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

Recombinant Service System Engineering

Although many methods have been proposed for engineering services and customer solutions, most of these approaches give little consideration to recombinant service innovation. In an age of smart products and smart data, we can, however, expect that many of future service innovations need to be based on adding, transferring, dissociating, and associating existing value propositions. The purpose of this paper is to outline what properties constitute recombinant service innovation and to identify if current service engineering approaches fulfill these properties. Based on a conceptual in-depth analysis of 24 service engineering methods, we identify that most methods focus on designing value propositions instead of service systems, view service independent of physical goods, are linear or iterative, and incompletely address the mechanisms of recombinant innovation. We discuss how these deficiencies can be remedied and propose a first conceptual model of a revised service system engineering approach

Competitive strategy, dynamic capability and value creation: Some empirical evidence from the UK telecommunications firms

Main message: The overall interplay between competitive strategies and dynamic capabilities is an integral part of value creation in terms of novelty, lock-in, complementarities and efficiency. Short title: Competitive strategy, dynamic capability and value creation Key points: -In response to insufficient systematic research on the impact of competitive strategies and dynamic capabilities on value creation, this study expands prior studies (e.g., Rashidirad et al., 2013) by proposing carefully testable research hypotheses and empirically explore the research phenomenon. -This study analyses the complex interrelationships between competitive strategies and dynamic capabilities and the resulting impact on value creation through adopting a multidimensional approach in which each construct is decomposited to its dimensions, so the relationships between each dimension of the research constructs are investigated. -This study prompts rethinking of the impact of dynamic capability and competitive strategy on value creation in firms by using a multidimensional perspective

Combinatorial Auction-based Mechanisms for Composite Web Service Selection

Composite service selection presents the opportunity for the rapid development of complex applications using existing web services. It refers to the problem of selecting a set of web services from a large pool of available candidates to logically compose them to achieve value-added composite services. The aim of service selection is to choose the best set of services based on the functional and non-functional (quality related) requirements of a composite service requester. The current service selection approaches mostly assume that web services are offered as single independent entities; there is no possibility for bundling. Moreover, the current research has mainly focused on solving the problem for a single composite service. There is a limited research to date on how the presence of multiple requests for composite services affects the performance of service selection approaches. Addressing these two aspects can significantly enhance the application of composite service selection approaches in the real-world. We develop new approaches for the composite web service selection problem by addressing both the bundling and multiple requests issues. In particular, we propose two mechanisms based on combinatorial auction models, where the provisioning of multiple services are auctioned simultaneously and service providers can bid to offer combinations of web services. We mapped these mechanisms to Integer Linear Programing models and conducted extensive simulations to evaluate them. The results of our experimentation show that bundling can lead to cost reductions compared to when services are offered independently. Moreover, the simultaneous consideration of a set of requests enhances the success rate of the mechanism in allocating services to requests. By considering all composite service requests at the same time, the mechanism achieves more homogenous prices which can be a determining factor for the service requester in choosing the best composite service selection mechanism to deploy

Towards Mass Customized IT Services: Assessing a Method for Identifying Reusable Service Modules and its Implication for IT Service Management

In response to declining prices IT service providers seek to reduce costs by achieving greater economies of scale. The divergent requirements of corporate customers, however, limit the opportunity to achieve scale economies through standardization of services. In response, some outsourcing vendors have embraced a strategy of employing reusable service modules match their clients\u27 needs. Reusable modules create room for standardization on the component level while maintaining the ability of the provider to tailor offerings to individual requirements. In this paper we introduce a method for identifying reusable service modules and demonstrate their application based on case study at a leading European IT Service Provider. The paper discusses the implications of embracing modularization for service offerings and service management

Appliance Recognition in an OSGi-based Home Energy Management Gateway

The rational use and management of energy is considered a key societal and technological challenge. Home energy management systems (HEMS) have been introduced especially in private home domains to support users in managing and controlling energy consuming devices. Recent studies have shown that informing users about their habits with appliances as well as their usage pattern can help to achieve energy reduction in private households. This requires instruments able to monitor energy consumption at fine grain level and provide this information to consumers. While the most existing approaches for load disaggregation and classification require high-frequency monitoring data, in this paper we propose an approach that exploits low-frequency monitoring data gathered by meters (i.e., Smart Plugs) displaced in the home. Moreover, while the most existing works dealing with appliance classification delegate the classification task to a remote central server, we propose a distributed approach where data processing and appliance recognition are performed locally in the Home Gateway. Our approach is based on a distributed load monitoring system made of Smart Plugs attached to devices and connected to a Home Gateway via the ZigBee protocol. The Home Gateway is based on the OSGi platform, collects data from home devices, and hosts both data processing and user interaction logic

Recombinant Service Systems Engineering

Although many methods have been proposed for engineering service systems and customer solutions, most of these approaches give little consideration to recombinant service innovation. Recombinant innovation refers to reusing and integrating resources that were previously unconnected. In an age of networked products and data, we can expect that many service innovations will be based on adding, dissociating, and associating existing value propositions by accessing internal and external resources instead of designing them from scratch. The purpose of this paper is to identify if current service engineering approaches account for the mechanisms of recombinant innovation and to design a method for recombinant service systems engineering. In a conceptual analysis of 24 service engineering methods, the study identified that most methods (1) focus on designing value propositions instead of service systems, (2) view service independent of physical goods, (3) are either linear or iterative instead of agile, and (4) do not sufficiently address the mechanisms of recombinant innovation. The paper discusses how these deficiencies can be remedied and designs a revised service systems engineering approach that reorganizes service engineering processes according to four design principles. The method is demonstrated with the recombinant design of a service system for predictive maintenance of agricultural machines

Preliminary specification and design documentation for software components to achieve catallaxy in computational systems

This Report is about the preliminary specifications and design documentation for software components to achieve Catallaxy in computational systems. -- Die Arbeit beschreibt die Spezifikation und das Design von Softwarekomponenten, um das Konzept der Katallaxie in Grid Systemen umzusetzen. Eine Einführung ordnet das Konzept der Katallaxie in bestehende Grid Taxonomien ein und stellt grundlegende Komponenten vor. Anschließend werden diese Komponenten auf ihre Anwendbarkeit in bestehenden Application Layer Netzwerken untersucht.Grid Computing