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

Methodology for Designing Decision Support Systems for Visualising and Mitigating Supply Chain Cyber Risk from IoT Technologies

This paper proposes a methodology for designing decision support systems for visualising and mitigating the Internet of Things cyber risks. Digital technologies present new cyber risk in the supply chain which are often not visible to companies participating in the supply chains. This study investigates how the Internet of Things cyber risks can be visualised and mitigated in the process of designing business and supply chain strategies. The emerging DSS methodology present new findings on how digital technologies affect business and supply chain systems. Through epistemological analysis, the article derives with a decision support system for visualising supply chain cyber risk from Internet of Things digital technologies. Such methods do not exist at present and this represents the first attempt to devise a decision support system that would enable practitioners to develop a step by step process for visualising, assessing and mitigating the emerging cyber risk from IoT technologies on shared infrastructure in legacy supply chain systems

The Managed Service Paradox

This paper examines the contrasts in the provision of managed service in the information and communication technology (ICT) sector. It highlights the polarization between infrastructure services that are growing in scale and increasingly becoming a commoditized, and customized or even one-of-a-kind service projects. The paper refers to the approaches taken by three highly innovative advanced service companies, IBM, Ericsson, and Cable & Wireless, to package and deliver ICT service on a more industrialized basis. The authors identify the six-stage process that describes these companies’ journeys to date from. They explore the challenges these companies faced on that journey as well those currently facing them as they move to a higher degree of industrialization. To address these challenges, the authors propose a model with three axes: offering development, service delivery, and go to market. The model demonstrates how the increasing industrialization of managed service requires an approach integrating all three of these dimensions. They also show that strong governance is required to address the impacts of technological evolution, marketplace dynamics, and corporate culture. The paper has formed the basis of the academic and executive education programs taught at both Imperial College and is the heart of the new service design masters program at the Royal College of Art. Because of its relevance to large industrial companies seeking to transition from an industrial offering to a service or solution led offering, the paper has been turned into a course that has been delivered to Arup, Vodafone, Finmeccanica, Telefonica, Samsung and Laing O’Rourke to date and this programme has been delivered by the authors in Korea, Taiwan, US and the UK

Sustainable Value Proposition Design in a Product-Service System

Many companies have started to add services to their tangible products in order to defend themselves from increased competition from low-cost economies. Research regarding the transition towards product-service systems (PSS) and how the PSS providers' business models are affected exists, but there is a lack of research regarding how the suppliers to the PSS providers are affected by the transition towards PSS. Therefore, this thesis studies the situation for a supplier/partner to an OEM that has changed their business model to a PSS providing one. As the first step in a development of a new business model aims this thesis to provide guidelines for how to set up value propositions suitable for a supplier/partner in this new environment. When technologically complex products, such as aircraft engines, are provided through PSS offerings it is hard to translate customer needs into quality parameters, which makes it hard to sustain the value to customer over time. Therefore, how to keep the value offering sustainable over time is also investigated in this thesis. The aim of this study was to investigate how a sustainable value proposition can be designed for a product and technology supplier/partner to an OEM that offers PSS solutions. The research has been performed through studying relevant literature and collecting empirical data from a case company through semi-structured interviews and a workshop. The case company in this research is Volvo Aero Corporation (VAC). The empirical findings show that VAC wants to offer product-service bundled solution, which fit the whole spectra of PSS value propositions, to their partners/customers. To be able to deliver these different types of product-service bundled solutions different value propositions that suit the different kinds of PSS offerings are needed. Requirements that must be fulfilled to be able to offer and deliver the different types of value propositions exist in terms of securing sufficient information access, aligning the incentives of all actors involved and achieving an internal consensus of what is delivered

Roles and responsibilities in agile ICT for development

This paper examines the different roles in designing interactive software in a ICT for development context. Using experiences from a participatory action research project, in which we used agile methods to design and deploy an system to support ‘agricultural information flow’ for a co-operative of small farmers in rural India, we identify points of difference between the roles in standard descriptions of agile software methods and the roles as they emerged in our project. A key finding is the critical role played by a ‘Development Project Manager’ in facilitating dialogue, orchestrating the activities of other actors and in building the capabilities and confidence of all the participants in joint action

Towards technological rules for designing innovation networks: a dynamic capabilities view.

Inter-organizational innovation networks provide opportunities to exploit complementary resources that reside beyond the boundary of the firm. The shifting locus of innovation and value creation away from the “sole firm as innovator” poses important questions about the nature of these resources and the capabilities needed to leverage them for competitive advantage. The purpose of this paper is to describe research into producing design-oriented knowledge, for configuring inter-organizational networks as a means of accessing such resources for innovation

Theory of deferred action: Agent-based simulation model for designing complex adaptive systems

Deferred action is the axiom that agents act in emergent organisation to achieve predetermined goals. Enabling deferred action in designed artificial complex adaptive systems like business organisations and IS is problematical. Emergence is an intractable problem for designers because it cannot be predicted. We develop proof-of-concept, conceptual proto-agent model, of emergent organisation and emergent IS to understand better design principles to enable deferred action as a mechanism for coping with emergence in artefacts. We focus on understanding the effect of emergence when designing artificial complex adaptive systems by developing an exploratory proto-agent model and evaluate its suitability for implementation as agent-based simulation