Synopsis: Entrepreneurship:

providing an extensive range of online products and additional customer resources and services Emerald is both COUNTER 4

medium-sized enterprises (SMES) associated with the development of different types of innovation product/process/market/organizational.

Practical implications †The study suggests a need to reevaluate the innovation-related services available to firms in the regional innovation system.

Keywords Small to medium-sized enterprises, Innovation, Information management Company performance, Finland Paper type Research paper

firms to adapt in their external environment and to remain competitive is closely The current issue and full text archive of this journal is available at

96) puts it, â€oein an economy where the only certainty is uncertainty, the one sure source

individual entrepreneur, the knowledge-based economy is mixed a blessing: more and more information is freely available,

the institutional environment guiding and facilitating the actions and interactions of economic agents. Regarding the nature of innovation processes, the meso level

mainstream economics is abandoned. Likewise the resource-based view, the evolutionary approach stresses the significance of firm†s unique technological

but are forced to seek for complementary information from their environment. The notion of absorptive capacity (Cohen and Levinthal, 1990;

amalgamates the innovative firm with its surrounding environment. In contrast with the transaction-cost theory (Williamson, 1985), the postulate underpinning the notion

of transaction-cost economics loses its relevance as in-house R&d and external information are not substitutes but complements.

Organized communication in the firm Spontaneous communication in the firm Social events and shared free time activities

Five-point Likert-scale 1 Â Insignificant to 5 Â Very important NETWORKA Sum-variable measuring the importance of different

Customers Suppliers and subcontractors Competitors Sales and delivery organizations Business service firms and consultants Accounting companies

Business incubators Employment and Economic Development Center regional office Five-point Likert-scale 1 Â Insignificant to

economies in production, and to reduce the time taken to develop and commercialize new products (Tidd et al.

importance of vertical network relationships with suppliers and customers as an important source of innovation-related inputs (Von Hippel, 1988;

The Federation of Finnish Enterprises Chamber of commerce Industrial associations Five-point Likert-scale 1 Â Insignificant to

importance of different network relations of the firm (with customers, suppliers competitors, etc. is used as a measure of their importance as a source of

Other firms, such as suppliers, customers and competitors, are not the only potential sources of information inputs in the innovation process of a firm.

innovation and, concomitantly, technological change and advancement in the economy e g. Howells, 1999; Toâ dtling and Kaufmann, 1999;

and providing different kinds of innovation-related services for firms. Especially the smaller firms whose internal resources and networking

capabilities are limited may benefit from the services and knowledge provided by the regional support organizations.

innovation-related services may be limited. Therefore, for the firms located in these regions, the different nationally initiated public support instruments may also be of

The characteristics of the external environment of a firm affect, at least to some extent, the variety of potential external information sources screened

enterprise panels is attrition †which leads to missing data and possibly biased results When reviewing the existing literature on innovation-performance relationship

of the absence of suitable network partners and innovation support services in the region, which forces firms to rely on the generally available information sources (cf

characteristics of the external environment can have an influence on the innovative behaviour of firms, they can never be more important than the firms†internal

between the services and information offered by national support organizations and the needs of firms with lower level of innovativeness

investments by a firm, returns to which often require quite a long time to realize. In other words, the decision by the entrepreneur to engage in innovation is rather a

long-term investment to assure the continuing success and future survival of the firm rather than a short-term answer to the present-day problems faced by the firm

personnel initiatives, personnel training, organized and spontaneous communication between units and individuals in the firm, etc.

innovation process of firms, a re-evaluation of the services offered by regional support organizations might be useful.

screening of their external environment (and, of course, within their firms), or have the ideas for innovation emerged â€oeout of the blueâ€, as a result of luck.

Research on Innovation and Competition (CRIC), Manchester, November Alvarez, S. A. and Busenitz, L. W. 2001), â€oethe entrepreneurship of resource-based theoryâ€

Journal of Management, Vol. 27 No. 6, pp. 755-75 Amara, N. and Landry, R. 2005), â€oesources of information as determinants of novelty of

Cooke, P. and Leydesdorff, L. 2006), â€oeregional development in the knowledge-based economy the construction of advantageâ€, Journal of Technology Transfer, Vol. 31 No. 1, pp. 5-15

econometric analysis at the firm levelâ€, Economics of Innovation and New Technology Vol. 7 No. 2, pp. 115-58

Entrepreneurship, Blackwell, Oxford, pp. 26-44 Dobbs, M. and Hamilton, R. T. 2007), â€oesmall business growth:

connectionsâ€, Entrepreneurship Theory and Practice, Vol. 19 No. 1, pp. 71-84 Edquist, C. 1997), â€oesystems of innovation approaches †their emergence and characteristicsâ€, in

Small Business Economics, Vol. 30 No. 3, pp. 215-29 Fiet, J. O.,Norton, W. I. Jr and Clouse, V. G. H. 2007), â€oesystematic search as a source of technical

Entrepreneurship & Regional Development, Vol. 12 No. 3, pp. 245-66 Freel, M. S. 2005), â€oepatterns of innovation and skills in small firmsâ€, Technovation, Vol. 25 No. 2

Michie, J. Eds), Innovation Policy in a Global economy, Cambridge university Press Cambridge, MA, pp. 67-93

functional patternsâ€, Entrepreneurship & Regional Development, Vol. 10 No. 4, pp. 297-312 Julien, P-A.,Raymond, L.,Jacob, R. and Ramangalahy, C. 1999), â€oetypes of technological

Entrepreneurship & Regional Development, Vol. 11 No. 4, pp. 281-300 Kirzner, I. M. 1997), â€oeentrepreneurial discovery and the competitive market process:

growth and competitiveness of entrepreneurial firmsâ€, Entrepreneurship & Regional Development, Vol. 15 No. 1, pp. 1-26

firmsâ€, Small Business Economics, Vol. 15 No. 1, pp. 59-71 Littunen, H. and Virtanen, M. 2009), â€oedifferentiating factors of venture growth:

from statics to dynamicsâ€, International Journal of Entrepreneurial Behaviour & Research, Vol. 15 No. 6

Soete, L. Eds), Technical Change and Economic theory, Pinter, London, pp. 349-69 Lundvall, B-AË.

Italian manufacturing sectorâ€, Economics of Innovation and New Technology, Vol. 17 No. 4 pp. 311-29

R-01/1997, Studies in Technology, Innovation and Economic policy (STEP), Oslo, May Nelson, R. R. Ed.)(1993), National Innovation Systems:

Nieto, M. and Quevedo, P. 2005), â€oeabsorptive capacity, technological opportunity, knowledge spillovers, and innovative effortâ€, Technovation, Vol. 25 No. 10, pp. 1141-57

OECD (1996), The Knowledge-Based Economy: Science, Technology and Industry Outlook, OECD Paris OECD (2005), The Measurement of Scientific and Technological Activities:

Entrepreneurship Theory & Practice, Vol. 33 No. 1, pp. 105-23 Sternberg, R. and Arndt, O. 2001), â€oethe firm or the region:

assistant in SME management (2001-2003) and in entrepreneurship and local economic development (2003-2005),

and lecturer in entrepreneurship (2005-2009) at the Department of Business and Management, University of Kuopio, Finland,

entrepreneurship at the Department of health Policy and Management, University of Kuopio Finland (1. 1. 2010 Department of health and Social Management, University of Eastern Finland

and evolutionary and institutional economics. Miika Varis can be contacted at: Miika. Varis@uef. fi Hannu Littunen, after graduating from the University of Jyvaâ skylaâ,

University of Jyvaâ skylaâ, School of business and Economics, Centre for Economic Research Finland, and a professor of entrepreneurship and regional development at the Department of

Business and Management, University of Kuopio, Finland (2003-2009) and from 2009 a professor of entrepreneurship and regional development at the Department of health Policy and

Management, University of Kuopio, Finland (1. 1. 2010 Department of health and Social Management, University of Eastern Finland, Kuopio Campus). He completed his doctoral thesis

factors relating to new firms†birth and success, entrepreneurship and regional development. He has published in several international journals such as International Entrepreneurship and

Management Journal, International Journal of Entrepreneurial Behaviour and Research, Small Business Economics, Journal of Small Business and Enterprise Development, Entrepreneurship

and Regional Development, Family business Review, Finnish Journal of Economics, and Academy of Entrepreneurship/International Journal of Entrepreneurship.

Prior to starting work at the University, he worked in various organizations in both public and private sectors in Finland.

