Payment Systems as a Driver for Platform Growth in E-Commerce

2022 ◽  
pp. 299-323
Author(s):  
Carin Rehncrona
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Service Provider ◽  
Network Effects ◽  
Business Models ◽  
Network Externalities ◽  
Network Economics ◽  
Payment Systems ◽  
Service Ecosystem ◽  
Platform Economy

This chapter visits some of the fundamental concepts from platform economics, network effects, and network externalities. Further on, it discusses definitions of two-sided and multi-sided markets, how they are treated as business models. These concepts are further compared to the concept service ecosystem. A case of a payment service provider whose business model contributes to the growth of e-commerce is included. The purpose is to tease out how research on platforms has developed since e-commerce was in its infancy. The fundamental concepts developed in network economics are still valid and have been translated into different fields with a focus on value creation, information, and interaction. How platforms within platforms spur each other's growth is an area that has the potential to reach new insights on the platform economy.

Sustainable life cycle offers through cooperation

2015 ◽  
Vol 4 (1) ◽  
pp. 4-24 ◽  
Author(s):  
Julia Selberherr
Keyword(s):  
Sustainable Development ◽  
Life Cycle ◽  
Business Model ◽  
Value Creation ◽  
Business Models ◽  
Service Providers ◽  
Construction Sector ◽  
Content Type ◽  
New Business ◽  
Societal Level

Purpose – Sustainable buildings bear enormous potential benefits for clients, service providers, and our society. To release this potential a change in business models is required. The purpose of this paper is to develop a new business model with the objective of proactively contributing to sustainable development on the societal level and thereby improving the economic position of the service providers in the construction sector. Design/methodology/approach – The modeling process comprises two steps, the formal structuring and the contextual configuration. In the formal structuring systems theory is used and two levels are analytically separated. The outside view concerns the business model’s interaction with the environment and its impact on sustainability. The inside view focusses on efficient value creation for securing sustainability. The logically deductively developed business model is subsequently theory-led substantiated with Giddens’ structuration theory. Findings – The relevant mechanisms for the development of a new service offer, which creates a perceivable surplus value to the client and contributes to sustainable development on the societal level, are identified. The requirements for an efficient value creation process with the objective of optimizing the service providers’ competitive position are outlined. Research limitations/implications – The model is developed logically deductively based on literature and embedded in a theoretical framework. It has not yet been empirically tested. Practical implications – Guidelines for the practical implementation of more sustainable business models for the provision of life cycle service offers are developed. Social implications – The construction industry’s impact requires it to contribute proactively to a more sustainable development of the society. Originality/value – This paper analyzes the role for the players in the construction sector in proactively contributing to sustainable development on the societal level. One feasible strategy is proposed with a new business model, which aims at cooperatively optimizing buildings and infrastructures and taking the responsibility for the operating phase via guarantees.

How the social entrepreneurship business model designs in South Africa create value: a complex adaptive systems approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olu Oludele Akinloye Akinboade ◽  
Trevor Taft ◽  
Johann Friedrich Weber ◽  
Obareng Baldwin Manoko ◽  
Victor Sannyboy Molobi
Keyword(s):  
South Africa ◽  
Business Model ◽  
Value Creation ◽  
Social Entrepreneurship ◽  
Complex Adaptive Systems ◽  
Local Governments ◽  
Business Models ◽  
Social Entrepreneurs ◽  
Content Type ◽  
The Social

Purpose This paper aims to understand social entrepreneurship (SE) business model design to create values whilst undertaking public service delivery within the complex environments of local governments in South Africa. Design/methodology/approach Face-to-face semi-structured interview was conducted with 15 purposively selected social entrepreneurs in Gauteng and Western Cape provinces. The interview guide consisted of main themes and follow-up questions. Themes included SEs’ general history, the social business model; challenges faced and how these were overcome; scaling and growth/survival strategies. These enabled the evaluation of SEs in terms of identifying key criteria of affordability, availability, awareness and acceptability, which SEs must achieve to operate successfully in low-income markets. Social enterprise owners/managers within the electricity distribution, water reticulation and waste management services sectors were surveyed. Findings Most respondents focus on building a network of trust with stakeholders, through communication mechanisms that emphasize high-frequency engagements. There is also a strong focus on design-thinking and customer-centric approaches that strengthen value creation. The value creation process used both product value and service value mechanisms and emphasized quality and excellence to provide stakeholder, as well as societal value, within their specific contexts. Practical implications This study builds upon other research that emphasizes SEs’ customer-centric approaches to strengthen value creation and on building a network of trust with multiple stakeholders. It contributes to emphasizing the business paradigm shift towards bringing social values to the business practice. Social implications Social good, but resource providers are demanding more concrete evidence to help them understand their impact (Struthers, 2013). This is because it is intrinsically difficult for many social organizations to document and communicate their impact in more than an anecdotal way. The research has contributed to the understanding of how SEs can provide evidence of value creation. Originality/value This study contributes to the understanding of how business models are designed to create value within the context of the overwhelming complexity of local government services in South Africa.

