Lean Operation

2018 ◽  
pp. 203-246
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Market Competition ◽  
Value Capture ◽  
Strategic Resources ◽  
Operational Capabilities

When introduced a new solution, be it a product, a process, or a business model, the problem for the startup is the absence of a business foundation while for the established company it is precisely its existence. As discussed, market competition occurs at the level of the business formula, while company's value capture occurs through the unique arrangement of operational capabilities, strategic resources, and established relationships with key partners of the value chain; that's what we call business foundation. If the value created by the company must be captured and multiplied, it will be necessary to design a repeatable, scalable, and automatable system based on the adjustment of the business formula with the business foundation. This chapter explores lean operation.

Reshaping the Business Incubator Model: The Case of the Value Chain Model of Innovation Works in China

2019 ◽  
Vol 24 (3) ◽  
pp. 401-422 ◽  
Author(s):  
Mingfeng Tang ◽  
Cuiwen Li ◽  
Angathevar Baskaran ◽  
Yu Cheng ◽  
VGR Chandran
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Policy Implications ◽  
Primary Data ◽  
Traditional Model ◽  
Chain Model ◽  
Business Incubator ◽  
Value Capture ◽  
Critical Elements ◽  
Chain Business

Since the late 1980s, the business incubator model in China has been evolving—from the early traditional model that focused mainly on providing basic services, such as office space and one-stop administrative services, to an emerging value chain model (value position, value creation, value transfer and value capture), which efficiently combines the profits of an incubator with the success of its incubating tenant ventures. This article analyses the case of ‘Innovation Works’, which is one of the pioneers of the value chain model in China. It raises the following research questions: (a) how does the incubator business model evolve over time in China? (b) What differentiates the value chain business incubator model from the traditional model? (c) What are the critical elements that contribute to the success of a value chain business incubator model? Using primary data gathered through interviews, on-site visits and surveys, the study found that the incubator business model in China has been reshaping towards more complex value propositions and more efficient value chain models. The study also found that specialisation, flat organisational structure and professional management team are the critical elements that contribute to the success or efficient performance of the value chain business incubator model. This article makes significant contributions to the literature and draws policy implications for future business incubator development—both in China and in other emerging economies.

scholarly journals Applying a Sustainable Business Model Lens to Mutual Value Creation With Base of the Pyramid Suppliers

2020 ◽  
pp. 000765032097345
Author(s):  
Krzysztof Dembek ◽  
Jodi York
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Business Models ◽  
Single Case ◽  
Base Of The Pyramid ◽  
Sustainable Business ◽  
Value Capture ◽  
Promising Alternative ◽  
Sustainable Business Models ◽  
Multi Stakeholder

Base of the pyramid (BoP) ventures seek to create “mutual value” for themselves and poor communities, but often use business models unadapted for the BoP context, and have been less successful than hoped. Sustainable business models’ (SBMs) multi-stakeholder lens offers a promising alternative path to mutual value, but BoP-based SBM studies are scarce. This single case study explores whether and how SBM characteristics manifest in the business model and value outcomes of Habi, a Manila footwear company successfully creating mutual value with BoP suppliers. We find SBM characteristics underpin Habi’s dual-structure business model (value chain/shop) and success in four ways: viewing profits as a tool for community development resulted in designing both product and business model around community strengths; understanding communities as systems helped Habi address the complexities of poverty; balancing short-term business needs with a long-term, slow-growth approach led to their choice of investors; and implementing community value capture mechanisms ensured enduring community benefit.

Outside-in thinking, value chain collaboration and business model innovation in manufacturing firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Liang Wu ◽  
Heng Liu ◽  
Yongchuan Bao
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Government Regulation ◽  
Market Competition ◽  
Manufacturing Firms ◽  
Business Model Innovation ◽  
Content Type ◽  
Market Opportunities ◽  
Key Driver ◽  
Technology Managers

