Synopsis: Entrepreneurship:

promoting SMES and flexicurity-Promoting entrepreneurship & SME development-Promoting employability & adaptability-Flexicurity: a win-win for all Creating a competitive greener economy-Towards a greener economy-Future transport policy Fully exploiting the Single Market Competitiveness in the global market Overall,

do you think that the Europe 2020 strategy has made a difference? Please explain. When the Europe 2020 strategy was launched in 2010,

Europe strongly suffered from the worst economic crisis since decades. After the first four years of the strategy the need for more growth and jobs remains undiminished.

the EU-compared with other economies in the developed world-continues to underperform in terms of building a smart, innovation-based, knowledge-driven economy.

It trails other advanced economies in all four smart areas identified by the Europe 2020 strategy

as less competitive markets, more regulatory requirements and fewer available sources of finance make the European operating environment for businesses comparatively less conducive for entrepreneurship.

and innovative capacity that would allow its economies to unlock new sources of growth. While welcoming the efforts undertaken by the various actors in the EU since 2010,

Whilst public investment might be needed to stimulate economic growth, the political will to tear down the remaining barriers to the European Single Market would also have a positive and significant effect on growth.

We are longstanding proponents of a truly Single Market in products and services, for the benefit of consumers and long-term economic health.

and continue moving Europe out of crisis. There are still too many limitations on the free movement of goods and services throughout Europe.

Has there been sufficient involvement of stakeholders in the Europe 2020 strategy? are involved you in the Europe 2020 strategy?

As work on EU 2020 progresses, continued stakeholder involvement remains necessary. In this respect, Eurocommerce is committed to continue playing an active role;

Transparency & stakeholder involvement are drivers to ensure that all players adhere to the plan

Employment Commerce contributes significantly to social inclusion by bringing opportunities to those with limited qualifications who often find it difficult to find employment.

covering almost all goods and services. Though not always visible to the general public, it plays a pivotal role as the interface between producers, importers,

With the right policy and legislative environment our sector will respond, supporting growth and creating jobs in the European economy.

Tools Do the current targets for 2020 respond to the strategy's objectives of fostering growth and jobs?

However, for all European economies, investments in knowledge-generating assets will translate into important drivers for future productivity growth those drivers being a common focus on education, information and communication technologies,

the digital agenda and reforms to improve the overall enterprise environment. Labour and taxation policies are national, not EU competences.

However, the contribution by Europe's services sectors to the 2020 goals needs to be recognised adequately

All European services sectors combined hold a share of more than 70%of Europe's GDP.

Services in the EU stand for 150 million jobs, € 65 billion trade surplus and € 9 trillion GDP (source:

and develop new opportunities, we need both the EU and the Member States to apply an impact test for commerce when considering measures, especially on employment, the Single Market and international trade:

In a globalised economy, open markets and a predictable trade policy are pivotal in furthering Europe's competitiveness and job creation.

freeing up the trade in goods and services in both directions. Key measures to enhance predictability, legal certainty and transparency,

The next five years will be critical in returning the European economy to growth and job creation. Retail and wholesale can contribute,

a Single Market in goods and services is not yet a full reality and governance is not sufficiently strong yet;

preventing retail and wholesale from adapting to customers'needs; protectionist trade barriers impede the functioning of global value chains.

anticipating customers'changing needs and preferences. This e-commerce revolution has coincided with continuing recession in many Member States.

and competition is fierce, putting a premium on innovation and efficiency, while making it harder to earn a return on investment.

More generally, there is a need for more and better coordination among the various policies and Directorates-General in the European commission,

incrementally adapting their services and value propositions through a process of continual innovation. Examples include innovative technology systems, the development of successful private label brands, new processes and technologies related to more efficient supply chain management,

Ensure that the EU 2030 greenhouse gas target is adaptable to other major economies'commitments

and to tap the potential of resource efficiency for new commercial opportunities. Trade policy must enhance competitiveness as part of the global market,

-friendly customs environment for trading companies. Sustainability is not only a necessity for responsible decision-makers but also an opportunity for green growth and jobs.

It must remain a strong component of the EU policies. Retailers and wholesalers are working with manufacturers

Improvement of the financing environment for SMES could be achieved through the simplification of EU funding for SMES and a better borrowing environment for equity funding, credit and loans.

COSME and Horizon 2020.10 of 12 What would improve stakeholder involvement in a post-crisis growth strategy for Europe?

Transparency is key for stakeholder involvement. Information made available to stakeholders needs to be easily accessible

and as easy as possible to read. The Commission has demonstrated often its ability to carry out state-of-the-art stakeholder consultations;

existing examples of good practice could inspire other services still lagging behind. Evidence-based impact assessments are greatly important to inform legislative decisions.

Eurocommerce welcomes the specific consultation on this assessment process. Also dialogues among stakeholders should be encouraged wherever relevant.

The sectoral social dialogue in commerce works well and deserves continued support. Eurocommerce has provided detailed comments on impact assessment and stakeholder consultation in two recent position papers.

Tools What type of instruments do you think would be more appropriate to use to achieve smart, sustainable and inclusive growth?

Strengthened enforcement of the Single Market principles and existing legislation, e g. the Services Directive, and no tolerance of gold-plating at national level.

and services, removing regulatory burden, easing customs procedures and providing enhanced legal certainty to economic operators.

Implementation of the Single Market (Services Directive, removing remaining barriers on goods, completing the Digital Single Market) Better cooperation among Member States (e g. like-minded initiative) Best practice in implementation (UK example);

Two Key Sectors for the European Economy by the Oxford Institute of Retail Management. More specifically on the wholesale sector, Eurocommerce invites the European Institutions to enhance their awareness of b2b trade in Europe.

To this end, we have published our brochure Wholesale Job Engine at the Centre of Europe's Economy.

Commerce plays a unique role in the European economy, acting as the link between manufacturers and the nearly 500 million consumers across Europe over a billion times a day.

Over 99%of the 5. 5 million companies in commerce are small and medium-sized enterprises.

trying to examine technological issues such as Big data, Cloud computing, Mobile services, etc.,from a managerial perspective, aiming to reach a wide spectrum of executives,

which analyses and discusses the managerial challenges of technological trends focusing on governance models, the transformation of work and collaboration as a consequence of the digitization of the work environment,

and exploit a company's identity and brand in a competitive digital environment. Part II frames the managerial challenges so that they can complement the IT manager's perspective,

as well as its related opportunities. As for the review objective, it is yet challenging to find a unified survey of current scientific work concerning relevant topics to digital business innovation,

or the Communications of the ACM (CACM) have such a mission of connecting research and industry practices,

Management of Information systems Quarterly (MISQ), Communications of the Association for Information systems, Management of Information systems Quarterly Executive (MISQE), Information systems Research, European Journal of Information vii Systems, Journal

and Mobile Services for business; on the other hand, it discusses the drivers and challenges of Social Listening and IT Consumerization,

and analyzed in their managerial challenges and opportunities. The trends have been selected also on the basis of focus groups

through Mobile Services as platforms for socializing and‘‘touch points''for customer experience, to emerging paradigms that actually are transforming marketing, governance,

or to the new digital opportunities and constraints emerging from social networks paradigms, such as, e g.,, crowdsourcing and people services.

Moreover, this part of the volume will explore the identity challenges for businesses both as security and privacy issues;

and the consequent constant revision of value propositions and business models for rebranding a company digital business, due to strict time to market.

Finally, Part III will discuss first (Chap. 9) the underlying issues and the most relevant concepts for understanding Business model Innovation, providing general insights on the state-of-the-art and basic constructs of this research stream

Giuseppe Airoldi, all formerly at the Institute of Organization and Information systems at Bocconi University, who have created a rich and rigorous research environment where

5 1. 1. 2 Management Challenges and Opportunities...9 1. 2 Case studies...15 1. 3 Summary...

25 2. 2 Strategic and Managerial Challenges and Opportunities...26 2. 2. 1 Challenges Accompanying Cloud computing...

44 3 Mobile Services...47 3. 1 Introduction...47 3. 2 Mobile Services Drivers and Challenges...

50 3. 3 Digital Management Solutions...56 3. 4 Case studies...60 xv 3. 5 Summary...

90 5. 2. 1 Advantages and Opportunities of IT Consumerization...91 5. 2. 2 Challenges and Risks of the Consumerization of IT...

103 xvi Contents 5. 6 Enterprise Drivers Behind the Consumerization of IT...104 5. 7 Considerations Related to IT Consumerization...

145 8. 2 Opportunities and Challenges Related to Digital Governance...147 8. 3 Digital Governance Mechanisms...

160 Part III Digital Innovation Trends 9 Reinventing Business models: The Third Way of Digital Innovation...

165 9. 2 Fundamental Elements of a Business model...169 9. 2. 1 Offer to Customers...

169 9. 2. 2 Value Network...170 9. 2. 3 Architecture...170 9. 2. 4 Finance...

171 9. 3 Business model and Strategic Innovation...172 9. 3. 1 The Business model Configuration...172 9. 3. 2 Offer and Business model Alignment...

173 9. 4 Digital Business model Innovation: Conceptualizations...176 9. 5 The Business model in the Information and Communication Economy...

178 9. 5. 1 The Strategic Variables...181 9. 5. 2 From the Traditional Model of Innovation to Open Innovation...

182 9. 6 Summary...184 References...185 10 Innovation Practices...187 10.1 Introduction...187 10.2 Instabank...

188 10.2.1 Developer...188 10.2.2 Applications...189 10.3 Macrosense...190 10.3.1 Developer...191 10.3.2 Applications...

204 10.11 Starbucks Digital Ventures...204 10.11.1 Developer...205 10.11.2 Applications...206 10.12 Summary...206 References...

and Durability BM Business model BMI Business model Innovation BYOD Bring Your Own Device CEO Chief executive officer CFO Chief Financial officer CIO Chief Information Officer CMMI Capability

-Supported Cooperative Work CSFS Critical Success Factors Cxo C-level Manager DDS Digital data stream DMS Document management system ECM Enterprise

content management HR Human resources ICT Information and Communication Technology IPO Initial public offering IT Information technology ITIL Information technology Infrastructure Library KPIS Key Performance Indicators Nosql

Not only SQL R&d Research and development SMES Small and medium enterprises TOGAF The Open Group Architecture Framework VOIP Voice over internet Protocol xxi Part I Digital Systems Trends

Furthermore, the Chapter aims at investigating management challenges and opportunities, identifying the main phases and actions of a Big data lifecycle.

and operational performance. 1. 1 Introduction‘‘Try to imagine your life without secrets''claimed the incipit of an article by Niv Ahituv appeared on the Communications of the ACM in 2001 1. The author preconized the advent of an Open

what the Economist called a Data Deluge 4, and they are worth to be considered in order to clearly understand actual and future business challenges of the phenomenon called Big data,

a core component of the information infrastructure upon which our society is building its own open environment. 2 1 In the following we use data

, finance sector competition is facing the challenge of Paypal and Google Wallet diffusion and adoption by digital natives.‘‘

driver for innovation of products and services and the increasing availability of unstructured data (images, video, audio, etc.)

transforming them in strategic resources to define strategies for products and services that meet customers'needs, increasingly informed and demanding.

Thus, Big data call for a radical change to business models and human resources in terms of information orientation and a unique valorization of a company information asset for investments and support for strategic decisions.

for enterprise systems mostly relying on traditional relational data base management systems. As for drivers, cloud computing is represented in Fig. 1. 1,

and Twitter to identify potential threats or opportunities related to human resources, customers, competitors, etc. As a consequence, we believe that the distinction between DDSS

, customer experience management in mobile services, Big data refer to the information asset an organization is actually able to archive,

that will be considered further in the Chapters of this book dedicated to mobile services and social listening,

Big data represent an opportunity, on the one hand, e g.,, for improving fraud detection as tax evasion control through the integration of a large number of public administration databases;

Nevertheless, we believe that management challenges and opportunities of Big data need for further discussion and analyses,

BIG DATA Applications Public sector Banks/Insurances Marketing/Services Utilities/Manufacturing Sentiment Analysis Opinion Mining Social media Analytics Recommender systems Riskanalysis Fraud detection

and control Sensor Data Fusion Fig. 1. 2 Big data applications 8 1 Big data 1 1. 2 Management Challenges and Opportunities In the Sect. 1

Big data seems to be yet another brick in the wall in the long discussion in the information systems field on information supply to decision makers and operations in enterprise.

Accordingly, Big data change decision making and human resources with regard to capabilities satisfying it, integrating programming, mathematical, statistical skills along with business acumen, creativity in interpreting data and effective communication of the results 5

as for scalability and query performance. On the contrary the Technical-Data-Utilization classification addresses computational complexity issues related to both provision and use actions.

leading to an advanced information demand analysis and improved information supply 7. Table 1. 1 Big data perspectives

managers have insights on value of data for their organization from profits, revenues, recovery costs derived by critical data loss or inaccessibility.

due to the distributed nature of Big data and the unpredictable dynamics of the digital environment producing them.

Thus, it is worth to be considered the advice by Awargal and Weill 27 that due to the increasing volatility of business environment,

and exploit Big data to develop flexible strategy and business models, thus, anticipating and responding to volatility of market and customer needs,

Table 1. 2 Data governance enablers and inhibitors Factors Enablers Inhibitors Organization Highly focused business strategy Complex mix of products and services IT/Strategy alignment

Furthermore, companies aiming to exploit the opportunities offered by Big data have to connect business agility to information value (axes in Fig. 1. 4), through informed empathy.

The latter meaning to contextualize data sources, improving data access to customers, employees, and value-chain partners,

customer experience management, brand Create emotional ties Empathic use of information Business Agility Optimize Business processes Effectively manage data Operational excellence Focus on customers Decision making optimization IT enabler Value from information

it is worth noting that data were considered not by interviewees among the main impediments to a full exploitation of Big data opportunities to business value.

and adopt techniques for allowing modular and flexible access to information and analysis of data across the enterprise.

Investments: The IT and the business executives must share decisions on the budget for the management and innovation of information assets.

and services due to the growing relevance of social networks, mobile services, and technology/paradigms such as cloud computing (we provide further details on each of them in Chaps. 2, 3 and 4, respectively).

