Business continuity of business models : Evaluating the resilience of business models for contingencies

Company business models are vulnerable to various contingencies in the business environment that may unexpectedly render their business logic ineffective. In particular, technological advancements, such as the Internet of things, big data, sharing economy and crowdsourcing, have enabled new forms of business models that can effectively and abruptly make traditional business models obsolete. By disrupting or even diminishing companies’ revenue streams, environmental contingencies may present a significant threat to business continuity (BC). Evaluating the resilience of business models against these contingencies should therefore be a core area of BC. However, existing BC approaches tend to f…

Collaborative Business Model Innovation Process for Networked Services

This paper presents a process framework for innovating joint business models (co-BM) for multiple companies. Our framework describes the change management that should be carried out in parallel to the rigorous analysis and development of the business model details. With two illustrative cases we show that fruitful co-BM creation process in networks requires both development of the model itself, but also organizational innovation processes including mutual learning and harmonisation of operations. We claim that by understanding this dual process and its key facets might help (1) to coordinate the practical BM creation projects better and (2) to analyse which BM related decisions contribute o…

To trust or not to trust – a case of Finnish technology industry supply network

Conference paper. Presented in the EIASM 5th Workshop on trust within and between organizations, Jan 28-29, 2010, Madrid, Spain peerReviewed

Designing for performance - a technique for business model estimation

The companies are actively using business modelling to investigate new business opportunities. They are also applying various planning tools to design their processes. Unfortunately, there is a lack of techniques that would link these two planning levels. In this article we propose a technique for operational modelling. The technique aims to analyse the business model from a resource-based viewpoint. It lists the service components and provides means for analysing the extra resources and capabilities needed for producing the service. Operational model also helps in estimating the feasibility of the business ideas: It explicitly defines the metrics for measuring the success of the business m…

The Role of Business Models in Developing Business Networks

Business models have received a substantial amount of interest recently. Also, various research studies have discussed business models, especially in the context of a single company operating in mass markets. Unfortunately, these models often are not applicable for complex products or services that build on long-term knowledge about customer tastes, facilities, and skills. Especially on global markets, the asset specificity and vast geographical distances make it difficult for any single company to provide this kind of service cost-efficiently on a large scale. Instead, it calls for cooperation among multiple firms. Creation of a joint business model for a collaborative network is a necessa…

Management dilemmas in innovative supplier networks

This paper focuses on the challenges in managing innovation within supply networks. We present an empirical study on innovation collaboration between a focal company and its supply network of small and medium sized enterprises. By analysing the case from the viewpoints of the focal company, the suppliers and investors we point out three controversial issues in innovation management within the supply network: intellectual property rights, partnering versus competition, and commitment versus independency. Furthermore, we analyse the suppliers' positions with a purchasing portfolio model and present implications for innovation management practices in supply chains. peerReviewed

Sharing for understanding and doing for learning: An Emerging Learning Business Network

Changing competitive environments are forcing companies to innovate and to renew their business models in a more value-adding and customer-centric direction. Often, a prerequisite for this is that the companies are willing to combine their knowledge by openly co-operating and by creating long-term strategic networks with each other. We illustrate the importance of a business model in this co-operative arena and use it as a starting point for our discussion. Against this backdrop we are interested in how learning and knowledge sharing develop in an emerging business network. This leads us to develop a framework that combines learning with business models in order to bridge the gap between st…

Smart ICT Support for Business Networks

Modern companies lean increasingly towards innovating and renewing their business operations in a more value-adding and customer-centric direction. As a prerequisite to this, a number of companies are willing to combine their knowledge and resources, for instance by forming strategic alliances supported by a mixture of open ICT infrastructure and proprietary and interoperable ICT applications. This study examines a network of three focal companies that are seeking cost-efficient expansion of their services. As the potential market for these complex customer services is worldwide, the objective is expected to be met only with the help of ICT. Furthermore, the view among the companies is rela…

Performance Estimation of Networked Business Models : Case Study on a Finnish eHealth Service Project

Purpose: The objective of this paper is to propose and demonstrate a framework for estimating performance in a networked business model. Design/methodology/approach: Our approach is design science, utilising action research in studying a case of four independent firms in Health & Wellbeing sector aiming to jointly provide a new service for business and private customers. The duration of the research study is 3 years. Findings: We propose that a balanced set of performance indicators can be defined by paying attention to all main components of the business model, enriched with of network collaboration. The results highlight the importance of measuring all main components of the business …

Designing information systems for eBusiness networks: The return of productivity paradox

In this paper we discuss productivity paradox and the origin of business value of ICTinvestments, especially as we see that the present approaches in building ICT-based value networksof companies raises new productivity problems. The findings indicate that the organizations can reapthe benefits of ICT-investments in terms of productivity only by managing the long term processchange both at operational and management levels to match the organizational capacity andcompetitive position. This is achieved not by building information systems only, but by balancingautomational, informational and transformational effects in the business context. We analyze threealternative approaches for informatio…

