scholarly journals Threats to Established Companies from Increasing Digitalization

2021 ◽  
Vol 4 (2) ◽  
pp. 14
Author(s):  
Marco Pister
Keyword(s):  
Business Models ◽  
Disruptive Innovation ◽  
Competitive Pressure ◽  
Cost Reductions ◽  
Technical Innovations

In today's world, companies have to deal more than ever with increasing globalization/internationalization and enormous competitive pressure. Strong competitive pressure leads to faster and faster innovation cycles, constant technical innovations and programmes for further cost reductions. In recent years, digitalization has added another challenge for established companies. New competitors are blurring industry models through digitalization and offerings based on disruptive innovation, proven business models are no longer suitable from one day to the next and established companies are competing with service or usage offerings. Such service or usage offerings will almost always be considered by the millennial or always-on generation and pose significant risks to established companies.

Humans as a Service

2018 ◽  
Author(s):  
Jeremias Prassl
Keyword(s):  
Business Models ◽  
Disruptive Innovation ◽  
Level Playing Field ◽  
Employment Relationships ◽  
Playing Field ◽  
On Demand ◽  
Gig Economy ◽  
Wide Range ◽  
Digital Work ◽  
Stable Employment

The rise of the gig economy is disrupting business models across the globe. Platforms’ digital work intermediation has had a profound impact on traditional conceptions of the employment relationship. The completion of ‘tasks’, ‘gigs’, or ‘rides’ in the (digital) crowd fundamentally challenges our understanding of work in modern labour markets: gone are the stable employment relationships between firms and workers, replaced by a world in which everybody can be ‘their own boss’ and enjoy the rewards—and face the risks—of independent businesses. Is this the future of work? What are the benefits and challenges of crowdsourced work? How can we protect consumers and workers without stifling innovation? Humans as a Service provides a detailed account of the growth and operation of gig-economy platforms, and develops a blueprint for solutions to the problems facing on-demand workers, platforms, and their customers. Following a brief introduction to the growth and operation of on-demand platforms across the world, the book scrutinizes competing narratives about ‘gig’ work. Drawing on a wide range of case studies, it explores how claims of ‘disruptive innovation’ and ‘micro-entrepreneurship’ often obscure the realities of precarious work under strict algorithmic surveillance, and the return to a business model that has existed for centuries. Humans as a Service shows how employment law can address many of these problems: gigs, tasks, and rides are work—and should be regulated as such. A concluding chapter demonstrates the broader benefits of a level playing field for consumers, taxpayers, and innovative entrepreneurs.

scholarly journals Blockchain Beyond Cryptocurrency: Non-Fungible Tokens

2021 ◽  
Author(s):  
Burcu Sakız ◽  
Ayşen Hiç Gencer
Keyword(s):  
Business Models ◽  
Disruptive Innovation ◽  
Peer To Peer ◽  
Smart Contracts ◽  
Blockchain Technology ◽  
Wide Range ◽  
Peer Network ◽  
Work Mechanism ◽  
Distributed Networking ◽  
Peer To Peer Network

Blockchain technology is a disruptive innovation with the potential to replace existing business models that rely on centralized systems and third parties for trust. Even if there are a lot of application areas, blockchain used primarily for cryptocurrencies. Satoshi Nakamoto implemented the first blockchain application and invented the world’s first digital currency which is named as Bitcoin in 2008. Fundementally Bitcoin relies on cryptographic “proof of work” mechanism, digital signatures, and peer to peer distributed networking layer in order to provide a distributed ledger holding transactions. In 2014, a second generation of blockchains allow to program and execute them over distributed networks such as Ethereum project. The code to program any asset stored in blockchain’s peer-to-peer network is called as "smart contract" and smart contracts gives a powerful tool to developers for decentralized applications. There are various types of tokens that anyone can built on top of Ethereum and by combining smart contracts and new tokens, this paved the way of possibility to build a wide range of decentralized projects. One of the disruptive blockchain based innovation impacting intellectual property is called non-fungible-tokens or NFTs firstly introcuced in late 2017 on Ethereum network. This research contends that blockchain and non-fungible tokens (NFTs) which are cryptographically unique, scarce, non-replicable digital assets created through smart contracts and provably digital collectible assets. Our objective is to give NFT taxonomy, review NFT platforms and discuss technical challenges as well as recent advances in tackling the challenges. Moreover, this paper also aims to point out the future directions for NFT technology.