1. 1 Introduction 13 As a consequence, the competitive environment and the outer context both represent the main Big data sources,

alimenting in a volatile and dynamic way the digital asset of an organization, which has to be managed by internal information systems likewise.

which aim to exploit the opportunities of Big data for business performance and value. Decisions Actions Application integration Data Integration Integration Orientation IS Organizational Absorptive Capacity Process Orientation Change orientation Analytics Orientation Information Orientation IT PORTFOLIO DATA ASSET

COMPETITIVE ENVIRONMENT (Outer Context)( Services)( Data) DIGITAL ASSET Fig. 1. 5 A framework for managing digital asset 14 1 Big data Taking all the

and articulate a vision coherent with market opportunities, effectively engaging customers, employees and other relevant stakeholders Leadership Management Organization Investments in human resources with a mix of new analytical skills and business

and the ability of these platforms to provide data that can translate user choices in demographic information valuable to achieve marketing and communications initiatives,

and transform a wide and varied volume of digital interactions in satisfactory results in terms of market share and profit.

and engage a broad spectrum of potential customers with lifestyle, culture and income very different between them.

Indeed, for all groups of consumers, even the most mature (concentrated in large cities and industrial areas), the locus of competition has shifted from the price of the service to the satisfaction of the specific needs of customers:

as a way to know its customers‘needs, experience, and lifestyles. POINT OF ATTENTION: Using Big data should be enhanced

Indeed, effective collection and use of data is strategic to Nokia for understanding and improvement of users'experiences with their phones and other location products/services.

terabyte-scale streams of unstructured data from phones in use, services, log files, and other sources.

including a Teradata enterprise data warehouse, Oracle and Mysql data marts, visualization technologies, and Hadoop at the core of Nokia's infrastructure.

''In 2011, GE announced $1 billion investment to build software and expertise on Big data analytics, launching a global software center in San ramon, California.

Big data require top management commitment and investments, in particular, on human resources to be focused on data scientist capabilities.

GE envisions Big data as a $30 trillion opportunity by 2030, using a conservative 1%savings in five sectors that buy its machinery (aviation, power, healthcare, rail,

Big data is strategic for a growing percentage of GE's business related to services, such as, e g.,

, supporting its industrial products and helping customers use GE's machines more effectively and efficiently.

we have discussed the business challenges of Big data as a core component of the information infrastructure upon which our society is building its own open environment.

and opportunities, identifying the main phases and actions of a Big data lifecycle. As for these issues, the Chapter has pointed out the relevance of‘‘softscaling''approaches, balancing optimization issues, such as, e g.,

confirming the importance of a clear and shared Big data strategy together with investments and focus on human resources for capabilities,

Harv Educ Lett 27 (5) 4. The Economist (2010) Data, data everywhere. Special report on information management 5. Davenport TH, Patil DJ (2012) Data scientist:

current state and future opportunities. In: Proceedings of extending database technology (EDBT), ACM. March 22 24, Sweden, pp 530 533 14.

transformational typologies and business model impacts. Eur J Inf Syst 20: 358 374. doi: 10.1057/Ejis. 2010.65 20.

analytics for enterprise class hadoop and streaming data, 1st edn. Mcgraw-hill Osborne Media, New york References 21 Chapter 2 Cloud computing Abstract During the last decade, the Information and Communication Technology (ICT) industry has been transformed by innovations that fundamentally changed the way

we use computers, how we access information, how businesses derive value from ICT and how consumers live their daily lives.

ICTS have important role in improving communications between the different departments and branches within the same company,

and between the business and its customers. One important new development in the ICT field is the cloud computing,

but differs in the sense it aims to provide on demand access to a specific service

or pool of services over the network through virtualized IT servers such as data centers and specialized software applications 2. It is the latest development in the computing models that performs computing functions on multilevel virtualization and abstraction by integrating many IT resources.

10.1007/978-3-319-04307-4 2, Springer International Publishing Switzerland 2014 23 1. On demand self-service.

which enables the service provider to serve multiple customers as the same time by smartly allocating its resource to them 3. 5. Agile structure,

and enables the cloud computing structure to comply with the user's demands. 6. Measured and controlled service.

the applications such as office and enterprise systems are used over the network. This level is considered as the highest level of abstraction on the cloud.

and provides essential application infrastructure services such as computation, connectivity and emails access. The last layer is the Infrastructure as a service (Iaas), in

This layer provides customers with the ability configure the network on the cloud, which gives them access to virtual network functions such as network-aware VM placement, real time network monitoring, diagnostics and management.

It aims to support scalability and availability on highly dynamic networks 6. 24 2 Cloud computing 2. 1. 2 Cloud computing Service Providers In this section,

The first component which is Windows Azure provides Windows based environment to enable users to run applications and store data in data centers.

The second component which is SQL Azure provides data services in the cloud using SQL SERVER.

NET services facilitates the creation of distributed applications. The last example of cloud computing service provider is Google

reliable access to data using large clusters of Application Layer---Business Applications, Web Services Multimedia Platforms---Software Framework (Java, Python,.

Adapted from 5 Fig. 2. 1 The three layers of cloud computing. Adapted from 4 2. 1 Introduction 25 commodity servers.

and Opportunities The decision of whether to implement the cloud computing project by the organization itself

and services globally in order to gain competitive advantage, to generate higher revenues and to achieve increased consumer satisfaction.

which can be achieved by better management of the cloud computing pooling services to several clients. 2. Faster development cycle,

which can be achieved by getting the advantage of delivering the product to customers. 3. Performance assurance and quality,

which would have a better response time for the future emerging demands. 4. Professional and geographically dispersed service,

For example, 5 argued that these new issues are emerging from the industry as a result for the new demands for new applications and new requirements,

and releasing the resources on-demand and as needed. This feature enables the service provider to allocate

and the low level resources requirements such as CPU and memory in order to fulfill all demands. The automated service provisioning has been researched in the past

and one of the solutions for this problem is to periodically predicting the demand and to automatically allocate the resources that meet the requirements. 2. Virtual machine migration.

and Opportunities 27 5. Traffic management and analysis. The importance of the analysis of the data traffic is faced by many challenges in cloud computing. These challenges stem from the difficulties in calculating,

However, this factor forms big challenge for all stakeholders in cloud computing. This happens because of the structure of the cloud computing

and support engineers in the implementing firm. 3. Increased satisfaction of the support engineers by focusing on more important IT issues. 28 2 Cloud computing 4. It gives the opportunity for the employees from different departments to develop their experiences about cloud computing support

it gives them the opportunity to explore the interaction with this new technology. 5. Finally,

sales and marketing staff will have the chance to participate more actively in creating new products and services.

when adopting cloud computing services. These risks are summarized as follows: 1. The customer service quality at the company might be affected with this change,

or to be outsourced by a third party. 6. There might be an unnatural growth in the size of some department to cope with the new technology in the business environment.

2. 2 Strategic and Managerial Challenges and Opportunities 29 A. Architectural and Technological Aspects, and includes the following points:

Virtualization of enterprise servers introduces considerable security concerns. Associating multiple servers with one host removes the physical separation between servers,

The following are the possible weak components of the cloud environment: communication channel between the customer and the CSP;

storage areas that are specified for customers'data; hypervisors; cloud mapping services. 30 2 Cloud computing B. Process and regulatory-related aspects,

and includes the following points: 6. Governance and regulatory compliance gaps The well-developed information security governance processes should exhibit the following characteristics:

and internal design details which would lead to major security concerns for CSP as well as customers like cyberattacks

2. 2 Strategic and Managerial Challenges and Opportunities 31 agreements on security related issues; up-to-date technology improvement by the CSP;

in order to check the correct transactions. 2. 2. 3 Managing Changes and Organizational Issues Outsourcing the cloud computing services can be considered as a very important step on the road of having agile and efficient business

One example is the resistance for change that may arise during the transformation to the cloud computing services 15.

In other words, managing changes requires more effective communications and employee development which can be achieved by additional training 16.

in the work environment, and that affect its intention behind this transformation. Some examples of these factors are, organization climate,

in order to have smooth transition to cloud computing services. 2. 3 Deployment Models (Private, Public, Community and Hybrid) Cloud services can be deployed in different ways,

depending on the organizational structure and the provisioning location. Four deployment models are distinguished usually, namely public, private, community and hybrid cloud service usage 11.

or its services are consumed. As for infrastructure characteristics described in the columns of Table 2. 1

Whereas, untrusted consumers are those that may be authorized to consume some/all services but are not logical extensions of the organization.

Private cloud is for the sole use of a single organization and its customers. The chief advantage of this model is that the enterprise retains full control over corporate data and security and system performance.

However, private cloud is usually not as large-scale as public cloud, which affects its economical outcome. This is a common model for governments and large enterprises,

when there are concerns about security and data sovereignty. In contrast to previous model, the public cloud is open for use by the general public i e.,

however, security concerns may be considerably different for the cloud services such as applications, storage, and other resources that are made available by a service provider for public access

and when communication is happening over a non-trusted network. 2. 2 Strategic and Managerial Challenges and Opportunities 33 Considering the Community Cloud model,

the cloud computing environment is dedicated not to a single organization. This model used when organizations from the same community and with similar requirements share a cloud infrastructure,

This model is suitable for enterprises in which the transformation to full outsourcing is done already,

for instance, to combine community cloud services with public cloud services. Taking the above issues into account in

system function, service quality, integration, economics, and professionalism. At the third level, these criteria are decomposed into several sub-criteria that may influence an organization's choice of an appropriate cloud computing service provider.

The criteria in this three-level hierarchy are the ones that can be weighted in the approaches mentioned above to decide its importance for the concerned stakeholders 19.2.4.2 Cloud computing Project Implementation Life cycle Conway

and how the transformation to the cloud computing model would help to meet those Outsourcing Provider Evaluation System Function Service Quality Integration Economics Professionalism Usefulness Ease of use Accuracy Tangibles Reliability Security

infrastructure and stakeholders. This step faces two important challenges which are defining the enterprise architecture which can be a time consuming task,

and investigating the impact with the concerned users and IT department employees, whose jobs will be altered

a strategic planning will be done for the services that will be affected with the cloud computing transformation. This includes critical decisions such as staffing, communication, organizational rules and risk assessment.

This step faces challenges such as clearly defining business and technical requirements and to fully ensuring stakeholders'engagement and collaboration. 4. Business design.

To design how the services will look like and behave and includes the activities and outputs shown in Table 2. 5. In this step,

there will be a planning for how the future state will be after transforming to the cloud computing service model.

The challenges for this step are providing a clear definition of the existing and desired interfaces and defining the relationship with the stakeholders.

what will be achieved by comparing the strategic requirements with the available services and providers Table 2. 3 Phase 1,

activities and outputs of the Identify step Activities Outputs Determine what services will be outsourced to the cloud,

and stakeholders A list of services to be outsourced to the cloud, with documented understanding on impacts to service, people, cost, infrastructure,

and stakeholders Decide what type of cloud outsourcing model will be used, and why it is suitable A cloud outsourcing model,

and reported A communication strategy Decide how cloud suppliers will be engaged selected and managed A strategy

and making sure there is enough time to move cloud services in-house, or to an alternative cloud supplier.

the assigned project team will accomplish some important tasks such as the transition of the service, the management of the staff impacted, the management of the communication to all stakeholders,

The first case study is about a UK based SME firm that provides IT services and solutions for Oil and Gas industry with offices in UK and in the middle East area and it shows the implication of the cloud computing transformation on the IT department in the implementing organization.

and personnel were not able to deal with the increased customer demands, which created a bottleneck that caused many sales orders to be lost or never received.

and Kim 24, is about building cloud-based IT environments for Korean central governmental agencies (K-Cloud Centres)

This situation triggered the move to the cloud environment, in which the Korean government can obtain a number of benefits.

Third, it provides an environment that can respond to user requests promptly via an automatic provisioning process based on on-demand operation.

Careful analysis of the benefits, opportunities and risks are very important in the transformation to the cloud computing environment.

Last, less human errors will result in a more stabilized status of system resources and IT services,

The third barrier is related to the organizational support that is needed from each and every organization that is involved in this project such as the education and communication ministries.

2012 fourth international conference on computational intelligence and communication networks, pp 556 560. doi: 10.1109/CICN. 2012.177 44 2 Cloud computing 4. Dhar S (2011) From outsourcing to cloud computing:

evolution of IT services. In: IEEE, pp 434 438 5. Zhang Q, Cheng L, Boutaba R (2010) Cloud computing:

IEEE symposium on computers and communications, pp 129 134 8. Khajeh-hosseini A, Greenwood D, Sommerville I (2010) Cloud migration:

a case study of migrating an enterprise IT system to Iaas Ian Sommerville. Inf Syst J abs/1002.3: 450 457 9. Chang V, De Roure D, Wills G,

Proceedings of international conference on advanced computing and communications and informatics, pp 470 476 12.

2nd international conference on cloud computing and services science CLOSER 2012, pp 198 207 13. Bublitz E (2010) Catching the cloud:

Alsouri S, Katzenbeisser S, Biedermann S (2011) Trustable outsourcing of business processes to cloud computing environments.

the role of internal communication and employee development. Corp Commun An Int J 8: 268 277. doi:

Lee H-O, Kim M (2013) Implementing cloud computing in the current IT environments of Korean government agencies.

ICCCNT12 26th 28th July 2012, Coimbatore, India References 45 Chapter 3 Mobile Services Abstract In this Chapter we discuss the main implications of mobility for digital business.

and the enablers that impose mobility as the characterizing feature of digital services, depending on and made possible by the convergence and the resulting dependencies between contents, devices, networks, and social activities.

and adopt a mobile technology as well as the related services and applications. Then the Chapter focuses on how IT managers and executives interested in digital innovation of services through mobile can face challenges related to the lifecycle of such initiatives:

from development and integration with enterprise information systems, to a secure supply to the final users, through a constant control and performance monitoring.

Finally, the discussion of case studies concludes the Chapter, providing insights from practice on factors and strategic points. 3. 1 Introduction‘‘The battle for your body is about to begin''.

10.1007/978-3-319-04307-4 3, Springer International Publishing Switzerland 2014 47 by Mary Meeker2 and Liang Wu in the annual‘‘Internettrends''report by venture capital

as well as a transformation of the global economy towards a service economy, through a consequent change in IT innovation for service management,

and orchestration of services for enhanced accessibility and dynamic offerings. Furthermore, it should be noted that Rai

against a richer and detailed knowledge of customers'needs and experiences. In order to understand the role

Thus, considering services, it refers to the conversion into bits of analog functionalities (e g.,, from listening music on a vinyl to reproduce it on an mp3.

and here it is''36.48 3 Mobile Services consequence, digitalization requires the above mentioned digital enablers for service management capabilities have to be coupled with a key technology,

social networks, smart mobile communications, cloud computing, high bandwidth telecommunication networks contribute to create digital infrastructures for service provision,

that are more than a simply conversion of functionalities of existing‘‘analog''services, but rather a radical transformation having impact on lifestyle, work,

and individuals to co-create services at local and global level, enforcing a wider participation 13.

