and business model, go-to-market strategy and pitch training. The programme seeks to bridge the gap between start-up and larger international venture capital funding.
including for example market potential, sustainability of the business model, the quality of the 66 See http://www. whitehouse. gov/issues/startup-america. 67 There may be further European policy approaches which were introduced newly or changed since 2007
The business model is focused often on unique solutions for pilot customers. With this business paradigm high growth is rarely achievable.
and business model, go-to-market strategy and pitch training. The programme seeks to bridge the gap between start-up and larger international venture capital funding.
including for example market potential, sustainability of the business model, the quality of the 66 See http://www. whitehouse. gov/issues/startup-america. 67 There may be further European policy approaches which were introduced newly or changed since 2007
The business model is focused often on unique solutions for pilot customers. With this business paradigm high growth is rarely achievable.
transforming value chains and calling for new business models. Digitising and providing wider access to cultural resources offers enormous economic opportunities
and innovation of consumers and entrepreneurs to create new social and business models and new consumption patterns.
it will enable next generation internet, radical new services and business models. It will transform how people work
BASF Grameen Ltd In March 2009, BASF and Grameen Trust established a joint venture as a new business model to improve the health and opportunities of the poor of Bangladesh.
, new business models, new services, and new marketing techniques. From an economist's perspective, one needs to diff erentiate the idea (invention) from the economically viable outcome (innovation.
-Support for systemic eco-innovations featuring global solutions based on innovative new business models (smart cities, sustainable mobility, industrial symbiosis, models based on pay per use
-Support for systemic eco-innovations featuring global solutions based on innovative new business models (smart cities, sustainable mobility, industrial symbiosis, models based on pay per use
but also building competitiveness through design and creative industries, social and service innovation, new business models and practice-based innovation.
Regional policy makers also have to understand the different forms of innovation such as nontechnology services, cross-sector technology integration, system and business model innovation,
and distribution methods and adapt their business models accordingly. European cultural and creative sectors are fragmented furthermore inherently along national and linguistic lines,
''Developing new business models for SMES','Improving the urban environment','Developing Business incubators,'Supporting the physical and economic regeneration of urban and rural areas and communities',etc. 104 http://creativebusiness. org
the support to urban regeneration in which the cultural component (notably cultural infrastructure) traditionally plays a key role, the development of ICT-based cultural products, applications and services, the support to new business models for CCI
Increasing the support for new entrepreneurial firms that aim to deliver more radical ecoinnovations and challenge existing firms and business models,
This needs new business models, industrial symbiosis, product service systems, product design, full life cycle and cradle-to-cradle approaches.
Integrating the new technologies within the business model of a small and medium enterprise is a difficult job
and the development of new business models is depending on attracting a critical mass of users. In the context of Romania's current development and its opening towards the European and global economy, the business environment shall become a major consumer of broadband communications.
, social and service innovations, societal challenges, new business models, etc. demand-side measures, e g.,, through public procurement)( CEC, 2013a.
experimenting with new business models since 2008 in response to the financial crisis that radically reduced its public sector grant funding.
such as the UK's mutual financial services providers, have begun to mimic private sector business models; this has been accompanied by new relationships between senior management and the‘shop floor'and with members.
Although social enterprises are seen generally as innovative business models that meet both social and economic objectives (Noya,
In addition, the knowledge economy, more open and distributed innovation, globalisation, a shift to non-technological innovation, the emergence of the Silicon valley Business model and a new imperative for social innovation and social entrepreneurship have given all
open innovation, global connections, non-technological innovation, the Silicon valley Business model and social entrepreneurship and social innovation.
the Silicon valley Business model, and social innovation and social entrepreneurship. These are discussed in turn. The knowledge economy One of the features of the transition from the 20th to the 21st century has been the emergence of the knowledge economy,
The Silicon valley Business model There have been changes in the entrepreneurship environment in some very dynamic national
Cohen (2010) calls this the Silicon valley business model, for where it first developed into a significant economic force.
Whilst this favours the SME, large corporations are adapting to become important players within this type of business model rather than treating it solely as a threat.
open innovation, increased global connections, non-technological innovation, the Silicon valley business model, and social innovation and entrepreneurship represent an important change in the environment in
processes and business models to fit at the risk of failure. The entrepreneur innovates by experimenting.
since this would block the potential for new business models and technologies to emerge in the new and small firm sector.