Massive Open Online Courses

2014 ◽  
pp. 363-376 ◽  
Author(s):  
Winthrop Gary J. Stockport
Keyword(s):  
Higher Education ◽  
Business Models ◽  
Online Courses ◽  
Theoretical Models ◽  
Disruptive Innovation ◽  
Life Cycles ◽  
Master Of Business Administration ◽  
Massive Open Online ◽  
European Business ◽  
Game Changer

This chapter considers the state-of-play as at early May 2013 regarding Free Massive Open Online Courseware (MOOC). It considers whether the initial findings indicate whether MOOCs will prove a “game changer” in higher education. A number of theoretical models such as disruptive innovation theory, technology life cycles, and strategy business models are used to enable a better understanding of the likely potential impact of MOOCs. Data was gathered through investigating the Coursera, Udacity, and edX Websites as well through undertaking a content analysis of the 32 Business and Management courses available on Coursera. It also presents the responses about MOOCs from a small group of potential “customers,” a class of Executive Master of Business Administration (EMBA) students from a European Business School. Different scenarios are then presented about their potential disruptive impact upon universities. Possible strategies for each scenario are also put forward. Based upon the evidence provided within this chapter, it can be tentatively concluded that MOOCs will not be a “game changer” in the higher education sector.

In Search of Crowdfunding Business Models

2020 ◽  
pp. 63-95
Author(s):  
Djamchid Assadi
Keyword(s):  
Business Model ◽  
Business Models ◽  
The Internet ◽  
Extensive Literature ◽  
Competitive Pressure ◽  
Current State ◽  
Social Lending ◽  
Banking Institutions ◽  
Young Entrepreneurs

Crowdfunding platforms have substantially increased since 2005 and have supported entrepreneurial projects in response to the low propensity of banking institutions to finance either startups, or poor or young entrepreneurs. However, the theory of strategies and management of crowdfunding is far behind the dynamism of its growth. This shortcoming most likely causes costs and failures, in particular during the current state of increasing competitive pressure in the sector. This paper seeks to construct a general theoretical definition for the concept of a business model and apply it to the P2P social lending on the Internet. Extensive literature is reviewed to construct an archetype business model. The validity of the model will be tested through crowdfunding platforms.

Business Model

2012 ◽  
pp. 100-131 ◽  
Author(s):  
Arash Najmaei
Keyword(s):  
Business Model ◽  
Mental Model ◽  
Business Models ◽  
Disruptive Innovation ◽  
Future Research ◽  
Disruptive Technology ◽  
New Business ◽  
Managerial Implications ◽  
Established Firms ◽  
Strategic Logic

Today’s world of business is increasingly witnessing exemplary firms which introduce new business models, exploit new markets and disrupt established firms in order to create a unique competitive position. Although the theoretical and conceptual posture of this phenomenon is well grounded and explained in the extant literature on disruptive innovation, little is known about strategic logic of this phenomenon. In other words, the managerial paradigm or cognitive and mental model that underlies the orchestration of micro- and macro-organizational mechanisms of a disruptive move, such as market and technological knowledge, have surprisingly received little attention. In this sense, an analytical review of literature suggests that strategic logic of a disruptive technology can be well presented through the lens of business model (BM) and its innovation. Accordingly, it is argued that business model represents a mental model which underlines activities such as acquisition of market and technological insights, opportunities and requisite actions required for transforming a disruptive idea into a disruptive market movement. This view offers new insights into the study of disruptive phenomenon. It addresses the managerial (i.e. mental model) underpinnings of disruptiveness, instead of market, economical and technological dimensions. Business model innovation (BMI) is a disruptive change in the core logic of value creation and capture. It is a value-revolutionizing framework which explicitly delineates the strategic processes of a disruptive strategy. Thus, it is essentially a paradigm for strategizing the craft of disruptive innovation (technology). Given this view, this chapter conceptually explicates this contour and shows how BMI effectuates a disruptive technological phenomenon by presenting four propositions. Finally theoretical and managerial implications of this view are illuminated in order to furthering the practice and enhancing future research in this growing field of inquiry.