Furthermore, they contribute to create multi-sided markets3 where the business focus is on networking benefits for value creation, asking for new business models and pricing strategies, likewise.

and Integration (UDDI) for implementing registries of web services 6 Standards-based solutions for reuse, interoperability,

and composition of services 7 XML-based protocols for accessing services and exchange messages, such as, e g.,

-Standardized interfaces-Service invocation independent of technology-Decoupled and loosely coupled interactions-Synchronous interactions between providers and customers-Event messaging for services coordination Orchestration Business process modeling 10

Standard executable languages for specifying actions within business processes as web services, such as, e g.,, the Business Process Execution Language (BPEL) 10 Usage models based service invocation Analytics Mining of event-stream data Real-time execution of business rules Adapted from 4

3 Multi-sided markets create value by enabling direct interactions between distinct types of affiliated customers 37,38.

Multi-sided markets challenges governance and digital business models innovation 38. For further details on digital governance we refer the reader to Chap. 8 of this book. 3. 1 Introduction 49 service depends on

and business value of mobile services and devices; for example, consider the growing importance of location-based application on mobile devices for marketing activities

The above discussion provides a preliminary interpretative framework to understand‘‘digital''services, and the mobility characterizing them,

In Sect. 3. 2 we are going to focus on mobile services and applications, eliciting their drivers, challenges,

and opportunities. 3. 2 Mobile Services Drivers and Challenges Mobility is currently one the main characteristics of today digital information infrastructures.

, smartphones and ipads or tablets, does not entail a consequent success of no matter services provided through them and accessible to a correspondent wide audience.

and the current business model adopted by a given company may not always sustain the service design and delivery,

As a consequence, in this section we consider some of the main drivers and challenges related to mobile services.

or have been instantiated for the case of mobile services. Table 3. 2 Key technology service enablers (adapted from Schwarz et al. 14.

+Smart mobile communications iphone, ipad, Android OS Smartphones and tablets Cloud computing Amazon, dropbox, Google, Salesforce. com, Windows Azure, etc.

High density, low cost chips IBM, Intel, AMD chips 50 3 Mobile Services As pointed out by Bagozzi 20, TAM is characterized by a‘‘parsimony''in the number of basic

or great effort''18.3.2 Mobile Services Drivers and Challenges 51 concerned the following issues and new relationships (the latter represented by dotted arrows in Fig. 3. 1):

and costumers of digital services provided by‘‘new''mobile technologies and devices. As pointed out above

whereas the new challenges concern the outer context of a company. 6 Nevertheless, due the central role of behavioral intention also in the adoption and use of mobile services and technologies,

As for these issues, Fig. 3. 2 provides a representation of current efforts towards a framework for identifying mobile services behavioral intention and adoption drivers.

to mobile data services having an ubiquitous nature and an impact on individuals'lifestyle. In particular, they focus on devices designed to provide the users heterogeneous types of information, such as, e g.,

as we are going to see in Chap. 5 on the IT Consumerization phenomenon. 52 3 Mobile Services use and perceived usefulness), classified as‘‘general technology perceptions,

''Hong and Tam 23 consider the following four more clusters of determinants of mobile services behavioral intentions (see Fig. 3. 2, starting from the top left hand side):

Influence Psychographics Need for uniqueness Perceived enjoyment Demographics Gender Media Influence Fig. 3. 2 Mobile services behavioral intention drivers.

Adapted from 23 and 24 3. 2 Mobile Services Drivers and Challenges 53 perceived service availability as the extent to

, gender, which determines behavioral intentions towards the adoption of a mobile technology and related services.

perceived enjoyment as the extent to which the use of a mobile technology or the access to one or more mobile services is perceived to be enjoyable in its own right,

the need for uniqueness (close to image in TAM) as the individual's search in the mobile technology/services (as symbolic products) for an increased selfperceived social status and an enhanced self-concept.

Concerning social influence in mobile technology/services adoption, it is worth considering the contribution of studies such as, e g.,

and diffusion of innovations theory 26 for analyzing the role of social factors on the adoption of mobile advanced services. 7 In particular among other interesting results,

even if indirectly, the role of marketing as a key partner of IT in the design and development of digital innovation initiatives, in particular for mobile services and technologies.

while gender (see Fig. 3. 2) received a certain attention by scholars as a dimension influencing at a certain degree behavioral intention towards the adoption of mobile solutions and services,

however, that this dimension 7 The research and analyses were based on a sample of 542 Dutch consumers. 54 3 Mobile Services has received limited attention, in particular,

which may lead to incorrectly identify the needs for customers having actually a cognitive age different from their chronological one.

and services have to be related to other research streams investigating, e g.,, the difference of usage behavior between mobile phones and personal computers.

which explores the difference in economics between the two settings, focusing on the relevance of ranking

and challenges also related to the difference of mobile applications and services, compared with, e g.,, the desktop or personal computer ones, in the following Section we are going to discuss which digital management solutions can be considered

and adopted for an efficient and effective implementation of mobile technology enabled service initiatives. 3. 2 Mobile Services Drivers

several dimensions and perspectives impact on mobile services and technologies acceptance and adoption by users (internal as well external to an organization).

However, IT managers and executives interested in digital innovation of services through mobile have to face challenges related to the lifecycle of such initiatives from development and integration with enterprise information system, to a secure supply to the final users, through a constant

Integration, facing the issue of the alignment and adaptation to enterprise information systems, at software as well as data level.

but focused on the challenges of guarantying the privacy of data and the trustworthiness of mobile applications and services interactions.

As for development, the diversity of devices and the consequent scalability of development platforms pose significant challenges to applications management with regard to costs of functionalities, user experience, and data security.

Development Platforms for Mobile Applications (App) based on a reference framework Application integration with enterprise information systems (software and data) Device management (data privacy and security) Software solutions

to support applications management on devices Development Integration Security Performance Fig. 3. 3 Digital management solutions 56 3 Mobile Services The native development

EAS Enterprise Application Systems. Finally, we consider a hybrid development model. This is a combination of the previous ones,

an organization faces management decisions concerning their integration with its own enterprise information systems (see Fig. 3. 3). Indeed,

the adoption of a strategy of Enterprise Mobility highlights some critical issues in terms of management of'the infrastructure,

or customize the applications according to the specific needs of the buyer Private enterprise application store These environments have restricted a access,

and other mobile workers) These stores are managed generally as a repository of enterprise applications 58 3 Mobile Services services has an impact as well on the efficiency and effectiveness of their management, use and updating.

ensuring the security of the data (see Fig. 3. 3) is by far one of the most critical issues in the field of development and management of mobile applications and services.

Indeed, they are basically an on-demand service distribution, which kept applications on corporate servers with only core parts or a subset of an application's code installed on the device, making the other packages available in streaming on the user's mobile device,

Require investment in infrastructure to ensure the effectiveness of the solution 3. 3 Digital Management Solutions 59 degree of freedom in the choice of the device and operating systems;

as a tentative conclusion and recommendation, we can say that regardless of the technology chosen for supporting the digital management of mobile application and services,

leader in mobile application development and platform with over 350 customers in 45 countries, including more than 70 Fortune 500 companies (http://www. kony. com/about).

60 3 Mobile Services use the customers'own device's camera to take a picture of a vehicle,

Mobile services initiatives have to consider integration with existing back-end systems without the need to rewrite the application for multiple types of OS,

Furthermore, the solution reduced operating costs by approximately 15%without affecting productivity with an estimated 18 months payback period of the investment 31.

Mobile services initiatives applied to supply chain activities and sales provide increased productivity, improved data quality,

and knowledge on customers'behavior and history. 3. 4 Case studies 61 The following case is based on a Datalogic success story 33

and concerns the convergence of mobile services and sensors devices. 9 Habasit AG, headquartered in Switzerland,

the investment in this solution has covered also a set of training activities by the staff. Indeed, the operators have to be able to scan the barcode using the optical drive of the tablet supplied,

The last case study shows the relevance of mobile services for marketing and advertising activities, acting as a bridge towards the topics of the next Chapter,

we refer the reader to the discussion on social sensing in Chap. 4. 10 Mobile devices designed to survive demanding environments, harsh conditions,

for dust, rain, humidity, strong shocks, repetitive tumbles and temperature extremes. 62 3 Mobile Services POINT OF ATTENTION:

Mobile services and applications need for a strong support by advanced marketing perspectives, focused on a continuous and appropriate listening to social networks as well as supported by multidisciplinary competencies,

and the enablers that impose mobility as the characterizing feature of digital services. Accordingly, we have shown the role of media convergence for the current relevance and diffusion of mobile services and applications, resulting from the infrastructural dependencies between contents, devices, networks, and social activities.

Furthermore, the Chapter has outlined the importance to understand the users'behavioral intention to accept and adopt mobile technology as well as the related services and applications.

To this end we have introduced the reader to the main constructs and frameworks related to the Technology Acceptance Model TAM) academic research stream and how they change

when facing challenges related to the lifecycle of mobile initiatives, from development and integration with enterprise information system, to a secure supply to the final users,

In particular, they have shown that mobile services initiatives have to consider the integration with existing back-end systems

among the key issues for obtaining increased productivity, improved data quality, knowledge on customers'behavior,

Furthermore, the case studies have shown the importance of the convergence of mobile services and sensors technologies as well as social listening activities (that will be discussed in detail in the following Chapter).

As for social listening, the considered case study has shown that mobile services and applications need for a continuous and appropriate listening to social networks as well as the involvement of multidisciplinary competencies to enable an effective knowledge for implementing mobile solutions

and services in different contexts, fitting the needs of various populations of users adopting them.

opportunities for information systems scholars. Inf Syst Res 17: 327 331 5. Antoniou G, van Harmelen F (2008) A semantic web primer, 2nd edn.

MIT Press, Cambridge 6. UDDI. org (2001) UDDI technical white paper 7. Papazoglou M (2007) Web services:

MIS Q 27: 425 478 64 3 Mobile Services 17. Venkatesh V, Bala H (2008) Technology acceptance model 3 and a research agenda on interventions.

the case of mobile data services. Inf Syst Res 17: 162 179 24. López-Nicolás C, Molina-Castillo FJ, Bouwman H (2008) An assessment of advanced mobile services acceptance:

Contributions from TAM and diffusion theory models. Inf Manag 45: 359 364. doi: http://dx. doi. org/10.1016/j. im. 2008.05.001 25.

Alcatel-lucent (2012) Etisalat Nigeria introduces permission-based mobile advertising to over thirteen million customers using Alcatel-lucent's Optismtm.

Adopting a brand new CEM perspective means that firms have to reconsider, on the one hand, their current Digital Business models 1 4;

and literally projected on customers). This kind of evolution, would actively participate in creating a CRM system able to support the Customer Experience Management through

based on new digital business models, have been implemented supporting decision making processes in different fields such as, e g.,, R&d, market research and analysis,

and evaluating new products and services, playing a complementary role sideways with all the traditional analytic tools used for previsions 5. 4. 2 Marketing Analysis as Social Listening According to a research by Universal Mccann (http

and sustain a competitive advantage in terms of products and services'differentiation. The main questions here are:

To summarize, it is worth noting that in a review on the Communications of the ACM,

and preferences but also the way consumers inform each other about products and services, shaping their own decision process through worldwide shared knowledge and experiences.

restaurants or other services, more than 73%said that they have been influenced highly in their final choice.

In some case, consumers are willing to pay from 20 to 99%more for products rated with five stars with respect to products with a rating of four stars. 32%gave its evaluation about products or services through online rating systems at least once,

the spread of mobile banking services represent the first step of an evolution that will conduct, thanks to new technologies such as RFID (Radio frequency identification) and NFC (Near Field Communication),

These new opportunities are rewriting the marketing strategies and forcing companies to constantly identifying new business models,

reshaping all the back-end and front-end activities (we are going to detail some of these in challenges in the Section of this Chapter on Social Sensing).

However, even though a large number of firms recognize the importance of these policies for end users and stakeholders in general,

and services on the base of the highlighted weaknesses. Furthermore, the additional threat is that illegal behaviors such as‘‘cyberbulling'',stalking'',phishing'',scam'',marketing spam,

an exante marketing intelligence activity let the firms monitor external environment, identify potential threats, evaluate the impact

/Finally, statistical approaches are used for machine learning such as Support vector machines (SVM) and Elastic-net Logistic Regressions (ENETS.

and services oriented led by opinion can have. A first factor worth to be considered is that a marketing intelligence activity

Brown and Sons raised the rating he gave to Qwest Communications International, supplier of telecommunication services in Denver''Positive Adapted from 32 4. 3 Information Growth

and Market Opinion 77 spiteful persons made in order to promote one product/service instead of another. This behavior can deceive users as well

or services people are talking about; 3. No Opinion: general texts that do not actually express any form of opinion about a product/service (advertisement, not relevant texts, questions and answers, etc..

when is well done) mistakable with a normal opinion about products/services. Another challenge related to the opinion spam is the ability to differentiate a spam from a useless opinion.

or not commented products and services and, on the other hand, also comments'rates can be spammed. The above challenges are the other side of the benefits associated to the inedited volume

and availability of information made possible, on the one hand, by social networks, 2. 0 applications, and digital services;

and their social environments 35. According to this perspective, social sensing is an intelligence activity acting on 78 4 Social Listening what Schuster et al. 34 term as the pervasive social context of an individual

, GPS, Bluetooth and Near Field Communication (NFC) functions Increased bandwidth Large wireless bandwidth required to transmit large amount of data in real time (for example,

and new business models for overcoming the specific nature of their features and functions, moving from specializing domains towards a wider diffusions and adoption through the inclusion, e g.,

, in inedited bundles of services. However, social sensing is still a promising perspective at business level, providing a wide spectrum of research challenges.

thus, opening new opportunities in terms of market monitoring. Furthermore, the increase and the unprecedented growth of available information have influenced also the way market monitoring is considered by companies

, social media, 2. 0 as well as 3. 0 applications and services, the latter usually related to semantic web 38; new market signals that come out straight from end-users, by means, e g.,

, Linkedin, Facebook, Twitter, and so on, provide information about competitors'actions, customers'tendencies, and other strategically relevant dimensions.