Enterprise Ireland for example has introduced vouchers worth 5 000 EUR to enable SMES to get support for new product and process development, new business model development, new service delivery and customer
or external consultants that work with the business owner or managers to think about processes, business models or solutions to specific problems.
Creating New Business models to Serve the Poor, Business Horizons, Vol. 48, No. 3, pp. 241-246.
Bakhshi and Throsby 2010) and the development of (cooperative and shared) business models (Ridley-Duff and Bull 2011.
Innovative finance can also seek inspiration from business models which have proved historically successful. For instance, the first successful cooperative was formed in 1849 in the north of England
At the meso-level, social innovations require alternative business models of financing, distribution and/or employment and so these factors will be important in facilitating
and new business models that threaten to disrupt or even collapse individual companies or even entire industries,
But how will we innovate to meet these growing human and society challenges, with new business models,
New Business models: Value for Many Next-generation business models are reshaping the landscape of the business environment.
The Value for Many concept implies producing and selling to mass markets in developing countries or leveraging the market globally for maximum value delivery.
and artificial intelligence, will open new business models and opportunities for growth. Future convergence will be defined as convergence of products (Eg. electric car
the years ahead will be categorised by the need for business model innovation and-in par ticular-the need to harmonise multiple types of innovation to address complex
and business models for the future, including resurgence in nuclear power, newly exploited fuels such as shale gas and ongoing growth in renewable energy. 2. From Frost & Sullivan ongoing research.
With smarter energy services, smart buildings and homes will become a mainstream reality in 2 to 3 years, driven by the convergence of green and smart technology and the deployment of service-based business models
which will lead to new mobility business models and some exciting new products and solutions. In mobility, new and upcoming services such as multi-modal mobility are already available in an effort to tackle the urbanisation challenges of congestion and pollution.
the developing regions will drive new business models tailored to meeting specific patient needs in novel and costeffective ways.
what it takes to deliver it successfully, the business models of the future, the stakeholders, and the areas and sectors that are poised for the highest growth. 3 Power Patients proactively make use of Google
Meanwhile other interpretations focus more on the business value of innovation to deliver advancements for society by opening untapped markets with profitable business models.
and solutions driven by the‘value-for-many'business model to bring affordable essentials to par ts of society that would traditionally not be able to afford them.
products and business models, including finance. Social Innovation to answer Society's Challenges 2014 Frost & Sullivan 14 www. frost. com Meanwhile other companies operate at the intersection of CSV
That means convergence of technologies, industries, products and business models, including finance. Sectors that were seen as separated in the past are converging into new products
and new business models to bring about real positive change to the lives of individuals and societies,
the success will be driven by technology deployment, information analytics, new business models and integrated service-oriented solutions.
New Business models in Traditional Industries Hitachi brings the service based Train concept to drive business model innovation in the rail industry Hitachi has won a landmark project in the UK to deliver rolling stock and maintenance services
The vision is to transform a rolling stock business into a solution business with a new business model.
This is where the profitable growth will come for those companies that can innovate to maximise the welfare of society with the right balance of information, infrastructure, technology and new business models.
Coca-cola demonstrates innovation with integrity though a B2s (Business to Society) business model. Social Innovation to answer Society's Challenges 2014 Frost & Sullivan 17 www. frost. com Key Success Factors for Social Innovation
Business models which are scalable, replicable and cost effective because of existing distribution network and structures are also advantageous in creating successful B2s outcomes.
Value for Money Business models in Action Value for many is replacing Value for Money. In recent years the concept of sharing and collaborative consumption has gained prominence creating
what has been clustered as value for many business models, which in turn play a significant role in the emerging Business to Society (B2s) model.
Groupon's collaborative business model is an excellent example of this, which uses collective bargaining over the internet to bring down the prices of services,
Another popular‘value for many'business model is that of sharing and renting. Car sharing schemes such as Zipcar and other sharing business models such as Parkatmyhouse. com help people find and rent cars and assets at an affordable rate.
Here again, they are able to offer competitive rates only because they have a large number of members.
Thereby, with the idea of‘consumer communities',these‘value for many'business models are increasingly encouraging individuals to radically prioritise access over ownership,
and diagnostics in healthcare) o There is a need to deliver value for many through new business models (such as mobility solutions like car sharing that prioritise access over ownership;
The WPA business model allows the consortium to own, operate and maintain all water infrastructure and allows Dahej to receive secure,
Frost & Sullivan 4. CONCLUSION At the outset of this Whitepaper, we asked how we could innovate to meet growing human challenges, with new business models,
and ICT, through new business models, superior products and novel services aligned with the key mega trends driving the future.
