development of (cooperative and shared) business models (Ridley-Duff and Bull 2011 One important site for social innovation is the workplace.
seek inspiration from business models which have proved historically successful. For instance, the first successful cooperative was formed in 1849 in the north of England and
At the meso-level, social innovations require alternative business models of financing distribution and/or employment and so these factors will be important in facilitating or
asymmetry, and new business models that threaten to disrupt or even collapse individual companies or even entire industries, leaders find it
human and society challenges, with new business models, products and services that make sense for corporations and benefit each global citizen
Next-generation business models are reshaping the landscape of the business environment. The â€oevalue for Many†concept implies producing
artificial intelligence, will open new business models and opportunities for growth. Future convergence will be defined as convergence of products (Eg
the need for business model innovation and-in par ticular-the need to harmonise multiple types of innovation to address complex and interlinked
and business models for the future, including resurgence in nuclear power, newly exploited fuels such as shale gas and
smart technology and the deployment of service-based business models based on energy savings The creation of such smar t buildings with energy management systems
models of the future which will lead to new mobility business models and some exciting new products and solutions.
deliver it successfully, the business models of the future, the stakeholders and the areas and sectors that are poised for the highest growth
markets with profitable business models. A number of companies have developed multiple products and solutions around this theme of growth
solutions driven by the †value-for-many†business model to bring affordable essentials to par ts of society that would traditionally not be able to afford
and business models including finance. †Social Innovation to answer Society†s Challenges  2014 Frost & Sullivan www. frost. com14
products and business models, including finance. Sectors that were seen as separated in the past are converging into new products and services
new business models to bring about real positive change to the lives of individuals and societies, delivering shared value,
information analytics, new business models and integrated service-oriented solutions In our research to size the global Social Innovation opportunity, Frost &
New Business models in Traditional Industries â€oehitachi brings the service based Train concept to drive business model innovation in
the rail industry†Hitachi has won a landmark project in the UK to deliver rolling stock and maintenance
information, infrastructure, technology and new business models. And this is all with the backdrop of a $2 trillion Social Innovation opportunity
Business models which are scalable, replicable and cost effective because of existing distribution network and structures are also advantageous in
many†business models, which in turn play a significant role in the emerging Business to Society (B2s) model
business model is an excellent example of this, which uses collective bargaining over the internet to bring down the
many†business model is that of sharing and renting. Car sharing schemes such as Zipcar and other sharing
business models such as Parkatmyhouse. com help people find and rent cars and assets at an affordable rate
many†business models are increasingly encouraging individuals to radically prioritise access over ownership, and choose sharing, renting, swapping
o There is a need to deliver value for many through new business models such as mobility solutions like car sharing that prioritise access over
The WPA business model allows the consortium to own operate and maintain all water infrastructure and allows
meet growing human challenges, with new business models, products and services that make sense for corporations and benefit each global citizen
Transportation, and ICT, through new business models, superior products and novel services aligned with the key mega trends driving the future
business models, integrating superior products and creative services into total solutions as a service. This new breed of innovators will also strike
Any business model for Rosslare Europort and its business stakeholders needs to track emerging trends and respond to them appropriately so as to ensure timely investments are made
Changes in the Shipping and Logistics Markets †Changes in the market place outlined above will require a shift in the business model for Rosslare Port.
New Business model †A shared vision and action plan is needed across all key stakeholders on the appropriate business model for the Port
education theories, new business models open education computational tools, and new and emerging technologies in the educational technologies marketplace, â€
Digital Business models: Review and Synthesis 2. 1 Origins of Business models While technological disruptions are changing the competitive landscape, their full
impact on business structures, processes, and innovativeness are understood less and vary significantly across companies in the same industry, and may ironically
multiple definitions of business models exist, which pose significant challenges for understanding essential components In general, there is no accepted definition of the term ††business model††(Shafer
expression business model can be traced back to the writings of Peter Drucker Ramon et al. 2009), the concept had gained prominence only in the last decade or
While business model has been part of the business jargon for a long time, it has been argued that the focus initially involved a scientific analysis of firms has been on industry, and
) Others, in fact, some have argued that the concept of a business model, is relatively new, dating back to only the early 1980s.
