How Software Can Support Innovating Business Models: A Taxonomy of Functions of Business Model Development Tools

The interest in business model innovation has risen rapidly in recent years, and software tools for business model development hold great promise for supporting business model innovation. Nonetheless, virtually no design-relevant knowledge exists concerning the functions that such tools should possess. Therefore, we develop a comprehensive taxonomy that identifies characteristic functions of software-based business model development tools. For developing the taxonomy, we draw on prior research on business model innovation, process modeling, and creativity support systems, and we analyze software tools for business model development that have been proposed in practice. The resulting taxonomy can support practitioners in their tool (re-)design and investment decisions, and for researchers can serve as a preliminary step towards more advanced theories for software tools for business model development

Reviewing literature on digitalization, business model innovation, and sustainable industry : past achievements and future promises

Digitalization is revolutionizing the way business is conducted within industrial value chains through the use of Internet of Things (IoT) technologies, intensive data exchange and predictive analytics. However, technological application on its own is not enough; profiting from digitalization requires business model innovation such as making the transition to advanced service business models. Yet, many research gaps remain in analyzing how industrial companies can leverage digitalization to transform their business models to achieve sustainability benefits. Specifically, challenges related to value creation, value delivery, and value capture components of business model innovation need further understanding as well as how alignment of these components drive sustainable industry initiatives. Thus, this special issue editorial attempts to take stock of the emerging research field through a literature review and providing a synthesis of special issue contributions. In doing so, we contribute by developing a framework that communicates and sets the direction for future research by linking digitalization, business model innovation, and sustainability in industrial settings.fi=vertaisarvioimaton|en=nonPeerReviewed

Definition of requirements to pursue a Servitization Strategy in SME: the case of AMT firms in the Ornamental Stones cluster

The introduction of advanced services in a servitization business model is under close scrutiny for a SME supplying advanced technologies. The proposed conceptual model is based on three cornerstones, i.e. strategy, organizational structure, ICT requirements. It was developed and checked by using data from semi-structured interviews, unstructured observations and documentation surveying. The outcomes significance support the model usefulness within the Ornamental Stones cluster. Virtual Breeding Environments/Virtual Organizations, Digital Business Platforms, Industry4.0 and open innovation appear to be required to leverage progress towards advanced servitization and so, promote competitive advantage and cluster survival. INOVSTONE4.0 illustrates a collaborative initiative within this domain.info:eu-repo/semantics/acceptedVersio

Drivers and Impacts of R&D Adoption on Transport and Logistics Services

Actually, technologies and applications in industries are changing via business restructuring, new business models, new knowledge and supply chains. So R&D is not focused primarily on manufacturing industry as it used to be, but on different kinds of industries as logistics and transport (TLS). Nevertheless, the characteristics of the TLS industry determine the introduction of specific R&D solutions accordingly to sectors operations. The objective of this paper is to describe the R&D opportunities in the TLS industry and how managers use them to make their businesses more innovative and efficient. Using the Structure-Conduct-Performance (SCP) model the paper identifies the links between R&D adoption and innovation dynamics. Relating the findings, on the driver’s side there are three points that are worth mentioning: increasing market competition, the relationships of firms interacting with each other and the availability and quality of complementary assets such as employee skills and IT know-how. On the impacts’ side, firms advanced in terms of implementing R&D solutions are more likely to implement organizational changes. Finally, a set of recommendations on how to further improve the continuous innovation in the TLS industry is presented

Innovation Management in Iberdrola

Innovation is Iberdrola’s main tool to guarantee its sustainability, efficiency and competitiveness. The model in Iberdrola is decentralised because the process is carried out independently in each Business Unit with support and coordination from the Innovation Department and open innovation because it seeks to involve Group technology suppliers such as universities, technology centres and equipment manufacturers in the innovation process. Research, Development and Innovation efforts comprise three main components: Efficiency: optimising operations, managing the life of facilities and equipment, bringing down operating and maintenance costs and reducing the environmental impact. New products and services to meet customer needs through digitalisation, automation and tailored solutions. Disruptive technologies and business models to tackle future energy challenges. The Company has organised its R&D Management System so that the Innovation Department can provide the Business Units with a global model, since we believe that there should be a single, standard and systematic innovation process for the entire organisation. Thanks to the commitment with Innovation, Iberdrola has positioned as a world leader in the offshore area, where it develops the most advanced and innovative projects. Wikinger Offshore wind farm is an emblematic project for Iberdrola, the symbol of Iberdrola’s commitment to innovation, sustainability and internationalisation

Designing an ICT tooling platform to support SME business model innovation: Results of a first design cycle

