Opening Closed Business Ecosystem Boundaries With Digital Platforms

2022 ◽  
pp. 67-96
Author(s):  
Marika Iivari ◽  
Petri Ahokangas ◽  
Marja Matinmikko-Blue ◽  
Seppo Yrjölä
Keyword(s):  
Business Model ◽  
Business Models ◽  
Model Development ◽  
Business Environment ◽  
Digital Platforms ◽  
Digital Twin ◽  
Ecosystem Boundaries ◽  
Business Ecosystem ◽  
Business Model Development ◽  
Model Approach

Applying a business model approach, this chapter identifies various challenges in digital platform and platform-based business model development in the case of a physical port ecosystem. Using an empirical case, the chapter identifies the prerequisites and consequences of opportunities, value, and advantages for an existing ecosystem that aims to create a “digital twin.” It contributes to academic discussions on the intersection of ecosystems, platforms, and business models by exploring the antecedents and controversies of configuring ecosystem boundaries in a digital context. Moreover, the chapter contributes to research by analyzing how a previously closed ecosystem seeks to open its boundaries and interfaces, both internally among the internal ecosystem members and externally to the outside business environment.

scholarly journals Digital Government: Business Model Development For Public Value Creation - A Dynamic Capabilities Based Framework

2021 ◽  
Vol 45 (3) ◽  
pp. 232-255
Author(s):  
Bernd Wirtz ◽  
Paul Langer ◽  
Florian Schmidt
Keyword(s):  
Public Sector ◽  
Business Model ◽  
Value Creation ◽  
Dynamic Capabilities ◽  
Business Models ◽  
Model Development ◽  
Digital Government ◽  
Public Value ◽  
The Public ◽  
Business Model Development

Rapid advances and the spread of digital technologies have changed the expectations of citizens, firms and organizations towards government services, which increasingly receive the call to transform services and structures according to changed needs and preferences. The concept of business model development provides a suitable approach for public institutions aiming at adjusting their services and operations. Since government institutions increasingly develop new services and products, this study provides a theoretic foundation to operational readiness as well as a guideline how to set up digital business models in a public sector context. Therefore, a framework is derived from conceptual studies in the field as well as related theoretical concepts such as business model theory in the public sector context, dynamic capacities and public value creation. Building on this foundation this study conceptualizes a process of business model development to create user oriented digital services in the public sector.

scholarly journals Strategic Business Model Development in Ecosystems

2021 ◽  
Author(s):  
◽  
Dominik Mann
Keyword(s):  
Business Model ◽  
Development Process ◽  
Business Models ◽  
Model Development ◽  
Entrepreneurial Ventures ◽  
And Performance ◽  
Integration Strategies ◽  
Model Components ◽  
Business Model Development ◽  
Model Development Process

<p>Designing and strategically developing viable business models is vital for value creation and capture and in turn for the survival and performance of entrepreneurial ventures. However, the widely held firm-centric and static business model perspective appears inadequate to reflect the realities of increasingly blurred industry boundaries, interconnected economies, and the resulting collapse of incumbent value chains. This PhD thesis adds understanding of the dynamic business model development process from an ecosystem perspective. The evolution of ten entrepreneurial ventures’ business models was documented and investigated through longitudinal in-depth case studies over twelve months. Analysing and comparing the cases revealed strategies that resulted in the development of effective interactive structures and robust value co-creation and capture mechanisms. The development of interactive structures, i.e. firm-ecosystem fits, was either supported by a focused or diversified ecosystem integration approach underpinned by heterogeneous interdependencies of value proposition and business model components across ecosystems. The obtained insights allowed the derivation of sets of capabilities that supported the business model development process and enhanced entrepreneurial ventures’ chances of survival. The findings have several implications for advancements of the business model theory. In particular they indicate what integration strategies can inform entrepreneurs’ and managers’ business model design and execution strategies for operating in increasingly complex ecosystems.</p>

PRIVATE MEDICAL INSTITUTION BUSINESS MODEL TRANSFORMATION

2017 ◽  
Author(s):  
Alla Osokina ◽  
◽  
Tetiana Mysyshyn ◽  
Keyword(s):  
Development Strategy ◽  
Business Model ◽  
Model Transformation ◽  
Business Models ◽  
Model Development ◽  
Quality Of Services ◽  
Medical Institutions ◽  
Key Aspects ◽  
Business Model Development

The purpose of this article is to describe the key aspects of the transformation of outdated business models of private healthcare institutions in Ukraine. The article supports the point that existing business models of private medical institutions could be improved based on assessing the quality of services provided and creating a unique value proposition using modern marketing tools for the development of business models. On the basis of the economically substantiated business model development strategy of «MEDICOM Anti-Aging Clinic», theoretical conclusions have been empirically confirmed and their applied significance has been proved.

scholarly journals Business model development for sustainable apparel consumption