He is a member of the review board of Journal of Small Business and Management.

Economics of Innovation and New Technology 1-19 Crossref 2. Haim Hilman, Narentheren Kaliappen. 2015.

World Journal of Entrepreneurship, Management and Sustainable Development 11:1, 48-63 Abstract Full Text PDF

Agricultural and Food Economics 3, 10. Crossref 9. Hans LÃ fsten. 2014. Information Structures and Business Performance-Implications for Technology

Technology transfer in a global economy The Journal of Technology Transfer 39,301-312. Crossref 12. Franz TÃ dtling, Markus Grillitsch. 2014.

Economy 5, 330-356. Crossref 13. Thuy Hang Do, Tim Mazzarol, Thierry Volery, Sophie Reboud. 2014.

comparing enterprise innovation between regions. Journal of Innovation and Entrepreneurship 2, 16 Crossref 22. Fulya Sarvan, GÃ zde GÃ l Baå er, Can Deniz KÃ ksal, Eren Durmuå, Onur Dirlik, Murat Atalay, Fulya Almaz

2012. Network based Determinants of Innovation Performance in Yacht Building Clusters: Findings of the SOBAG Project.

SMES and Their Peripheral Innovation Environment: Reflections from a Finnish Case. European Planning Studies 20,547-582.

Journal of Small Business & Entrepreneurship 25,451-477 Crossref 29. Insu Cho, Heejun Park, Jeongil Choi. 2011.

-Promoting entrepreneurship & SME development -Promoting employability & adaptability -Flexicurity: a win-win for all

ï Creating a competitive greener economy -Towards a greener economy -Future transport policy ï Fully exploiting the Single Market

ï Competitiveness in the global market Overall, do you think that the Europe 2020 strategy has made a difference?

worst economic crisis since decades. After the first four years of the strategy the need for

Economic Forum (WEF), 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 â€oesmart†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. More starkly, the EU is increasingly falling behind globally in building the digital infrastructure

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

Eurocommerce acknowledges that the points raised by the WEF are well-founded and more work remains to be done

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

We are longstanding proponents of a truly Single Market in products and services, for the

many limitations on the free movement of goods and services throughout Europe. Some Member States are even erecting new barriers

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

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

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

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

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. Some Member States have

not yet carried out the necessary reforms, others have started those too late. Eurocommerce supports the European Semester which analyses the fiscal and structural reform policies of

the contribution by Europe†s services sectors to the 2020 goals needs to be 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, â 65 billion trade surplus and â 9 trillion GDP (source:

competitiveness 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

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,

ï a Single Market in goods and services is not yet a full reality and governance is not

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,

innovation than many other sectors, incrementally adapting their services and value propositions through a process of continual innovation.

commercial opportunities Trade policy must enhance competitiveness as part of the global market, which is increasingly characterised by global value chains.

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.

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. Eurocommerce encourages the European union to ï Stabilise the financial system with a balanced mix of financing instruments.

What would improve stakeholder involvement in a post-crisis growth strategy for Europe What could be done to increase awareness, support and better implementation of this

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 often demonstrated 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

e g. the Services Directive, and no tolerance of â€oegold-plating†at national level ï Removal of territorial supply constraints that hinder the free movement of goods

multilateral, plurilateral and bilateral, promoting open trade in goods and services removing regulatory burden, easing customs procedures and providing enhanced

ï Implementation of the Single Market (Services Directive, removing remaining barriers on goods, completing the Digital Single Market

Commerce plays a unique role in the European economy, acting as the link between manufacturers and

enterprises. It also includes some of Europe†s most successful companies. The sector is a major source

Cloud computing, Mobile services, etc. from a managerial perspective, aiming to reach a wide spectrum of executives,

-ration as a consequence of the digitization of the work environment, and finally dealing with what may be considered the real challenge to digital business:

digital environment. Part II frames the managerial challenges so that they can complement the IT manager†s perspective,

related opportunities As for the review objective, it is yet challenging to find a unified survey of

Communications of the ACM (CACM) have such a mission of connecting research and industry practices, at the best of the author knowledge they do not

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

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

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

Data and Cloud computing, through Mobile Services as platforms for socializing and ††touch points††for customer experience, to emerging paradigms that actually

-ured or adapted 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 busi

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

most relevant concepts for understanding Business model Innovation, providing general insights on the state-of-the-art and basic constructs of this research stream

rich and rigorous research environment where I am proud to work I acknowledge also some colleagues from other universities with whom I†ve had

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

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

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...

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

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

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

9 Reinventing Business models: The Third Way of Digital Innovation...165 9. 1 Introduction...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...191 10.4 Billguard...

192 10.4.1 Developer...193 10.4.2 Applications...193 xviii Contents 10.5 Mezzanine...194 10.5.1 Developer...194

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

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 Maturity Model Integration COBIT Control Objectives for Information and related Technology

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

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

Ahituv appeared on the Communications of the ACM in 2001 1. The author preconized the advent of an Open Information Society as a consequence of higher

Generation Z represents the source and the target for what the Economist called a Data Deluge 4,

building its own open environment. 2 1 In the following we use data when we refer to raw,

finance sector competition is facing the challenge of Paypal and Google Wallet diffusion and adoption by digital natives. ††We think we†ll attract a new client

The spread of social media as a main driver for innovation of products and services and the increasing availability of unstructured data (images, video, audio, etc

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

Nevertheless, as usual with new concepts, also Big data ask for a clarification of their characteristics and drivers.

by information quality scholars 9†11, for enterprise systems mostly relying on traditional relational data base management systems

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

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

Chapters of this book dedicated to mobile services and social listening, we now focus on Big data applications

As for public sector, Big data represent an opportunity, on the one hand, e g for improving fraud detection as tax evasion control through the integration of a

believe that management challenges and opportunities of Big data need for further discussion and analyses, the state of the art currently privileging their technical

/Services Utilities /Manufacturing Sentiment Analysis Opinion Mining Social media Analytics Recommender systems †Riskanalysis Fraud detection

1. 1. 2 Management Challenges and Opportunities In the Sect. 1. 1. 1 we have provided a set of drivers and characteristics actually

information supply to decision makers and operations in enterprise. On the other hand, Big data change the rules of the game,

business acumen, creativity in interpreting data and effective communication of the results 5, 8, 14.

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

advanced information demand analysis and improved information supply 7 Table 1. 1 Big data perspectives and related actions

profits, revenues, recovery costs derived by critical data loss or inaccessibility. As a consequence they have to assess their information asset to decide about retaining

nature of Big data and the unpredictable dynamics of the digital environment producing them. Furthermore, they often require business process management

to the increasing volatility of business environment, by building strategy around business process optimization issues, organization may fail to exploit Big data

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

Organization Highly focused business strategy Complex mix of products and services IT/Strategy alignment IT/Strategy misalignment

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

data access to customers, employees, and value-chain partners, further cultivating emotional connections 27. An example, is described the case by Awargal and

customers Decision making optimization IT enabler Value from information Fig. 1. 4 Empathic use of information for value creation:

among the main impediments to a full exploitation of Big data opportunities to business value. However, managers considered as a priority or mandatory premise

the enterprise. Furthermore, organizations must commit human resources in recruiting and empowering data scientist skills and capabilities across business

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

applications, 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,

which aim to exploit the opportunities of Big data for business performance and value Decisions Actions

Î (Services Î (Data DIGITAL ASSET Fig. 1. 5 A framework for managing digital asset

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 Talent management Management Organization Implement a decentralized approach, and

diffuse collaborative and transparent use of information Organizational culture Use Technology Adopt data visualization tools and

manipulate data with real-time tools Timeliness /Simplification Use Organization Ensure access to information and an

in terms of market share and profit The second case study has been analyzed by Sharma et al. 32, and shows the

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

areas), the locus of competition has shifted from the price of the service to the satisfaction of the specific needs of customers:

time to market is critical to respond quickly to consumer trends, satisfying the needs of differentiated groups of con

as a way to know its customers †needs, experience, and lifestyles POINT OF ATTENTION:

phones and other location products/services. Nokia leverages data processing and analytics to build maps with predictive traffic and layered elevation models

phones in use, services, log files, and other sources. The challenge has been to integrate its silos of applications,

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, Cali

and investments, in particular, on human resources to be focused on data scientist capabilities. Furthermore, talent management and employees reten

opportunity by 2030, using a conservative 1%savings in five sectors that buy its machinery (aviation, power, healthcare, rail,

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. Indeed, the GE assesses the success of software and analytics by their enabling a new portfolio of compelling service offerings, helping, e g.,

own open environment. Often referred as an IT trend, the Chapter has clarified the main drivers and characteristics of Big data, both at technical and managerial

-agement challenges and opportunities, identifying the main phases and actions of a Big data lifecycle. As for these issues, the Chapter has pointed out the relevance

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

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

opportunities. In: Proceedings of extending database technology (EDBT), ACM. March 22†24, Sweden, pp 530†533

transformational typologies and business model impacts. Eur J Inf Syst 20: 358†374. doi: 10 1057/Ejis. 2010.65

analytics for enterprise class hadoop and streaming data, 1st edn. Mcgraw-hill Osborne Media, New york References 21

Abstract During the last decade, the Information and Communication Technol -ogy (ICT) industry has been transformed by innovations that fundamentally

Intelligence (BI), ICTS have important role in improving communications between the different departments and branches within the same company, among other

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

similar to Grid 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

1. On demand self-service. Defined as the process that enables the user to utilize computing capabilities, such as server using time and data storage, automati

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.