Trouble in Paradise: a Case of a Technology Industry Supply Network

The development of value networks is regarded as a necessity for achieving agility in global markets. Nowadays the focal companies often state that they are committing to more in-depth partnerships with selected suppliers, which are given more responsibility over both production and R&D. In this article we study the relationship of one focal company with its suppliers and identify the main concerns regarding governance and cooperation within the studied supply network in relation with the focal company’s strategy to enhance its innovative capabilities and ensure capacity in its supplier network. By analyzing the network relationships from three differing vantage points (the focal company, t…

BUSINESS ECOSYSTEM UNDER CONSTRUCTION

In recent years, we have seen the rise in interest on new service concepts that would take the advantage of capabilities of ecosystems instead that of single companies. In this paper we describe the initial steps on a new business initiative and how the ecosystem starts developing around the core. We use action research approach in one case of building joint service, sports receipt, for health exercise and wellbeing markets. The research paper concludes with an ecosystem mode peerReviewed

Ecosystem Under Construction: An Action Research Study on Entrepreneurship in a Business Ecosystem

In recent years, we have seen increasing interest in new service concepts that take advantage of the capabilities of business ecosystems instead of single companies. In this article, we describe how a business ecosystem begins to develop around a service business idea proposed by an entrepreneur. We aim to recognize the different domains of players that are or should be involved in the ecosystem while it is under construction. The article concludes with an ecosystem model consisting of six sub-ecosystems having different change drivers and clockspeeds. All great things are based on a series of small things, and all the small things need hard work.

Framework and Research Agenda for Master Data Management in Distributed Environments

Master data is the foundation for relating business transactions with business entities such as customers, products, locations etc. These entities are also referred to as domains in master data literature. The integrity, availability and timeliness of master data in single-, and growingly in multi-domain combinations is crucial in eBusiness transactions over the Internet, or in the cloud for multiple stakeholders. Distributed environments set additional challenges for the management of master data. In this idea paper, we first describe master data, management processes, responsibilities and other contemporary master data management practices aiming to ensure master data quality in different…

Conscription of Network Business Models

As enterprises focus increasingly on core competencies, the importance of collaboration and knowledge sharing between organisations is greatly enhanced. This article examines the development of knowledge sharing during the initial exploratory stages of an emerging business network. We demonstrate how the business model can serve as a tool for spanning organisational boundaries. Through developing a business model, network enterprises can learn to understand each other, create common concepts within their business network and evaluate feasibility of the endeavour. peerReviewed

Joint Development of Novel Business Models

Changing competitive environment forces companies to innovate and renew their business models towards a more value-adding and customer-centric direction. Often, a prerequisite for this is that the companies are willing to combine their capabilities by co-operating and creating long-term strategic networks with each other. The formation of networks is a cyclical learning process, along which the infrastructure and strategies emerge incrementally through mutual adjustment. We analyze such network formation process among three companies that are operating in separate but complementary industries. They are seeking to expand their service offering through the use of ICT. We reflect upon this dev…

Coordination of complex operations over organisational boundaries

Learning and organizational change in SPI initiatives

Explaining how organizations chance has been a central and enduring quest of management scholars and many other disciplines. In order to be successful change requires not only a new process or technology but also the engagement and participation of the people involved. In this vein the change process results in new behavior and is routinized in practical daily business life of the company. Change management provides a framework for managing the human side of these changes. In this article we present a literature review on the change management in the context of Software Process Improvement. The tra- ditional view of learning, as a “lessons learned” or post-mortem reporting activity is often…

Ristivetoa : tapaustutkimus suomalaisesta koneenrakennusverkostosta

Menestyvien tuotteiden kehittäminen edellyttää innovaatioita ja niiden hyödyntämistä. Tämän esitutkimuksen pyrkimyksenä oli hahmottaa metsäklusterin koneenrakennuksen liiketoimintaverkostoja ja toiminnan luonnetta veturiyrityksen, teknologiayritysten ja pääomasijoittajien näkökulmasta. Tunnistimme haastatteluiden avulla 3 haastavaa ongelmakohtaa, jotka tulisi ratkaista verkoston innovatiivisuuden kehittämiseksi: 1) immateriaalisista oikeuksista sopiminen verkoston jäsenten kesken, 2) rajanveto partneruuden ja kilpailutuksen välillä, sekä 3) keinot joilla edesautetaan järjestelmätoimittajia sitoutumaan ja toisaalta säilyttämään riippumattomuuden päämiehestään. Ehdotamme jatkotutkimushankkeen…

Collaborative Business Model Innovation Process for Networked Services

This paper presents a process framework for innovating joint business models (co-BM) for multiple companies. Our framework describes the change management that should be carried out in parallel to the rigorous analysis and development of the business model details. With two illustrative cases we show that fruitful co-BM creation process in networks requires both development of the model itself, but also organizational innovation processes including mutual learning and harmonisation of operations. We claim that by understanding this dual process and its key facets might help (1) to coordinate the practical BM creation projects better and (2) to analyse which BM related decisions contribute o…