essential components of a business model. They also lead to confusion in termi -nology as ††business model, strategy, business concept, revenue model and
economic model are used often interchangeably†(and moreover) the business model has been referred to as architecture, design, pattern, plan, method
For example some definitions of business models a. Baden-Fuller et al. when they define business models ††the logic of the firm, the
way it operates and how it creates value for its stakeholders (2000 b. Timmers defines the business model as architecture for product, service and
information flows, including a description of the various business actors and their roles; and a description of the potential benefits for various business
d. Johnson et al. define ††Business model consists of four interlocking elements that, taken together create
e. Ostenwalder et al. define ††A business model is a conceptual tool containing a set of objects, concepts and their relationships with the objective to express the
g. Demil and Lecocq, define ††business model as, the description of the articula -tion between different business model components or building blocks to pro
-duce a proposition that can generate value for consumers and thus for the organization††(Demil and Lecocq 2010
h. Sorescu et al. define ††a business model is specified a well system of interde -pendent structures, activities,
In addition, the concept of business models can be seen as having progressed in 5 stages as shown in Fig. 2. 1 (Gordijn et al. 2005.
term business model started to become prominent, a number of authors suggested business model definitions and classifications.
Then, during the second phase authors started to complete the definitions by proposing what elements belong into
a business models. Initially, these propositions were simple shopping lists, just mentioning the components of a business model.
Only in a third phase followed detailed descriptions of these components (Hamel 2000; Weill and Vitale 2001
-ponents conceptually culminating in business model ontologies. In this phase models also started to be evaluated more rigorously or tested.
14 2 Digital Business models: Review and Synthesis We assert that in the sixth phase, the focus is now on theory building and dynamic
A business model is a representation of the strategic choices that characterize a business venture. These choices are made either intentionally or by default, so the
contribution of a business model is to make them explicit (Morris et al. 2005 Thus, the business model can be seen as a communication or a planning tool.
It allows entrepreneurs, investors, and partners to examine strategic choices for internal consistency, to surface the assumptions of the business plan, and to
Business model development may be part of new venture planning, but is often just as useful in sense making around a going concern,
Furthermore, although properly formed business models are very useful and can be a strategic tool for a firm,
many business models however suffer from 4 common problems (Shafer et al. 2005), namely •Flawed or untested assumptions underlying the key premises of a firm†s busi
business logic in only one ††component††of the business model, and making untested assumptions about the others
thus negatively affect the ††revenue generation††aspects of business models •Flawed assumptions about the value network;
Fig. 2. 1 Progression of business model studies 2. 1 Origins of Business models 15 Table 2. 1 summarizes some of the attempts to capture the concept of business
models over the last two decades or so. The number of components proposed in each model ranges from 3 to 9. In general, three general categories of definitions
2. 2 Why Digital Business models The role of information technology and its relationship to the business has shifted
more recently to the design of business models for services provided through digital platforms (Fig. 2. 2). While this attention to business models for digital
platforms initially started in the networked digital industry (telecom, media entertainment, gaming. software, etc. it is increasingly being propagated to all
16 2 Digital Business models: Review and Synthesis Table 2. 1 Comparison of business model approaches Source Components Number of
components Eco -system Digital platform Horowitz (1996) Price, product, distribution organizational characteristics and technology 5 No Some
2. 2 Why Digital Business models 17 Table 2. 1 (continued Source Components Number of components
18 2 Digital Business models: Review and Synthesis into one fabric†it no longer makes sense to talk about information technology as
) To theorize about new business models and by adding a few ††digital††features to the theory would lead to
We realize that a theory of digital business models and digital service must integrate the distinct attributes of digital business ecosystems from the get-go
2. 2 Why Digital Business models 19 are standards or architectures that allow modular substitution of complementary
As business models have become more digital, firm capabilities themselves have become more modular, more easily
20 2 Digital Business models: Review and Synthesis http://www. springer. com/978-3-642-31764-4
2 Digital Business models: Review and Synthesis 2. 1†Origins of Business models 2. 2†Why Digital Business models
2. 3†New Architectures
Understanding Digital Technology†s Evolution and the Path of Measured Productivity Growth Present and Future in the Mirror of the Past
