Business model configurations: a five-V framework to map out potential innovation routes

2016 ◽  
Vol 19 (4) ◽  
pp. 492-527 ◽  
Author(s):  
Yariv Taran ◽  
Christian Nielsen ◽  
Marco Montemari ◽  
Peter Thomsen ◽  
Francesco Paolone
Keyword(s):  
Business Model ◽  
Classification Scheme ◽  
Market Place ◽  
Value Drivers ◽  
Value Capture ◽  
Content Type ◽  
Value Network ◽  
A Value ◽  
Driver Analysis ◽  
Common Understanding

Purpose Despite the common understanding that business model (BM) innovation is of vital importance for securing competitive positioning in the market place, managers still seem to lack appropriate frameworks and tools which can support them in renewing and rejuvenating their company’s existing BM. The purpose of this paper is to develop a structural and comprehensive toolbox of available BM configurations, from which companies can choose, to innovate their BM upon, and to design an appropriate BM innovation framework which can facilitate them in re-designing, selecting, and implementing new BM configuration possibilities. Design/methodology/approach A structured literature review is conducted to identify all the relevant BM configurations. Then, a value driver analysis is performed to group these BM configurations into appropriate categories. Finally, an ontological classification scheme and a structural and workable process, i.e. a BM innovation framework, are inductively developed. Findings The paper systematically develops a list of 71 BM configurations and groups them into an ontological classification scheme according to five groups: Value Proposition, Value Segment, Value Configuration, Value Network, and Value Capture. The paper illustrates how the BM innovation framework, enabled by this ontological classification scheme, provides a platform for identifying BM innovation routes for companies, allowing managers to envisage radical, disruptive, and new-to-the-world BM configuration ideas, or apply existing configurations from other industrial settings in what may be deemed new-to-the-industry innovation. Originality/value The paper enriches the amount of potential BM configurations available for managers to choose from when innovating their BMs, and extends the analysis to five core BM configuration categories. Moreover, the BM innovation framework suggested highlights the strong relationships among the value drivers, thus presenting the opportunity for managers to assess potential conflicts or synergies between various value drivers, and to align the BM management process as a whole.

Social business model design and implementation in developing countries

2017 ◽  
Vol 36 (1) ◽  
pp. 48-57 ◽  
Author(s):  
Valerie Sabatier ◽  
Ignace Medah ◽  
Peter Augsdorfer ◽  
Anthony Maduekwe
Keyword(s):  
Developing Countries ◽  
Business Model ◽  
Business Models ◽  
Model Design ◽  
Social Business ◽  
Value Capture ◽  
Content Type ◽  
Design And Implementation ◽  
The Social ◽  
Business Model Design

Purpose The purpose of this paper is to contribute to the emergent research on social business models by revealing challenges encountered by the design and implementation of such business models. Design/methodology/approach Case study of the development of FACA, an affordable medicine used to treat sickle cell disease, from traditional medicine to market in Burkina Faso. Findings Social business models present important challenges in terms of value capture for all stakeholders. The social profit equation and the profit equation suggested by Yunus et al. are difficult to apply in practice, and therefore, social business model design should consider the social and profit equations jointly. Originality/value Developing countries are seeking different approaches to innovation and healthcare. Social business models appear as one of the potential solutions to bring value to society, organizations, and individuals. The identification of challenges raised by social business models can help policymakers and executives in the design and implementation of these social business models.

Crowdsourcing business models that last

2017 ◽  
Vol 38 (2) ◽  
pp. 25-32 ◽  
Author(s):  
Thomas Kohler ◽  
Marco Nickel
Keyword(s):  
Business Model ◽  
Business Models ◽  
Comparative Case Study ◽  
Corporate Value ◽  
Sustainable Business ◽  
Value Capture ◽  
Content Type ◽  
Original Contribution ◽  
Practical Implications

