States. Interview protocols were developed based on noted dissemination and implementation science frameworks. We used the constant comparison method to transform study data into stable dimensions that revealed emerging business models, core business model components (value proposition, key resources, key processes, and profit formula), and accompanying business strategies.ResultsEarly adopters are deploying business models that most closely align with a value-adding process model archetype. By and large, we found that this general model appropriately matches resources, processes, and profit formulas to support the disruptive potential of on-demand telemedicine. In total, 4 business strategy areas were discovered to particularly contribute to business model success for on-demand disruption among early adopters: fundamental disruptions to the model of care delivery; outsourcing support for on-demand services; disruptive market strategies to target potential users; and new and unexpected organizational partnerships to increase return on investment.ConclusionsOn-demand telemedicine is a potentially disruptive innovation currently in the early adopter stage of technology adoption and diffusion. On-demand telemedicine must cross into the early majority stage to truly be a positive disruption that will increase accessibility and affordability for health care consumers. Our findings provide guidance for adopter organizations as they seek to deploy viable business models and successful strategies to smooth the transition to early majority status. We present important insights for both early adopters and potential early majority organizations to better harness the disruptive potential of on-demand telemedicine.

Startup Companies in Goa: A Study of the Prevailing Ecosystem, Determinants and Operational Challenges

A Start up is defined as an entrepreneurial venture which is a newly emerged business venture that aims to meet a market place need, want or problem by developing a viable business model around products, services, processes or platforms. The Government of India has initiated several measures to promote startups in the country with a view of creating employment opportunities and promoting economic growth. The study attempts to find out the various factors that motivated the founders to set up their startups and also throw light on the problems that these entrepreneurs experience. The paper is based on primary data collected from a total of 10 startup founders in the State of Goa. Convenience and random sampling has been used to select the respondents. The data findings are based on their responses to the interview schedule.

A Networked Analysis and Engineering Framework for New Business Models

New technological possibilities and paradigm shifts from product-centered to service-centered offerings are one of the main drivers of business models. Business ventures today are more and more networked. Often, various partners are needed to deliver a service or product to frequently cross-linked customers with sometimes bi- or even multi-variant roles. Furthermore, business models are embedded in socio-technical systems where different kinds of needs and values of all actors, including social, ecological, technical and economic values, have to be balanced. The resulting complex network of actors, needs and values requires continuous management in order to create and operate viable and sustainable business models. This paper proposes a multi-layer framework to analyze existing business models as well as to shape new business ventures in a networked and values-based way and to support the identification of tacit network effects within business ecosystems. Based on an existing multi-layered analysis toolkit, focusing on legal and business dynamics aspects, an enhanced visualization and analysis tool is proposed that focuses especially on ethical, social and environmental aspects to foster the creation of (strongly) sustainable business models. The research process to create the presented approach followed the Design Science Research paradigm by applying argumentative-deductive analysis (ADA) and first applications in real-world case studies. A practical case from an international Open Source Software (OSS) project serves as an example to illustrate this values-based visualization and analysis layer and its benefits for managers and decision makers in the area of business model and information system management.

Circular business models generation for automobile remanufacturing industry in China

Purpose Although China can be considered an early adopter of the circular economy, there are few studies of remanufacturing business models (BMs) in the context of the Chinese automobile industry. The purpose of this paper is to investigate viable BMs, summarizes current obstacles and anticipates future development opportunities and directions. Design/methodology/approach The cross-case analysis considers the roles of value networks and of customer value proposition and interface in circular business models (CBMs) by examining the strategies and tactical measures of two leading remanufacturers. The data are collected from semi-structured interviews, documents, etc. Findings The analysis identifies the following components of viable BMs of remanufacturers: reclaiming raw material, managing used components, producing new products and marketing. Several current obstacles are summarized from four perspectives: policy barriers and insufficient government support; consumer awareness; related product quality; and technology. The study also identifies future directions and opportunities for the automobile parts remanufacturing industry. Originality/value This study contributes to the CBM literature by mapping the barriers and opportunities in remanufacturing. The results have shed some light into the field of sustainability in manufacturing firms by empirically testing the theoretical model. The results will help managers to design viable CBMs in different contexts.

