A Tool to Model and Simulate Dynamic Business Models

Software tools hold great promise to support the modeling, analyzing, and innovation of business models. Current tools only focus on the design of business models and do not incorporate the complexity of existing interdependencies between business model components. These tools merely allow simulating inherent dynamics within the models or different strategic decision scenarios. In this research, we use design science research to develop a prototype that is capable of modeling and simulating dynamic business models. We use system dynamics as a simulation approach and containers to allow deployment as web applications. This paper represents the first of three design cycles, realizing six out of 59 requirements that are collected from the literature on software tools for business models. We contribute toward the design of novel artifacts for business model innovation as well as their evaluation. Future research can use these results to build tools that consider and address the complexity of business models. Lastly, we present several options for extending the proposed tool in the future

Knowledge transfer in a tourism destination: the effects of a network structure

Tourism destinations have a necessity to innovate to remain competitive in an increasingly global environment. A pre-requisite for innovation is the understanding of how destinations source, share and use knowledge. This conceptual paper examines the nature of networks and how their analysis can shed light upon the processes of knowledge sharing in destinations as they strive to innovate. The paper conceptualizes destinations as networks of connected organizations, both public and private, each of which can be considered as a destination stakeholder. In network theory they represent the nodes within the system. The paper shows how epidemic diffusion models can act as an analogy for knowledge communication and transfer within a destination network. These models can be combined with other approaches to network analysis to shed light on how destination networks operate, and how they can be optimized with policy intervention to deliver innovative and competitive destinations. The paper closes with a practical tourism example taken from the Italian destination of Elba. Using numerical simulations the case demonstrates how the Elba network can be optimized. Overall this paper demonstrates the considerable utility of network analysis for tourism in delivering destination competitiveness.Comment: 15 pages, 2 figures, 2 tables. Forthcoming in: The Service Industries Journal, vol. 30, n. 8, 2010. Special Issue on: Advances in service network analysis v2: addeded and corrected reference

An engineering approach to business model experimentation – an online investment research startup case study

Every organization needs a viable business model. Strikingly, most of current literature is focused on business model design, whereas there is almost no attention for business model validation and implementation and related business model experimentation. The goal of the research as described in this paper is to develop a business model engineering tool for supporting business model management as a continuous design, validation and implementation cycle. The tool is applied to an online investment research startup in roll out and market phase. This paper describes the research as performed in a case study setting by focusing on the design, implementation and evaluation of the business model engineering tool. We also analyze the actual implementation and usage of the business model tool by the online investment research startup by focusing on the most critical actions related to actual business model implementation – i.e. actions with so-called ‘Lollapalooza tendencies’

Managing stimulation of regional innovation subjects’ interaction in the digital economy

The reported study was funded by RFBR according to the research project No. 18-01000204_a, No. 16-07-00031_a, No. 18-07-00975_a.Purpose: The article is devoted to solving fundamental scientific problems in the scope of the development of forecasting modeling methods and evaluation of regional company’s innovative development parameters, synthesizing new methods of big data processing and intelligent analysis, as well as methods of knowledge eliciting and forecasting the dynamics of regional innovation developments through benchmarking. Design/Methodology/Approach: For regional economic development, it is required to identify the mechanisms that contribute to (or impede) the innovative economic development of the regions. The synergetic approach to management is based on the fact that there are multiple paths of IS development (scenarios with different probabilities), although it is necessary to reach the required attractor by meeting the management goals. Findings: The present research is focused on obtainment of new knowledge in creating a technique of multi-agent search, collection and processing of data on company’s innovative development indicators, models and methods of intelligent analysis of the collected data. Practical Implications: The author developed recommendations before starting the process of institutional changes in a specific regional innovation system. The article formulates recommendations on the implementation of institutional changes in the region taking into account the sociocultural characteristics of the region’s population. Originality/Value: It is the first time, when a complex of models and methods is based on the use of a convergent model of large data volumes processing is presented.peer-reviewe

Lock-in & Break-out from Technological Trajectories: Modeling and policy implications

Arthur [1,2] provided a model to explain the circumstances that lead to technological lock-in into a specific trajectory. We contribute substantially to this area of research by investigating the circumstances under which technological development may break-out of a trajectory. We argue that for this to happen, a third selection mechanism--beyond those of the market and of technology--needs to upset the lock-in. We model the interaction, or mutual shaping among three selection mechanisms, and thus this paper also allows for a better understanding of when a technology will lock-in into a trajectory, when a technology may break-out of a lock-in, and when competing technologies may co-exist in a balance. As a system is conceptualized to gain a (third) degree of freedom, the possibility of bifurcation is introduced into the model. The equations, in which interactions between competition and selection mechanisms can be modeled, allow one to specify conditions for lock-in, competitive balance, and break-out

The Nobel Memorial Prize for Robert F. Engle

I review and interpret two of Robert Engle's most important contributions: the theory and application of cointegration, and the theory and application of dynamic volatility models. I treat the latter much more extensively, de-emphasizing technical aspects and focusing instead on the intuition, nuances and importance of the work.

Creative enterprise in west Yorkshire Arts organisations

This report describes and theorises the findings of a workshop discussion, commissioned by WYLLN, into the views of arts organizations on the challenges they face in becoming more enterprising and less grant dependent

The Nobel Memorial Prize for Robert F. Engle

Engle’s footsteps range widely. His major contributions include early work on band-spectral regression, development and unification of the theory of model specification tests (particularly Lagrange multiplier tests), clarification of the meaning of econometric exogeneity and its relationship to causality, and his later stunningly influential work on common trend modeling (cointegration) and volatility modeling (ARCH, short for AutoRegressive Conditional Heteroskedasticity). More generally, Engle’s cumulative work is a fine example of best-practice applied time-series econometrics: he identifies important dynamic economic phenomena, formulates precise and interesting questions about those phenomena, constructs sophisticated yet simple econometric models for measurement and testing, and consistently obtains results of widespread substantive interest in the scientific, policy, and financial communities.Econometric Theory, Finance

Business model requirements and challenges in the mobile telecommunication sector

The telecommunications business is undergoing a critical revolution, driven by innovative technologies, globalization, and deregulation. Cellular networks and telecommunications bring radical changes to the way telecom businesses are conducted. Globalization, on the other hand, is tearing down legacy barriers and forcing monopolistic national carriers to compete internationally. Moreover, the noticeable progress of many countries towards deregulation coupled with liberalization is significantly increasing telecom market power and allowing severe competition. The implications of this transition have changed the business rules of the telecom industry. In addition, entrants into the cellular industry have had severe difficulties due to inexistent or weak Business Models (BMs). Designing a BM for a mobile network operator is complex and requires multiple actors to balance different and often conflicting design requirements. Hence, there is a need to enhance operators’ ability in determining what constitutes the most viable business model to meet their strategic objectives within this turbulent environment. In this paper, the authors identify the main mobile BM dimensions along with their interdependencies and further analysis provides mobile network operators with insights to improve their business models in this new ‘boundary-less’ landscape

Special Session on Industry 4.0

No abstract available