Purpose The purpose of this paper is to discuss how to sustain crowdsourcing business models. Emerging companies are innovating their business model to rely on a crowd of participants and involve contributing users in value capture. While some organizations demonstrate initial success, sustaining a crowdsourcing business model is challenging. Design/methodology/approach The study is based on a comparative case study of the prominent crowdsourcing communities Threadless and Quirky. Participatory observation resulted in over 380 analyzed comments. Findings Seven lessons from Threadless’s success and Quirky’s failure are discussed to derive implications for sustaining crowdsourcing business models. Research limitations/implications Because both cases are integrator platforms build around contests, other crowdsourcing platform types should be studied to enrich the findings. Practical implications Managers receive guidance on how to design a sustainable business model that involves the crowd in creating value and lets the crowd participate in value capture. Originality/value Current research primarily addresses the question of how companies can take advantage of crowdsourcing and mainly considers corporate value capture. The original contribution of this article is a set of strategies to sustain crowdsourcing platforms by taking a platform’s entire business model into account.

scholarly journals The essential benefits of an enterprise blockchain in business model innovation

2021 ◽  
Vol 24 (2) ◽  
pp. 189-210
Author(s):  
Ambara Purusottama ◽  
Yohanes Berenika Kadarusman
Keyword(s):  
Organizational Performance ◽  
Business Model ◽  
Business Models ◽  
Business Model Innovation ◽  
Abductive Reasoning ◽  
Value Proposition ◽  
Value Capture ◽  
Blockchain Technology ◽  
A Value ◽  
Multiple Case

Blockchain brings changes and disruptions to the existing business models and therefore deserves further analysis. Accordingly, this study aims to explain the phenomenon of blockchain technology in the business model innovation in the enterprise ecosystem. Empirically, numerous studies have shown that blockchain technology improves organizational performance. This study uses a value system framework to explain the enterprise blockchain phenomenon. Through abductive reasoning, this study uses a multiple-case study to answer the research questions. In sum, this study finds that blockchain technology delivers benefits to organizations in: (i) value capture through increased profitability; (ii) value creation through private partnership; (iii) value delivery through smart contracts; and (iv) value proposition that encourages improving the existing value proposition through operational improvements. Besides, the study also proposes the different types of enterprise blockchain ecosystems: private and consortium. The private ecosystem focuses on improving organizational performance through competition. In contrast, the consortium ecosystem focuses on  business value collaboration.

The amazonisation of second hand technical equipment: Topotrade case

2020 ◽  
Vol 10 (2) ◽  
pp. 1-19
Author(s):  
Aliaa Khoury ◽  
Nayla Menhem ◽  
Liliane Elias Youakim ◽  
Yara Salame
Keyword(s):  
Business Model ◽  
Undergraduate Students ◽  
Business Models ◽  
Scale Up ◽  
Technical Equipment ◽  
Market Place ◽  
Strategic Choices ◽  
Content Type ◽  
Academic Level ◽  
Biomedical Equipment

Learning outcomes This case reflects a classic approach to entrepreneurship based on entrepreneurial resources and opportunities. It also provides a vehicle for discussing the key features of a business model. It also addresses key strategic choices such as whether to replicate a business model or not. Case overview/synopsis This case study sets out the story of an entrepreneur: Zein Rachidi. It describes his history and the key milestones in his professional development until the creation and development of his own startup “Topotrade” the first online market place for used topography equipment. It also exposes his development plan, his will to scale up his business by replicating the same business model of Topotrade in a new market, that of used biomedical equipment. Complexity academic level This case is written mainly with a view to its use in the context of entrepreneurship courses for undergraduate students in management, as well as for entrepreneurs who can compare Zein’s trajectory to their own. This case is designed for students also suitable for courses in basic strategy, strategy and change and disruptive business models. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 3: Entrepreneurship.