The Business Model of Start-Up—Structure and Consequences

A start-up already at its origin has to solve the crucial existential condition that is a viable business model. The purpose of the research is to deepen and expand the knowledge about the structure of the start-up business model and its impact on entrepreneurial performance. Field research was carried out in three stages over one and a half years. The source of knowledge about the studied start-ups has been the personal experience recorded in the questionnaire. Start-ups are small closed communities that do not sufficiently shape external partnerships, cannot reach the customers, although they can identify them well enough, try to improve the business model blocks but they do not pay attention to their coordination and perceive the monetization in a simplified way. The impact of the business model on start-up performance has been confirmed but the internal blocks affect business performance unambiguously over the three stages of the research. The best conversion of users to customers and subsequently to revenues are distinctive for the start-ups with their own simple distribution channel and partners who are experienced distributors. The lessons learned can directly improve the results of start-ups when their incompleteness and imperfection will be substituted by appropriate partners. Start-ups provide a space for the new jobs and the self-realization of ambitious people with a sense of service for society. Empirical research on start-ups identifies their weaknesses and possibilities to increase their entrepreneurial performance.

Economics of New Molecular Targeted Personalized Radiopharmaceuticals

Nuclear medicine has come a long way since 2007 when Adrian Nunn pointed out the approval of radiopharmaceuticals was at an all-time low with all the major radiopharmaceutical agents in use having been approved over 10 years ago. Challenges being the prohibitively high cost of drug development and the large number of drugs failing in clinical trials. Proceed to today where molecular imaging is fast-tracking the drug discovery process by reducing both the time and cost to screen candidates by quantitating the drugs effect on the target and toxicity to normal tissues. Nuclear medicine is now leading medical practice in personalized medicine using the theragnostic approach. Theragnostics is defined as the use of molecular diagnostic techniques in real time to stratify patients to guide treatment decisions such as the choice of drug, the dose of administration, and the timing of drug delivery for a given patient. Enabling visualization and quantitation of in vivo function of the whole body and thus patient heterogeneity and variability informs the physician on how to treat an individual patient. Recent successes such as the Food and Drug Administration approval of Lutathera and NETSPOT have resulted in an increasing number of pharmaceutical companies pursing theragnostics further heightened by the purchase of Advanced Accelerator Applications for 3.9 billion by Novartis and Endocyte, Inc for 2.1 billion. Theragnostics are further aiding drug development by showing which agents are most viable and reducing the overall cost of bringing a drug to clinical trials and regulatory approval. This is indeed a renaissance for nuclear medicine in which the acceptance of imaging to inform and monitor therapy has been embraced and even required by the Food and Drug Administration for the clinical evaluation of targeted therapeutic radiopharmaceuticals showing there is indeed a viable business model for targeted theragnostic radiopharmaceuticals and personalized medicine.

Will CoWorking Work?

“CoWorking” represents a new way of providing office space to corporate workers. Rather than companies acquiring dedicated space for their workforce at one or a few sites under long term leases (or ownership), companies contract with a “service provider” to have their workers housed “flexibly” at a range of sites for variable terms. In the extreme, companies allow their workers to make their own space arrangements – while picking up the tab. This allows the service provider to operate its office space like a “hotel”. The observation that many traditional offices are significantly underutilized raises the possibility that this new arrangement could save companies on overall occupancy costs. In this paper we analyze this alternative in terms of whether it can provide companies with equal labor productivity at a lower cost – and provide a viable business model for the service provider. Our analysis identifies a number of issues which will significantly impact the ability of this new model to “work”. Empirically, we examine the recent sales prices of office properties that have been structured largely as CoWorking facilities and compare them with a similar sales set of properties using traditional tenancy. Buildings with the new model have lower sales prices and cap rates, suggesting investor concern over the issues which we have identified.