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.

abstraction 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

It aims to support scalability and availability on highly dynamic networks 6 24 2 Cloud computing

Windows Azure provides Windows based environment to enable users to run applications and store data in data centers.

Azure provides data services in the cloud using SQL SERVER. The last component which is. NET services facilitates the creation of distributed applications.

The last example of cloud computing service provider is Google, which uses its own infra -structure that contains three independent

---Business Applications, Web Services Multimedia Platforms ---Software Framework (Java, Python. NET Storage (DB/File Infrastructure

commodity servers. The second one is the Big Table, which is simplified a model large-scale distributed database.

and Opportunities The decision of whether to implement the cloud computing project by the orga -nization itself or to outsource it to a third party depends on the abilities and

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

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

delivering the product to customers 3. Performance assurance and quality, which would be achieved by the vendor by

demands 4. Professional and geographically dispersed service, which can be achieved by the vendor by providing the service 24/7 over the diverse geographical areas

and to comply with supply and business demand 1 See also Chap. 1 of this book for details on Mapreduce and Big data

from the industry as a result for the new demands for new applications and new

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

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. Virtualization can be important for cloud com

2. 2 Strategic and Managerial Challenges and Opportunities 27 5. Traffic management and analysis. The importance of the analysis of the data

-lenge for all stakeholders in cloud computing. This happens because of the structure of the cloud computing when the VMS can dynamically migrate from

4. It gives the opportunity for the employees from different departments to develop their experiences about cloud computing support and management

Also, 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 Chang et al. 9 also suggest that shaping the right business strategies for cloud

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

the new technology in the business environment The risks and impact of IT outsourcing also have to be considered.

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,

cloud environment •communication channel between the customer and the CSP •storage areas that are specified for customers†data

•cloud mapping services 30 2 Cloud computing B. Process and regulatory-related aspects, and includes the following points

for CSP as well as customers like cyberattacks and illegitimate control over user accounts 8. Cloud and CSP migration

2. 2 Strategic and Managerial Challenges and Opportunities 31 •agreements on security related issues

Outsourcing the cloud computing services can be considered as a very important step on the road of having agile and efficient business,

transformation to the cloud computing services 15. Dealing with the issues related to change management is very important,

communications and employee development which can be achieved by additional training 16. Moreover, and most importantly, top management support should be

interaction between the people and technology in the work environment, and that affect its intention behind this transformation.

properly managed in order to have smooth transition to cloud computing services 2. 3 Deployment Models (Private, Public, Community

Cloud services can be deployed in different ways, depending on the organizational structure and the provisioning location.

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

some/all services but are not logical extensions of the organization. In the fol -lowing we provide further details for each model

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 cor

-porate data and security and system performance. However, private cloud is usually not as large-scale as public cloud,

This is a common model for governments and large enterprises, when there are concerns about security and data sovereignty.

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 not dedicated to a single organization.

This model used when organizations from the same community and with similar requirements share a cloud infrastructure

suitable for enterprises in which the transformation to full outsourcing is already done for instance, to combine community cloud services with public cloud

services Taking the above issues into account in what follows we provide and discuss guidelines and recommendations to support decisions on outsourcing and project

implementation life cycle 2. 4 Guidelines and Recommendations 2. 4. 1 Choosing a Cloud computing Service Provider

quality, integration, economics, and professionalism At the third level, these criteria are decomposed into several sub-criteria that

concerned stakeholders 19 2. 4. 2 Cloud computing Project Implementation Life cycle Conway and Curry 12 propose an implementation life cycle for cloud computing

System Function Service Quality Integration Economics Professionalism Usefulness Ease of use Accuracy Tangibles Reliability Security/Privacy

measuring the impact on cost, 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,

In this step, a strategic planning will be done for the services that will be affected with the cloud computing transformation.

such as staffing, communication, organizational rules and risk assessment. This step faces challenges such as clearly defining business and technical requirements

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

the relationship with the stakeholders Table 2. 2 Phase 1, activities and outputs of the Investigate step

requirements with the available services and providers Table 2. 3 Phase 1, activities and outputs of the Identify step

Determine what services will be outsourced to the cloud, and consider impacts on the service, people, cost, infrastructure, 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, with documented justification Document the current and future states of the IT

A communication strategy Decide how cloud suppliers will be engaged selected and managed A strategy to manage staff impacted by the

cloud services in-house, or to an alternative cloud supplier Phase 3: Operate This stage is about the actual implementation and the day-to-day management of

management of the communication to all stakeholders, knowledge retention /transition and acceptance sign off. This step faces challenges such as complying

The first case study is about a UK based SME firm that provides IT services and

increased customer demands, which created a bottleneck that caused many sales orders to be lost or never received.

cloud-based IT environments for Korean central governmental agencies (K-Cloud Centres) in order to improve service delivery in the public sector

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. Fourth, the government will have a possibility of more efficient man -agement and arrangement of personnel resources

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

environment. This situation is even more imperative when the transition is happening in the governmental sector that deals with very sensitive

resources and IT services, since various accidents caused by human error and inadequate operating conditions can be prevented in a cloud-based infrastructure

project such as the education and communication ministries. Guaranteeing the full support from the concerned parties is very important for the success of this project

-demand network access to a shared pool of configurable computing resources such as networks, servers and software applications.

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:

communications, pp 129†134 8. Khajeh-hosseini A, Greenwood D, Sommerville I (2010) Cloud migration:

migrating an enterprise IT system to Iaas Ian Sommerville. Inf Syst J abs/1002.3: 450†457

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

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

to cloud computing environments. In: 2011 5th international conference on network and system security, pp 280†284

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.

Mobile Services Abstract In this Chapter we discuss the main implications of mobility for digital business.

impose mobility as the characterizing feature of digital services, depending on and made possible by the convergence and the resulting dependencies between con

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 dis -cussion of case studies concludes the Chapter,

by Mary Meeker2 and Liang Wu in the annual ††Internettrends††report by venture

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

service management, as claimed by Rai and Sambamurthy 4 Table 3. 1 shows the main digital enablers that Rai and Sambamurthy 4

services for enhanced accessibility and dynamic offerings. Furthermore, it should be noted that Rai and Sambamurthy 4 point out the relevance of analytics for a

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

48 3 Mobile Services consequence, digitalization requires the above mentioned digital enablers for service management capabilities have to be coupled with a key technology, thus

conversion of functionalities of existing ††analog††services, but rather a radical transformation having impact on lifestyle, work,

services at local and global level, enforcing a wider participation 13. As a consequence, they make indistinct the boundary of organizations,

is on networking benefits for value creation, asking for new business models and pricing strategies, likewise.