Purpose This paper aims to explore how manufacturing firms pursue business model innovation (BMI) through their use of outside-in thinking. Design/methodology/approach Survey data were collected on 175 Chinese manufacturing firms. A regression model was used to verify the research results. Findings Manufacturing firms rely on outside-in thinking to develop BMI under different market and institutional environments. From a whole-value-chain perspective, interacting with customers and sharing information with suppliers are two key ways to develop BMI. Research limitations/implications Firms focus on customer needs, sense the dynamics of external markets and technology and seize market opportunities to measure outside-in thinking. Empirical results suggest using other measures of outside-in thinking. BMI itself can be multidimensional, so scholars could consider BMI’s diverse dimensions and measurements, which may demand different kinds of outside-in thinking. Practical implications Manufacturing firms can use outside-in thinking to overcome inertia and rigidity and increase their knowledge, information and technology. Managers should develop outside-in thinking to respond quickly to emerging economies. Managers should use value chain collaboration and improve the firm’s capacity to interact with customers and suppliers to apply the benefits of outside-in thinking to their BMI. Originality/value The study explores how outside-in thinking is a key driver of BMI. Applying the whole-value-chain view, it finds that interacting with customers and suppliers connects outside-in thinking with BMI. It also highlights the effects of intense market competition and volatile government regulation on BMI.

A systemic logic for platform business models

2018 ◽  
Vol 29 (4) ◽  
pp. 546-568 ◽  
Author(s):  
Julia A. Fehrer ◽  
Herbert Woratschek ◽  
Roderick J. Brodie
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Business Models ◽  
Future Research ◽  
Value Capture ◽  
Content Type ◽  
Open Networks ◽  
Business Environments ◽  
New Business ◽  
Dynamic Perspective

PurposeThe purpose of this paper is to introduce a new business model logic, highlighting value processes in and properties of platform business models to inform business model thinking from a systemic and dynamic perspective. It challenges the idea of firms managing, influencing and controlling entire activity systems.Design/methodology/approachThe study traces the evolution of different approaches to business models and assesses theories that explain value cocreation and systemic value capture to develop a new business model logic.FindingsBusiness model thinking has evolved away from Porter’s value chain to a new logic based on open networks and platforms. This study develops a framework for understanding platform business models from a systemic perspective. Derived from service-dominant logic, this new business model logic responds to phenomena in contemporary business environments characterized by increasing connectivity and sociality among actors.Research limitations/implicationsThe framework, developed from an extensive body of business model literature, has yet to be subjected to empirical investigation. Future research may involve the exploration of business model design processes and business model innovation from a systemic perspective.Practical implicationsManagers who aim to design their business models based on the logic of platform businesses require an understanding of their organization’s collaboration potential, technological interfaces and potential to leverage network relationships. This research guides start-ups and incumbents to evaluate their platform potential.Originality/valueThis study systematically emancipates the business model logic from a firm-centered, inside-out perspective, focuses on network relationships beyond the customer–firm dyad, explains value processes beyond organizational borders and rethinks value capture from a systemic perspective.

scholarly journals The Role of Social Enterprise Hybrid Business Models in Inclusive Value Chain Development

2021 ◽  
Vol 13 (2) ◽  
pp. 499
Author(s):  
Bob Doherty ◽  
Pichawadee Kittipanya-Ngam
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Social Impact ◽  
Business Models ◽  
Rural Poverty ◽  
Sustainable Business ◽  
Middle Income ◽  
Low Middle Income Countries ◽  
Development Literature ◽  
Hybrid Organisations

This study contributes to the growing interest in hybrid organisations, sustainable business models and inclusive value chain development (IVCD). Recent work has identified that of some 570 million farmers in the world, more than 475 million farmers are smallholders in low-middle-income countries experiencing increasing food insecurity and rural poverty. Research argues that there is a lack of research that provides work on appropriate solutions for smallholders. This paper answers this call by a qualitative study of ten case studies, which draws on hybrid organising, sustainable business model and IVCD research to identify the novel business model characteristics that hybrid organisations use to create and manage more inclusive value chains for smallholders. These hybrid organisations are designed to create a value proposition that delivers sustainability upgrading for smallholders via both product, process and governance upgrades, empowers smallholders to achieve development goals and creates multiple value for social impact. We therefore identify the important characteristics of the hybrid business model to provide appropriate solutions for smallholders and overcome the challenges identified in the inclusive value chain development literature.