Outotec is a worldwide leader in supplying processes'4. 5 Social Sensing 81 solutions, technologies and services for extractions and the metallurgic field.

Some distribution format, such as web interfaces or mobile services, can be integrated easily with instruments for users'interaction (comments

These services can encourage decision makers to actively participate in the marketing intelligence process, providing additional information.

it can be useful to analyze the case of Fujitsu 40, one of the biggest IT services supplier in the world.

that let decision makers to apply tag on single content elements such as potential threats, business opportunities, etc.,

The company, based in United states, plans, builds and implements facility programs for firms, providing uniforms, cleaning services, hygienic supplies, promotional products, security products, fireproof protection services,

and document management services. Therefore, the strategic plan team has constantly to monitor and control all facets of a diverse entrepreneurial market,

looking for new opportunities, likewise. The scope of investigation is therefore very broad and the opportunities can rise up in different business areas,

probably not yet explored. POINT OF ATTENTION: Social listening and marketing intelligence empower strategic planning for companies working in complex

and variegate environments, allowing to monitor and control the whole entrepreneurial market, keeping record of all the competitive activities related to new potential strategic opportunities. 4. 6 Case studies 83 According to 39,

trying to make this process as efficient as possible, Cintas has started to keep record of all the competitive activities related to new potential strategic opportunities identified during the monitoring process.

With a marketing intelligence tool, the strategic plan team has been able to structure the strategy on the base of always up to date information from the involved actors.

providing services and solution for worldwide dynamics and evolving markets. Inside Nokia's organization, benchmarking is used

Considering social media, their diffusion opened new opportunities also in terms of benchmarking, enhancing collaborative relationships, creating new spaces for knowledge and information sharing,

POINT OF ATTENTION Social media provide new opportunities for benchmarking activities, on the one hand, enhancing collaborative relationships among employees,

on the other hand, opening the boundary of a company through the involvement of external stakeholders and users, likewise.

Among the instruments, blogs and wikis, forums for discussion, video services (Youtube and Slideshare), have provided dynamic and direct sources for interact and collect/share information.

in order to improve the benchmarking process. 84 4 Social Listening 4. 7 Summary This Chapter shows the main characteristics that marketing intelligence activities can assume in the current competitive environment,

MIS Q Exec 1: 17 34 2. Osterwalder A, Pigneur Y, Tucci C (2005) Clarifying business models:

Commun AIS 16: 751 775 3. Overby E, Bharadwaj A, Sambamurthy V (2006) Enterprise agility and the enabling role of information technology.

) Do some business models perform better than others? a study of 1000 largest firms. MIT Cent Coord Sci Work Pap 226 5. Bonabeau E (2009) Decision 2. 0:

Rosi A, Mamei M, Zambonelli F, Dobson S, Stevenson G, Ye J (2011) Social sensors and pervasive services:

IEEE International Conference Pervasive Computer Communication Work PERCOM Work, pp 525 530 36. Aggarwal C, Abdelzaher T (2013) Social Sensing.

GIA (2010) How Social media is Redefining Benchmarking GIA Services White paper (vol 1) 41. Normann R, Ramìrez R (1994) Designing interactive strategy:

Also, it discusses enterprises'drivers and strategies that concern this trend as well as to understand its implications on the businesses. 5. 1 Introduction It is very common nowadays to see workers from different levels in different companies bring their own laptops to the work environment to use them to do

their jobs. Also, it is normal to see employees using their own technological devices at work,

and communicate with companies'customers. As a result, and as the technology becomes more central in people's lives,

known as the consumerization of IT, has the potential to play a significant role in improving business productivity and agility for enterprises.

while maximizing IT investments 1. Now, with the concept of Consumerization, the pattern of using technologies and V. Morabito,

Consumerization can be defined as the trend for new technology innovations to begin first in the consumer market then to enter business environments.

A major driver of mobile device usage in the work environments has been the emergence of cloud computing. As mentioned before

In fact, a Gartner group prediction, reported by the Economist 4, states 1 billion smartphones will be sold in 2015, up from 468 million in 2012.

and an opportunity to improve best practice around systems management. Instead of IT being seen as a roadblock on how users want to work,

and familiarity with IT. 1 Cloud computing and mobile services issues have been discussed in Chaps. 2 and 3 respectively. 90 5 IT Consumerization 5. 2. 1 Advantages

and Opportunities of IT Consumerization The continuous trend of IT consumerization at organizations promises with many opportunities and advantages that would help companies to achieve the required objectives.

The possible opportunities show the various areas of the organization where benefits can be implemented by a proper introduction and utilization of IT consumerization.

These opportunities were studied and presented by 6 and the 7 and they are as follows: Financial opportunities:

consumerization of IT can result in saving time and money by increasing productivity, reducing spending and increasing user/customer satisfaction.

and communication facilities. Cost cuts can be achieved by lower spending in hardware and other types of infrastructures,

and will use own devices and services. This can lead to a better customer satisfaction as well as its corresponding financial benefits 8. Organizations that see IT consumerization as an opportunity to create a comprehensive strategy

and clear governance model will be more likely to capitalize on the financial benefits of this trend 7. Human resources benefits:

thus, it Limited connectivity Email or IM Communications IT Department Chooses the PC Primary device is fixed IT department has the control One device, One task Management & Security inside the Firewall Moving from Moving

Modern organisations should try to seize this opportunity in order to increase motivation of staff, support them in becoming more literate in current technologies and use them also in business life.

and the freedom to unfold their creativity for the benefit of the business and their customers.

and communications among the enterprise's employees as well as better recruitment process by using social media platforms 9. Operational opportunities:

This will increase communication and collaboration initiative at the staff, enhance the employees ability to work in virtual teams,

a trend that is irreversible and will lead in the middle term to the falling of traditional security models. 2 Data Management opportunities:

to be used at the work environment; hence, it is difficult to apply the same security standards and policies on those personal devices.

This report argues that enterprise policies and practices are well behind the arrival of new advancements.

Furthermore, other survey results show that 63%of mobile devices that connect to enterprise networks regularly are used for both work and private purposes

there are concerns raised about the possibility of harmful software being introduced into the enterprise network by poorly protected smartphones,

or brand by uncontrolled use of consumerized services/devices such as, e g.,, Dropbox. 2. The increased variety and complexity of personal and mobile devices as well as different operating systems and applications that all requiring management will lead to increased costs. 3. The possibility of losing mobile devices would likely increase when the organization uses

it will be difficult for enterprises to enforce their own policies that are related to HR, legal scope and context,

1. the possibility of losing corporate data because of unauthorized sharing and usage of information on employees'devices by the services running on them;

2. the possibility of losing corporate data as a result of access by unknown users and unmanaged devices to enterprise networks;

or more secondary categories. 5. 3 Steps for IT Consumerization Companies have to rethink their strategies to seize the opportunities associated with the consumerization of the IT devices rather than facing the consequences of this trend.

with IT Consumerization 95 consumerization in order to see it as an opportunity rather than a problem.

and Adopt the User Perspective Today's employees are more technically capable to find their own ways to use their own devices in order for them to be more productive at work environment such as downloading,

so that they can have better communication and work more efficiently. However, such procedures can conflict with the enterprise's IT SECURITY policies 13.

As mentioned before, cloud computing is the IT service that makes this even easier, with information and services accessible from anywhere and anytime by using any device.

For example if an employee knows he she may later need access to a file created on his her work computer,

Rethink User Computing Change Focus from Platform to User The traditional approaches and practices of users'profiles management are not suitable any more in nowadays work environments because of today's complex computing landscape

and cloud services that may or may not be provided by or qualified for use by the existing IT infrastructure at the enterprise 14.96 5 IT Consumerization Organizations have to reconsider how they manage user computing in order for them to effectively meet the previously mentioned challenges of dynamic landscape and truly embrace consumerization.

They need to develop a user-centered strategy designed to optimize the computing experience and keep the user as productive as possible on any platform,

Shorten the Time Frame for New Computing Approach Adoption Many of the consumer technologies that are already in use by enterprises are advancing very fast.

Support Employee Owned Devices In its report about IT consumerization 14, Intel has provided a set of best practices (see Fig. 5. 2) for supporting employee-owned devices in the enterprise.

and engage stakeholders: companies need to consider creating a master vision of the BYOD program by engaging

and collaborating with all key stakeholders early in the IT consumerization process. This covers employees from human resources and legal to IT, corporate services,

and most importantly, end users. This is an ideal opportunity to define all the components of the BYOD program 14.2.

To update security model: the decision makers in the business need to develop a security model for employee-owned devices.

and the available services such as email and calendar. 4. To enable the technology and plan deployment:

and investment parameters 14.5. To stay up-to date with changing and new technologies: by staying aware of technology trends,

which can result in a better understanding of the different needs of users in the enterprise.

such as those listed in Table 5. 2. 1 Engage Stakeholders 2 Update Security Model 3 Decide on OS and devices 4 Plan Deployment 5 Stay current with Technology Fig

, a smartphone into the enterprise environment and uses it to obtain immediate access to corporate email and calendar, communication facilities,

By providing communication and social platforms capabilities through web-based apps, employees can be productive regardless of

for different customers from different locations. He she can use mobile broadband and wireless hotspots to access the Internet from the worksites.

Examples of new opportunities enabled by tablets include making an immediate competitive analysis between businesses,

such as personalized mortgage information 16.5.4.6 Retail Sales Tablets can provide local retailers with the opportunity to compete effectively with online stores.

which provide an opportunity to reduce costs 16.5.4 Business Scenarios for IT Consumerization 101 5. 5 Strategies for IT Consumerization The previously explained business scenarios can be associated with one of the following strategies:

Also, it includes information protection by using Active directory Rights Management Services, which provide the infrastructure that is needed to protect office content and other Information Rights Management.

and decreasing the time that is needed to deploy apps. 3 Chapter 3 on mobile services provide further insights

which is desktop virtualization that separates the desktop environment and associated application software from the physical client device that is used to access it 5. 5. 3 Virtualization Strategy This strategy enables enterprises to quickly achieve business benefits gained from IT consumerization by moving the desktop and/or applications into a data center.

This strategy makes it easier to provide new desktops but it requires investment in the infrastructure that supports it.

The key concerns with this strategy include: roaming user experience across devices and locations, protecting user information, using virtualization technologies that include desktop virtualization and application streaming,

Examples of these include productivity apps from the cloud, such as Office 365, IT management services from the cloud, such as Windows Intune, virtualized desktops or apps,

and cloud services to deliver apps to devices 16.5.5 Strategies for IT Consumerization 103 5. 6 Enterprise Drivers Behind the Consumerization of IT The drivers that motivate enterprises to adopt IT consumerization strategy include increasing productivity,

Thus, IT department is relieved of some time-consuming aspects of supporting an enterprise infrastructure, which would enable IT staff to focus on strategic initiatives and projects 16.

and retain valuable employees as important assets of the enterprise. As a result, enterprise human resources departments are moving toward rich consumerization of IT environments to improve workplace satisfaction 16.5.7 Considerations Related to IT Consumerization The consumerization of IT is unrestricted not an strategy,

nor appropriate in all environments, because many devices are not secure enough. Also, legal considerations with regard to licensing, security,

and privacy exist. Moreover, the ability of the users for being self-supporting and tech-savvy is under question.

The business value and the Return on Investment (ROI) of a consumerization of IT solution should be investigated,

explained and emphasized to potential customers instead of only specific details about technology or infrastructure. Level of consumerization of IT within an enterprise.

Organizations need to have clear view about the degree of IT consumerization that is already existed,

Therefore, enterprises must address a number of legal issues, including: the owner of the data on a privately owned device, accessing the corporate data remotely from a personal device,

Enterprises have to establish baseline needs at the beginning of consumerization of IT strategy planning in order for them to be able to determine the financial impact

and allow tracking of benefits and investments. As for technology considerations, common infrastructure-related issues that enterprises are concerned with include:

the optimum choice of a consumerization of IT strategy in order for the enterprise to realize business benefits,

the needed changes in the infrastructure to be able to support a consumerization of IT strategy and the support of different mobile devices.

Table 5. 4 Desktop delivery option On your own Bring your own Choose your own Here is your own Consumer desktop Enterprise desktop Consumer OS Consumer OS Enterprise OS

Enterprise OS Local workspace Local workspace Local workspace Local workspace Session roaming Session roaming Virtual desktop Virtual workspace (server

Apps virtualization VDI Roaming environment Roaming environment Data synchronization Data synchronization VDI VDI Adapted from 16 5. 7 Considerations Related to IT Consumerization 105 Therefore,

it is important to establish a communication strategy or policy that clearly defines personal and IT responsibilities and expectations from all parties.

shown in Table 5. 5 is an example of who is responsible for specific types of issues with different categories. 5. 8 Social Platforms Social media has a huge impact on not only the work environment,

which equals to 23.3 h, on this social platform each month 5. With the vast growth of social media as a way of communication and interaction between people,

and the society themself that are developing accordingly with the new online or virtual world and opportunities.

and demand more freedom at work environment. They want to have instant access to the types of applications that would help them to be more communicative in their personal life.

since after the success of customer directed services such as Facebook and Twitter, social networking platforms are finding their way into businesses'environments.

Such circumstances can be applied particularly to the case of young employees since this category of workers expects to have access to the same technologies at work that they are familiar with in their life as consumers.

For example, Microsoft's $1. 2bn acquisition of Yammer has positioned the software giant to introduce enterprise social networking capabilities to its existing business collaboration systems such as Sharepoint, Exchange, Lync and Office 365 17.

This acquisition by Microsoft is a clear example of the importance of social networking within work environments.

and Twitter and at the same time to work in accordance to the security standards of the enterprise firewall and can be integrated with other systems at the enterprise that are managed by a company's own IT department.

and regarded by the experts who follow the enterprise social networking market. The employees who use Yammer can set up user profiles,

which is a communication product that Microsoft acquired last year for $8. 5bn and it is expected to integrate with its mainstream business applications 17.5.9 Case studies In this section we investigate some IT consumerization at work environments related case studies

and we provide explanation about its role for the business success. 4 The first case study is about a business communications solutions provider called Avaya.