Bucking the Trend: A Look at Zyme Solutions' Non-linear Business Model for IT Services from India

2011 ◽  
Vol 15 (01) ◽  
pp. 37-62 ◽  
Author(s):  
D.V.R. Seshadri
Keyword(s):  
Business Model ◽  
Service Provider ◽  
Business Models ◽  
Linear Growth ◽  
High Tech ◽  
Data Service ◽  
It Services ◽  
Software Companies ◽  
Non Linear ◽  
Vertical Market

The case describes XGen Technologies (name disguised), an India-based IT Enabled Services (ITES) company having to grapple with the issues of linear growth. The company's headcount had touched a whopping 40,000 and managing such a large setup was becoming a severe challenge, putting immense pressure on Partha Sen, the CEO, to adopt an innovative business model to sustain historical growth rates of revenue and profitability. This situation was similar to what most Indian ITES companies faced: they had been clocking impressive growth, yet there were concerns about the future. The case then describes some of the strategies that software companies have been adopting in order to achieve greater non-linearity in their business. In particular, the case concentrates on Zyme Solutions, Inc., a fully outsourced hosted data service provider to the high-tech vertical market, which has built as a non-linear business from the ground up, without the legacy of the linear business models to contend with. Students are put in the place of Partha Sen, having to decide on an approach that established companies like XGen could adopt to transit to a non-linear model.

Artificial Intelligence as a Growth Engine for Health Care Startups: Emerging Business Models

2018 ◽  
Vol 61 (2) ◽  
pp. 59-83 ◽  
Author(s):  
Massimo Garbuio ◽  
Nidthida Lin
Keyword(s):  
Artificial Intelligence ◽  
Health Care ◽  
Business Model ◽  
Value Creation ◽  
Critical Analysis ◽  
Business Models ◽  
Health Conditions ◽  
The World ◽  
The Future

The future of health care may change dramatically as entrepreneurs offer solutions that change how we prevent, diagnose, and cure health conditions, using artificial intelligence (AI). This article provides a timely and critical analysis of AI-driven health care startups and identifies emerging business model archetypes that entrepreneurs from around the world are using to bring AI solutions to the marketplace. It identifies areas of value creation for the application of AI in health care and proposes an approach to designing business models for AI health care startups.

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 Pushing the Limits using Business Model Innovation a Three Pronged Approach and Lessons Learned

2021 ◽  
Vol 2 (1) ◽  
pp. 24-35
Author(s):  
Ignitia Motjolopane
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Business Models ◽  
Industrial Revolution ◽  
Business Environment ◽  
Business Model Innovation ◽  
Lessons Learned ◽  
Revenue Streams ◽  
Reducing Costs ◽  
Model Components

In a constantly changing business environment, with increasing digitisation and fourth industrial revolution blurring the traditional value creation boundaries, companies need to explore ways to push the limits to remain competitive. Business model innovation offers companies the dynamic capability to differentiate business models and find innovative revenue streams while reducing costs. As such, the question arises as to how company may use business model innovation to remain competitive as the world digitises. Based on a literature review and empirical research involving six case studies, a three pronged approach in support of business model innovation is proposed. Business model innovation has the potential to push the limits when company executives and academia focus on the interrelation between drivers, process and components. Moreover, both effective and ineffective practices based on the research are presented. In conclusion, for companies to use business model innovation in pushing the limits, there is need to respond to the business model innovation drivers, adopt a systematic process and change at least one or more business model components and taking into account the interactions between these three concepts. This article may contribute to existing theory in the field of business model innovation and lessons learned from executives that have pushed the limits using business model innovation. Doi: 10.28991/HEF-2021-02-01-03 Full Text: PDF

‘What the public values...’ The stakeholder-oriented business model approach as a tool for planning and managing innovation in public and nonprofit management – A qualitative inquiry into public value creation in German healthcare