Business model innovation (BMI) is becoming increasingly relevant for enterprises as they are faced with profound changes like digitalization. While business model thinking in academia has advanced, practical tooling that supports business model innovation for small and medium sized enterprises (SMEs) is still lacking. In this paper, we design, implement and evaluate an online platform with ICT-enabled tooling that supports business model innovation by SMEs. Based on interviews with ten SMEs and SME helpers, we define requirements for the BMI tooling platform. The implemented platform offers downloadable tools, decision support for finding the proper tooling, and interactive features for building communities of SMEs. Evaluation through log data analysis and informal interviews shows that the platform is usable and provides a relevant overview of BMI tooling, although several improvements are still suggested. As next steps, we will (1) create prefilled tools and templates to speed up the process of BMI; (2) create educational videos on how to use the tooling; (3) define paths on how to move from one tool to another; and (4) enhance the community features on the platform. The paper contributes to understanding how academic conceptualizations of BMI can be transferred into practically valuable artefacts for SMEs

The nature of publicly funded innovation and implications for regional growth: Reflections from the Sheffield City Region

Purpose: The aim of this paper is to unpack the nature of business innovation and understand the impact on regional innovation and competitiveness. Design/methodology/approach: The paper is based on a qualitative study of Advanced Manufacturing and Advanced Materials businesses in the Sheffield City Region (UK). Interviews were conducted with 23 firms in exploring how innovation in the firm translates to innovation-led regional economic growth. Findings: The paper demonstrates that there is a tendency of owner managers to focus on innovation in terms of the development of new products, processes and/or services. Many of the businesses interviewed were technologically innovative, yet there was little evidence of wider business model innovation. This, the authors conclude, stymies regional innovation and with it regional economic growth. Research limitations/implications: This study is based on a case study of the Sheffield City Region and is not generalizable, but offers insights into the nature of business model innovation which are valuable in generating questions for further research. Practical implication: The paper highlights the need to think of innovation in broader terms and the scope of business model innovation to not only improve the performance of firms but also regional economic growth. Originality/value: Business model innovation is a growing domain of the literature, and this paper highlights how narrow interpretations of innovation may serve to limit growth business growth, and with it regional economic growth

Talent quest : advanced business services and the geography of innovation

This thesis investigates whether the tendency for Advanced Business Services to concentrate in Sydney and Melbourne implies a similar spatial bias in the propensity for innovation across the Australian economy. The various models of business innovation are reviewed. The traditional Schumpeterian view is characterized by a strategic leap in customer offer, based on some new break-through technology. Alternatively, innovation may proceed in incremental or organic fashion. Other conceptual frameworks for analyzing innovation conceive of it as a network process, which is becoming more prevalent as corporate value chains 'unbundle' with improved communication technologies, reduced barriers to capital transfers and new techniques for managing transaction risk. Regardless of which model of innovation is applied, Advanced Business Services have a critical role in sparking and facilitating innovation. This is gathering potency as the 'thinking part' of the value chain becomes increasingly separable from the 'making' and 'distribution' aspects of production. While Advanced Business Services are vital to successful innovation in the modern economy, they continue to operate within primitive commercial models where social networks and trust based relationships are paramount in successful client service. The innovation catalyst function of Advanced Business Services may be prone to a significant distance deterioration effect, because of the difficulty of maintaining the requisite social relationships over an extended geography. This, in turn, suggests an emergent core and periphery geography in innovation. The thesis examines this hypothesis through both demand and supply side analyses. The latter involves a random sample survey of approximately 100 Advanced Business Service firms in Melbourne. This confirms the tendency of these firms to favour local clients. The demand side analysis includes case studies of Advanced Business Service use and innovation outcomes amongst six metropolitan Melbourne based firms and six similar firms based some two hours drive away in Bendigo. In line with the hypothesis, the metropolitan cases show much stronger engagement with knowledge intensive advisory services than their counterparts in regional Victoria. The demand side analysis also includes a quantitative component, which is exploratory in nature owing to data limitations. It considers how innovation outcomes in manufacturing change with increasing distance from key Advanced Business Service centres. Innovation outcomes are proxied by variations in manufacturing worker wages. These results are also consistent with the hypothesis of distance deterioration in the innovation role of Advanced Business Services

Medium-term business cycles in developing countries

Empirical evidence - including the current global crisis - suggests that shocks from advanced countries often have a disproportionate effect on developing economies. Can this account for the fact that aggregate fluctuations are larger and more persistent in the latter than in the former economies? And what are the mechanisms at play? This paper addresses these questions using a model of an industrial and a developing economy trading goods and assets, with (i) a product cycle shaping the range of intermediate goods used to produce new capital in each country, and (ii) investment adjustment costs in the developing economy. Innovation by the advanced economy results in new intermediate goods, at first produced at home, and eventually transferred to the developing economy through direct investment. The pace of innovation and technology transfer is driven by profitability. This process of technology diffusion creates a medium-term connection between both economies, over and above the short-term link through trade. Calibration of the model to match Mexico-United States trade and foreign direct investment flows shows that this mechanism can explain why shocks to the United States economy have a larger effect on Mexico than on the United States itself, and hence why Mexico shows higher volatility than the United States; why business cycles in the United States lead to medium-term fluctuations in Mexico; and why consumption is not less volatile than output in Mexico.Economic Theory&Research,Political Economy,Emerging Markets,Debt Markets,Markets and Market Access