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.,, the Simple Object Access Protocol (SOAP) 8

Design •Service oriented architectures 9 characterized by -Standardized interfaces -Service invocation independent of technology

-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

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

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

understand ††digital††services, and the mobility characterizing them, as emergent from and enabled by underpinning

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. However the diffusion of mobile devices, such as, e g.,

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

Furthermore, also the adoption of the above technologies may still find resistance by final users and the current business model adopted by a given company may not

always sustain the service design and delivery, thus requiring constant updates as well as revisions.

drivers and challenges related to mobile services. In particular, we first focus on the acceptance by users as a key issue, analyzing the factors that make up the

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

50 3 Mobile Services As pointed out by Bagozzi 20, TAM is characterized by a ††parsimony††in the

3. 2 Mobile Services Drivers and Challenges 51 concerned the following issues and new relationships (the latter represented by

the acceptance of external users and costumers of digital services provided by ††new††mobile technologies and devices.

intention also in the adoption and use of mobile services and technologies, the TAM constructs are yet a core asset for the development of models,

framework for identifying mobile services behavioral intention and adoption drivers. In particular, the figure aims to summarize contributions such as the one of

to mobile data services having an ubiquitous nature and an impact on individuals†lifestyle. In particular, they focus on devices

52 3 Mobile Services use and perceived usefulness), classified as ††general technology perceptions†â€

mobile services behavioral intentions (see Fig. 3. 2, starting from the top left hand side •Technology-specific perceptions, encompassing the unique features of the

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 which a mobile service is perceived as being able to provide anytime and from anywhere connections

adoption of a mobile technology and related services •Psychographics concern the user personality, values, opinions, attitudes, inter

the access to one or more mobile services is perceived to be enjoyable in its own right, without considering any other consequences

the mobile technology/services (as symbolic products) for an increased self -perceived 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.,

services. 7 In particular, among other interesting results, the study has shown, on the one hand, the positive impact of social influence on perceived ease of use (see

digital innovation initiatives, in particular for mobile services and technologies Considering now again demographics, while gender (see Fig. 3. 2) received a

behavioral intention towards the adoption of mobile solutions and services, Hong et al. 27 claim the relevance of age.

54 3 Mobile Services has received limited attention, in particular, in the information systems research field 27. Indeed, considering the ageing phenomenon at global level and the

-mentation, 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

Ghose et al. 28 which explores the difference in economics between the two settings, focusing on the relevance of ranking

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

3. 2 Mobile Services Drivers and Challenges 55 3. 3 Digital Management Solutions As we have seen in the previous section, several dimensions and perspectives

impact on mobile services and technologies acceptance and adoption by users internal as well external to an organization.

-tives interested in digital innovation of services through mobile have to face challenges related to the lifecycle of such initiatives from development and inte

-gration with enterprise information system, to a secure supply to the final users through a constant control and performance monitoring

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

and services interactions We now provide a discussion of each of the above issues, identifying the

As for development, the diversity of devices and the consequent scalability of development platforms pose significant challenges to applications management

with enterprise information systems software and data ï§Device management data privacy and security Software solutions to

56 3 Mobile Services The native development model is specific for a single device and allows to

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

-tion 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, which must support the applications often interfacing different preexisting platforms and heterogeneous databases

Private enterprise application store •These environments have restricted a access, typically managed by the IT organization, dedicated to the employees of a company and

/or business partners •This type of store aims to deploy applications for specific internal

•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 man -agement, use and updating.

The main ††store††solutions may be classified as shown in Table 3. 5, depending on their consumer, business, or else private orientation

and services. Accordingly, security can be addressed through the adoption of different types of enabling solutions.

Indeed, they are basically an on-demand service dis -tribution, which kept applications on corporate servers with only core parts or a

•Require investment in infrastructure to ensure the effectiveness of the solution 3. 3 Digital Management Solutions 59

digital management of mobile application and services, it is necessary to adopt practices that focus on increasing user awareness about the privacy, and security

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

18 months payback period of the investment 31 POINT OF ATTENTION: Mobile services initiatives applied to supply

chain activities and sales provide increased productivity, improved data quality, and knowledge on customers†behavior and history

convergence of mobile services and sensors devices. 9 Habasit AG, headquartered in Switzerland, is a worldwide leader in the production of conveyor belts, plastic

Besides technology issues, the investment in this solution has covered also a set of training activities by the staff.

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

10 Mobile devices designed to survive demanding environments, harsh conditions, rough handling, providing ergonomics that reduce operator effort.

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 multi -disciplinary competencies, enabling an effective and as close as possible

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.

to accept and adopt mobile technology as well as the related services and appli -cations. To this end we have introduced the reader to the main constructs and

-tiatives, from development and integration with enterprise information system, to a secure supply to the final users, through a constant control and performance

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

mobile services and sensors technologies as well as social listening activities (that will be discussed in detail in the following Chapter.

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.

7. Papazoglou M (2007) Web services: principles and technology. Prentice hall, Englewood Cliffs 8. Shuler JA (2001) XML, UDDI, and SOAP:

64 3 Mobile Services 17. Venkatesh V, Bala H (2008) Technology acceptance model 3 and a research agenda on

the case of mobile data services. Inf Syst Res 17: 162†179 24. Là pez-Nicolã¡

services acceptance: Contributions from TAM and diffusion theory models. Inf Manag 45: 359†364. doi:

over thirteen million customers using Alcatel-Lucent†s Optismtm. News Releases. http //www3. alcatel-lucent. com/wps/portal/!

Business models 1†4; on the other hand, they have to innovate their CRM systems, often asynchronous in their descriptive and predictive functions and

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

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

services (relevant results have been achieved in terms of increased number of solved problems, problems identification, better use of emotional and expressive

generating and evaluating new products and services, playing a complementary role sideways with all the traditional analytic tools used for previsions 5

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

and services, shaping their own decision process through worldwide shared knowledge and experiences. This new contest

•Among those who read opinions about hotels, restaurants or other services, more than 73%said that they have been influenced highly in their final choice

•32%gave its evaluation about products or services through online rating sys -tems at least once,

NFC (Near Field Communication), to a whole new way to consider costumers†experience. 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 chal

-lenges in the Section of this Chapter on Social Sensing Talking about 2. 0 technologies,

stakeholders in general, not so many are now able to guarantee a suitable degree of attention on this matter.

these analyses make it easier to improve products and services on the base of the highlighted weaknesses.

-ante marketing intelligence activity let the firms monitor external environment identify potential threats, evaluate the impact

Vector Machines (SVM) and Elastic-net Logistic Regressions (ENETS The one we presented is just one of the rising models that use mining tools in

discuss some of the main implications that an access to information and services oriented led by opinion can have

Brown and Sons raised the rating he gave to Qwest Communications International, supplier of telecommunication services in Denver†â€

Positive Adapted from 32 4. 3 Information Growth and Market Opinion 77 spiteful persons made

considering the specific product or services people are talking about 3. No Opinion: general texts that do not actually express any form of opinion

products/services Another challenge related to the opinion spam is the ability to differentiate a spam

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

networks, 2. 0 applications, and digital services; on the other hand, further sce -narios are emerging from the convergence of different media and channels

and their social environments 35 According to this perspective, social sensing is an intelligence activity acting on

Communication (NFC) functions Increased bandwidth Large wireless bandwidth required to transmit large amount of data

, in inedited bundles of services However, social sensing is still a promising perspective at business level

thus, opening new opportunities in terms of market monitoring. Furthermore, the increase and the unprecedented growth of

services, the latter usually related to semantic web 38 •new market signals that come out straight from end-users, by means, e g.,

solutions, technologies and services for extractions and the metallurgic field. The firm decided to enlarge its market monitoring process in order to extrapolate

-faces or mobile services, can be integrated easily with instruments for users†interaction (comments, online discussions, rating mechanisms, etc..

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

Fujitsu 40, one of the biggest IT services supplier in the world. For many years

elements such as potential threats, business opportunities, etc. adding, therefore information about the competitive landscape Consider now, for example, the Cintas Corporation case study,

programs for firms, providing uniforms, cleaning services, hygienic supplies promotional products, security products, fireproof protection services, and docu

-ment 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 varie -gate environments, allowing to monitor and control the whole entrepre

-neurial 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

mobile devices, providing services and solution for worldwide dynamics and evolving markets. Inside Nokia†s organization, benchmarking is used in order to

diffusion opened new opportunities also in terms of benchmarking, enhancing collaborative relationships, creating new spaces for knowledge and information

Social media provide new opportunities for benchmarking activities, on the one hand, enhancing collaborative rela -tionships among employees, creating new spaces for knowledge and infor

through the involvement of external stakeholders and users, likewise As a consequence, Nokia†s employees were able to enhance their capabilities in

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

can assume in the current competitive environment, when the traditional value chain is opening thanks to social media and collective intelligence practices 5, 6

2. Osterwalder A, Pigneur Y, Tucci C (2005) Clarifying business models: origins, present, and future of the concept.

3. Overby E, Bharadwaj A, Sambamurthy V (2006) Enterprise agility and the enabling role of

4. Weill P, Malone T, D†Urso VT, Herman G, Woerner S (2005) Do some business models

pervasive services: Approaches and perspectives. In: IEEE International Conference Pervasive Computer Communication Work PERCOM Work, pp 525†530