Expanding Peer-to-Peer Digital Intermediation Through a Mobile-Based Platform

2021 ◽  
pp. 549-569
Author(s):  
Mohammad Nabil Almunawar ◽  
Muhammad Anshari
Keyword(s):  
Transaction Cost ◽  
Business Models ◽  
Disruptive Innovation ◽  
Peer To Peer ◽  
Value Network ◽  
Disruptive Technologies ◽  
Intense Competition ◽  
Start Up ◽  
The Right ◽  
Short Time

The fusion of several technologies has created disruptive innovation that changes the way in which people interact and transact. The rise of new and innovative business models such as mobile-based platforms in the transport industry has posed a big challenge to the incumbent in a very short time. The fusion allows start-up companies that employ the right strategies expanding their business rapidly by taking over the existing markets as well as creating new markets for them to expand in various directions. In this chapter, the authors discuss three theories to examine business expansion strategies in digital intermediation platforms: transaction cost economy, two-sided market, and value network and. Using these theories, they analyze how Gojek, an Indonesian mobile-based platform, rises and expands rapidly in a very short time. They argue that due to high intense competition, businesses that adopt disruptive technologies through mobile-based platforms by introducing products or services within the same platform are likely to be more sustainable in preserving the market.

In Search of Crowdfunding Business Models

2016 ◽  
pp. 1-33
Author(s):  
Djamchid Assadi
Keyword(s):  
Business Model ◽  
Business Models ◽  
The Internet ◽  
Extensive Literature ◽  
Competitive Pressure ◽  
Current State ◽  
Social Lending ◽  
Banking Institutions ◽  
Young Entrepreneurs

Crowdfunding platforms have substantially increased since 2005 and have supported entrepreneurial projects in response to the low propensity of banking institutions to finance either startups, or poor or young entrepreneurs. However, the theory of strategies and management of crowdfunding is far behind the dynamism of its growth. This shortcoming most likely causes costs and failures, in particular during the current state of increasing competitive pressure in the sector. This paper seeks to construct a general theoretical definition for the concept of a business model and apply it to the P2P social lending on the Internet. Extensive literature is reviewed to construct an archetype business model. The validity of the model will be tested through crowdfunding platforms.

scholarly journals Clarifying the disruptive innovation puzzle: a critical review

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sucet Jimena Martínez-Vergara ◽  
Jaume Valls-Pasola
Keyword(s):  
Critical Review ◽  
Business Models ◽  
Disruptive Innovation ◽  
Complex Nature ◽  
Content Type ◽  
Disruptive Innovation Theory ◽  
Depth Analysis ◽  
New Business ◽  
Key Issues ◽  
New Business Models

PurposeDisruptive innovation theory has attracted the interest of researchers and practitioners across many areas, resulting in the development of new business models and strategies. Despite the increasing scholarly attention, its definition has not yet been understood, the understanding of the term “disruptive” and the complex nature of this innovation has provoked some misinterpretations, and the meaning remains ambiguous. To address this confusion, this article undertakes a critical review of disruptive innovation in an attempt at providing a solid theoretical grounding.Design/methodology/approachThe review examines the key issues of published articles, identified after conducting a search in the Web of Science scholarly database. The analysis highlights the basic definitions of disruptive innovation, showing its evolution, types and its characteristics. This article also examines the behaviours adopted by the actors associated with disruptive innovation (i.e. incumbents, entrants and customers).FindingsOverall, this article finds that disruptive innovation has its own elements to be identified, requiring an in-depth analysis to avoid confusing with other innovation approaches. The findings suggest that disruptive innovation affects businesses and sectors in varied and complex ways because customers from low-end market and mainstream market appreciate this innovation. Further, its impact on practice is huge and incites further efforts in establishing a stronger theoretical grounding.Originality/valueOur research contributes on the evolution of this theory, helping to better understand the phenomenon of disruption and can be used for different types of research settings.

scholarly journals The Dominant Design of Disruptive Innovations in the 3rd-Party Online Payment in China

2021 ◽  
Vol 2021 ◽  
pp. 1-13
Author(s):  
Lu Lu ◽  
Yang Zhou ◽  
Chenxiao Wang ◽  
Qingpu Zhang
Keyword(s):  
Business Models ◽  
Driving Forces ◽  
New Product ◽  
Disruptive Innovation ◽  
Subsequent Performance ◽  
Performance Improvements ◽  
Online Payment ◽  
Disruptive Innovations ◽  
Dominant Design ◽  
New Business

As a disruptive innovation on the traditional payment mode, the 3rd-party online payment has been involved in disruptive innovations featuring contextualized and modernized characteristics, but a theoretical summary is urgently needed for the dominant design of these disruptive innovations. Therefore, an in-depth case study is done with Alipay and PayPal as the subject, and it comes to elaborate four key aspects involved in the dominant design of disruptive innovations of the 3rd-party online payment. Namely, adopt new innovative derivations, create new product attributes, construct new business models, and process subsequent performance improvements. In addition, the factors that differ from the traditional disruptive innovations are also spotted, including two innovative driving forces, two new product features, and four business modes.

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