2019 ◽  
Vol 12 (4) ◽  
pp. 481-504 ◽  
Author(s):  
Johan Holtström ◽  
Charlotte Bjellerup ◽  
Johanna Eriksson
Keyword(s):  
Business Model ◽  
Business Models ◽  
Consumer Preferences ◽  
Model Development ◽  
Distribution Networks ◽  
Term Survival ◽  
Content Type ◽  
Sustainable Solutions ◽  
Business Model Development

Purpose The purpose of this paper is to identify key aspects of business model development for sustainable apparel consumption, as actors show an increasing interest in product‒service systems. This purpose should be seen from a retailers’ perspective so as to develop sustainable solutions for long-term survival in the apparel industry when meeting consumer preferences for fashion as well as an increasing interest in consuming less. Further, this is from a perspective in an economy where sharing and circularity are potential drivers for changing consumer patterns. Design/methodology/approach The study is based on the apparel retailer Houdini Sportswear and its business model development from a traditional model of selling sportswear to a more future-oriented model where sustainability is more salient. The data for analysis were collected through interviews with employees within the studied company. The interviews have been guided by overarching themes covering relevant areas of interest for this study. Findings Overall, the paper shows how sustainability can be included in strategic development, from product idea, product development, production and sales/rental to repair, reuse and finally recycling. The paper also highlights potential obstacles in a developed business model with increased sustainability, including technological platforms, distribution networks for collecting and returning products and consumer consumption preferences. There are a few intertwined factors to be considered on different societal levels to achieve long-term success. Originality/value This study contributes an increased understanding of how more sustainable solutions can be included when developing business models. While the manufacture, distribution and consumption of clothes have an impact on the environment, some retailers and producers want to reduce this environmental impact. One alternative is to change the way clothes are consumed, to include more sharing and circularity.

scholarly journals The Role of Business Models in Developing Business Networks

2011 ◽  
pp. 221-231 ◽  
Author(s):  
Jukka Heikkila ◽  
Marikka Heikkila ◽  
Markku Tinnila
Keyword(s):  
Business Model ◽  
Large Scale ◽  
Business Models ◽  
Model Development ◽  
Customer Relationship ◽  
Business Networks ◽  
Geographical Distances ◽  
Business Model Development

Business models have received a substantial amount of interest recently. Also, various research studies have discussed business models, especially in the context of a single company operating in mass markets. Unfortunately, these models often are not applicable for complex products or services that build on long-term knowledge about customer tastes, facilities, and skills. Especially on global markets, the asset specificity and vast geographical distances make it difficult for any single company to provide this kind of service cost-efficiently on a large scale. Instead, it calls for cooperation among multiple firms. Creation of a joint business model for a collaborative network is a necessary means by which companies can coordinate cooperation in practice. The CSOFT metamodel proposed in this chapter provides guidance for joint business model development by emphasizing customer relationship and adjustment processes needed within the network.

scholarly journals Valuing Value in Innovation Ecosystems: How Cross-Sector Actors Overcome Tensions in Collaborative Sustainable Business Model Development

2020 ◽  
pp. 000765032090714 ◽  
Author(s):  
Inge Oskam ◽  
Bart Bossink ◽  
Ard-Pieter de Man
Keyword(s):  
Business Model ◽  
Business Models ◽  
Model Development ◽  
Innovation Ecosystem ◽  
Sustainable Business ◽  
Value Capture ◽  
Innovation Ecosystems ◽  
Sustainable Business Models ◽  
Individual Value ◽  
Business Model Development

This article aims to uncover the processes of developing sustainable business models in innovation ecosystems. Innovation ecosystems with sustainability goals often consist of cross-sector partners and need to manage three tensions: the tension of value creation versus value capture, the tension of mutual value versus individual value, and the tension of gaining value versus losing value. The fact that these tensions affect all actors differently makes the process of developing a sustainable business model challenging. Based on a study of four sustainably innovative cross-sector collaborations, we propose that innovation ecosystems that develop a sustainable business model engage in a process of valuing value in which they search for a result that satisfies all actors. We find two different patterns of valuing value: collective orchestration and continuous search. We describe these patterns and the conditions that give rise to them. The identification of the two patterns opens up a research agenda that can shed further light on the conditions that need to be in place in order for an innovation ecosystem to develop effective sustainable business models. For practice, our findings show how cross-sector actors in innovation ecosystems may collaborate when developing a business model around emerging sustainability-oriented innovations.

scholarly journals The Role of Business Models in Developing Business Networks

2011 ◽  
pp. 235-249 ◽  
Author(s):  
Jukka Heikkila ◽  
Marikka Heikkila ◽  
Markku Tinnila
Keyword(s):  
Business Model ◽  
Large Scale ◽  
Business Models ◽  
Model Development ◽  
Customer Relationship ◽  
Business Networks ◽  
Geographical Distances ◽  
Business Model Development