36. Aggarwal C, Abdelzaher T (2013) Social Sensing. In: Aggarwal CC (ed) Manag Min Sens

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

companies bring their own laptops to the work environment to use them to do their jobs.

customers. As a result, and as the technology becomes more central in people†s lives, consumer technologies have been steadily entering the workplace and

role in improving business productivity and agility for enterprises. The consu -merization of IT helps organizations to realize increased efficiency, productivity

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

market then to enter business environments. Historically, businesses organizations determined and controlled the kind and type of information technology used within

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

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

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

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/cus -tomer satisfaction. Employees can be more productive due to permanent access

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

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

Communications IT Department Chooses the PC Primary device is fixed IT department has the control One device, One task

-isations should try to seize this opportunity in order to increase motivation of staff, support them in becoming more literate in current technologies and use

business and their customers. Moreover, Human resources (HR) departments can discover advantages related to better collaboration and communications

among the enterprise†s employees as well as better recruitment process by using social media platforms 9 •Operational opportunities:

urgent issues can be better coordinated and resolved through the increased availability of staff that can be accomplished by having

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

•Data Management opportunities: successful implementation of the IT consu -merization requires strong architecture that could result in better data man

not suitable to be used at the work environment; hence, it is difficult to apply the same security standards and policies on those personal devices.

argues that enterprise policies and practices are well behind the arrival of new advancements. It shows that despite the results of a survey of 1, 500 mobile device

-nect to enterprise networks regularly are used for both work and private purposes which results in a blurring of the distinction between work and personal life of the

software being introduced into the enterprise network by poorly protected smartphones, the Mcafee study concludes that theft

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

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

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 3. the risk of losing corporate data as a result of difficulty in applying security

Companies have to rethink their strategies to seize the opportunities associated with the consumerization of the IT devices rather than facing the consequences of

consumerization in order to see it as an opportunity rather than a problem. One example is provided by 13 in

their own devices in order for them to be more productive at work environment such as downloading, using a personal cloud storage service,

social media so that they can have better communication and work more effi -ciently. However, such procedures can conflict with the enterprise†s IT SECURITY

easier, with information and services accessible from anywhere and anytime by using any device. For example, if an employee knows heshe may later need access

suitable any more in nowadays work environments because of today†s complex computing landscape and the countless number of employees using consumerized

management framework and are accessing applications and cloud services that may or may not be provided by

at the enterprise 14 96 5 IT Consumerization Organizations have to reconsider how they manage user computing in order for

Many of the consumer technologies that are already in use by enterprises are advancing very fast. Businesses must be flexible enough to embrace rapid proto

practices (see Fig. 5. 2) for supporting employee-owned devices in the enterprise They may help organization to develop a stronger user-centered strategy and

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

stakeholders early in the IT consumerization process. This covers employees from human resources and legal to IT, corporate services, and most impor

-tantly, 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

understanding of the different needs of users in the enterprise. This section describes users segmentation

Stakeholders 2 Update Security Model 3 Decide on OS and devices 4 Plan Deployment 5

enterprise environment and uses it to obtain immediate access to corporate email and calendar, communication facilities,

and in some cases, the access to some of business applications that can allow such contact.

By providing communication and social platforms capabilities through web-based apps, employees can be productive regardless of whether they work at the office or remotely.

own schedule while working for different customers from different locations Heshe can use mobile broadband and wireless hotspots to access the Internet from

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

Tablets can provide local retailers with the opportunity to compete effectively with online stores. The types of devices that are used for retail applications vary

devices, which provide an opportunity to reduce costs 16 5. 4 Business Scenarios for IT Consumerization 101

-agement Services, which provide the infrastructure that is needed to protect office content and other Information Rights Management.

3 Chapter 3 on mobile services provide further insights and details about these issues 102 5 IT Consumerization

separates the desktop environment and associated application software from the physical client device that is used to access it

This strategy enables enterprises to quickly achieve business benefits gained from IT consumerization by moving the desktop and/or applications into a data center

but it requires investment in the infrastructure that supports it. The key concerns with this strategy include

the cloud, such as Office 365, IT management services from the cloud, such as Windows Intune, virtualized desktops or apps, application gateways to publish

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, refocusing IT on strategic initiatives rather than device management, attracting and retaining valuable employees 16.

aspects of supporting an enterprise infrastructure, which would enable IT staff to focus on strategic initiatives and projects 16

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 consid -erations 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,

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, in order

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

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

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 or local Virtual workspace server or local

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

Social media has a huge impact on not only the work environment, but also on the society in general,

the vast growth of social media as a way of communication and interaction between people, it†s not only the technology that is changing;

online or virtual world and opportunities. This situation can be demonstrated better by examining the fact that one-in-six United states (US) couples who got married

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.

directed services such as Facebook and Twitter, social networking platforms are finding their way into businesses†environments.

Such circumstances can be par -ticularly applied to the case of young employees since this category of workers

has positioned the software giant to introduce enterprise social networking capa -bilities to its existing business collaboration systems such as Sharepoint

example of the importance of social networking within work environments Yammer can enable companies to offer their employees functionalities that are

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.

It is accepted well and regarded by the experts who follow the enterprise social networking market.

The employees who use Yammer can set up user profiles, send and receive ††tweets††like messages,

which is a communication product that Microsoft acquired last year for $8. 5bn and it is expected to integrate with its mainstream business

In this section we investigate some IT consumerization at work environments related case studies and we provide explanation about its role for the business

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,

Avaya†s strategy for mobility within the enterprise is to take advantage of the consumer gadgets that executives and employees are already bringing to work such

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

The second case study discusses how Royal dutch shell started with the BYOD strategy, since the company has realized that the employees will use their own

enterprise drivers and recommended strategies as well as different business sce -narios for IT consumerization have been explained. Consumerization is not a

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

that IT has an opportunity and a responsibility to evolve its role and culture to one

opportunities associated with this trend. Many issues that are related to the busi -ness, technology, and user support have to be considered thoroughly in order not to

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

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

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

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.

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

-ment tools. The previous mentioned systems have evolved tremendously in the last few years in order to improve the way a group of people from the same organi

digital collaboration, its importance for work environments and its types. Also it will explain the different digital collaboration tools

productivity at business environment. The objective of the continuous improve -ments of the collaboration technology is to allow people to share information as

specialists such as economists, social psychologists, anthropologists, organiza -tional theorists, educators, and others who could explain

experiences about technical opportunities and limitations. Examples of the col -laboration systems include desktop and video conferencing systems, collaborative

at work environments and is categorized by Kay 3 into three categories. The first one is the electronic communication tools, in which, the purpose of these instru

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, simplify workflows by having already

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

-plished by continuous communication and coordination, and it uses systems like electronic meeting system, blogs and workflow management system to have the

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

global economy in comparison to a single country or region. For example, there is a difference in the infrastructures from the development level and maturity points

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

economy 6 However, confusion can happen because of the lack of common understanding of the Cross Organizational Collaboration (COC),

of examples of COC reveals that there are many opportunities associated with this term. For example, businesses could implement cross-organizational knowledge

Remote Interactions Communications+Coordinations Time Space Matrix Fig. 6. 1 The CSCW matrix. Adapted from 5

digital collaboration tools has opened the opportunity to solve problems such as •sharing large digital files among team members that are located in different

However, the increasing importance and demand for technology support ser -vices combined with the decreasing budgets

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

-less, 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.

computing assets that are shared by the company in addition to the services shared by the other parties in the world 4. Thus, the individual services, which together

referred to as electronic messaging, are developed to address a specific need and are designed to make effective utilization of resources in a given situation

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

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

formal term used in computer-facilitated communication, collaboration and learning is asynchronous conferencing and is used to define technologies that are

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

Enterprise Content Management (ECM) systems and related to digital asset management, document imaging, workflow systems and records management

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

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

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

work environment or workplace. Software products such as email, calendaring text chatting, wiki, and bookmarking belong to social software category.

