Value Creation from E-Business Models


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The Matchmaker fosters the flow of value by making connections between producers and consumers. Data is at the heart of successful matchmaking, and distinguishes platforms from other business models. Chen stated that the business model has to take into account the capabilities of Web 2.

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He suggested that the service industry such as the airline, traffic, transportation, hotel, restaurant, information and communications technology and online gaming industries will be able to benefit in adopting business models that take into account the characteristics of Web 2.

He also emphasized that Business Model 2. He gave the example of the success story of Amazon in making huge revenues each year by developing an open platform that supports a community of companies that re-use Amazon's on-demand commerce services. Malone et al. In the healthcare space, and in particular in companies that leverage the power of Artificial Intelligence, the design of business models is particularly challenging as there are a multitude of value creation mechanisms and a multitude of possible stakeholders.

An emerging categorization has identified seven archetypes. In the context of the Software-Cluster, which is funded by the German Federal Ministry of Education and Research, a business model wizard [21] for software companies has been developed. It supports the design and analysis of software business models. The tool's underlying concept and data were published in various [ citation needed ] scientific publications.

The concept of a business model has been incorporated into certain accounting standards. For example, the International Accounting Standards Board IASB utilizes an "entity's business model for managing the financial assets" as a criterion for determining whether such assets should be measured at amortized cost or at fair value in its financial instruments accounting standard, IFRS 9. Both IASB and FASB have proposed using the concept of business model in the context of reporting a lessor's lease income and lease expense within their joint project on accounting for leases.

Business model design generally refers to the activity of designing a company's business model. It is part of the business development and business strategy process and involves design methods.

6.1 Business Models

Massa and Tucci [39] highlighted the difference between crafting a new business model when none is in place, as it is often the case with academic spinoffs and high technology entrepreneurship, and changing an existing business model, such as when the tooling company Hilti shifted from selling its tools to a leasing model. They suggested that the differences are so profound for example, lack of resource in the former case and inertia and conflicts with existing configurations and organisational structures in the latter that it could be worthwhile to adopt different terms for the two.

They suggest business model design to refer to the process of crafting a business model when none is in place and business model reconfiguration for process of changing an existing business model, also highlighting that the two process are not mutually exclusive, meaning reconfiguration may involve steps which parallel those of designing a business model. Al-Debei and Avison consider value finance as one of the main dimensions of BM which depicts information related to costing, pricing methods, and revenue structure.

Stewart and Zhao defined the business model as a statement of how a firm will make money and sustain its profit stream over time. Osterwalder et al. Mayo and Brown considered the business model as the design of key interdependent systems that create and sustain a competitive business.


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Zott and Amit consider business model design from the perspectives of design themes and design content. Design themes refer to the system's dominant value creation drivers and design content examines in greater detail the activities to be performed, the linking and sequencing of the activities and who will perform the activities. Developing a Framework for Business Model Development with an emphasis on Design Themes, Lim proposed the Environment-Strategy-Structure-Operations ESSO Business Model Development which takes into consideration the alignment of the organization's strategy with the organization's structure, operations, and the environmental factors in achieving competitive advantage in varying combination of cost, quality, time, flexibility, innovation and affective.

A business model design template can facilitate the process of designing and describing a company's business model. Daas et al. In their study a decision support system DSS is developed to help SaaS in this process, based on a design approach consisting of a design process that is guided by various design methods. In the early history of business models it was very typical to define business model types such as bricks-and-mortar or e-broker. However, these types usually describe only one aspect of the business most often the revenue model.

Therefore, more recent literature on business models concentrate on describing a business model as a whole, instead of only the most visible aspects.


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The following examples provide an overview for various business model types that have been in discussion since the invention of term business model :. Technology centric communities have defined "frameworks" for business modeling. These frameworks attempt to define a rigorous approach to defining business value streams. It is not clear, however, to what extent such frameworks are actually important for business planning.

How the Internet of Things Changes Business Models

Business model frameworks represent the core aspect of any company; they involve "the totality of how a company selects its customers defines and differentiates its offerings, defines the tasks it will perform itself and those it will outsource, configures its resource, goes to market, creates utility for customers, and captures profits". A review on business model frameworks can be found in Krumeich et al.

The process of business model design is part of business strategy. Business model design and innovation refer to the way a firm or a network of firms defines its business logic at the strategic level.

In contrast, firms implement their business model at the operational level, through their business operations. This refers to their process-level activities, capabilities, functions and infrastructure for example, their business processes and business process modeling , their organizational structures e. The brand is a consequence of the business model and has a symbiotic relationship with it, because the business model determines the brand promise, and the brand equity becomes a feature of the model.

Managing this is a task of integrated marketing.

The standard terminology and examples of business models do not apply to most nonprofit organizations , since their sources of income are generally not the same as the beneficiaries. The term 'funding model' is generally used instead. The model is defined by the organization's vision, mission, and values, as well as sets of boundaries for the organization—what products or services it will deliver, what customers or markets it will target, and what supply and delivery channels it will use.

While the business model includes high-level strategies and tactical direction for how the organization will implement the model, it also includes the annual goals that set the specific steps the organization intends to undertake in the next year and the measures for their expected accomplishment. Each of these is likely to be part of internal documentation that is available to the internal auditor.

When an organisation creates a new business model, the process is called business model innovation. This can comprise the development of entirely new business models, the diversification into additional business models, the acquisition of new business models, or the transformation from one business model to another see figure on the right. The transformation can affect the entire business model or individual or a combination of its value proposition, value creation and deliver, and value capture elements, the interrelations between the elements, and the value network.

Value creation and global chains: new business models - Paris Innovation Review

The concept facilitates the analysis and planning of transformations from one business model to another. From Wikipedia, the free encyclopedia. Major dimensions. Major thinkers. Frameworks and tools. Management accounting Financial accounting Financial audit.

Value Chain and E-Strategy - Components of Commercial Value Chain

Business entities. Corporate group Conglomerate company Holding company Cooperative Corporation Joint-stock company Limited liability company Partnership Privately held company Sole proprietorship State-owned enterprise. Corporate governance. Annual general meeting Board of directors Supervisory board Advisory board Audit committee.

Corporate law. Commercial law Constitutional documents Contract Corporate crime Corporate liability Insolvency law International trade law Mergers and acquisitions. Corporate title. Commodity Public economics Labour economics Development economics International economics Mixed economy Planned economy Econometrics Environmental economics Open economy Market economy Knowledge economy Microeconomics Macroeconomics Economic development Economic statistics.

Types of management. Business analysis Business ethics Business plan Business judgment rule Consumer behaviour Business operations International business Business model International trade Business process Business statistics. Procedia Manufacturing. The business model in practice and its implications for entrepreneurship research.

Models of opportunity: How entrepreneurs design firms to achieve the unexpected.

Value Creation from E-Business Models Value Creation from E-Business Models
Value Creation from E-Business Models Value Creation from E-Business Models
Value Creation from E-Business Models Value Creation from E-Business Models
Value Creation from E-Business Models Value Creation from E-Business Models
Value Creation from E-Business Models Value Creation from E-Business Models
Value Creation from E-Business Models Value Creation from E-Business Models
Value Creation from E-Business Models Value Creation from E-Business Models
Value Creation from E-Business Models Value Creation from E-Business Models
Value Creation from E-Business Models Value Creation from E-Business Models

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