This company brings social, multimedia experience to enterprise telephony 18. Avaya is exploring the social dimension of unified communication by using the Avaya Flare,

which is a drag -and-drop and touch-screen user interface that a person can use to arrange calls, conference conversations, videoconferences,

and instant messaging communications by browsing through on-screen contact profiles that are represented by profile pictures and‘‘existence''indicators,

which show the available people in the system. Moreover, it is possible to add personal Facebook profiles to the system

Avaya's strategy for mobility within the enterprise is to take advantage of the consumer gadgets that executives

starting to act in ways that allow them to seize the opportunities coming with them rather than blocking their usage at work environments.

the project required significant nontechnical collaborated work with other stakeholders in the business to ensure the company was ready for a new way of working.

enterprise drivers and recommended strategies as well as different business scenarios for IT consumerization have been explained. Consumerization is not a fleeting concept;

Its implications on the future of the enterprise require IT innovation that goes beyond simply supporting BYOD strategy.

It is safe to say that IT has an opportunity and a responsibility to evolve its role and culture to one that focuses first on the business and users.

In an ever changing business environment that brings new security and compliance challenges, IT must balance flexible user choice with secure, cost-effective management standards across the organization.

in order to know how to seize the opportunities associated with this trend. Many issues that are related to the business, technology,

Accessed 21 nov 2013 4. The economist (2011) consumerisation the power of many. economist pp 1 4 5. D'Arcy P (2011) CIO strategies for consumerization:

the future of enterprise mobile computing. White Pap Dell, Dell Headquarter Round Rock, pp 3 14 6. Docherty J (2009) Consumerisation of IT:

top risks and opportunities responding to the evolving threat environment. ENISA, Heraklion, pp 1 18 5. 10 Summary 109 8. Copeland R, Crespi N (2012) Analyzing consumerization should enterprise business context determine session policy?.

In: 16th international conference on intelligence in next generation networks pp 187 193 9. Tufts H (2012) Let consumerization work for you.

Intel (2012) Five steps to consumerization of IT in the Enterprise. White Pap from Intel 15.

Microsoft Services Enterprise Architecture, Microsoft Corporation, Redmond, pp 1 22 16. Harteveld A (2012) Microsoft recommendations for a consumerization of IT strategy.

Microsoft Services Enterprise Architecture, Microsoft Corporation, Redmond, pp 1 16 17. Taylor P (2012) Consumerization of corporate IT accelerate.

and collaborate in business environments. In business, the digital or IT collaboration is divided into electronic communication tools, electronic conferencing tools,

This Chapter will look in details into the origin of the digital collaboration, its importance for work environments and its types.

which represents the center of enhancing productivity at business environment. The objective of the continuous improvements of the collaboration technology is to allow people to share information as naturally as possible,

10.1007/978-3-319-04307-4 6, Springer International Publishing Switzerland 2014 113 started as an effort by technologists to learn from different kinds of scientists and specialists such as economists

It also became a place for system developers to share experiences about technical opportunities and limitations.

and electronic meeting rooms or group support systems 2. The development of the previous mentioned ISS aims to enhance collaboration at work environments

which can be reflected in a better and easier communication among the different levels within the organization.

Provide the ability to personalize communications to enhance the quality and speed of decisions. Save time by reducing delivery times,

Customers would have faster access to information and personal experiences which would improve their responsiveness.

which is accomplished by continuous communication and coordination, and it uses systems like electronic meeting system,

As a result, many investments in the field of IS or IT have deployed and being implemented cross organizations that are located in different countries and world regions.

which have been studied rarely 6. There is a big difference of the influence of the digital collaboration in the global economy in comparison to a single country or region.

and cultural environments, which may also vary substantially. Another reason is about the different or even conflicting goals that the various stakeholders in global IS projects often have.

Managing teams that are distributed globally requires a more demanding standard of management and collaboration to those needed for more typical virtual groups within the same economy or region.

Researchers and practitioners need to investigate the previously mentioned causes and other issues that affect the collaboration between people either in a positive or negative way,

in order for information systems to be more successful and productive in the global economy 6. However, confusion can happen because of the lack of common understanding of the Cross Organizational Collaboration (COC),

since, a thorough examination of examples of COC reveals that there are many opportunities associated with this term.

Thus, it can be observed that there are many varieties of different Same Place (collocated) Same Time (synchronous) Face to face Interactions Different Time (asynchronous) Continuous Task Different Place (remote) Remote Interactions Communications

which all occur via the Internet 8. The new development in the field of digital collaboration tools has opened the opportunity to solve problems such as:

the increasing importance and demand for technology support services combined with the decreasing budgets and staff resources create several challenges for information technology (IT) departments.

and create more collaboration opportunities among institutions 10. The key concepts behind this idea are the communities of practice, the community coordinator and the technology steward.

Nevertheless, because of shrinking resources and increasing demand for services, the IT specialists who support that kind of technology experience constant pressure to do more activities

and perform services with fewer resources. However fortunately, those specialists don't have to be alone while facing such a challenge.

This examination will look at the usage of the tool as well as its limitations. 6. 4 1 Electronic Messaging Systems Electronic messaging systems refer to the systems that provide one to one communication tools with messaging infrastructure

in addition to the services shared by the other parties in the world 4. Thus, the individual services,

Some typical guidelines for various services include: email and instant messaging, which enables person-to-person communication;

email list which provide the space for small group discussions; forum and chat services, which give the opportunity for large group discussions.

Despite its benefits for the organization, electronic messaging systems cannot be fully secure and reliable,

since messages are using store and forward technology that involve many systems in the process of exchanging messages.

It provides the opportunity for the appropriate people to contribute, allowing the group to focus on the creative ideas, instead of their available resources 11.

and integrated within the IT environment of the business. Moreover, modern EMS support both synchronous conferences,

The previously high demands for specialists have been cut greatly by utilizing systems that can be supported by its regular users.

or over the time using tools such as bulletin board systems 4. The formal term used in computer-facilitated communication,

The communication in such systems does not require face-toface conversation and it can last for undefined and long time.

It is referred often to as a component of Enterprise Content Management (ECM) systems and related to digital asset management, document imaging, workflow systems and records management systems.

This is happening because of the increasing role of the internet in enabling communication between people. Traditional forms of communications

such as telephones, mail and even face-to-face meetings, are slowly being replaced by computer based systems where different kinds of socialization are enhanced through media sharing, reflection on past experiences and a bundle of additional services, supporting

socialization among people 15. Based on the previous facts, organizations are trying to integrate social collaboration capabilities into their strategies, operations, and processes.

Whether it is with customers, partners, or employees, these organizations use social collaboration tools to improve efficiency,

create opportunities, boost productivity, and drive innovation that makes them more competitive and successful. The term social software is general

and it applies to systems used outside the work environment or workplace. Software products such as email

Therefore it is important to understand the differences in human relations and communications, because it is necessary to ensure that appropriate technologies are employed to meet the interaction's needs 15.

The use of such software at the work place stimulates a Collaborative Working environment (CWE) that supports individuals as well as those who work as a team regardless of their geographical locations by providing them with the necessary equipment that aids communication, collaboration

and other real-time feedback applications that help in the delivery process to a diverse audience within the enterprise.

and enterprise customers with the ability to jointly create a video script. Taking the above issues into account

in the near future further evolution of the information and communication technologies may reconfigure and in some case substitute some of them.

Online communities have also become a way for work collaboration among team members at the work environments

Additionally, due to the fact that there are barely any face-to-face communications in the virtual community environment,

which provides opportunities to judge the relevance of search results, transcribing podcasts, finding contact information or labeling data to prepare it for the use in machine learning 21.

Also, it is necessary to create plans for incentive mechanisms and frameworks that suit existing business models and real world systems such as workflow,

human-provided services, as well as 6. 4 Digital Collaboration Systems and Ideas 127 crowdsourcing. These plans should have the ability to monitor crowds actions and

As a result, instead of focusing on simple and independent tasks, it would be possible to work on more complex jobs where people need to work together in a collaborative manner 22.6.5 Case studies In this section we investigate some digital collaboration at work environments related case studies,

in order to identify themselves as humans and not automated services or programs, they contribute to digitizing books

which is acclaimed a globally online meeting and collaboration applications and software services provider. The introduced technology has succeeded to achieve high satisfaction rates from both the members of the faculties and the students.

and tools that are available to play the roles of collaboration applications at work environments or educational institutions.

and the consequent constant revision of value propositions and business models for re-branding a company digital business, due to strict time-to market.

10.1007/978-3-319-04307-4 7, Springer International Publishing Switzerland 2014 133 customers, in a continuous reconfiguration of traditional industries and the rapid creation of new

bundled sectors and market based on new digital products and services. Taking these issues into account,

constantly challenged by new digital business scenarios, rapidly changing market roles, with constantly new entrants and new customers'needs;

thus, digital business identity is characterized often by very short life-span due to the velocity of new digital products and services design and distribution.

and business models for re-branding a company digital business. Besides these strategy and marketing facets of digital business identity, the technical and social challenges to privacy and security related to this openness and‘‘instability''6 of digital competition are worth mentioning.

As pointed out by Aral et al. 7 social media platforms raise significant management questions such as, e g.,

Apart from IT consumerization, other phenomena such as the diffusion and pervasivity of social networks and mobile services (discussed in Chaps. 3 and 4,

as reported by Paul Hyman on the Communications of the ACM (CACM) 8 on March 2013,

and opportunity costs imposed on society by the fact that a certain cybercrime is carried out, no matter whether successful or not and independent of a specific instance of that cybercrime''9,

p. 6, including security products, security services, such as, e g.,, training, regulations and/or law enforcement, etc.

an interesting solution for Enterprise Identity Management has been proposed by Royer and Meints 15. The framework, resulting from a comprehensive literature review and findings from a qualitative expert interview study, uses Balanced Scorecard (BSC) 16,17 concept as a basis for a decision support approach

, resulting in an Enterprise Identity Management (EIDM) Decision Matrix 15. As shown in Fig. 7. 2,

which echo the goals of the introduction of an Enterprise Identity Management solution. For example, according to 15 metrics for the financial monetary perspective can be estimated the costs for security incidents (e g.,

, on the basis of historic or benchmark data; while for the security/risk/and compliance perspective they can be the mapping of users

are suitable to provide companies ways to manage digital business identity focusing primarily on their inner context and enterprise architecture and information infrastructure.

COBIT) Sector specific good-practice Fig. 7. 2 An enterprise identity management framework. Adapted from 15 7. 2 Privacy and Security Drivers and Challenges 137 as well as cultural factors in the outer context.

and Chapters the technological trends that actually represent the digital market environment where businesses create,

This is what in the previous Chapter has been called the outer context of organization compared with the inner one focused on the infrastructure that should support the preservation and defence of a digital business environment.

and how it goes about its business (especially the way it relates to its stakeholders and the environment)''18, p. 1119.

The latter can be defined as the sum of perceptions and expectations of the stakeholders and the public of a given business 18,19.

whereas, due to the above factors, they may have to revise it according to new business models every 2 years or even less. 2 Furthermore,

Considering, for example, a study by Brynjolfsson et al. 22 digital business identity seems to be a relevant factor in an omnichannels retail competition.

The results have shown that the competition has variability across products, with a relevance to Internet retailers of selling niche products.

when the changes add value without annoying customers 22), giving emphasis to product knowledge for consumers, having access to inedited volume of information on products and services actually available on the market;

on the other hand, exclusivity, relying on offering products and services not provided by competitors, can allow an improved differentiation

when coupled with switching costs creation strategies (through, e g.,, loyalty programs) 22. In recent years, the diffusion of social networks and 2. 0 applications have raised their relevance to companies aiming to carry out differentiation strategies, with a consequent effect, in particular,

and deliver services and products fitting captivating brand promises. Accordingly, Barwise and Meehan 23 point out that businesses have to integrate digital trends, such as, e g.,

in order to build trust by delivering the established customer promise (the second block-related 2 Business model innovation is going to be discussed in Chap. 9. 7. 3 Digital Brand Management 139 quality in Fig. 7. 3),

the latter is essential to guarantee a suitable infrastructure preserving privacy of data and reliable transactions for the target customers.

, for Small and medium enterprises (SMES) 26. Considering the case study, it concerns DHL, a world market leader in sea and air mail, founded in the United states then becoming DHL EXPRESS, a division of the German logistics company Deutsche Post DHL. The case focuses on migration and switch issues

Indeed, starting in April 2006 the Ofcom (an independent regulator and competition authority for the UK communications industries) decided to implement a package of measures to address consumers

and industry concerns about Number Translation Services (NTS) calls, that are calls to 08 numbers(‘NTS numbers')27;

on the other hand, the migration and the consequent switch to 0844 numbers had no impact on customers 25.

in order to avoid loss in revenue and‘‘contacts''with customers. The second case study is based on 28

aiming to engage core customers online and creating a direct dialog 3 Talktalk Business: http://www. talktalkbusiness. co. uk/.4 Vibram:

''leaving the customers being the protagonists and leaders of the brand-related initiative; thus, the company reduced its control over the brand as digital business identity to answer the challenges of consumer empowerment by the information technology and digital channels 29.

Digital business identity management asks organizations to enable self-exposure of customers through digital initiatives,

The former is focused on the infrastructure that should support the preservation and defense of a digital business environment.

, cybercrime and for Enterprise Identity Management. Besides the inner context of an organization, the Chapter has pointed out how digital business identity in the outer context is built through

such as telephone numbers, email and web addresses, etc. and savvy investments on digital media in the outer context of organizations;

the latter enable a return on digital identity through the self-exposure of customers and the companies‘‘taking a step backwards''about the control of their digital brand initiatives.

a revolution mindset that combines competition and cooperation, 1st edn. Currency Doubleday, New york 6. Greenwood P-E (2012) The new instability:

Royer D, Meints M (2009) Enterprise identity management towards a decision support framework based on the balanced scorecard approach.

Retrieved from http://stakeholders. ofcom. org. uk/binaries/consultations/0870calls/summary/0870condoc. pdf. Accessed 16 january 2014 28.

imedia Communication Inc. http://www. imediaconnection. com/printpage/printpage. aspx? id=25759. Accessed 25 nov 2013 29.

and communication technologies (ICT) is fostering the formation of‘‘knowledge societies, ''thus providing greater avenues for people to participate on their own development process,

by taking a look at the opportunities and challenges in this field. Furthermore, the Chapter provides examples of digital governance models that have arisen from the state-of-the-art research in this domain. 8. 1 Introduction The new technological advances in the information

and communication technology (ICT) field have resulted in the digital revolution and the emergence of the Information and communication age.

and apply frameworks to their work environment 1. Also, the increasing use of ICT in different facets of human life is leading to multidimensional and often unpredictable changes.

New modes of communications have become available which are faster, efficient and have the ability to reach every individual in the society.