2019 ◽  
Vol 42 (1-2) ◽  
pp. 13-33
Author(s):  
Matti Znotka ◽  
Florian Brandt ◽  
Jörg Lindenmeier ◽  
Martin Dietrich
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Financial Support ◽  
Business Models ◽  
Nonprofit Management ◽  
Qualitative Inquiry ◽  
The Public ◽  
Public Managers ◽  
Public Perspective ◽  
Model Approach

In democratic environments, the integration of the public perspective is vital to the continuous legitimization and acceptance of publicly managed systems, as it justifies the organizations’ existence for the stakeholders who provide the financial support. An integration of the public perspective in the design of innovative business models requires an identification of citizens’ values to enable public managers and entrepreneurs to ascertain if their decisions have the potential to create value according to the public will. As healthcare in Germany is largely funded by the public, we asked the German public about crucial values in healthcare. Three value dimensions, ‘proper organization’, ‘skilled treatment’ and ‘social principles’, consisting of nine value categories, could be identified as potential guidelines.

scholarly journals Business Model for Czech Agribusiness

2015 ◽  
Vol 46 (3) ◽  
pp. 128-136 ◽  
Author(s):  
Jana Poláková ◽  
G. Koláčková ◽  
I. Tichá
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Business Models ◽  
Theoretical Background ◽  
Business Modelling ◽  
New Business ◽  
Definition Of

Abstract Business modelling facilitates the understanding of value creation logic in organizations in general. Identifying the components of business models based on different criteria helps understanding the fundamentals of business and the position of entrepreneurs and managers in companies. The present research is focused on the definition of a specific business model for the Czech agribusiness sector. Based on the theoretical background and evaluation of selected business models, the aim is to create a new business model, using components which take into account the specifics of this particular industry.

Value creation mechanisms of business models

2018 ◽  
Vol 19 (3) ◽  
pp. 166-176 ◽  
Author(s):  
Vladyslav Biloshapka ◽  
Oleksiy Osiyevskyy
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Business Models ◽  
Business Value ◽  
Value Proposition ◽  
Value Appropriation ◽  
Value Capture ◽  
Fine Grained ◽  
Case Vignettes ◽  
Current Article

Management scholars and practitioners generally agree that the primary functions of a business model are value creation and value capture. However, the meaning (conceptualization) of these terms, their measurement, and the factors and mechanisms affecting them remain contentious. In the current article, we provide answers to these questions by clarifying the consumers’ value creation and business value capture constructs. Then, we demonstrate how they are determined by four business model mechanisms: value proposition and value targeting (affecting consumers’ value through willingness to pay) and value appropriation and value delivery (affecting business value through price and cost). We demonstrate that a fine-grained analysis of a business model’s value creation cannot be adequately performed without reference to these four mechanisms. The developed conceptual framework is illustrated and corroborated by the mini-case vignettes. We finish by outlining an application of the proposed framework to two crucial real-world business model situations: escaping the Giver Trap and remaining the Winner.

scholarly journals Business model innovation and digitalization: Could ambidexterity be the solution to manage both? – A conceptual framework with propositions

2020 ◽  
Vol 1 (2) ◽  
pp. 8-25 ◽  
Author(s):  
Patrick Ulrich ◽  
Alexandra Fibitz
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Business Models ◽  
Resource Scarcity ◽  
Business Model Innovation ◽  
Technology And Innovation ◽  
Current Economic Situation ◽  
Digital Disruption ◽  
High Degree ◽  
The Relationship

The current economic situation is in constant flux. Progress in technology and especially the advancement of digital transformation have influenced business endeavors. In this realm, digitalization is closely linked to a high degree of digital disruption and the development of new products, services, and business models. In this paper, we aim to investigate how enterprises simultaneously handle digitalization and business model innovation. We employ an ambidexterity perspective to gain new knowledge and get the traction that is needed to make a conceptual contribution. Thus, a theoretical framing that includes the relationship between business model innovation and digitalization and propositions congruent with our general gestalt of the inquiry will be developed. The results indicate, despite some structural and processual commonalities that digitalization and business model innovation share, the mission to manage both phenomena remains challenging. In particular, some peculiarities inherent in the ambidexterity perspective need to be taken into account. Particularly under the constraints of a high degree of resource scarcity, it is important to strive for sustainable actions that lead to increased value creation and competitive advantage. Thus, this study implements an ambidexterity perspective on the two distinct areas of technology and innovation and provide groundings for further research avenues on ambidexterity and firm performance.

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