The future of the Internet of Things: toward heterarchical ecosystems and service business models

2018 ◽  
Vol 33 (6) ◽  
pp. 749-767 ◽  
Author(s):  
Seppo Leminen ◽  
Mervi Rajahonka ◽  
Mika Westerlund ◽  
Robert Wendelin
Keyword(s):  
Internet Of Things ◽  
Business Model ◽  
Value Chain ◽  
Large Scale ◽  
Business Models ◽  
The Internet ◽  
Content Type ◽  
Industry Collaboration ◽  
New Business ◽  
The Internet Of Things

Purpose This study aims to understand their emergence and types of business models in the Internet of Things (IoT) ecosystems. Design/methodology/approach The paper builds upon a systematic literature review of IoT ecosystems and business models to construct a conceptual framework on IoT business models, and uses qualitative research methods to analyze seven industry cases. Findings The study identifies four types of IoT business models: value chain efficiency, industry collaboration, horizontal market and platform. Moreover, it discusses three evolutionary paths of new business model emergence: opening up the ecosystem for industry collaboration, replicating the solution in multiple services and return to closed ecosystem as technology matures. Research limitations/implications Identifying business models in rapidly evolving fields such as the IoT based on a small number of case studies may result in biased findings compared to large-scale surveys and globally distributed samples. However, it provides more thorough interpretations. Practical implications The study provides a framework for analyzing the types and emergence of IoT business models, and forwards the concept of “value design” as an ecosystem business model. Originality/value This paper identifies four archetypical IoT business models based on a novel framework that is independent of any specific industry, and argues that IoT business models follow an evolutionary path from closed to open, and reversely to closed ecosystems, and the value created in the networks of organizations and things will be shareable value rather than exchange value.

scholarly journals The effect of business model innovation on organization performance

2021 ◽  
pp. 1481-1488 ◽  
Author(s):  
Amineh A. Khaddam ◽  
Hani J. Irtaimeh ◽  
Ahmad Rajaa Salameh Al-Batayneh ◽  
Suliman Raja Salameh Al-Batayneh
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Business Model Innovation ◽  
Arab Countries ◽  
Organization Performance ◽  
Company Performance ◽  
Value Proposition ◽  
Value Capture ◽  
The Impact ◽  
Measures Of Performance

The aim of the study is to investigate the impact of business model innovation (BMI) on firm performance. The sample of the study consisted of 120 managers from Alban Al-youm Company in Jordan, a leading dairy company. Data were collected using a questionnaire administered to managers. Eighty-seven questionnaires were retrieved valid for the purpose of data analysis. BMI was measured using three components: value creation, value proposition and value capture innovations while company performance was assessed via self-rated questions about operational measures of performance. The results accepted the hypotheses that all dimensions of BMI had significant effects on company performance. That being so, the study contributed to the literature on BMI on company performance in the absence of such studies that use samples for Arab countries, particularly, from Jordan in one of the most vital industries, which is a dairy industry.

How Airbnb Captures and Disseminates Value

2017 ◽  
Author(s):  
Stephan Reinhold ◽  
Sara Dolnicar
Keyword(s):  
Business Model ◽  
International Market ◽  
Peer To Peer ◽  
The Other ◽  
Value Capture ◽  
Market Leader

This chapter analyses two of the six vital business model elements, explaining the functioning of peer-to-peer accommodation networks: value capture and dissemination. The other elements are discussed in detail in Chapter 4. We focus on Airbnb because it is the international market leader. Separate business analyses are necessary for other peer-to-peer accommodation networks given that each functions in a slightly different way. In this chapter the business model value capture and value dissemination are discussed in detail for Airbnb.

How Airbnb Creates Value

2017 ◽  
Author(s):  
Stephan Reinhold ◽  
Sara Dolnicar
Keyword(s):  
Business Model ◽  
International Market ◽  
Model Analysis ◽  
Peer To Peer ◽  
The Other ◽  
Value Proposition ◽  
Value Capture ◽  
Market Leader ◽  
Insight Into

A business model is like an ultrasound for businesses: it provides – from the outside – detailed insight into six vital elements of a business which explain their functioning (Chapter 3). Each peer-to-peer accommodation network is slightly different and requires an independent business model analysis. Here we analyze the business model of Airbnb because it is the international market leader in commercial peer-to-peer accommodation trading and a model other platforms aspire to. We focus on value proposition, creation, communication, and transfer. The other two elements (value capture and dissemination) are discussed in Chapter 5.

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