Value capture taxation: alternate sources of revenue for Sub-Central government in Australia

2019 ◽  
Vol 24 (2) ◽  
pp. 200-216
Author(s):  
Vince Mangioni
Keyword(s):  
Grounded Theory ◽  
Central Government ◽  
Capital Gains ◽  
Transport Infrastructure ◽  
Tax Revenue ◽  
Capital Gains Tax ◽  
Public Infrastructure ◽  
Value Capture ◽  
Content Type ◽  
A Value

Purpose Australia’s Future Tax System (2009) among its recommendations identified the need for realignment of tax revenue across the tiers of government in Australia, as well as the need to raise additional revenue from land-based taxes. In achieving these objectives, this paper aims to examine the revenues generated from land and how capital gains tax may be reconceptualised as a value capture tax resulting from the rapid urbanisation of Australia’s cities. The development of a theoretical framework realigns the emerging rationale of a value capture tax, as a means for revenue to be divested from central government in the form of capital gains, to sub-central government as a value capture tax. Design/methodology/approach A qualitative research methodology comprising grounded theory and phenomenological research is used in undertaking the review of tax revenue collection from state land tax, conveyance stamp duty, local government rating and Commonwealth capital gains tax. Grounded theory is applied for constant comparison of the data with the objectives of maximising similarities and differences in these revenues with an analytical construct as defined by Strauss and Corbin (1990, p. 61). Findings The paper finds that realigning revenue from land-based taxes against the principles of good tax design provides greater opportunity to raise additional revenue to fund public infrastructure while decentralising revenue from central government. It provides an alternate mechanism for revenue transfer from central to sub-central government while conceptually improving own source revenue from value capture taxation as a new revenue source. Research limitations/implications The limitation of this paper is the ability to quantify the potential increase that would be generated in the form of value capture revenue. It is demonstrated in the paper that capital gains tax took over 15 years for revenue generation to crystallise, a factor that would likely occur in the potential introduction of a value capture tax for funding transport infrastructure. Practical implications The pathway to introducing a value capture tax is through re-innovating capital gains tax as a value capture tax directly hypothecated to funding transport infrastructure that results in the uplift in values of the surrounding property from which revenue is raised. Originality/value This paper provides a new approach in contributing to funding the capital outlay of public infrastructure in lieu of central government consolidated revenue allocated through the Commonwealth Grants Commission. It provides a much-needed approach to decentralising revenue from the Commonwealth to sub-central government in Australia which has one of the most centralised tax systems in the OECD.

scholarly journals From singular to plural: exploring organisational complexities and circular business model design

2019 ◽  
Vol 23 (3) ◽  
pp. 308-326 ◽  
Author(s):  
Esben Rahbek Gjerdrum Pedersen ◽  
Rebecca Earley ◽  
Kirsti Reitan Andersen
Keyword(s):  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Illustrative Case ◽  
Fashion Industry ◽  
Value Capture ◽  
Content Type ◽  
Fashion Brand ◽  
New Business ◽  
Multiple Challenges

Purpose The purpose of this paper is to discuss how organisational complexities influence the design of circular business models, which have recently been introduced as a new panacea for aligning the interests of business with the needs of the environment. Design/methodology/approach The Service Shirt, a new garment concept, is used as an illustrative case example for demonstrating some of the organisational complexities of making circular business models operable. The shirt was developed through a series of design workshops for the fashion brand Fashion Alpha. Findings The analysis highlights multiple challenges emerging when a fashion product with a significantly extended lifecycle passes through different users, organisations and business models. It is concluded that it is difficult to talk about a circular business model (singular) as circular economy solutions depend on the contributions of multiple stakeholders with business models. Practical implications The findings illustrate how fashion companies interested in the circular economy fundamentally have to rethink conventional approaches to value, organisational boundaries and temporality. Originality/value Drawing on a case example from the fashion industry, the paper demonstrates the organisational complexities linked to the design of new business models based on circular economy thinking, as these require the coordination of actions between autonomous actors driven by different logics regarding value creation, value delivery and value capture.

scholarly journals The new BMW: business model innovation transforms an automotive leader

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Prasanna Kumar Kukkamalla ◽  
Andrea Bikfalvi ◽  
Anna Arbussa
Keyword(s):  
Business Model ◽  
Single Case ◽  
Business Model Innovation ◽  
Model Framework ◽  
Value Capture ◽  
Content Type ◽  
New Business ◽  
Impacting Factors ◽  
Key Dimensions ◽  
S Model