Business models have received a substantial amount of interest recently. Also, various research studies have discussed business models, especially in the context of a single company operating in mass markets. Unfortunately, these models often are not applicable for complex products or services that build on long-term knowledge about customer tastes, facilities, and skills. Especially on global markets, the asset specificity and vast geographical distances make it difficult for any single company to provide this kind of service cost-efficiently on a large scale. Instead, it calls for cooperation among multiple firms. Creation of a joint business model for a collaborative network is a necessary means by which companies can coordinate cooperation in practice. The CSOFT metamodel proposed in this chapter provides guidance for joint business model development by emphasizing customer relationship and adjustment processes needed within the network.

scholarly journals Meaning and Role of Prototyping in Entropic and Extreme Business Environment in Georgia

2019 ◽  
Vol 31 (1) ◽  
pp. 89-92
Author(s):  
M. Kldiashvili ◽  
D. Paresashvili
Keyword(s):  
Product Development ◽  
Business Model ◽  
Model Development ◽  
Business Environment ◽  
Lessons Learned ◽  
Potential Consumer ◽  
Measure Of Uncertainty ◽  
Business Model Development ◽  
Early Sample

For a couple of years, the term entropy is gaining popularity as a term to cover the various dimensions of fast and rapidly developing, ‘uncontrollable’ business environment. The more complex and volatile an industry is – the higher is the level of entropy, that means - the harder to predict and therefore more uncertain will be process of new project or product implementation. In simple words, entropy as a measure of uncertainty or randomness, is permanently growing in nowadays business environment. In common use, A prototype is an early sample, model, or release of a product built to test a concept or process or to act as a thing to be replicated or learned from.  Technique of prototyping becomes more efficient if analyzing of prototype occurs together with the potential consumer. Based on received feedback, or analyzing customer experience, lessons learned, company makes decision how to develop the product on the next phase. In Georgia, use of prototypes started with development of projects related to Information Systems. But later it was successfully applied to product development and Business model development, especially for startups and small entrepreneurs.

An Approach to Designing IoT-Based Business Models

2017 ◽  
pp. 43-70
Author(s):  
Iva Vojinović ◽  
Dušan Barać ◽  
Ivan Jezdović ◽  
Milica Labus ◽  
Filip Jovanović
Keyword(s):  
Internet Of Things ◽  
Business Model ◽  
Business Models ◽  
Model Development ◽  
Distribution Channels ◽  
The Internet ◽  
Business Model Canvas ◽  
Key Resources ◽  
The Internet Of Things ◽  
Business Model Development

This chapter will foster the understanding of the structure of business model elements in Internet of things field. Business model provides an efficient way to analyze, understand and manage strategically oriented goals for one or more stakeholders in order to create some value for end-users, but in the Internet of things there is not clear path for its development. An approach that will be used is the generally accepted principle of forming business model, Canvas template, which is a strategic template for understanding the relation between key partners, key activities, customers and clients, key resources, value proposition for customers in the form of products or services, relationships with customers, sales and distribution channels, cost structure, income flow. Presented is an integrated model with main aspects that should be covered when it comes to the Internet of things business model development, combining Canvas template, inside organizational structure and ecosystem restrictions.

Building business models through simple rules

2018 ◽  
Vol 26 (4) ◽  
pp. 361-378 ◽  
Author(s):  
Sunny Li Sun ◽  
Jianqiang Xiao ◽  
Yanli Zhang ◽  
Xia Zhao
Keyword(s):  
Business Model ◽  
Development Process ◽  
Business Models ◽  
Model Development ◽  
Thick Description ◽  
Content Type ◽  
Simple Rules ◽  
Market Feedback ◽  
Business Model Development ◽  
Model Development Process

Purpose How do entrepreneurs use simple rules to build their business models? Based on an inductive study of three Chinese Internet and technology firms, the authors find that business models emerge from simple rules that entrepreneurs learn from their experience. Simple rules also guide entrepreneurs to actualize and exploit opportunities in the marketplace, and they can help business models evolve through market feedback, especially in internationalization. This paper aims to delve into the black box of entrepreneurial decision-making and offer a better depiction of the business model development process in uncertain and fast-changing environments and thus provide guidance for future entrepreneurs. Design/methodology/approach Following the case method (Eisenhardt, 1989; Yin, 2003), the authors first present a thick description of characteristics of three companies and the dynamics of their business models. They then code these descriptions into first-order measures. Finally, they aggregate these measures into abstract constructs. They constantly compare the theoretical constructs and the emerging theory with the existing literature on business models. Findings The authors generate three key insights from the findings: business models emerge from simple rules learned from entrepreneurs’ experience, simple rules help entrepreneurs exploit and actualize opportunities in the marketplace and simple rules help businesses expand and evolve business models through market feedback, especially in internationalization. Originality/value This paper falls into the intersection of strategy and entrepreneurship – an emerging new field of strategic entrepreneurship – and is concerned with how businesses create and sustain a competitive advantage while simultaneously identifying and exploiting new opportunities. The authors bring people – the individual decision-makers for businesses – back in strategy research and depict a more realistic picture of the behavior of successful entrepreneurs and their business model development process.

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