The interest in IT governance is need related to the for compliance and greater accountability of IT investments and use,

as well as to a strategy need for superior business results for all stakeholders 3. Notwithstanding IT performance is linked directly to the long term consequences of the decisions made by top management,

which cannot always guarantee the best results for all stakeholders. As a consequence, IT governance should involve everyone:

board members, top management, staff and customers. It establishes a set of policies and practices used by the organization to enhance a transparent accountability of individual decisions.

and communication technologies by the public sector with the intention to improve information and service delivery,

Research has shown that IAMS can increase user participation in innovation management processes in corporate environments 2. Taking the above issues into account

and value constellations 5, blurring the boundaries between inner and outer context of a company. 8. 2 Opportunities

IT governance is about the good supervision of IT resources on behalf of the stakeholders who expect a return from their investment.

many enterprises are still careworn to implement and apply IT governance frameworks to their work environment,

despite the prefigured potential benefits for the performance and profitability aspects. The motivations for this resistance to adopt IT governance standards is often related to the high costs of implementation

IT governance actually may provide opportunities and benefits in terms of strategic value and return on investments that the above perceived drawbacks may prevent a company to obtain.

In particular, implementing a good IT governance is the basis for an effective digital governance, which helps people in organizations to make fast, informed and reliable decisions;

and how to interact with customers. However, the organizational digital presence is an extension to the organization's physical and human existence,

and business stakeholders but also the web managers within the organization and deep and rich support infrastructure that can include legal department, business experts and ICT specialists as well as external vendors.

These resolutions will be considered as the expectations they demand from the concerned stakeholders. However, if these potential answers for the investigated problem were met not, a cycle of discussions about the suggested solutions,

and finally, the relational mechanisms 8. 2 Opportunities and Challenges Related to Digital Governance 149 Table 8. 2 Structures, processes and relational mechanisms Structures Processes Relational

mechanisms Tactics IT executives and accounts Committees and councils Strategic IT decision-making Strategic IT monitoring Stakeholder participation Business/IT partnerships Strategic dialog

and learning Mechanisms Roles and responsibilities Definition Strategic information systems planning Active participation by key stakeholders Shared understanding of business/IT goals IT organization Structure Balanced scorecards

and strategy maps Collaboration between key stakeholders Active conflict resolution CIO commitment Service level agreements Partnership rewards

alignment/governance maturity models Adapted from 10 150 8 Digital Governance include business/IT participation, strategic dialogue, shared learning and proper communication.

This defines the‘‘as-is''position of the enterprise relative to IT control and governance maturity,

and allows the enterprise to select an appropriate‘‘to-be''level and, after an accurate analysis of the gaps, develop a strategy for improvement 10.

Furthermore, there is inconsistent communication between different departments. 2. Repeatable, but Intuitive: at this level, the awareness of IT governance objectives and practices are developed

at this maturity level, there is a full understanding of the IT governance issues throughout the enterprise,

IT governance is evolving into an enterprise wide process, being integrated its activities with the overall enterprise governance process.

At 8. 3 Digital Governance Mechanisms 151 this level, IT decisions are shared between IT department

with a reinforced training and communication as well as processes developed through a comparison with external best practices.

At this level of maturity, enterprise governance and IT governance are linked strategically to increase the company business value and competitive advantage.

as mentioned before, has revealed eleven Critical Success Factors (CSFS) that should be considered for effective IT governance in this environment.

in which they also established several CSFS emphasising IT as an integral part of the enterprise and the importance of awareness, communication, stakeholders'involvement, accountability and monitoring across the organization.

when so many stakeholders and processes are involved. However by breaking this task into small, strategic steps,

and proposed in the United states (US) of America by the digital services advisory group, federal chief information officers council,

and support IT/Business communication and partnership 4. Engage key stakeholders 5. Define and align IT strategies to corporate strategies

and cascading them down in an organization 6. Consolidate IT structures that ensure responsiveness and accountability Value Delivery and Risk management Related Critical Success Factors 7. Consolidate,

and benchmarks to track and demonstrate success Adapted from 11 8. 4 Digital Governance Success Factors 153‘‘filter''the adoption of other standards such as,

and consequent better chances for success Communication and change management Enabling diffused and cross units conversations

and communications may reduce resistance to change Focus, execute and enforce Planning an exception management process for relevant deviations from standards are key issues for IT governance.

This can be a mechanism for stakeholders to request controlled changes as exceptions Define a benefit management system

and communication of expected benefits and how to measure them Evolution, as opposed to revolution IT governance requires a sustainable plan,

Consequently, the outcome of such situation can result in expensive IT systems that do not provide the required results and adequate return on investment.

For this reason, the search for Business/IT Alignment attempts usually concentrated on improving the business value that is a result of the IT investments.

However, IT policies at organizations may differ between enterprises; depending on issues such as if rights and responsibilities are distributed well among the appropriate Table 8. 5 Key minimum baseline of seven IT governance practices Best practice#Best practice description 1. IT steering committee (IT investment evaluation/prioritisation at executive/senior management

level) 2. Portfolio management (incl. business cases, information economics, ROI, payback) 3. IT budget control

and reporting 4. IT leadership 5. IT project steering committee 6. CIO (Chief Information Officer) reporting to CEO (Chief executive officer)

and what matters the most is the external efficiency of the services that the IT department delivers to the business,

From a practitioner's point of view, the results of the study infer that stakeholders who are concerned with IT management can concentrate their IT governance improvements efforts to the IT processes that showed strong correlation with IT governance performance.

According to those results, improved activities, documentation, monitoring and role assignment of the quality management process would have positive effects on the business stakeholder satisfaction while, on the other hand,

The case study discussed an identified enterprise in Oman aiming to provide quality services to its citizens

and consequently to align itself to the egovernment strategy to increase delivery, integration and quality of electronic government services,

That is, because all government agencies need to integrate seamlessly to provide electronic services to its stakeholders

However, after completing preliminary interviews, it became clear that the selected enterprise had significant gaps in its security policies

and the actual frameworks in place to support its services, which have caused significant level of misunderstanding over just who own which role in the enterprise,

and a serious security issue as various consultants and subcontractors were working with highly confidential citizens'data.

2. the division responsible about application services lacks with regard to consistency to audit data analysis history; 3. integration issues between the legacy and 3rd party information systems the enterprise already used,

as well as other different systems from other various government agencies; 4. the lack of monitoring mechanisms, providing top management with the ability to validate that their security programs

In summary, there was lack of analytics and reporting systems on the use of data and its implications across the enterprise.

Enterprises needed to have a strategic IT governance structure and practices with a focus on security

Therefore, the authors selected the most critical control objectives based on the goals of the enterprise,

stakeholders should consider the components that suit their case studies. The second case study discusses the implementation of IT governance to support e-commerce technology that radically influenced

and affected the airline industry and its customers 23. In this study, Iskandar et al. 23 explained that the effects of e-commerce on that sector are great,

Therefore it can be considered that the e-commerce transformation presents gigantic, significant and risky investments in IT.

That is due, in particular, to the exposure of business's data and systems to external environment.

The risk of an enterprise not knowing the identity of its business partners is increased by e-commerce transactions

Organizations have to understand that in order for them to stay in the competition; they have to act fast regarding understanding digital governance structures, processes and mechanisms.

Thus, companies must be able to better understand the complex playing field of their competitive environment as well as to put together a reliable set of governance techniques that are shared simple,

IT governance is proposed still the way to meet the previous demands. It is an important element in any organization

it is considered to be an integral part of enterprise governance and has the ability to provide mechanisms for leadership and organizational structures and processes.

in order to seize its opportunities, to face its challenges and to understand the mechanisms of the digital governance.

challenges and opportunities. In: Proceedings of the 2nd International Conference on theory and Practice of Electronic Governance, pp 264 267 2. Macintosh A (2008) The emergence of digital governance.

Huang R, Zmud RW, Price RL (2010) Influencing the effectiveness of IT governance practices through steering committees and communication policies.

Whitehouse (2012) Digital services governance recommendations. In: Whitehouse. http://www. whitehouse. gov/digitalgov/digital-services-governance-recommendations.

Accessed 28 nov 2013 17. De Haes S, Van Grembergen W (2009) An exploratory study into IT governance implementations and its impact on business/IT alignment.

a multiple case study. Int J Digit Soc 1: 308 313 References 161 Part III Digital Innovation Trends Chapter 9 Reinventing Business models:

As a consequence, in this Chapter we discuss the underlying issues and the most relevant concepts for understanding Business model Innovation (BMI), providing general insights on the state of the art and basic constructs of this research stream,

and practices. 9. 1 Introduction The concept of a Business model (BM) is not completely new in the field of economics,

we can argue that this concept is, implicitly or explicitly, an integral part of the behavior of any economic entity in any historical period 3. At the same time, within the fold of standard economic theory, the problem of setting up a business model

and services when the price is lower than the utility achieved, while the companies will provide these goods

and services if the price is equal to or higher than cost of production automatically appropriating the value associated with them.

however, only a simplified model of the real economic system in which entrepreneurs and managers need to consider the crucial points such as:

the creation of solutions that meet the perceived needs of customers; the structure of costs and revenues;

and making a profit on existing markets or that have yet to be created; the consequences of technological innovation.

The first studies in the field of strategic management 4 identify organizational design as the key element behind new types of emerging business models,

emphasizing its central role in enabling companies to successfully manage the complexity of a new competitive environment 5, 6. However,

that the term business model has become a much discussed topic of research that underwent a very wide spread among academics,

consultants and managers 8. In fact, the business model was established as the independent unit of analysis of business

and economic dynamics 9. Providing a definition of the concept of business model is a useful starting point for discussing its implications and relevance in the context of economic and managerial studies.

In addition, the concept of business model is emerging as one of the main levers of change

In particular, two complementary visions of the business model arise from the literature in the field of technological innovation management:

the first one conceptualizes the business model as a fundamental tool through which companies can commercialize innovative ideas and technologies 10,

while the second identifies the business model as a new layer of innovation added to product innovation and process innovation 11.

A significant example of the growing awareness by top management of the business model as a crucial tool to acquire

The study, in fact, reports that 7 out of 10 companies claim to pursue business model innovation as a strategic priority

to some extent, readapting their business model. The tumultuous development and the spread of information and communication technologies have contributed certainly in a decisive way to the interests of the business

and the academic world towards the business model as a fundamental enabler of the ability to compete

and innovate. However, other determining factors such as globalization and deregulation have not only made the emergence of new types of business models possible

making this notion even more significant 13, but also introduced new competitive pressures that have reshaped entire industries by redistributing profits.

These factors are forcing companies to rethink from the bottom up the way in which all of their business operations are organized

and managed and to increasingly pursue innovation in the adapting of their business model to the new economic environment rather than in innovating a product

or a single process 14.166 9 Reinventing Business models Despite the growing attention to the theme of the business model as a fundamental management tool for the development of strategic innovation on which the competitive performance of organizations rest,

In fact, the concept of business model is used to analyze diverse dynamics and aspects, such as e-business 15,

Another issue on which authors disagree is the positioning of the concept of a business model relatively to the traditional units of analysis such as the single company or its network.

the business model can be identified at a company level 16, while others argue that the business model sits at a network level 17,

while a third approach conceives the business model as an intermediate entity between the company and the network 18.

In addition, while some authors try to identify an adequate definition of the concept 7, others focus on the analysis of the relationship between business model

and other dimensions such as information systems 19 and business strategy 20 and others focus on the constituent elements that make up the business model 11.

In order to outline a complete picture of the thematic area of interest it is helpful to trace the various contributions of the authors through the analysis of certain definitions that show the widest resonance throughout the literature.

Table 9. 1 shows some of the definitions that have been proposed for the concept of business model highlighting the crucial concepts identified by various authors.

It is possible to observe that all these definitions agree in considering the business model as an essential element of business performance.

In fact, the business model establishes the fundamental logic according to which the company intends to create and deliver value to its customers

and appropriate the returns from that value by the coherent and harmonic interaction of its elements.

This is because the business model is the fundamental framework for the analysis and management of each strategic choice made by the company 7 as well as for the proper communication and dissemination of such strategic choices to the entire organization 15.

Therefore, the ability to build strong and sustainable business models is a prerequisite for the competitive success of any company 21.

This is true for any organization in any economic environment, but it has become particularly relevant for companies that today have to operate in the new digital economy,

which is characterized by the rapid and continuous interaction of innovative applications and services. In fact, especially where the company's business is linked increasingly to innovation and technology

the real source of competitive advantage is to be identified in the ability to build a business model fitting to the current economic and technological environment,

because that is what allows an enterprise to transform a technological innovation in sustainable economic value for the business itself 11.9.1 Introduction 167 Table 9. 1 Definitions of business model Authors Definition Key concepts Magretta 2002

21 A story that explains how companies operate. A good business model is able to answer to the longstanding questions of Peter Drucker:

Who is the customer? To what does the customer attribute a value? It also provides an answer to the question that every manager must ask:

What is the fundamental economic logic that allows us to deliver value to customers at an appropriate cost?

and deliver that value Customers of reference; partner network; the system of relations, the positioning in the value chain of the business Christoph Zott

and Rosenbloom 2002 11 A coherent framework that takes technological characteristics and potential as input and, through customers and markets, converts them in economic output.

The business model is conceived as a focusing device that mediates between technological development and the creation of economic value Technology;

mechanism that generates economic value Venkatram and Henderson 1998 23 A strategy that reflects the architecture of a virtual organization along three primary vectors:

leverage of knowledge Bouwman 2002 24 A description of the roles and relationships that exist in a company, its customers, partners and suppliers,

but not exclusively, customers Roles and relationships in the value chain; exchange modes between actors (continued) 168 9 Reinventing Business models 9. 2 Fundamental Elements of a Business model An analysis of the literature shows that several authors have focused on the identification

and study of the fundamental elements that make up a business model 7, 15 and, based on this analysis,

it is possible to build a unified conceptual framework that will hold together the various components identified by various authors that can contribute to integrate

This approach identifies four fundamental dimensions of the concept of BM offer to customers, value network architecture and finance which,

and their components and discuss their role. 9. 2. 1 Offer to Customers This dimension includes the value proposition that a firm intends to create for its target customers in order to meet their needs through a given combination of goods Table 9. 1

and relational capital to one or more customer segments in order to generate profitable and sustainable revenue streams Network of partners, value creation;

relational capital; customer segmentation Leem, Suh and Kim 2004 26 A set of strategies for business management that includes a revenue model, high complexity of business processes and alliances Strategy;

network value 9. 2 Fundamental Elements of a Business model 169 and services. Thus, the BM of a company must contain a description that summarizes how it intends to deliver value to current and prospective customers and

in particular, this value must be greater than the alternatives provided by competitors. 9. 2. 2 Value Network According to this perspective,

the business model of a company defines its position within the value chain in which it operates and its relations with the various stakeholders.