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

with the necessary equipment that aids communication, collaboration and the process of problem solving. Moreover, collaborative software can support project

the enterprise. Another example is produced by Adobe Systems Incorporation that introduced a collaborative tool called Adobe Story that provides the creative and

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

information and communication technologies may reconfigure and in some case substitute some of them Skype

-bers at the work environments, especially when they are located in different geographical places in the global organizations.

communications in the virtual community environment, developers need to make sure that the community members don†t have any problems with interacting with

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

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

In this section we investigate some digital collaboration at work environments related case studies, providing explanation about their role for the business

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

applications and software services provider. The introduced technology has suc -ceeded to achieve high satisfaction rates from both the members of the faculties

play the roles of collaboration applications at work environments or educational institutions. Moreover, it provided a description for the crowdsourcing concept as

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

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, companies see their identity as represented by their brands, constantly challenged by new digital business scenarios, rapidly

the velocity of new digital products and services design and distribution. The consequence is a continual revision of value propositions 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.

networks and mobile services (discussed in Chaps. 3 and 4, respectively) create major concerns for a business digital identity as well as for citizens at global level

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

•Indirect losses are ††the monetary equivalent of the losses and opportunity costs imposed on society by the fact that a certain cybercrime is carried out, no matter

including security products, security services, such as, e g.,, training, regulations and/or law enforcement, etc •Cost to society is ††the sum of direct losses, indirect losses,

Enterprise Identity Management has been proposed by Royer and Meints 15 The framework, resulting from a comprehensive literature review and findings

concept as a basis for a decision support approach, resulting in an Enterprise Identity Management (EIDM) Decision Matrix 15.

Enterprise Identity Management solution. For example, according to 15 metrics for the financial monetary perspective can be estimated the costs for security

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

and enterprise architecture and information infrastructure. However, a digital business identity is built also through interaction and exposure to users and societal

Fig. 7. 2 An enterprise identity management framework. Adapted from 15 7. 2 Privacy and Security Drivers and Challenges 137

that actually represent the digital market environment where businesses create maintain, and revise their own digital identity.

digital business environment. Furthermore, it has been pointed out how digital business identity in the outer context is built through

relates to its stakeholders and the environment) ††18, p. 1119. As a consequence

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

according to new business models every 2 years or even less. 2 Furthermore, it is worth to be considered that as argued by Topalian 18

identity seems to be a relevant factor in an omnichannels retail competition. As for this issue, their research focuses on medium-sized retailing company selling

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 informa

-tion 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

and deliver services and products fitting captivating brand promises. Accordingly, Barwise and Meehan 23 point out that businesses

2 Business model innovation is going to be discussed in Chap. 9 7. 3 Digital Brand Management 139

data and reliable transactions for the target customers As for the above mentioned inner perspective,

for Small and medium enterprises (SMES) 26 Considering the case study, it concerns DHL, a world market leader in sea and

-tition authority for the UK communications industries) decided to implement a package of measures to address consumers

Translation Services (NTS) calls, that are calls to 08 numbers (†NTS numbers†27; among the effects of the Ofcom initiatives, 0870 numbers would no longer

switch to 0844 numbers had no impact on customers 25 POINT OF ATTENTION: Digital business identity management asks

customers The second case study is based on 28 and considers Vibram, 4 an Italian based company among the world leader in high performance rubber soles, manufacturing

campaign, aiming to engage core customers online and creating a direct dialog 3 Talktalk Business:

leaving the customers being the protagonists and leaders of the brand-related initiative; thus, the company reduced its control

organizations to enable self-exposure of customers through digital initia -tives, ††taking a step backwards††about the control on them,

environment. To this end the Chapter has discussed the main challenges related to the inner context, providing also examples of frameworks for evaluating the costs

, cybercrime and for Enterprise Identity Management. Besides the inner context of an organization, the Chapter has pointed out how digital business

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

through the self-exposure of customers and the companies ††taking a step back

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

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

Abstract The growing use of information and communication technologies (ICT is fostering the formation of ††knowledge societies†â€,

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

The new technological advances in the information and communication technol -ogy (ICT) field have resulted in the digital revolution and the emergence of the

Information and communication age. This development has created an enormous impact on social, political, and cultural livelihood of the people, which resulted in

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

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

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 conse -quences of the decisions made by top management, top-level executives tradi

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

-agement, staff and customers. It establishes a set of policies and practices used by the organization to enhance a transparent accountability of individual decisions

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

management processes in corporate environments 2 Taking the above issues into account, digital governance can be considered as a

8. 2 Opportunities and Challenges Related to Digital Governance Digital governance is different from IT management and IT controls.

resources on behalf of the stakeholders who expect a return from their investment The people who are responsible about this stewardship will look to the manage

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

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

and how to interact with customers. How -ever, the organizational digital presence is an extension to the organization†s

which includes not only the core web team and business stakeholders but also the web managers within the organization and deep and rich support infrastructure that

stakeholders. However, if these potential answers for the investigated problem were met not, a cycle of discussions about the suggested solutions, responsibilities

8. 2 Opportunities and Challenges Related to Digital Governance 149 T ab le 8 2 S

communication Furthermore, De Haes and Van Grembergen 10 have proposed a maturity model for IT or digital governance, providing a method of scoring so that an

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

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

of the IT governance issues throughout the enterprise, supported by official training, likewise. 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 and other business units 5. Optimized: There is an advanced understanding of IT governance, 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.

-ernance in this environment. It was done using IT governance related areas such as strategic alignment, value delivery, risk management, resource management and

IT as an integral part of the enterprise and the importance of awareness, com -munication, stakeholders†involvement, accountability and monitoring across the

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

digital services advisory group, federal chief information officers council, and federal web managers council 16.

3. Encourage 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

and benchmarks to track and demonstrate success Adapted from 11 8. 4 Digital Governance Success Factors 153

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

stakeholders to request controlled changes as exceptions Define a benefit management system and set achievable targets/expectations

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

systems that do not provide the required results and adequate return on investment For this reason, the search for Business/IT Alignment attempts usually concen

-trated on improving the business value that is a result of the IT investments Since that the goal of IT governance is to achieve a better alignment between

IT policies at organizations may differ between enterprises; depending on issues such as if rights and responsibilities are distributed well among the appropriate

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/or

external efficiency of the services that the IT department delivers to the business therefore, Simonsson et al. 21 refer to the external efficiency as IT governance

-cess would have positive effects on the business stakeholder satisfaction while, on the other hand, improvements of the problem management process would not have

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

and consequently to align itself to the e -government strategy to increase delivery, integration and quality of electronic

government services, thus, leading its adoption by citizens, residents and busi -nesses. That is, because all government agencies need to integrate seamlessly to

provide electronic services to its stakeholders, thus, increasing their interaction For example, the system integration of Ministry of Education with Ministry of

selected enterprise had significant gaps in its security policies and programs exemplified by the lack of consistency across technologies, systems, and processes

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 con -sistency to audit data analysis history

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

data and its implications across the enterprise. The above mentioned problems called for a robust IT governance framework, delivering measurable value to the

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

goals of the enterprise, implementing IT governance as suitable as possible to this case study, within a shorter time and with limited resources.

hence, stakeholders should consider the components that suit their case studies The second case study discusses the implementation of IT governance to

industry and its customers 23. In this study, Iskandar et al. 23 explained that the effects of e-commerce on that sector are great, especially with regard to the move

-formation 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

and that requires a mutual effort of both IT and business management. As a consequence, e-business and e-commerce are

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

their competitive environment as well as to put together a reliable set of gover -nance techniques that are shared simple,

-nance is proposed still the way to meet the previous demands. It is an important element in any organization and has a great effect on its efficiency and effec

Furthermore, it is considered to be an integral part of enterprise gover -nance and has the ability to provide mechanisms for leadership and organizational

opportunities, to face its challenges and to understand the mechanisms of the digital governance. To this end, this Chapter has provided an IT governance

challenges and opportunities. In: Proceedings of the 2nd International Conference on theory and Practice of Electronic Governance

practices through steering committees and communication policies. Eur J Inf Syst 19: 288†302. doi: 10.1057/ejis. 2010.16

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

Reinventing Business models: The Third Way of Digital Innovation Abstract This Part of the book explores digital innovation in practice presenting

issues and the most relevant concepts for understanding Business model Innova -tion (BMI), providing general insights on the state of the art and basic constructs of

The concept of a Business model (BM) is not completely new in the field of economics, as the term appears for the first time in the literature in an article dated

1957 1 and, subsequently, in 1960 2. Moreover, we can argue that this concept is, implicitly or explicitly, an integral part of the behavior of any economic entity

theory, the problem of setting up a business model that makes the creation and appropriation of value by production companies possible does not arise

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

•the mechanisms for appropriating the value of the product and making a profit on existing markets or that have yet to be created

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, it is only in recent years, which were characterized by the economic changes created by the advent of

business activities, 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 impli -cations and relevance in the context of economic and managerial studies.

addition, the concept of business model is emerging as one of the main levers of change and strategic innovation for organizations operating in all sectors.

particular, two complementary visions of the business model arise from the lit -erature in the field of technological innovation management:

-ceptualizes 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

business model as a crucial tool to acquire and consolidate a sustainable com -petitive advantage and improve their ability to create

that 7 out of 10 companies claim to pursue business model innovation as a stra -tegic priority and 98%are still,

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

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 funda

-mental management tool for the development of strategic innovation on which the competitive performance of organizations rest, at this moment in time, scientific

fact, the concept of business model is used to analyze diverse dynamics and aspects, such as e-business 15, issues of strategy as a competitive advantage

business model relatively to the traditional units of analysis such as the single company or its network.