by Paul A. David Stanford university & All Souls College, Oxford First draft: 20,may 1999 Second draft:
and business models; typically they are marked also by the accelerated rate of appearance of new goods and
change operations, social and business models and strategic considerations, although new governance arrangements are needed typically to make this work
market business models and generating the majority of their income from sales (social enterprise activity); ) and second, there are those dependent on
functioning business models operating in regular markets are unlikely or impossible We may hypothesize that this latter type
sustainable business models are somehow of less social value †but generating capital flows for them
types of social and business models not otherwise possible. This can be highly transformative of existing processes, roles and relationships
with easy-to-use 3g USB modems and attractive business models. Based on the cur -rent trends in telecommunications, vendors prognosticate that mobile networks will
-ture of interconnection tariffs, business models, marketing factors. Thus, the assessment methodology focused on another quantifiable metric, namely the inter-domain traffic
developed a wide range of on-line business models to enable sustainable electronic business. Furthermore, the Internet is increasingly pervading society 3. Widespread
D2. 5 Business models, Public Deliverable http://www. mobithin. eu (accessed December 1, 2010 14. SENDORA project:
reaches to the applications and business models, ranging from the exchange of data of physical objects for the optimization of business scenarios in, e g.,
emergence of new business opportunities and business models will fail on this 212 R. Glott et al
mix of adaptation of existing technologies and business models, such as ï exible infrastructures and service compositions, distributed ownerships, and large-scale
A last issue relates to the privacy business model. The main question is: What should motivate the data collectors/processors to implement such technology
Actually, in many cases, their business model relies on the as-less-restricted-as -possible use of private data.
diverse business models, legal, regulative and governance issues •Energy awareness The content of this book includes three chapters covering some of the above research
needs to support sustainable business models, in order to drive innovation, competi -tion, and research. Combining optical network technology with Cloud technology is
number of applications and business models supported by the Internet have also largely affected its nature and structure (3, 4
classes of applications and related business models 5. If today†s Internet is a crucial element of our economy, FI will play an even more vital role in every conceivable
suitable business models 12. The current Internet has been founded on a basic archi -tectural premise, that is: a simple network service can be used as a â€oeuniversal meansâ€
-worked applications, business models, edge devices and infrastructures-so as to guarantee higher levels of scalability, mobility, flexibility, security, reliability and
Business models for Electronic Markets. The International Journal on Elec -tronic Markets and Business Media 8 (2), 3†8 (1998
Internet Business models and Strategies: Text and Cases Mcgraw-hill, New york (2000 6. European Future Internet portal (2010), http://www. future-internet. eu
-tainable business models, in order to drive innovation, competition, and research. Combining optical network technology with Cloud technology
6. Develop a sustainable and strategic business model: Currently, the business models deployed by telecom operators are focused on selling services
on top of their infrastructures. In addition, operators cannot oï €er dynamic and smooth integration of diversiï ed resources and services (both IT and
believe that a novel business model is necessary, which can fully integrate the network substrate with the IT resources into a single infrastructure.
addition, such business model will let operators oï €er their infrastructures as a service to third-party entities
3. 3 New Roles and Strategic Business model Given this virtualized network and IT architecture, new actors are emerging
to contribute in a business model where complex services (e g.,, Cloud comput -ing) with complex attributes (e g.,
solutions can enable new delivery channels and new business models for the services industrial sector The Future Internet will be comprised of a large number of heterogeneous compo
new flexible business models have to be supported by the Media Ecosystem. Finally such a system can bring breakthrough opportunities in various domains such as com
-tainability of smart cities through viable business models The first task that cities must address in becoming smart is to create a rich envi
business models that turn technological capabilities into innovations, secure a con -tinuous flow of data and information,
that of creating business models that sustain the long-term operation of smart cities. To date, the environment for applications and
their business models has been very complex, with limited solutions available †off the shelfâ€, a lot of experimentation,
applications, business models, and services. Standardisation would dramatically reduce the development and maintenance costs of e-services due to cooperation, exchange
funding mechanisms and business models for their sustainability been developed Creating the market constitutes the first priority.