This chain is a multi-actor network that includes suppliers, intermediaries and partners through which value is created

Businesses must be able to identify from the number of resources needed to manage their own affairs those few strategically crucial ones that enable them to successfully implement their own business model.

and scalability in the customer value offer. Table 9. 2 Business model conceptualization Business model area Constituent elements Relevant literature Offer to Customers Customer value proposition 3, 7, 11,15, 18,19, 21,23, 24,25 27, 27,28, 29,

Customers segments 30. Customer relational models Distribution and sales channels Value Network Supply relations 7, 15,18, 19,22, 24,25 26, 26,27, 28.

Partnership relations Architecture Key processes 3 7, 11,18, 19,22, 23,25, 28,29, 30. Key competences Strategic assets Finance Cost structure 3, 21,25, 26,28, 29,30.

Revenue model 170 9 Reinventing Business models 9. 2. 4 Finance The financial dimension of the BM explains how the company is able to generate sales and profits 15.

In particular, the profit formula defines a company's profitability, specifying how a company creates and captures value for itself in terms of profit

and it is of the utmost importance, because it determines the feasibility of the Table 9. 3 BM dimension:

the offer to customers Constituent element Description Customer value proposition A short and detailed summary of the overall experience the company promises to offer to its own customers Customer segmentation Specific groups

of customers whom the company intends to offer value to Customer relational model The relationships the company establishes with its customers Sales

and distribution channels The channels representing contact points with the customers Table 9. 4 BM dimension:

/services) Table 9. 5 BM dimension: architecture Constituent element Description Key processes The set of essential activities (planning, development, production, sales)

by means of which the value created can be provided to customers in the most efficient and effective way Strategic assets The specific set of resources,

which the company's revenue is generated 9. 2 Fundamental Elements of a Business model 171 proposed value for the customer, with a direct influence on revenues and margins 7,

Tables 9. 3, 9. 4, 9. 5 and 9. 6 illustrate in detail the elements that make up the various dimensions of the Business model and which,

in reality are interrelated strongly and interdependent. 9. 3 Business model and Strategic Innovation In the current economic environment,

in order to create and deliver value to their customers and then maintain or improve their market position.

or services offered by a company to protect its margins through differentiation or the renewal of its offering;

In fact, the focus of businesses is increasingly on innovation of the business model as an alternative or as an essential complement to product and/or process innovation.

or process) taken place without producing as a result a change in the business model and vice versa.

and business model change to create innovation. But what factors have prompted organizations to move the center of their strategic action from

and generate profits? Two different interrelated aspects seem to have originated this trend: the configuration of the business model in relation to existing products and the alignment between the innovations and the business model. 9. 3. 1 The Business model Configuration The proper structuring of the business model

and its adaptability to variable market conditions and competitiveness are fundamental not only in the search for new sources of competitive advantage,

but also for sustaining existing competitive 172 9 Reinventing Business models advantage. The innovation of the business model can prove to be the crucial lever that allows the company to remain competitive in the race to product or process.

In fact the products that are incorporated into an innovative and efficient business model are less likely to be rendered obsolete by the introduction of new products by competitors as it is generally more difficult for competitors to replicate

and replace a whole system of activities rather than a single product or process. The Apple case is illustrative of this point 7, 33,34.

corresponds to a formidable innovation of Apple's business model. In summary, not only Apple has developed and brought to the market hardware and software products with a high degree of innovation,

but it has transformed radically its business environment, adding music distribution to its activities. This transformation has resulted in the construction of new ongoing relations,

on the one hand with customers, allowing them to access, acquire and store digital music, and on the other hand with business partners, namely all the major record labels,

which have been integrated into Apple's business model through the creation of Apple's online music store.

which is the core of Apple's business model, allows the company to create and extract value on an ongoing basis

only a small number of ipod customers connected to their itunes account would be willing to change brands,

Apple has managed to shift the locus of competition in the fast-paced technology market from product innovation to the innovation of the business model of reference for an entire market,

acquiring a formidable competitive advantage. 9. 3. 2 Offer and Business model Alignment The true value of innovative ideas and technologies for the most part depends on the business model through

or are destined to failure without a solid business model that allows a profitable commercialization 11. As it is now widely recognized both in theory and in business practice

An effective innovation strategy 9. 3 Business model and Strategic Innovation 173 must understand and take into consideration two fundamental aspects:

therefore not enough to build a sustainable competitive advantage that ensures profits, but companies are called also,

in formulating and implementing effective business models 3. It can rightly be argued that the‘‘original sin''of many of the so-called dot com that collapsed at the outbreak of the new economy bubble during the years 2000 and 2001 can be identified precisely in the absence of an economically successful,

grounded and sustainable business model. In reality many companies with a registered domain on the Web were aimed entirely at attracting as many users as possible to their websites,

and to pursue this end they faced huge advertising investments. However these companies lacked a business model that could convert the number of users who visited their sites in cash flows and profits.

Therefore, once the available capital was depleted quickly, they were no longer able to continue operating. This is the case of Pets. com 35,

a company specializing in the sale of pet products online, which, after collecting substantial funding through venture capital operations in the startup phase,

went from IPO (Initial public offering: i e. the first offer of securities to the public by a company on a regulated market) to bankruptcy in less than a year.

At the base of the failure of this company (and many others) was the inability to build a business model that would allow translating the clicks of users who had been attracted into profits.

which the potential value of an idea or technology is transformed actually into economic value. The centrality of the business model can be defined through the two following core processes any company is called necessarily to deal with

in order to operate on the market and survive: Value creation, meaning the value that is generated by the entire value chain made up of the company, its suppliers, distribution partners and customers.

The maximization of the created value requires cooperative relationships among the various actors, who must protect their own interests

In this sense, a proper business model involves the construction of a system of relations which enables effective coordination in the acquisition

which the company is able to retain a part of the value created‘‘at the expense''of customers, suppliers, partners and competitors.

This way, the business model must be understood and used as the primary tool through which companies can,

on the one hand, operate to expand their target 174 9 Reinventing Business models market value creation); on the other hand, they can be able to grab a share of the profit resulting from this enlargement of the market.

The evolution of the economic and technological environment has resulted in a substantial change in what was the traditional relationship between customer and company 3. The opening of markets, on the one hand,

and the new information and communication technologies on the other have not only made the reduction of the production costs of many goods and services possible,

but, even more significantly, have expanded the possibilities for consumer choice, made the comparison of alternatives more transparent in terms of quality and prices,

products and services tailored to each type of user. These developments require businesses to radically rethink

and reconfigure the value proposition presented to customers moving from a supply-driven logic, according to which companies compete mainly in the field of execution of operations,

to a demand-driven logic, where the commercial relationship is increasingly based on collaboration and interactivity criteria and the new competition dynamics are based on the ability to build

and strengthen customer relationships through a highly personalized offer built on the specific needs of different customer segments. 1 This new context has changed

but it also has companies facing the need to reconsider the process of economic value appropriation.

A profitable and sustainable business model must articulate not only the operations and processes that underlie value creation and appropriation activities,

but also the roles played by the various relevant stakeholders such as customers, suppliers, competitors and suppliers of complementary services, outlining the relationship between the parts that make up an enterprise's network.

In the light of the great variability of markets and of increasingly accentuated competitive dynamics,

So we can say that today the competition is not only among individual organizations, but also, and mainly, among value creation systems composed by networks of companies.

distribution and marketing can now be performed (at least partly) by actors external to the company. 2 1 As shown also in Chap. 4 on Social Listening. 2 As shown by the Crowdsourcing practice discussed in Chap. 6. 9. 3 Business model and Strategic Innovation

175 9. 4 Digital Business model Innovation: Conceptualizations The advent of the digital economy can be conceived really as a new industrial revolution both in terms of magnitude

and opportunities such as the possibility of establishing a direct relationship with customers bypassing other actors in the value chain.

and that involve significant changes with respect to the socalled industrial economy and will therefore be called upon to design

and implement a business model able to deal with and exploit such characteristics of the digital economy.

Table 9. 7 compares the essential features of the processes of transformation of the traditional industrial economy on one side and that of the digital economy on the other.

Companies operating in a competitive market environment must create value for their customers, specifically, this value must be perceived by customers as being offered superior to that by competitors.

In the transition from a traditional industrial digital economy the whole process of value creation is transformed entirely.

In the industrial economy a process of value creation starts from raw materials and from the physical inputs that are needed to produce finished products or services.

The industrial economy is driven by the offer side with a constant focus on cost containment, while, as already discussed, the digital economy is driven fundamentally by customer demand.

In the digital economy, the essential input of the value creation process is information itself, for example,

select, synthesize and distribute 37 in the transformation process to be able to provide customers with customized solutions.

In particular, the web offers unique and unprecedented meeting and exchange opportunities between companies and customers.

However, in the industrial economy knowledge generation and application processes are aimed essentially at making production more efficient through cost reductions

, web-based supply chain management 176 9 Reinventing Business models systems, online commerce, interactive customer service) that enable the creation of value not only through the reduction of costs,

and still is, significantly transforming the traditional rules of competition, offer value propositions and business models 39.

First of all the market is no longer just a physical place and geographically fragmented, but rather becomes a digital, open and transparent space.

At the same time, the network has intensified also competition since the easier access to information and the reduction of variable costs stimulates competition on prices

and therefore requires the maximization of operational efficiency. In addition, it is easier for potential entrants to access distribution channels

and reach new customers. A third factor that contributes to intensify the competitive pressure is the ability of the network to get the manufacturer and the end user closer and in direct communication

drastically reducing the need for intermediaries in the sale of goods and services. In this sense, the network can undoubtedly be counted among the most significant radical innovations,

that is those innovations that have as a fundamental trait of a total discontinuity with previous technologies,

resulting in a drastic transformation of the productive processes of economic activities they touch and producing a different distribution of wealth compared to the situation before their introduction.

and the digital economy Industrial economy Digital economy Business process orientation Guided by offer Guided by demand Economic focus Cost minimizing Value maximizing Product policy Offer standardization Offer personalization

intermediate products Digital information Output Intermediate or finished products or services Products or services with a high information/knowledge content The role of information A supporting and connecting element during the phases of production

A source of value 9. 4 Digital Business model Innovation: Conceptualizations 177 recording industry, which had to completely reconfigure its value chain

and its traditional business model in response to new distribution channels made available by the digital network,

which faces major strategic challenges especially related to building a business model that allows providers of new information services to create

The formulation and implementation of an appropriate business model are vital to meet the challenges of the digital economy,

Companies are called to deal with the Internet and the opportunities of electronic commerce, but, to be able to acquire the benefits,

they must be able to identify the disruptive nature of these innovations in order to effectively reconfigure their distribution strategies or the entire business model 3. Taking the above issues into account,

and of electronic commerce and their success depends mainly on the ability to build a business model that can capitalize on these particular characteristics.

In the context of the digital economy, the innovation of the business model can be defined as the creation

in order to design and implement an innovative system to provide customers with highly personalized products and services targeted to the needs of the customers themselves.

Among the successful examples of innovation of a business model that can profitably make use of some of the above features of the Internet as a disruptive innovation we can mention Dell's build-to order and direct sales model,

which redefined the value chain linked to the world of personal computers in the late nineties,

41,42. 9. 5 The Business model in the Information and Communication Economy The consolidation of the information and communication economy is the culmination of the process of evolution that had the service economy gradually replaced the industrial economy,

In this context, information is 178 9 Reinventing Business models defined as any product that can be digitized,

using the terminology of economic theory, these products are characterized by high fixed costs and low marginal costs.

This type of cost structure implies that there is a minimum efficient scale of production and dissemination and that the declining average costs requires an increase in sales.

On the demand side, that is, from the point of view of consumers, it is possible to identify four key features of digitalized products 43:

which allows a constant flow of communication and collaboration in real time Network externalities Network externalities exist

and ways of interacting with their customers, suppliers and partners Information sharing and exchange The Internet allows information to reach a large number of people without sacrificing the quality of the information content

in the early stages of design and production of highly customized goods and services Digital resources Information and data in a digital form,

and characteristics of the products and services offered by the various competitors Industry extension The value creation made possible by the Internet

and digitalization has been discussed in Chap. 3. 9. 5 The Business model in the Information and Communication Economy 179 experience goods must devise strategies to persuade users to overcome their reluctance to buy information before knowing the characteristics.

A possible tool to create or stimulate future demand, even at the cost of decreasing actual revenues, is the offer of free copies or of promotional prices.

A second fundamental way is investing in reputation, for example through promotional campaigns, which help consumers to learn about the features of the new product and boost their trust in the company.

the central problem of the information economy can be summed up in the contrast between the need for users to understand the characteristics of the main product/service that is being offered to them

In an environment where users have at their disposal an extreme amount and variety of information that can be accessed anywhere and at any time,

Consequently, information retrieval and filtering services have a high value for consumers. In fact, the search engines like Google and Yahoo!

These costs originate from past investments and influence the decisions of both consumers and producers and include several components:

and create switching costs so as to achieve the lock in effect constraining the customers, while having him perceive that as a component of the perceived value, a concrete advantage of not switching supplier.

Communication technologies 180 9 Reinventing Business models such as the telephone, the fax and internet access, are a clear example of products displaying network externalities.

Therefore, the use of these technologies is not possible until a critical mass of users is reached not.

Innovating and exploring new business models can be equally profitable if not more, from a strategic standpoint than innovating products 11.

It is therefore important to analyze emerging business models in order to understand the factors that lead to the success or failure of innovation processes.

which exploits the peculiarities of the information economy, is the so-called‘‘freemium''(combination of‘‘free''and‘‘premium'')

The configuration (or reconfiguration) of a business model is often the direct result of technological innovation

opening up the opportunity to intercept unmet or unexpressed needs 3. However, this need for innovation is to some extent restrained by the impact of globalization and the convergence of different technologies over economic processes,

These factors have led to a significant reduction in the profitability of investments in innovation, and since the innovation process involves higher costs and risks,

and services offered to customers Accelerating the acquisition of innovation and containing the costs of research and development have become inescapable imperatives for companies wishing to remain competitive in the current economic and technological environment.