According to some researchers, 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,

-cept 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

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 eco -nomic 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 long

-standing questions of Peter Drucker: Who is the customer? To what does the customer attribute a

customers at an appropriate cost Who is the customer; What is the customer†s concept of value;

Customers of reference; partner network; the system of relations the positioning in the value chain

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; structure of the value chain; mechanism that generates

economic value Venkatram and Henderson 1998 23 A strategy that reflects the architecture of a virtual

organization along three primary vectors: interaction with clients asset configuration and knowledge leverage Organizational strategy, customer

company, its customers, partners and suppliers, as well as the flow of goods, information and money between these parties and the main

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 con

to customers, value network architecture and finance†which, in turn, are divided into a number of constituent elements.

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 (continued

value and relational capital to one or more customer segments in order to generate profitable and

relational capital; customer segmentation Leem, Suh and Kim 2004 26 A set of strategies for business

9. 2 Fundamental Elements of a Business model 169 and services. Thus, the BM of a company must contain a description that sum

-marizes 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, inter -mediaries and partners through which value is created and exchanged

successfully implement their own business model. In addition, the companies†focus has to be brought to those critical processes that ensure sustainability

reusability, 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

30. Customers segments 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 prof -itability, 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

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: value network

Constituent element Description Supply relations The network of relations with suppliers Partnership relations The strategic alliances with competitors and non-competitors (for example

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

provided to customers in the most efficient and effective way Strategic assets The specific set of resources, technologies and facilities that make up the

9. 2 Fundamental Elements of a Business model 171 proposed value for the customer, with a direct influence on revenues and margins

various dimensions of the Business model and which, although distinct on an analytical level, in reality are interrelated strongly and interdependent

9. 3 Business model and Strategic Innovation In the current economic environment, which is defined by intense technological

acceleration 31, as well as by increasing competitive pressures because of the growth of supply associated with the opening of markets, organizations and

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

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

innovation of the business model as an alternative or as an essential complement to product and/or process innovation.

combine technological and business model change to create innovation But what factors have prompted organizations to move the center of their

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.

radically transformed 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

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,

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 which they are brought to market 32.

In fact, even the most promising technologies are unprofitable 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, innovation is a fun -damental activity for the growth of a business and its survival in the long term and

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

that ensures profits, but companies are called also, and are expected to excel, 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

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

profits In summary, the crucial factor for the success of a company is not the value of

transformed into economic value. The centrality of the business model can be defined through the two following core processes any company is necessarily

called 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

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

retain a part of the value created ††at the expense††of customers, suppliers

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

174 9 Reinventing Business models market value creation; on the other hand, they can be able to grab a share of the

The evolution of the economic and technological environment has resulted in a substantial change in what was the traditional relationship between customer and

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

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

-tions, 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

the process of economic value appropriation. A profitable and sustainable business model must articulate not only the operations

stakeholders such as customers, suppliers, competitors and suppliers of comple -mentary 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 increas

competition is not only among individual organizations, but also, and mainly, among value creation systems composed by networks of companies

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 extension of the economic transfor -mations made possible by the Internet and new digital technologies.

completely new strategic challenges and opportunities such as the possibility of establishing a direct relationship with customers bypassing other actors in the

value chain. No business entity, whether a startup or an established company with years of experience, can afford to ignore the changes that have occurred already

-called 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 entirely trans

-formed. 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 outputs are finished or intermediate goods used as input for another transformation or value creating process.

Knowledge, such as engineering know-how or production methods and processes as well, is applied to facilitate the process of physical transformation.

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, customer profiles and preferences that companies need to collect organize, select, synthesize and distribute 37 in the transformation process to be

able to provide customers with customized solutions. In summary, information, in the digital economy, is an essential source of value and every business is an

meeting and exchange opportunities between companies and customers. Web servers can monitor and record the navigation of millions of users and produce in

However, in the industrial economy knowledge generation and application processes are aimed essentially at making production more efficient

176 9 Reinventing Business models systems, online commerce, interactive customer service) that enable the creation of value not only through the reduction of costs,

significantly transforming the traditional rules of competition, offer value propo -sitions 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, whose

the productive processes of economic activities they touch and producing a dif -ferent distribution of wealth compared to the situation before their introduction

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 Value chain configuration •Linear value chain •Nonlinear value network

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 were competing with the traditional sales channels as well as the phenomenon of piracy and illegal downloading of music content

especially related to building a business model that allows providers of new information services to create and appropriate part of the value generated by the

production and publication of content that users generally expect to have free access to. The formulation and implementation of an appropriate business model

are vital to meet the challenges of the digital economy, which requires a paradigm shift. 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 recon

-figure their distribution strategies or the entire business model 3 Taking the above issues into account,

depends mainly on the ability to build a business model that can capitalize on these particular characteristics.

business model can be defined as the creation and utilization of new knowledge which can be technological,

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

9. 5 The Business model in the Information and Communication Economy The consolidation of the information and communication economy is the culmi

-nation of the process of evolution that had the service economy gradually replaced the industrial economy,

and its extraordinary success is mainly due to the strengthening of its main infrastructure, the network.

In this context, information is 178 9 Reinventing Business models defined as any product that can be digitized,

represented as a sequence of bits and thus distributed rapidly and at an irrelevant cost over the network. 3 Newspapers

books and music content and movies are just a few examples of digitized infor -mation products.

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

the demand side, that is, from the point of view of consumers, it is possible to identify four key features of digitalized products 43

constant flow of communication and collaboration in real time Network externalities Network externalities exist when the value of a given product

ways of interacting with their customers, suppliers and partners Information sharing and exchange The Internet allows information to reach a large number of people

and production of highly customized goods and services Digital resources Information and data in a digital form, duly selected, organized

and services offered by the various competitors Industry extension The value creation made possible by the Internet and new digital

9. 5 The Business model in the Information and Communication Economy 179 experience goods must devise strategies to persuade users to overcome their

or stimulate future demand, even at the cost of decreasing actual revenues, is the offer of free copies or of promotional prices.

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

In an environment where users have at their disposal an extreme amount and variety of information that can be accessed anywhere and

Consequently, information retrieval and filtering services have a high value for consumers. In fact, the search engines like Google and

These costs originate from past investments and influence the decisions of both consumers and producers and include several components:

effect constraining the customers, while having him perceive that as a compo -nent 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 technol -ogies 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.

important to analyze emerging business models in order to understand the factors that lead to the success or failure of innovation processes.

peculiarities of the information economy, is the so-called ††freemium††(combi -nation of ††free††and ††premium†â€.

The configuration (or reconfiguration) of a business model is often the direct result of technological innovation which makes it necessary to bring to

the market the results of this innovation process, opening up the opportunity to intercept unmet or unexpressed needs 3. However,

factors have led to a significant reduction in the profitability of investments in innovation, and since the innovation process involves higher costs and risks, the

and services offered to customers Accelerating the acquisition of innovation and containing the costs of research

remain competitive in the current economic and technological environment Another critical element is related to the fact that the fundamental characteristics

9. 5 The Business model in the Information and Communication Economy 181 companies for many years, pushing towards a profound transformation of these

of innovation is based on the transformation of inputs (investments in research and development) into outputs (new products and opportunities),

and this process takes place entirely inside the company. R&d departments are therefore a crucial

The investments necessary for research lab -oratories and the protection of intellectual property correspond to barriers to entry

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, thus

182 9 Reinventing Business models over the innovation process aimed at creating value;(3) the policy for managing

between the results of the conducted research and the particular business model put in place by the company

example, technology investments, licenses, joint venture agreements and partici -pation in research consortiums. Even the commercialization of innovation and its

Building the best business model involving external actors Degree of collaboration among companies None, collaboration present only

9. 5 The Business model in the Information and Communication Economy 183 broadening the portfolio of solutions and projects

developed within the company to other actors, allowing the increase of profits through the transfer of these technologies and projects, for example through

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

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.