such as open innovation and open business models 16, Web 2. 0 17 as well as Living Labs 18, a concept originating from the work of William
-bodies open business models of collaboration between citizens, enterprises and local governments, and the willingness of all parties-including citizens and SMES-to en
-eration (NG) Iot platforms suitable to different usage areas and open business models to improve market dynamics by involving third parties in the value chain (SMES
New Roles and Strategic Business model Virtual Infrastructures in Action Virtual Infrastructure Life cycle Controlling the Virtual Infrastructures
13 TÃ nis Mets,.Creative Business model Innovation for Globalizing SMES, Entrepreneurship-Creativity and Innovative Business
20 Business models for Small and Medium-Sized Enterprises, in Constructing the European Information Socia1yfair, 1998, pp
a sustainable business model is taking shape with the help of OI: â€oeeverything starts from myself, Richard,
an IP-based business model: The case of IMEC, a world-class research institute in nano-electronics
business models †such as social enterprises, cooperatives or socially driven businesses Together, The New Nature of Innovation and the recommendations of the
business models, laws and regulations, data and infrastructures, and entirely new ways of thinking and doing.
the development of new social business models One of the most significant developments has been in the growth of social
terms of a business model. Built for a lifecycle of 15 years, the car is also cheap
projects and business models, to design and marketing. This reflects the early stage that the field is at †but contrasts with neighbouring fields such as
social and business models and new consumption patterns. Broadband is not simply a new communication line but a new social infrastructureâ€. clxxiii
translate business models directly into the social field. For example, trying too hard to privatise ideas, or protect their IP,
social movements, business models, laws and regulations, data and infrastructures, and entirely new ways of thinking
•A business model that runs parallel to the core idea of the venture and which sets out how it can become sustainable
depends on a business model †a clear idea of how it will generate a sufficient income stream that covers more than costs.
105) Innovative business models. The business concepts of the social economy require as much care and creativity in their generation as the
For social enterprises, the business model represents a strategy for sustainability. It needs to be simple, persuasive and
Business models that work are themselves a prime area for social innovation. They are as diverse as business models in commercial
markets, ranging from direct service provision to commissioners through models that create value for customers to models similar to
The context for a business model is a business strategy about how the proposed venture is positioned on the economic
There are a range of social business models that involve recognising the potential value of a venture†s assets and
business models adopted by web companies which, like social ventures have an interest in maintaining free access, while at the same time
Business models together with business strategies then need to be turned into business plans. Although it is rare for a
help to define business models and business plans. The Bell-Mason methods from the field of venture capital, for example, provide a rigorous
is the creation of a database of open business models 199) Barefoot consultants. There is an important role for consultants and
laws, regulations, business models, habits in the home (separating waste collection systems, and new ways of reusing
new regulations, directives, business models, and public attitudes 232) Prevention. Many new scripts are about investing in prevention rather
because their business model draws on the fact that any new venture needs to be based somewhere,
Inspirational examples and more information on successful business models 3 SUPPORT IN THE MARKET ECONOMY 181 are critical for the growth and sustainability of the social enterprise sector
Social business models Social business models are enabling organisations to tap into new sources of funding, and organise governance
and accountability structures in a way that resonates with the mission of the organisation (see also methods on ownership
450) Hybrid business models that combine business capacities with 3 184 THE OPEN BOOK OF SOCIAL INNOVATION
new systems are developing innovative business models to cover the costs involved †this is especially the case where services are provided for free
-economic impacts of new technologies, working practices and business models. This interplay between RTD, policy, and implementation affects the business environment for
to Small businesses by using new and more effective business models Three main key issues should be addressed to effectively support Small Businesses
but also innovative business models, sectorial services.)) continuously appear and decree the obsolescence of the other â€oedigital
business models Open source models operating systems Simple species Grass worms tiger Small organizations universities c hambe r s o f
the knowledge sharing aspect and the business models and practices Therefore, it also includes instruments for knowledge sharing, for knowledge basis set
business models; repository of practices, business solutions, regulations; newsletters ï€'†The services, following the digital ecosystem philosophy are subject to selection and
business models ï€'for the â€oedigital species†of specialised ecosystem: encouraging the maximum coexistence and diversity of models and licences, supporting as much as
-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
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...
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...
