Designing Scalable Business Models

Digital business models are often designed for rapid growth, and some relatively young companies have indeed achieved global scale. However despite the visibility and importance of this phenomenon, analysis of scale and scalability remains underdeveloped in management literature. When it is addressed, analysis of this phenomenon is often over-influenced by arguments about economies of scale in production and distribution. To redress this omission, this paper draws on economic, organization and technology management literature to provide a detailed examination of the sources of scaling in digital businesses. We propose three mechanisms by which digital business models attempt to gain scale: engaging both non- paying users and paying customers; organizing customer engagement to allow self- customization; and orchestrating networked value chains, such as platforms or multi-sided business models. Scaling conditions are discussed, and propositions developed and illustrated with examples of big data entrepreneurial firms

Organizing for Service Innovation: Best-Practice or Configurations?

In this paper we contrast the notions of best-practice and configurations contingent on environmental conditions. The analysis draws upon our study of 38 UK and 70 US service firms which includes an assessment of the organization, processes, tools and systems used, and how these factors influence variation in the development and delivery of new services. The best-practice framework is found to be predictive of performance improvement in samples in both the UK and USA, but the model better fits the USA than UK data. We analyze the UK data to identify alternative configurations. Four system configurations are identified: project-based; mass customization; cellular; and organic-technical. Each has a different combination of organization, processes, tools and systems which offer different performance advantages. The results provide an opportunity for updating the typologies of operations and adapting them to include services, and begin to challenge the notion of any universal 'best practice' management or organization of new product or service development.service industry, performance improvement, best-practice, alternative system configurations

Reconfigurability Function Deployment in Software Development

In the forthcoming highly dynamic and complex business environment high-speed and cost-effective development of software applications for targeting a precise, unique and momentary set of requirements (no more-no less) associated to a customized business case will bring sig-nificant benefits both for producers and users. This requires a life cycle change-oriented ap-proach in software development. In this respect, designing software with intrinsic evolutionary resources for reconfiguration represents the sound approach. A methodology for concurrent deployment of reconfigurability characteristics in software applications is introduced in this paper. Its potential is exemplified in a case study dealing with web-based software tools to support systematic product innovation projects.Reconfigurability, Software Development, Innovation, TRIZ, RAD

MODES OF INNOVATION & UNCERTAINTIES IN THE CAPITAL GOODS INDUSTRY

Product innovation is a subtle process, frequently leading to shifts in the competitiveness of firms. Developing products in an environment undergoing technological change is given to frequent failure, even in well-established and sophisticated organizations. In order to tackle competitiveness and to deal with innovation uncertainty, firms develop diverse innovation processes. Two modes of innovation are suggested in recent literature: 1) Science, Technology and Innovation (STI) mode, which is based on the production and use of codified scientific and technical knowledge; and 2) Doing, Using and Interacting (DUI) mode, which relies on informal processes of learning and experience-based know-how. In this paper we analyse product innovation at firm level. We perform an exploratory analysis in four leading equipment and machinery producers from the Aveiro region, in Portugal. Doing so, we explore the main features of the capital goods’ industry with implications for innovation, and analyse the dominant uncertainties associated to the innovation process. and modes of innovation. Key findings include the complete absence of DUI mode in the cases studied, and even a low learning characteristic in one company. The paper concludes by considering the implications for firms’ competitiveness and for innovation policy.modes of innovation, uncertainties, R&D, capital goods, SME

The Viability of Alternative Call Center Production Models

[Excerpt] The central question of this paper is whether a mass customization strategy coupled with high involvement work practices is an economically viable model for service and sales call centers. If so, under what conditions and why? To answer these questions, in the next section, we describe alternative models of call center management. In section III, we present a conceptual framework for understanding the relationship between management practices, workers reactions to those practices, and performance outcomes. We then review empirical evidence on these relationships, focusing primarily on studies of call centers or related service workplaces. In section IV, we draw on evidence from two recent quantitative studies of call centers to examine the performance outcomes of high involvement practices in this context. We close with a discussion and critique of existing evidence and suggestions for future research

The Business Model Handbook for Developing Countries

The Business Model Handbook (BMH) for developing countries is a proposition for a tool that has the goal to help Small and Medium Sized Enterprises (SME) and local entrepreneurs to design business models that use Information and Communication Technologies (ICT) and particularly the Internet in the context of developing economies. It shall help to develop the urgently needed critical mass of knowledge workers, technology users, and motivated entrepreneurs in order to deploy ICT in businesses of developing countries. Never before the Internet it has been as easy to share and transfer knowledge in such an efficient and global way. The objective of this Paper is twofold. First it proposes a theoretical business model framework (BMF) which shall allow SMEs, but also motivated local entrepreneurs in developing countries to understand the most relevant business issues in the Information Society. The BMF gives special attention to the opportunities that arise out of the use of Information Technology (IT) and particularly the use of the Internet for businesses in emerging economies (i.e. e-commerce). The second objective, which is the introduction of the Business Model Handbook for Developing Countries, shall allow an efficient knowledge transfer of the concepts developed and illustrated in the BMF. Therefore, the BMH should be deployed as a Web based tool, which allows Users to navigate through the concepts and the corresponding real world examples (case studies) and easily learn about business opportunities.developing countries, e-business

Modeling e-Business with eBML

In this paper we demonstrate that modeling e-business strategies is important in a time where the first e-business disillusionment has taken place. The objective of this Paper is twofold. First we propose a theoretical e-business model framework (eBMF) for aligning e-business initiatives and projects. This framework rep-resents an ontology, which will allow firms to develop a sound e-business model, in an environment that is amongst other things characterized by new forms of network organizations. Second we show why the eX-tensible Markup Language (XML) is an adequate technology for describing this theoretical framework in a formal way.xml, e-business models, e-business

Determinants for a generic mobile commerce transformation framework

Current technological advancement has given the necessary impetus for businesses to transform from traditional ways into to mobile business or m-businesses. This transformation has begun from the Internet era, where traditional businesses transformed to e-businesses by taking advantages of the facilities offered by the Internet. Recent development in wireless technology facilitated businesses to move further to m-businesses. Despite the development in the technical domain, it appears that businesses still struggle to comprehend the processes involved in the transformation because a proper framework is yet to evolve. This work-in-progress paper provides a background to such transformation with a method to achieve this transformation

A Consumer-Centric Open Innovation Framework for Food and Packaging Manufacturing

This article has been archived following written permission from IGI Global.Closed innovation approaches have been employed for many years in the food industry. But, this sector recently perceives its end-user to be wary of radically new products and changes in consumption patterns. However, new product development involves not only the product itself but also the entire manufacturing and distribution network. In this paper, we present a new ICT based framework that embraces open innovation to place customers in the product development loop but at the same time assesses and eventually coordinates the entire manufacturing and supply chain. The aim is to design new food products that consumers will buy and at the same time ensure that these products will reach the consumer in time and at adequate quantity. On the product development side, our framework enables new food products that offer an integrated sensory experience of food and packaging, which encompass customization, healthy eating, and sustainability