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, reducing and sharing the risks and improving competitive performance, likewise

underlying Business model Innovation (BMI), providing insight on the relevant literature and the tools for a solid definition and conceptualization.

184 9 Reinventing Business models the effect of digital innovation on the business strategy and its potential for gen

analyzing and effectively evaluating the ideas and opportunities for innovation presented in Chap. 10 References

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186 9 Reinventing Business models Chapter 10 Innovation Practices Abstract This Chapter focuses on examples of digital innovation in practice

moving fast and following valuable opportunities. Translated in managerial terms to solve the ††innovator†s dilemma††1 companies need ambidexterity as a dynamic

but the fact that there is no need for specific assets and investments on the merchant side may contribute to a rapid growth in adoption

$4 million investment from a fund by a coalition of large banks investing in financial services projects.

the readiness of the technology, of the company, of the market (both demand and offer side) and of the complementary infrastructure.

readiness of the demand, which signals a higher likeliness of a fast rate of diffusion

available to customers 10.2.2 Applications The value behind such kinds of innovation lies mainly in an increased customer

customers more interactivity, by greatly simplifying complex operations into one click experiences and blurring the boundaries between financial transactions and

into the habits of their customers, instead of trying to induce them to act in a

behavioral data, leading to a better understanding of customers without requiring any change in behavior.

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

behind Macrosense and of the demand and offer side of the market, with many clients and competitors

understanding of the customer†s dynamics, of the different habits of customers and non-customers,

and of the logistics of a specific activity In Table 10.4 the set of drivers show a very high level of User Value.

The main purpose is to protect customers from the so-called Grey Charges deceptive and unwanted credit/debit card charges resulting from misleading

activates a support service to help the customers get their money back. The experience and knowledge of Billguard build on each single case, developing

based office 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

their customers 10.4.2 Applications The declared purpose of this free of-charge application is to help users in not

Additional services are provided to merchants, in form of tools for resolving billing issues before they become disputes, increasing customer

in this multi-sided-platform business model is the Financial institution willing to get the integrated bill monitoring

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

enthusiastic at all the conventions and competitions it has taken part, winning the company a widespread support and a number of awards

multi-screen, multi-device computing environments. The core technology plat -form, called g-speak, enables applications to run across multiple screens and

eventually shopping in a parent-controlled environment. Parents can completely customize their kids†platform experience according to their personal financial

The virtual environment is safe, secure and private and there can be no interference from external sources.

facing a somewhat small demand yet to develop. The company is growing and the development of the platform is continuing.

research and innovation lab serving as an incubator for high-risk projects at the edge of technology advances

to conduct with employees and customers As an example, it can be used to test whether a given set of information affects

emotions 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

solid company, facing some competition but with a large market to tap, showing no need for additional enabling infrastructure

-through, and intervention needs of their customers. This improves decision-making workflows, and consistency of service,

services. The card itself and the underlying financial services are provided by Sunrise Banks, while True Link Financial is focused on developing the interface

-ment services, and health care organizations In Table 10.15 the time-to-market drivers show a very young and promising

and the demand is potentially very large 10.9.2 Applications With a growing number of senior citizens and an increasing impact of different

clients and prospects, should devise similar services to avoid being cut out of the game Table 10.16 shows a good User Value, with very positive feedback from the

which enables customers to pay bills, in form of e-mails, safely and conveniently through online banking, Paypal

and, since its advent, in e-mail marketing as communication medium. Acceptemail is independent from payment methods, banks, PSPS and BSPS,

money on behalf of its customers, it only enables the payment initiation Table 10.15 Company competitiveness indicators

and the demand is very large 10.10.2 Applications Managing timely payments is a big issue for many industries, and especially for

from the bank, reminders reach the customers much later and require additional procedures to recover payments.

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 trans

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,

the point of sale enables a better multichannel experience for customers. More -over, 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

The New york times, The Economist, The Wall street journal and other publi -cations). ) 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;

side gathering meaningful data about their customers. Around 10%of all trans -actions are completed currently through the mobile app

-munity for crowdsourcing called ††My Starbucks Idea†â€, where customers can submit suggestions on how to improve products, customer experience and cor

incubator for digital technology initiatives. Since then, also thanks to its Chief Digital Officer Adam Brotman, appointed in 2012,

feature of all Starbucks coffee shops, giving customers the clear message that the company intends to leverage IT value in its business model

In Table 10.19 the representation shows a short time-to-market, if we consider the presence of competitors, the enabling infrastructure,

10.11 Starbucks Digital 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 current digital presence of Starbucks (both on-line and through mobile

The fact that Starbucks Digital Ventures is independent from the IT function and Marketing function, reporting directly to

Company Starbucks digital ventures Funded 2008 Nï¿Products A few Clients Many Partners Few Market dimension Very large

of the technology readiness, the presence of a strong demand, the development stage of the competitors and of the target.

a prevalence of digital innovations focusing on the converge of mobile services Instabank, Truelink, Acceptemail, Starbucks Digital Ventures), social listening

Billguard, Starbucks Digital Ventures), and the use of sensors for social sensing Macrosense, Cogito, Noldus Face Reader.

However, among the discussed digital innovation practices we have found also a coverage of digital work and collab

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 behav

Starbucks Digital Ventures (2013) http://www. starbucks. com/coffeehouse/mobile-apps /mystarbucks. Accessed 18 nov 2013

open environment. Taking this issue into account, we have investigated the stra -tegic drivers 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.

convergence of mobile services, sensors technologies, and social networks Accordingly, we have outlined the main implications of new marketing perspec

begin first in the consumer market then to enter business environments. Likewise this phenomenon has important consequences also for workplace habits and

advancement of mobile technology, digital services, social networks, sensors, and IT Consumerization, likewise. Besides the benefits, collaboration contributed to

your digital business identity through innovative business models and an effective digital governance The above directions require that IT must be able to generate value from current

Enterprise identity management, 137,143 Enterprise mobility, 57 F Facebook, 4, 188 Feature buzz, 72 Flexibility, 34,44

Flow betweeness, 69 Freemium, 181 Fuzzy analytic hierarchy process (FAHP), 35 Fuzzy delphi method (FDM), 35

Offer to customers, 169 Ontologies, 70 Open data, 8 Open government, 8 Open Information Society, 3

1. 1. 2 Management Challenges and Opportunities 1. 2†Case studies 1. 3†Summary References 2 Cloud computing

2. 2†Strategic and Managerial Challenges and Opportunities 2. 2. 1 Challenges Accompanying Cloud computing 2. 2. 2 Advantages and Risks in Cloud computing Outsourcing Projects

3 Mobile Services Abstract 3. 1†Introduction 3. 2†Mobile Services Drivers and Challenges 3. 3†Digital Management Solutions

3. 4†Case studies 3. 5†Summary References 4 Social Listening Abstract 4. 1†Introduction 4. 2†Marketing Analysis as Social Listening

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

5. 6†Enterprise Drivers Behind the Consumerization of IT 5. 7†Considerations Related to IT Consumerization

8. 2†Opportunities and Challenges Related to Digital Governance 8. 3†Digital Governance Mechanisms 8. 4†Digital Governance Success Factors

9 Reinventing Business models: The Third Way of Digital Innovation Abstract 9. 1†Introduction 9. 2†Fundamental Elements of a Business model

9. 2. 1 Offer to Customers 9. 2. 2 Value Network 9. 2. 3 Architecture

9. 2. 4 Finance 9. 3†Business model and Strategic Innovation 9. 3. 1 The Business model Configuration

9. 3. 2 Offer and Business model Alignment 9. 4†Digital Business model Innovation: Conceptualizations 9. 5†The Business model in the Information and Communication Economy

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

9. 6†Summary References 10 Innovation Practices Abstract 10. 1†Introduction 10. 2†Instabank 10.2.1 Developer

10.2.2 Applications 10. 3†Macrosense 10.3.1 Developer 10.3.2 Applications 10. 4†Billguard 10.4.1 Developer 10.4.2 Applications

10. 5†Mezzanine 10.5.1 Developer 10.5.2 Applications 10. 6†Tykoon 10.6.1 Developer 10.6.2 Applications 10. 7†Noldus Face Reader

10. 11†Starbucks Digital Ventures 10.11.1 Developer 10.11.2 Applications 10. 12†Summary References 11 Conclusion

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