Successful innovators in the next few years will deploy a spectrum of new business models, integrating superior products and creative services into total solutions as a service.
transparent and replicable testing of open learning environments, open education theories, new business models, open education computational tools,
Chapter 2 Digital Business models: Review and Synthesis 2. 1 Origins of Business models While technological disruptions are changing the competitive landscape,
their full impact on business structures, processes, and innovativeness are understood less and vary significantly across companies in the same industry,
A primary reason for such a seemingly‘‘random process''is the lack of a generally accepted definition of the term‘‘business model''within
In fact, multiple definitions of business models exist, which pose significant challenges for understanding essential components. In general, there is no accepted definition of the term‘‘business model''(Shafer et al. 2005;
Ho et al. 2010; Muller et al. 2011. Although, the origins of the expression business model can be traced back to the writings of Peter Drucker (Ramon et al. 2009),
the concept had gained prominence only in the last decade or two. Many have observed that the term‘‘business model''became widely adopted by practitioners during the dotcom revolution of the 1990s.
While business model has been part of the business jargon for a long time, it has been argued that the focus initially involved a scientific analysis of firms has been on industry,
and resources, as shown by the works of Porter (1980) and Wernerfeld (Hoyer et al. 2009).
Others, in fact, some have argued that the concept of a business model, is relatively new, dating back to only the early 1980s.
The plethora of definitions poses significant challenges for understanding the essential components of a business model.
They also lead to confusion in terminology as‘‘business model, strategy, business concept, revenue model and economic model are used often interchangeably
(and moreover) the business model has been referred to as architecture, design, pattern, plan, method, assumption and statement''(Morris et al. 2005).
10.1007/978-3-642-31765-1 2, The Author (s) 2013 13 For example some definitions of business models:
a. Baden-Fuller et al. when they define business models‘‘the logic of the firm, the way it operates
b. Timmers defines the business model as architecture for product, service and information flows, including a description of the various business actors and their roles;
d. Johnson et al. define‘‘Business model consists of four interlocking elements that, taken together create and deliver value customer value proposition profit formula key resources key processes''.
''e. Ostenwalder et al. define‘‘A business model is a conceptual tool containing a set of objects,
g. Demil and Lecocq, define‘‘business model as, the description of the articulation between different business model components or building blocks to produce a proposition that can generate value for consumers and thus for the organization''(Demil and Lecocq 2010).
h. Sorescu et al. define‘‘a business model is specified a well system of interdependent structures, activities, and processes that serves as a firm's organizing logic for value creation (for its customers) and value appropriation (for itself and its partners)''Sorescu et al. 2011).
In addition, the concept of business models can be seen as having progressed in 5 stages as shown in Fig. 2. 1 (Gordijn et al. 2005.
In the initial phase, when the term business model started to become prominent, a number of authors suggested business model definitions and classifications.
Then, during the second phase authors started to complete the definitions by proposing what elements belong into a business models.
Initially, these propositions were simple shopping lists, just mentioning the components of a business model. Only in a third phase followed detailed descriptions of these components (Hamel 2000;
Weill and Vitale 2001; Afuah and Tucci 2003. In a fourth phase researchers started to model the components conceptually culminating in business model ontologies.
In this phase models also started to be evaluated more rigorously or tested. Finally, in the fifth phase, the reference models are being applied in management
and IS applications. 14 2 Digital Business models: Review and Synthesis We assert that in the sixth phase,
A business model is a representation of the strategic choices that characterize a business venture. These choices are made either intentionally or by default,
so the contribution of a business model is to make them explicit (Morris et al. 2005). Thus, the business model can be seen as a communication or a planning tool.
It allows entrepreneurs, investors, and partners to examine strategic choices for internal consistency, to surface the assumptions of the business plan,
Business model development may be part of new venture planning, but is often just as useful in sense making around a going concern,
Furthermore, although properly formed business models are very useful and can be a strategic tool for a firm,
many business models however suffer from 4 common problems (Shafer et al. 2005), namely: Flawed or untested assumptions underlying the key premises of a firm's business plan;
addressing and developing the business logic in only one‘‘component''of the business model, and making untested assumptions about the others.