Purpose The car no longer serves simply as a means of transport but is at the core of a new concept of mobility. Car manufacturers are seizing opportunities to change the traditional business model of the auto business. Innovation in this business model has become vital to survival in today’s dynamic market conditions. This paper aims to find out what factors motivate and drive business model change and what the resulting business model innovation is. Design/methodology/approach This qualitative study is based on a single case, namely, BMW as an illustrative example of an advanced, highly innovative customer-centric service business model (BM). The study adopts a document analysis method to reveal the firm’s BMI process. Findings First, the study presents a conceptual framework for business model change with the factors –motivators and drivers – that impact on the process of change. BMW’s BMI and its impacting factors are discussed based on this model. The McKinsey 7 s Model framework, the elements of which are strategy, structure, systems, shared values, style, staff and skills is used as an analytical tool to discuss new business model implementation. The study highlights the BM configuration of a traditional car manufacturer, the car as a product and the new car as a service concept. Originality/value This study reveals the BMI of BMW’s digital services and its key motivators and drivers. BMW mostly innovates in three key dimensions of the Business model. These are value creation, value delivery and value capture. Most of the elements in these dimensions are innovated.

scholarly journals Business model patterns for 3D printer manufacturers

2019 ◽  
Vol 31 (6) ◽  
pp. 1281-1300 ◽  
Author(s):  
Patrick Holzmann ◽  
Robert J. Breitenecker ◽  
Erich J. Schwarz
Keyword(s):  
Business Model ◽  
Business Models ◽  
Low Cost ◽  
Secondary Data ◽  
Future Research ◽  
3D Printer ◽  
Value Capture ◽  
Content Type ◽  
Starting Point ◽  
Depth Analysis

Purpose The purpose of this paper is to analyze the business models that 3D printer manufacturers apply to commercialize their technologies. The authors investigate these business models and analyze whether there are business model patterns. The paper describes the gestalt of the business model patterns and discusses differences and similarities. Design/methodology/approach The authors review the literatures on business models and 3D printing technology. The authors apply a componential business model approach and carry out an in-depth analysis of the business models of 48 3D printer manufacturers in Europe and North America. The authors develop a framework focusing on value proposition, value creation and value capture components. Cluster analysis is used to identify business model patterns. Findings The results indicate that there are two distinct business model patterns in the industry. The authors termed these patterns the “low-cost online business model” and the “technology expert business model.” The results demonstrate that there is a relationship between business model and technology. The identified patterns are independent of age, company size and country of origin. Research limitations/implications The empirical results complement and extend existing literature on business models. The authors contribute to the discussion on business models in the context of novel technology. The technology seems to influence the gestalt of the business model. The sample is limited to European and North American companies and the analysis is based on secondary data. Originality/value This is the first empirical study on the business models of 3D printer manufacturers. The authors apply an original mixed-methods approach and develop a framework that can function as a starting point for future research. 3D printer manufacturers can use the identified business model patterns as blueprints to reduce the risk of failure or as a starting point for business model innovation.

scholarly journals Six ways to build circular business models

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nancy Bocken ◽  
Paavo Ritala
Keyword(s):  
Business Model ◽  
Resource Use ◽  
Business Models ◽  
Strategic Decisions ◽  
Strategic Choices ◽  
Value Capture ◽  
Content Type ◽  
External Stakeholders ◽  
Different Types ◽  
Business Cases

Purpose Circular business models can improve resource use in a financially and environmentally feasible way. However, companies struggle to choose among the vast variety of ways to achieve circularity within a business model. The purpose of this paper is to offer a pragmatic guide for making strategic decisions on circular business models. Design/methodology/approach This paper develops a conceptual model of six different strategic approaches to circular business models and provides examples to business cases and practice to illustrate these. Findings This study identifies two critical strategy choices companies should make. First, an innovation strategy addresses the extent to which circularity is achieved with internal or external stakeholders. Second, a resource strategy addresses how companies achieve circularity by narrowing, slowing or closing resource loops. Using examples from business practice, this study illustrates how the combinations of these two strategies can be used to design competitive circular business models. Key managerial questions are also identified to help decide upon a feasible strategy for circular business model innovation. Originality/value While different types of circular business models have been described, it is less clear what the strategic choices are that companies need to make to find feasible business cases for circularity in terms of value proposition, value creation and delivery and value capture. This study outlines these through a “circular business model strategy framework”.

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