DIGITAL BUSINESS MODEL TYPES: UNDERSTANDING THEIR MECHANISMS AS RECIPES TO COMMERCIALISE DIGITAL TECHNOLOGIES

The increasingly digital business landscape has created manifold novel opportunities as well as threats to traditional business models. In consequence, a broad variety of digital business models emerged. Powerful tools and managerial guidance on how to shape digital strategies in this volatile and uncertain terrain are sought-after, but remain rare. Building on an analysis of the world’s top-1.000 venture funded technology startups over the last decade, we identify 49 novel business model types that describe firms as vendors of digitally enabled products and services, as providers of resources and capabilities for digital business, and as facilitators of intermediation. Furthermore, we identify the novelties of these digital business models types in their components, i.e., value proposition as well as their value creation, delivery, and capture processes. The result is a recipe collection of novel mechanisms to guide and inspire other firms when commercialising digital technologies in their business models.

A Conceptual Approach for Business Model Innovation Including Strategic Simulations as Digital Prototypes for Decision Support

Business model innovations (BMIs) are a promising approach to be successful in hyper-competition. There are several approaches for the systematic development of BMI. Within these approaches, however, companies are faced with major challenges, especially, in the decision-making process. On the one hand, certain information is not available, and on the other hand, cause-and-effect relationships within the innovation networks or systems are not known. In certain contexts, simulations can close this gap. Thus, this paper addresses the research question of how simulations can be systematically integrated into BMI approaches. Therefore, BMI processes and different simulation applications are reviewed, the aspect of BMI prototyping is identified and an extended BMI approach is developed, which systematically integrates simulations.

Business Models for the Internet of Services: State of the Art and Research Agenda

The relevance of the Internet of Services (IoS) comes from the global reach of the Internet into everyone’s home and daily activities and from the move from a manufacturing-based economy to a service-based economy. The IoS is seen as a new ecosystem where service providers and consumers explore their business networks for service provision and consumption. The scientific literature refers to IoS as an important cornerstone for Industry 4.0 and Future Internet; thus, it becomes relevant to study how IoS interacts with business models. Nevertheless, there is a lack of clarity on such an intersection. Moreover, a systematic review of IoS-based business models is still missing. This paper aims to make a systematic review of IoS-based business models and their application fields. We included studies from Scopus and Web of Science databases, we excluded duplicated papers and short conference versions of the later full paper journal publications. Twenty-three different studies are presented, categorized in the sub-areas of IoS, and then by the fields of applications. The main finding highlights the opportunities of IoS applications in different fields, offering directions for future research on this new arena.

AI Startup Business Models

We currently observe the rapid emergence of startups that use Artificial Intelligence (AI) as part of their business model. While recent research suggests that AI startups employ novel or different business models, one could argue that AI technology has been used in business models for a long time already—questioning the novelty of those business models. Therefore, this study investigates how AI startup business models potentially differ from common IT-related business models. First, a business model taxonomy of AI startups is developed from a sample of 100 AI startups and four archetypal business model patterns are derived: AI-charged Product/Service Provider, AI Development Facilitator, Data Analytics Provider, and Deep Tech Researcher. Second, drawing on this descriptive analysis, three distinctive aspects of AI startup business models are discussed: (1) new value propositions through AI capabilities, (2) different roles of data for value creation, and (3) the impact of AI technology on the overall business logic. This study contributes to our fundamental understanding of AI startup business models by identifying their key characteristics, common instantiations, and distinctive aspects. Furthermore, this study proposes promising directions for future entrepreneurship research. For practice, the taxonomy and patterns serve as structured tools to support entrepreneurial action.

Patterns for Resilient Value Creation: Perspective of the German Electrical Industry during the COVID-19 Pandemic

The COVID-19 pandemic represents a massive, often unanticipated, external disruption for many companies. As a concept for responding to such disruption, organizational resilience has recently received great attention. In the organizational context, the overriding question is how companies can become more resilient. This study aims to contribute to answering this question by identifying, categorizing, and providing specific business model patterns for achieving resilience on the corporate level. For this purpose, a review of publications by major consulting firms was conducted. Patterns were extracted from publications until a convergence criterion indicated that no new pattern could be identified considering further publications. The 110 extracted unique patterns were clustered into 13 objectives, and additionally categorized according to resilience phases, as well as business model elements, to support the application in practice. The final catalog of patterns was validated through expert interviews and thus provides organizations, such as those in the electrical industry, with an overview and specific approaches on how to tackle industrial resilience through the adaption of their business model.