which may thus negatively affect the‘‘revenue generation''aspects of business models. Flawed assumptions about the value network;
Define and Classify Business models List Business model components Describe Business model Elements Business model Ontology Apply Business model concept Dynamic Business Modeling for the Future Definitions & taxonomies Shopping List of components Components
Cigref 2011 AUTHORS OUTCOME ACTIVITY Fig. 2. 1 Progression of business model studies 2. 1 Origins of Business models 15 Table 2. 1 summarizes some of the attempts
to capture the concept of business models over the last two decades or so. The number of components proposed in each model ranges from 3 to 9. In general, three general categories of definitions based on their emphasis, namely economic, operational and strategic,
values and networks and alliances. 2. 2 Why Digital Business models The role of information technology and its relationship to the business has shifted over the last 20 years.
and more recently to the design of business models for services provided through digital platforms (Fig. 2. 2)
. While this attention to business models for digital platforms initially started in the networked digital industry (telecom, media, entertainment,
A review of Table 2. 1 also illustrates that most of the espoused business models do not consider explicitly the effects of digital platforms specifically.
and business are fused effectively 16 2 Digital Business models: Review and Synthesis Table 2. 1 Comparison of business model approaches Source Components Number of components Ecosystem Digital platform Horowitz (1996) Price, product, distribution
, organizational characteristics and technology 5 No Some Viscio and Pasternak (1996) Global core, governance, business units, services and linkages 5 No No Timmers (1998) Product/service/information
and market model 7 No No (continued) 2. 2 Why Digital Business models 17 Table 2. 1 (continued) Source Components Number of components Ecosystem Digital platform Dubosson
cost structures 9 Some No (continued) 18 2 Digital Business models: Review and Synthesis into one fabric it no longer makes sense to talk about information technology as a tool
To theorize about new business models and by adding a few‘‘digital''features to the theory would lead to
We realize that a theory of digital business models and digital service must integrate the distinct attributes of digital business ecosystems from the get-go (Yoo et al. 2010).
-IT IT IT as Tool IT as Environment IT as Fabric Fig. 2. 2 Changing role of technology in business 2. 2 Why Digital Business models 19 are standards
As business models have become more digital, firm capabilities themselves have become more modular, more easily connectable,
and capture value (Schlagwein and Schoder 2011). 20 2 Digital Business models: Review and Synthesis http://www. springer. com/978-3-642-31764-4
however, involve not only the obsolescence of skills, capital assets and business models; typically they are marked also by the accelerated rate of appearance of new goods and products.
and distribution should be challenged when the business models of the system change as the result of marketing innovation and the use of information and communication technologies.
Technology can dramatically change operations, social and business models and strategic considerations, although new governance arrangements are needed typically to make this work well.
First, there are those social innovators operating market business models and generating the majority of their income from sales (social enterprise activity);
so marginalized that functioning business models operating in regular markets are unlikely or impossible. We may hypothesize that this latter type generally yields more potential for social impact, because of one assumption
However, this is not to say that social innovations which have sustainable business models are somehow of less social value
and help configure new types of social and business models not otherwise possible. This can be highly transformative of existing processes, roles and relationships,
as well as what sort of social innovations outcomes are being achieved in different situations. 3. How ICT is changing the social and business models of social innovation,
and operators thanks to the success of novel, extremely practical smartphones, portable computers with easy-to-use 3g USB modems and attractive business models.
savings resulting from inter-domain traffic reduction and the structure of interconnection tariffs, business models, marketing factors.
Accordingly, different stakeholders in the Internet space have developed a wide range of on-line business models to enable sustainable electronic business.
D2. 5 Business models, Public Deliverable, http://www. mobithin. eu (accessed December 1, 2010) 14. SENDORA project:
And, finally, the principle of sharing and collaboration reaches to the applications and business models, ranging from the exchange of data of physical objects for the optimization of business scenarios in, e g.,
and business models will fail on this 212 R. Glott et al. point. Rather than that cloud computing might be hindered significantly by the legal problems that remain to be solved.
this vision needs a mix of adaptation of existing technologies and business models, such as flexible infrastructures and service compositions, distributed ownerships,
A last issue relates to the privacy business model. The main question is: What should motivate the data collectors/processors to implement such technology?
Actually, in many cases, their business model relies on the as-less-restricted-aspossible use of private data.
Support of socioeconomic aspects including the need for appropriate incentives, diverse business models, legal, regulative and governance issues.
Finally, the Future Internet needs to support sustainable business models, in order to drive innovation, competition, and research.