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
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
rely and exploit Big data to develop flexible strategy and business models, thus anticipating and responding to volatility of market and customer needs, while
transformational typologies and business model impacts. Eur J Inf Syst 20: 358†374. doi: 10 1057/Ejis. 2010.65
is on networking benefits for value creation, asking for new business models and pricing strategies, likewise.
by final users and the current business model adopted by a given company may not always sustain the service design and delivery,
Business models 1†4; on the other hand, they have to innovate their CRM systems, often asynchronous in their descriptive and predictive functions and
business models, have been implemented supporting decision making processes in different fields such as, e g.,, R&d, market research and analysis, and customer
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
2. Osterwalder A, Pigneur Y, Tucci C (2005) Clarifying business models: origins, present, and future of the concept.
4. Weill P, Malone T, D†Urso VT, Herman G, Woerner S (2005) Do some business models
plans for incentive mechanisms and frameworks that suit existing business models and real world systems such as workflow, human-provided services, as well as
-quent constant revision of value propositions and business models for re-branding a company digital business, due to strict time-to market.
consequence is a continual revision of value propositions and business models for re-branding a company digital business.
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
2 Business model innovation is going to be discussed in Chap. 9 7. 3 Digital Brand Management 139
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
theory, the problem of setting up a business model that makes the creation and appropriation of value by production companies possible does not arise
design as the key element behind new types of emerging business models emphasizing its central role in enabling companies to successfully manage the
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
business and the academic world towards the business model as a fundamental enabler of the ability to compete
types of business models possible, making this notion even more significant 13 but also introduced new competitive pressures that have reshaped entire industries
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.
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
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
Table 9. 1 Definitions of business model Authors Definition Key concepts Magretta 2002 21 A story that explains how companies
A good business model is able to answer to the long -standing questions of Peter Drucker:
business model is conceived as a focusing device that mediates between technological development and the creation of
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
9. 2 Fundamental Elements of a Business model 169 and services. Thus, the BM of a company must contain a description that sum
According to this perspective, the business model of a company defines its position within the value chain in
successfully implement their own business model. In addition, the companies†focus has to be brought to those critical processes that ensure sustainability
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
170 9 Reinventing Business models 9. 2. 4 Finance The financial dimension of the BM explains how the company is able to generate
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
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
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
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
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
a solid business model that allows a profitable commercialization 11. As it is now widely recognized both in theory and in business practice,
9. 3 Business model and Strategic Innovation 173 must understand and take into consideration two fundamental aspects:
formulating and implementing effective business models 3 It can rightly be argued that the ††original sin††of many of the so-called dot com
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
business model that could convert the number of users who visited their sites in cash flows and profits.
The centrality of the business model can be defined through the two following core processes any company is necessarily
In this sense, a proper business model involves the construction of a system of relations which enables effective coordination in the
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
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.
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
176 9 Reinventing Business models systems, online commerce, interactive customer service) that enable the creation of value not only through the reduction of costs,
-sitions and business models 39. First of all, the market is no longer just a physical place and geographically fragmented,
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
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
The formulation and implementation of an appropriate business model are vital to meet the challenges of the digital economy,
-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,
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
9. 5 The Business model in the Information and Communication Economy The consolidation of the information and communication economy is the culmi
178 9 Reinventing Business models defined as any product that can be digitized, represented as a sequence of bits and
9. 5 The Business model in the Information and Communication Economy 179 experience goods must devise strategies to persuade users to overcome their
180 9 Reinventing Business models such as the telephone, the fax and internet access, are a clear example of
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.
The configuration (or reconfiguration) of a business model is often the direct result of technological innovation which makes it necessary to bring to
9. 5 The Business model in the Information and Communication Economy 181 companies for many years, pushing towards a profound transformation of these
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
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
because it operates within a business model capable of transforming the output of R&d in economic value,
more important to build a business model that can collect, integrate and enhance the best ideas, selecting
an open business model as a fundamental source of innovation advantage, aimed at expanding the knowledge base of the company,
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
2. Jones GM (1960) Educators, electrons, and business models: a problem in synthesis. Account Rev 35:
3. Teece D (2010) Business models, business strategy and innovation. Long Range Plann 43: 172†194. doi:
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186 9 Reinventing Business models Chapter 10 Innovation Practices Abstract This Chapter focuses on examples of digital innovation in practice
in this multi-sided-platform business model is the Financial institution willing to get the integrated bill monitoring
company intends to leverage IT value in its business model In Table 10.19 the representation shows a short time-to-market,
business model dedicated to all Starbucks customers. All services and initiatives share a customer-oriented approach,
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
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. 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
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