Another critical element is related to the fact that the fundamental characteristics of the market globally integrated

and hyper-competitive have undermined the very architecture of innovation processes that were the basis for the growth of 9. 5 The Business model in the Information and Communication Economy 181 companies for many years, pushing towards a profound transformation

the creation of value in the form of innovation is based on the transformation of inputs (investments in research and development) into outputs (new products and opportunities),

The investments necessary for research laboratories and the protection of intellectual property correspond to barriers to entry for potential entrants

In fact, many opportunities, even promising ones, are lost because they require external technologies, but not all companies have the resources

but not consistent with the business model adopted, are discarded without seeking an alternative use, either in another market or by selling them,

2) the degree of control exercised by the company 182 9 Reinventing Business models over the innovation process aimed at creating value;(

and the particular business model put in place by the company. The fundamental idea of the paradigm of open innovation is that the company needs to look beyond its boundaries,

such as, for example, technology investments, licenses, joint venture agreements and participation in research consortiums. Even the commercialization of innovation and its placing on the market may not be limited to distribution channels inside the company,

and defending the revenues Building the best business model involving external actors Degree of collaboration among companies None, collaboration present only internally among R&d teams An articulated network of interactions

and industries Relation between research and the adopted business model The results of research are tied necessarily to the company's internal operational model 4 See also for these topics the discussion about digital work and collaboration in Chap. 6. 9

. 5 The Business model in the Information and Communication Economy 183 broadening the portfolio of solutions and projects

allowing the increase of profits through the transfer of these technologies and projects, for example through processes spinning-off and the outsourcing of unused intellectual property.

but also as a profit center, because it operates within a business model capable of transforming the output of R&d in economic value,

not only through the direct marketing of ideas and technologies, but also through the management of intellectual property of these ideas and technologies that are marketed then elsewhere.

but it becomes more important to build a business model that can collect, integrate and enhance the best ideas,

selecting and involving all stakeholders, both internal and external, in the process of innovation through the creation of strategic alliances.

This exchange of ideas and technologies from the outside to the inside of the company and from the inside to the outside environment must be enabled

and supported by an open business model as a fundamental source of innovation advantage, aimed at expanding the knowledge base of the company,

likewise. 9. 6 Summary This Chapter has provided an overview of the digital innovation impact on Business models (BMS).

Furthermore, the Chapter has presented the main concepts underlying Business model Innovation (BMI), providing insight on the relevant literature and the tools for a solid definition and conceptualization.

Understanding 184 9 Reinventing Business models the effect of digital innovation on the business strategy and its potential for generating value

and opportunities for innovation presented in Chap. 10. References 1. Bellman R, Clark C (1957) On the construction of a multi-stage, multi-person business game.

electrons, and business models: a problem in synthesis. Account Rev 35: 619 626 3. Teece D (2010) Business models, business strategy and innovation.

Long Range Plann 43: 172 194. doi: 10.1016/j. lrp. 2009.07.003 4. Van de ven A, Walker G (1984) The dynamics of inter-organizational coordination.

Wiley, Chichester 7. Osterwalder A, Pigneur Y, Tucci C (2005) Clarifying business models: origins, present, and future of the concept.

introduction to special section business models. Electron Mark 11:3 9 9. Zott C, Amit R, Massa L (2011) The business model:

recent developments and future research. J Manage 37: 1019 1042. doi: 10.1177/0149206311406265 10. Birkinshaw J, Bouquet C, Barsoux JL (2012) The 5 myths of innovation.

Chesbrough H, Rosenbloom R (2002) The role of the business model in capturing value from innovation:

Casadesus-Masanell R, Ricart JE (2007) Competing through business models WP no 713. Work Pap IESE Bus Sch 3: 1 28 14.

Shafer S, Smith H, Linder J (2005) The power of business models. Bus Horiz 48: 199 207. doi:

Casadesus-Masanell R, Ricart J (2010) From strategy to business models and onto tactics. Long Range Plann 43:1 25 17.

Hedman J, Kalling T (2003) The business model concept: theoretical underpinnings and empirical illustrations. Eur J Inf Syst 12:49 59. doi:

Mansfield GM, Fourie LCH (2004) Strategy and business models-strange bedfellows? a case for convergence and its evolution into strategic architecture.

Magretta J (2002) Why business models matter. Harv Bus Rev 80:86 92. doi: 10.1016/j. cub. 2005.06.028 9. 6 Summary 185 22.

Zott C, Amit R (2010) Business model design: an activity system perspective. Long Range Plann 43: 216 226. doi:

Bouwman H (2002) The sense and nonsense of business models. International workshop on business models. Lausanne, 4 5 october 2002, pp 1 6 25.

Torbay MD, Osterwalder A, Pigneur Y (2002) ebusiness model design, classification and measurements. Thunderbird Int Bus Rev 44:5 23 26.

Leem C, Suh H, Kim D (2004) A classification of mobile business models and its applications.

Faber E, Bouwman H (2006) Balancing customer and network value in business models for mobile services.

Afuah A, Tucci C (2003) Internet business models and strategies. Harvard Business school Press, Boston 30. Johnson MW, Christensen CM, Kagermann H (2008) Reinventing your business model.

Harv Bus Rev 86:50 59 31. Gopalakrishnan S, Kessler EH, Scillitoe JL (2010) Navigating the innovation landscape:

Lee C (2001) An analytical framework for evaluating e-commerce business models and strategies. Internet Res 11: 349 359 42.

Amit R, Zott C (2012) Creating value through business model innovation. MIT Sloan Manag. Rev. 53 (3): 41 49 44.

Harvard Business Review Press, Boston 186 9 Reinventing Business models Chapter 10 Innovation Practices Abstract This Chapter focuses on examples of digital innovation in practice, providing fact

moving fast and following valuable opportunities. Translated in managerial terms, to solve the‘‘innovator's dilemma''1 companies need ambidexterity as a dynamic capability to explore new areas of innovation

and investments on the merchant side may contribute to a rapid growth in adoption. 10.2.1 Developer Instabank is a Russian startup,

In 2012, Instabank received a $4 million investment from a fund by a coalition of large banks investing in financial services projects.

of the market (both demand and offer side) and of the complementary infrastructure. In particular: the year of foundation and number of products are presented as a proxy of the stability of the company.

The dimension of the market and the presence of competitors indicate a state of readiness of the demand,

and it is not yet available to customers. 10.2.2 Applications The value behind such kinds of innovation lies mainly in an increased customer intimacy by means of becoming part of the daily routine operations of the user.

This application, as many other next-generation mobile banking apps, gives customers more interactivity, by greatly simplifying complex operations into one click experiences

which service oriented companies are trying to blend into the habits of their customers, instead of trying to induce them to act in a specific way.

leading to a better understanding of customers without requiring any change in behavior. It is also a key element for effective real-time marketing campaigns,

The simple idea behind Macrosense and the other related services developed by Sense networks is that actual behavior is a very good predictor of future behavior.

In Table 10.3 the representation of the drivers of competitiveness on a time-tomarket basis shows, in synthesis, an advanced development both of the technology behind Macrosense and of the demand and offer side of the market

As the other advanced analytics systems, it allows a deeper understanding of the customer's dynamics, of the different habits of customers and non-customers,

The main purpose is to protect customers from the so-called Grey Charges, deceptive and unwanted credit/debit card charges resulting from misleading advertisement and ill-defined billing systems.

Billguard activates a support service to help the customers get their money back. The experience and knowledge of Billguard build on each single case,

and provides its services mainly in the USA market. The management team is composed of data scientists, mathematicians, security experts and industry specialist, supported by the investments of some of the founders and CEOS of Google, Paypal, Verisign and Sun microsystems.

In Table 10.5 the time-to-market drivers of competitiveness display an advanced development of the company and the market

and intimacy with their customers. 10.4.2 Applications The declared purpose of this free of-charge application is to help users in not losing money to frauds, scams and grey charge policies, leveraging the collective knowledge

Additional services are provided to merchants, in form of tools for resolving billing issues before they become disputes,

The only side that appears to be charged in this multi-sided-platform business model is the Financial institution willing to get the integrated bill monitoring

and direct-to-merchant resolution management services. The underlying idea is that the global value of Billguard increases with the number of customers

and merchants using it, while the involved financial institutions value their exclusivity and are willing to spend

in order to integrate this kind of services, enabling them to increase customer satisfaction and decrease the cost of dispute management.

and competitions it has taken part, winning the company a widespread support and a number of awards. 10.5 Mezzanine Developed on the concept used in the Sci-fi movie Minority report,

multi-screen, multi-device computing environments. The core technology platform, called g-speak, enables applications to run across multiple screens and multiple devices.

setting savings goals, donating for charity and eventually shopping in a parent-controlled environment. Parents can completely customize their kids'platform experience according to their personal financial values.

The virtual environment is safe, secure and private and there can be no interference from external sources.

and on the market company facing a somewhat small demand yet to develop. The company is growing

a research and innovation lab serving as an incubator for high-risk projects at the edge of technology advances.

by means of many different experimental activities to conduct with employees and customers. As an example, it can be used to test

or not-whether in customers or in employees-while executing a process or interacting with a tool;

and understanding human communication and perception. They combine a decade of MIT Human Dynamics Lab research, represented by the Cofounder Professor Alex Pentland in the Management Team, with advanced signal processing and computational engineering capabilities,

with a solid company, facing some competition but with a large market to tap, showing no need for additional enabling infrastructure.

and intervention needs of their customers. This improves decision-making, workflows, and consistency of service, and successful interactions.

True Link Financial is managed by a group of young and promising entrepreneurs with experience in payments, startups and services.

The business development plan is to secure partnerships with large retirement homes and organizations for caregiving, retirement home placement services,

and the demand is potentially very large. 10.9.2 Applications With a growing number of senior citizens and an increasing impact of different kinds of fraud,

and prospects, should devise similar services to avoid being cut out of the game. Table 10.16 shows a good User Value

which enables customers to pay bills, in form of e-mails, safely and conveniently through online banking,

since its advent, in e-mail marketing as communication medium. Acceptemail is independent from payment methods, banks, PSPS and BSPS,

as it does not collect money on behalf of its customers, it only enables the payment initiation.

and the demand is very large. 10.10.2 Applications Managing timely payments is a big issue for many industries,

reminders reach the customers much later and require additional procedures to recover payments. On the customer side

which companies lose liquidity and customers feel stressed. Bringing the payment platform to a simple e-mail helps in mitigating this issue,

with a‘‘3 clicks''approach to the completion of the transaction, and a secure underlying instrument.

and simplification. 10.11 Starbucks Digital Ventures It appears, looking at the case of Starbucks 12,

that coffee shop differentiation in modern times is happening in the digital environment. After the first success with the mobile payments enabled Loyalty Card,

Adding digital features to the point of sale enables a better multichannel experience for customers. Moreover, thanks to the Starbucks Digital Network, customers are offered extra content and entertainment when connected to the facility's Wi-fi (e g. on-line Music,

Table 10.17 Company competitiveness indicators for time-to-market Company Acceptemail Funded 2007 NPRODUCTS 1 Clients Many Partners Many Market dimension Large Competitors

Many Enabling infrastructure Ready 204 10 Innovation Practices The New york times, The Economist, The Wall street journal and other publications).

On the Mobile Payments side, the ios and Android app, on the one hand, allows customers to pay with their smartphone, with no need for cards or cash, reducing by 10 s the single transaction;

on the other hand, it allows the business side gathering meaningful data about their customers. Around 10%of all transactions are completed currently through the mobile app.

''where customers can submit suggestions on how to improve products, customer experience and corporate initiatives.

Ventures'initiation dates back to 2008 when the CIO Stephen Gillett decided to promote the development of an internal venture-capital-style incubator for digital technology initiatives.

Since then, also thanks to its Chief Digital Officer Adam Brotman, appointed in 2012, the division has focused on developing digital innovation in collaboration with Starbucks'IT

giving customers the clear message that the company intends to leverage IT value in its business model.

Ventures 205 10.11.2 Applications Starbucks Digital Ventures'strategy aims at developing a digital media company business model dedicated to all Starbucks customers.

All services and initiatives share a customer-oriented approach, dedicated to increasing customer intimacy, loyalty, engagement and viral diffusion.

The fact that Starbucks Digital Ventures is independent from the IT function and Marketing function, reporting directly to the CEO,

the perceived value of Table 10.19 Company competitiveness indicators for time-to-market Company Starbucks digital ventures Funded 2008 NPRODUCTS A few Clients Many Partners

the presence of a strong demand, the development stage of the competitors and of the target.

In particular, it is worth noting a prevalence of digital innovations focusing on the converge of mobile services (Instabank, Truelink, Acceptemail, Starbucks Digital Ventures), social listening (Billguard, Starbucks Digital Ventures),

it is worth noting that the potential evolution trends are going to concern a further focus on convergence of mobile services and social sensing, that is an increased exploitation of advanced analytics for behavioral analysis from intensive data streams as well as from Big data.

Starbucks Digital Ventures (2013) http://www. starbucks. com/coffeehouse/mobile-apps/mystarbucks. Accessed 18 nov 2013 10.12 Summary 207 Chapter 11 Conclusion Abstract The book has discussed

As for the digital trends we have considered the business challenges of Big data as a core component of the information infrastructure upon which our society is building its own open environment.

and drawbacks of Cloud computing, considered an innovative IT model for providing on-demand network access to a shared pool of configurable resources such as networks, servers, and software applications.

Furthermore, we have analyzed the challenges to digital business innovation by the diffusion and convergence of mobile services, sensors technologies, and social networks.

and analytics methods for extracting business value from them as well as an improved knowledge of customers'needs and lifestyle for a consequent better user experience.

The latter can be seen as the trend for new technology innovations to begin first in the consumer market then to enter business environments.

digital services, social networks, sensors, and IT Consumerization, likewise. Besides the benefits, collaboration contributed to‘‘open''work practices,

thus, constructing dynamically your digital business identity through innovative business models and an effective digital governance.

, 55 Document-level sentiment analysis, 70 Downtime history, 34 EELECTRONIC communication tools, 113,114 Electronic conferencing tools, 113,114 Emotion recognition, 198

10.1007/978-3-319-04307-4, Springer International Publishing Switzerland 2014 213 Enterprise identity management, 137,143 Enterprise mobility, 57 FFACEBOOK

49 Multi-sided markets, 49 NNOSQL, 6 OOBJECT buzz, 72 Offer to customers, 169 Ontologies, 70 Open data, 8 Open government, 8

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