The diversity and sheer number of applications and business models supported by the Internet have affected also largely its nature and structure (3
and related business models 5. If today's Internet is a crucial element of our economy,
while market actors are adapting to these challenges through suitable business models 12. The current Internet has been founded on a basic architectural premise
-which render it difficult to cope with a wide variety of networked applications, business models, edge devices and infrastructures-so as to guarantee higher levels of scalability, mobility, flexibility,
Business models for Electronic Markets. The International Journal on Electronic Markets and Business Media 8 (2), 3 8 (1998) 4. Future Internet Assembly (FIA:
Internet Business models and Strategies: Text and Cases. Mcgraw-hill, New york (2000) 6. European Future Internet portal (2010), http://www. future-internet. eu/Enhanced Network Self-Manageability in the Scope of Future Internet
Finally, the future Internet needs to support sustainable business models, in order to drive innovation, competition, and research.
and IT providers to network operators. 6. Develop a sustainable and strategic business model: Currently, the business models deployed by telecom operators are focused on selling services on top of their infrastructures.
In addition, operators cannot offer dynamic and smooth integration of diversified resources and services (both IT and network) at the provisioning phase.
We believe that a novel business model is necessary, which can fully integrate the network substrate with the IT resources into a single infrastructure.
In Bringing Optical Networks to the Cloud 311 addition, such business model will let operators offer their infrastructures as a service to third-party entities. 3 Model In order to address the aforementioned challenges and opportunities
. 3 New Roles and Strategic Business model Given this virtualized network and IT architecture new actors are emerging:
infrastructure providers, infrastructure operators and application providers cooperate in a business model where on-demand services are offered efficiently through the seamless provisioning of network and IT virtual resources.
service providers and infrastructure providers to contribute in a business model where complex services (e g.,, Cloud computing) with complex attributes (e g.,
Service oriented solutions can enable new delivery channels and new business models for the services industrial sector.
With this respect, new flexible business models have to be supported by the Media Ecosystem. Finally, such a system can bring breakthrough opportunities in various domains such as communication industry
and assuring the long-term sustainability of smart cities through viable business models. The first task that cities must address in becoming smart is to create a rich environment of broadband networks that support digital applications.
Those that succeed in bridging the gap rely on successful business models that turn technological capabilities into innovations,
that of creating business models that sustain the long-term operation of smart cities. To date the environment for applications and their business models has been very complex, with limited solutions available‘off the shelf',a lot of experimentation,
and many failures. Cities currently face a problem of standardisation of the main building blocks of smart/intelligent cities in terms of applications, business models, and services.
Standardisation would dramatically reduce the development and maintenance costs of e-services due to cooperation, exchange Smart Cities and the Future Internet 437 and sharing of resources among localities.
and business models for their sustainability been developed. Creating the market constitutes the first priority. Innovation ecosystems for smart cities have to be defined, in terms of applications, services, financial engineering and partnerships.
such as open innovation and open business models 16, Web 2. 0 17 as well as Living Labs 18, a concept originating from the work of William Mitchell at MIT
As a concept applied to smart cities it embodies open business models of collaboration between citizens, enterprises and local governments,
New opportunities require new business models. Forrester for Ventor Strategy Professionals (2010) 15. European commission, DG INFSO:
and open business models to improve market dynamics by involving third parties in the value chain (SMES).
New Opportunities Require New Business models, 2 november 2010. Forrester research (2010) 10. EC FI-PPP: http://ec. europa. eu/information society/activities/foi/lead/fippp/index en. htm 11.
70-74,1994. 13 Tõnis Mets,.Creative Business model Innovation for Globalizing SMES, Entrepreneurship-Creativity and Innovative Business models, Thierry Burger-Helmchen (Ed.),ISBN:
20 Business models for Small and Medium-Sized Enterprises, in Constructing the European Information Socia1yfair, 1998,
a sustainable business model is taking shape with the help of OI: Everything starts from myself, Richard,
Orchestrating innovation ecosystems through an IP-based business model: The case of IMEC, a world-class research institute in nano-electronics.
'xiii It also points to the importance of new social business models such as social enterprises, cooperatives or socially driven businesses.
social movements, business models, laws and regulations, data and infrastructures, and entirely new ways of thinking
the development of new social business models. One of the most significant developments has been in the growth of social enterprises.
the Riversimple car has been designed to last both physically and in terms of a business model. Built for a lifecycle of 15 years
Europe lacks a strong field of people with skills in the many dimensions of innovation from finance, to development of projects and business models, to design and marketing.
and innovation of consumers and entrepreneurs to create new social and business models and new consumption patterns.
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