Executives, reporters and analysts who use the term don't have a clear idea of what it means. They use it to describe everything from how a company earns revenue to how it structures its organization [Linder, 2001]
Dynamic business environment
New Information and Communication Technologies (ICT)
Increased & global competition
Shorter product life cycles
Fluid company borders & dynamic business networks
Business Webs [Tapscott & al., 2000]
Co-opetition [Brandenburger & al., 1996]
Fluid organizations [Selz, 1999]
e-Business Logic Today Business Processes Strategy Planning level Implementation level Information & Communication Technology (ICT) pressure e-Business processes e-Business Technology layer
Objectives & goals
Communication of strategy
Problem: Interpretation of strategy
Result: Re-inventing strategy
e-Business Logic Tomorrow Business Processes Business Model Strategy Planning level Architectural level Implementation level Information & Communication Technology (ICT) pressure e-Business opportunities & change e-Business processes e-Business Technology layer Conceptual architecture of a business strategy
A business model is not a description of a complex social system itself with all its actors, relations and processes. Instead it describes the logic of a “business system” for creating value, that lies behind the actual processes.
A business model is the conceptual and architectural implementation of a business strategy and represents the foundation for the implementation of business processes
Business Processes Business Model Strategy Business Impact
A company that defines it’s business model can...
The process of modeling social systems or ontologies– such as an e-business model – helps identifying and understanding the relevant elements in a domain and the relationships between them (Ushold et al., 1995; Morecroft, 1994).
The use of formalized e-business models (i.e. an ontology) helps managers communicate and share their understanding of a business among other stakeholders (Fensel, 2001).
React to rapid change
Mapping and using e-business models facilitates change . Business model designers can easily modify certain elements of an existing e-business model (Petrovic et al., 2001).
A company that defines it’s business model can… (continued)
A formalized e-business model can help identifying the relevant measures to follow in a business, similarly to the Balanced Scorecard Approach (Norton et al., 1992).
Simulate & learn
e-business models can help managers simulate businesses and learn about them. This is a way of doing risk free experiments, without endangering an organization (Sternman, 2000).
Enterprise ontologies: TOVE (Toronto Virtual Enterprise), The Enterprise Ontology ( html ), Core Enterprise Ontology (CEO)
e-Business Process ontologies (in XML): Transactions (xCBL, cXML), Ontology.org ( html )
Classification: Timmers ( pdf ), Rappa ( htm ), Tapscott.
Modeling (partial…): Hamel, Gordijn, Afuah, Linder ( html ).
MIT eBusiness Process Handbook ( html )
3 Research Levels Level 1 Level 3 Level 2 e-Business Model Equations e-Business Model Ontology e-Business Model Measurements Understanding model elements and relationships, communicate and share models, change models Pilote, follow, alert Simulate models, play and learn by changing models, understand consequences of change e-Business Model Simulator, e-Business Model Games e-Business Model Balanced Scorecard e-Business Model Framework (eBMF), Language (eBML), Handbook (eBMH) and Design Tool Research Projects Management Use
Research Objectives/Projects E-Business Model Ontology or Framework (eBMF) - concepts/models (components) - links between concepts/models E-Business Model Handbook - navigate in concepts (www) - graphical representation - illustrative examples E-Business Model Language (eBML) - ontology representation (xml) - graphical representation - knowledge sharing E-Business Model Design Tool - computer assisted design - evaluation - change management E-Business Model Simulation - scenarios (system dynamics) - learn about Business Models - be prepared E-Business Model Games - play, learn & understand
Definition of a Business Model A business model is nothing else than the value a company offers to one or several segments of customers and the architecture of the firm and its network of partners for creating, marketing and delivering this value and relationship capital, in order to generate profitable and sustainable revenue streams.
Definition of an e-Business Model PRODUCT INNOVATION INFRASTRUCTURE MANAGEMENT CUSTOMER RELATIONSHIP FINANCIAL ASPECTS
Definition of an e-Business Model Capabilities Value Proposition Target Customer PRODUCT INNOVATION
Definition of an e-Business Model Capabilities Value Proposition Target Customer PRODUCT INNOVATION Resources Value Configuration Partner Network INFRASTRUCTURE MANAGEMENT
Definition of an e-Business Model Capabilities Value Proposition Target Customer Resources Value Configuration Partner Network PRODUCT INNOVATION INFRASTRUCTURE MANAGEMENT Information Strategy Feel & Serve Trust & Loyalty CUSTOMER RELATIONSHIP
Definition of an e-Business Model Capabilities Value Proposition Target Customer Resources Value Configuration Partner Network Information Strategy Feel & Serve Trust & Loyalty PRODUCT INNOVATION INFRASTRUCTURE MANAGEMENT CUSTOMER RELATIONSHIP Cost Structure Revenue Model Profit/Loss FINANCIAL ASPECTS
Ontology: Relationships Between Concepts CUSTOMER RELATIONSHIP PRODUCT INNOVATION FINANCIAL ASPECTS INFRASTRUCTURE MANAGEMENT resource for resource for sold through revenue for resource for cost feedback for builds on TARGET CUSTOMER VALUE PROPOSITION CAPABILITIES RESOURCES & ASSETS ACTIVITY CONFIGURATION PARTNER NETWORK INFORMATION FEEL & SERVE TRUST & LOYALTY REVENUE MODEL PROFIT / LOSS COST MODEL has needs value for resource for builds on to enable supposes resource for builds on to improve to collect to establish to improve to increase diminishes builds on
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