The qualities of business models: Thinking about “...ilities”

Most people will be familiar with the ...ilities that IDEO uses for design thinking: desirability, feasibility, viability. In a previous post about the strategic change of business models, I discussed synergy, scalability, flexibility, innovativity, simplicity, and repeatability.

In their recent work (The Invincible Company), Osterwalder and Pigneur position IDEO's ...ilities on their Business Model Canvas and add adaptability to include factors from the business environment. Here I like to present some initial ideas that follow and extend the ideas from Osterwalder and Pigneur.

As presented in the picture below, the basic positioning by Osterwalder and Pigneur is followed, except that their viability (‘earning enough money’) is replaced by profitability (which more directly expresses the monetary focus).

In my perspective, viability is central and is firstly related to the value proposition. The value proposition is often seen as the key element or core component of a business model. As such it seems evident that a key concern should be whether the value proposition is viable or not.

Secondly, viability is also determined by a holistic perspective on the business model (the sum is more than the parts, how do the components fit together). As such, it also brings desirability, feasibility, and profitability together and can be seen as their ‘sweetspot.’

Thirdly, viability is also determined by how the business model fits in its business environment (adaptability) and institutional environment (legitimability). The latter deals with the broader values, logic and rules of social structures that influence stability (and change) in social life.

How should governments respond to Facebook’s Libra initiative?

"How governments should respond to Libra depends on how the company integrates the cryptocurrency into their larger business. We envision Libra being integrated into the company’s broader business model as a basis for offering financial services, or possibly an even broader set of services. Given the increasing social and economic power of large tech firms, governments should proactively start thinking of how to respond to these firms’ entrance into new industries."

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Data-Driven Business Models and Professional Services Firms: A Strategic Framework and Transitionary Pathways

Many organizations and industries are undergoing a significant transformation due to digital technologies. In our research, we study digital business model innovation in relation to Professional Services Firms (PSFs). In this conceptual paper, we contrast the traditional, human-centered, knowledge-intensive business model of PSFs with the new, computer-centered, data-driven business model that is developing due to the rise of big data, advanced data analytics and artificial intelligence. To better understand if, when and how data-driven business models may disrupt PSFs, we provide a strategic framework for identifying and analyzing the options for PSFs in relation to the nature and scope of their value proposition. We suggest several possible transitionary pathways using digital technology for augmentation or automation and the need so scale across services and industries. As such this paper provides valuable insights to academics and practitioners into how PSFs might develop new business models given the nature of their service offerings and industry positions.

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What’s new about digital innovation?

Practitioners see digital innovation as vital to their business. Academics are also increasingly paying attention to digital innovation. However, it is often unclear what is meant by digital innovation and how it differs from traditional (IS/IT) innovation. To advance our understanding of digital innovation, this paper identifies different conceptualizations of digital innovation in the IS literature and extracts common themes that can point to what is “new” about digital innovation and what is emerging as research areas for the IS discipline. 

Our research identifies two prominent digital innovation conceptualisations, based on Fichman, Dos Santos, and Zheng (2014) and Yoo, Boland, Lyytinen, and Majchrzak (2012), and presents four prominent digital innovation themes: the nature of digital technologies, digitization, digital business model innovation and digital-enabled generativity. We integrate these themes into a framework that conceptualizes digital innovation as a rippling effect starting with digital technologies and conjecture that digital innovation can become ‘hyperinnovation’ through powerful virtuous cycles.

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Repainting the business model canvas for peer-to-peer sharing and collaborative consumption

Sharing Economy businesses have become very popular recently but there is little guidance available on how to develop the respective business models. We faced this problem during a consortium research project for developing a service for electric vehicle charging that adopts the paradigm of Peer-to-Peer Sharing and Collaborative Consumption (P2P SCC)— a specific branch of the Sharing Economy. 

We use Action Design Research (ADR) to develop an adapted version of the Business Model Canvas that is specifically tailored to the needs of P2P SCC business model development. The adapted canvas is then applied to develop a business model for the proposed service. 

The learnings from the development process are formalized into a set of generally applicable guidelines for the development of P2P SCC business models. The resulting guidelines and the adapted canvas provide guidance for both researchers and practitioners who want to either develop new or analyze existing P2P SCC business models.

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Empirical insights into the development of a service-oriented enterprise architecture

Organisations use Enterprise Architecture (EA) to reduce organisational complexity, improve communication, align business and information technology (IT), and drive organisational change. Due to the dynamic nature of environmental and organisational factors, EA descriptions need to change over time to keep providing value for its stakeholders. Emerging business and IT trends, such as Service-Oriented Architecture (SOA), may impact EA frameworks, methodologies, governance and tools. However, the phenomenon of EA evolution is still poorly understood. 

Using Archer's morphogenetic theory as a foundation, this research conceptualises three analytical phases of EA evolution in organisations, namely conditioning, interaction and elaboration. Based on a case study with a government agency, this paper provides new empirically and theoretically grounded insights into EA evolution, in particular in relation to the introduction of SOA, and describes relevant generative mechanisms affecting EA evolution. By doing so, it builds a foundation to further examine the impact of other IT trends such as mobile or cloud-based solutions on EA evolution. At a practical level, the research delivers a model that can be used to guide professionals to manage EA and continually evolve it.

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The Digital Innovation of everyday things: New, Copy, Paste, Search, Save, Print, Send, etc.

With the ongoing proliferation and immersion of digital technologies into everything we use, we often wonder how the future of the things we use would look like. While it is not possible to predict this, it is possible to think about it. Chance favors the prepared mind.

Take the digital camera. The way we now go about with taking and sharing pictures is quite different from how it used to be with the film camera. One of the influences has been the information technology, in fact the digital camera probably has more in common with a computer than with a film camera. This also means that a lot of functionality associated with computers has entered the world of digital photography like ‘save,’ ‘copy,’ ‘delete,’ metadata, etc.(and we expect that this functionality works in a way similar to a computer environment, e.g., a perfect copy with one click).

One of the ways of thinking about how digital technologies influence everyday things, may be to apply these notions of computer functionality to them as a thought experiment. For example, what would ‘new’ mean in relation to a digital fridge. I could mean that it registers every new product I put in. Or I may be able to ‘search,’ by asking it if there is any fruit left or how much fruit has been consumed in the last week. I may also be able to ‘save’ so I can see overtime what has been in my fridge.