Business Models and Innovation in the Indonesian Smallholder Beef Value Chain

This paper proposes a framework for identification of business models in smallholder cattle production and marketing that represents innovation behaviour. Cattle are vital to Indonesia’s smallholders’ livelihoods, and smallholder systems are key to serving the country’s growing demand for beef. Business incentives currently select against the development and sustainability of breeding systems which would support domestic production, and so new models are needed which utilize innovation. The three primary components of a business model are presented: its value proposition, its value architecture, and its financing mechanism. A research approach is provided, by way of mapping data needs to the business models, and proposing relationships between observed innovation practices and the business models within the value chain. For implementation, the paper provides guidance on facilitation needs and the role of stakeholders in the case of the Indonesian cattle and beef value chain.

Business Models of Distributed Solar Photovoltaic Power of China: the Business Model Canvas Perspective

China is a world leader in the global solar photovoltaic industry, and has rapidly expanded its distributed solar photovoltaic (DSPV) power in recent years. However, China’s DSPV power is still in its infancy. As such, its business model is still in the exploratory stage, and faces many developmental obstacles. This paper summarizes and analyzes the main obstacles that China’s DSPV power is facing in its development, using a literature analysis methodology. Then, previous business models, such as host-owned, energy management contract (EMC), and third-party-owned (TPO), were studied using the Business Model Canvas (BMC) as an analytical tool. Moreover, the Lean Canvas (LC) method was used to further conduct a synthesis and comparative analysis with the three models, describing how and to what extent these models can overcome identified obstacles. Finally, the study highlighted the dominant position of EMC model.

Configuring New Business Models for Circular Economy through Product–Service Systems

Product—service systems (PSSs) are often outlined as potential enablers of new business models for circular economy. However, not all business models based on product-service systems have superior circularity potential. This research demonstrates how the application of a previously developed business model configurator for circular economy can support the design and assessment of customer value, economic and resource decoupling potential for product-service system business models in practice. By applying action research in two Nordic manufacturing companies from the furniture sector, different business model concepts based on product-service systems were proposed and assessed. Results indicate positive uptake by companies regarding the usefulness of the obtained outcomes. This research identified two key findings about ‘product-service system business models for circular economy’: (i) their configuration should fulfil certain simultaneous conditions—i.e. superior customer value, economic growth, and resource decoupling potential—to contribute to circular economy; and (ii) they are often ‘niche solutions’, fulfilling specific needs and customer segments, and more likely to flourish with certain types/characteristic of products, segments or geographical locations. Lastly, a framework outlining the conditions and trade-offs for assessing the circularity potential of business models based on product-service systems is introduced as one of the key contributions.

ORGANISATIONAL CHANGE AND BUSINESS MODEL INNOVATION: AN EXPLORATORY STUDY OF AN ENERGY UTILITY

We study the intricate relationship between business model innovation and the relevant organisational changes that can facilitate the renewal of a traditional business model. To do so, we build on the inductive, longitudinal single case study of an energy utility, describing the mechanisms through which the business model has been innovated over time, and the organisational changes that enabled and fostered such innovation. The innovation itself was a result of the need to face the current digital transformation that is compelling energy utilities to renew their traditional business models and offer customers a new value proposition. This study therefore contributes to the ongoing academic debate on business model innovation and its practical application, adding to the broad discussion on organisational ambidexterity and the analysis of the most relevant organisational changes adopted to implement effective business model innovation.

BUSINESS MODEL INNOVATION AND SMEs PERFORMANCE — DOES COMPETITIVE ADVANTAGE MEDIATE?

In the era of globalisation and dynamic market, firms look for competitive advantage and survival using different sources and resources. Prior studies have indicated that Business Model Innovation (BMI) is a core driver for firm’s survival and superior performance especially in growing industries. However, the role of BMI has been discussed theoretically and exploratory while empirical studies are still lacking. Hence, this study examines the importance of BMI in SME performance and the mediating role of competitive advantage. Data were collected through structured questionnaires using a sample size of 303 manufacturing SMEs operating in the emerging market of Pakistan. Hypotheses were tested through Structural Equation Modelling (SEM) using AMOS.21. The results indicate that BMI has a significant positive impact on competitive advantage and SME performance. Competitive advantage partially mediates the relationship between BMI and SME performance. Firms are required to create an effective business model to acquire competitive advantage and superior financial performance. Implications for practice have been discussed.