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firms succeed in business; for example, eBay, Amazon, Dell are examples, that much of their success is based on their innovative and successful business models. A study of 453 successful websites (Chen, 2002), which were considered as the best by the leading magazines, concludes that their good business models where the most critical factors of their success. A survey-study (Linder et al., 2001), conducted by the Institute of Strategic Change of Accenture in 2000, concludes that “developing a sound business model matters for making money. As the business environment changes business models wear out, and firms must alter them in order to remain viable. The better the managers know their business model, the more better they can manage patterns of change.” It is evident that business model is a concept so fundamental to business performance that clarity is compulsory and no misunderstanding is tolerable. A good business model remains essential to every successful organization, product or service; it incorporates the underlying economic logic that explains how value is delivered to customers at an appropriate cost (Magretta, 2002) and how revenues are generated. Furthermore, when a business model changes the economics of an industry and is difficult to replicate, it can by itself create a strong competitive advantage. On the contrary, many failures of e-ventures are the result of the lack of a sound business model or a flawed business model (Vickers, 2000).

However, the research of business model, design is not conducted in a systematic way. Despite the significance of the business model concept, only limited research has been conducted in this area. It consists mainly of descriptions of emerging business models, which are based on the Internet and the information and communication technologies (ICT) in general; also it includes abstractions in order to clarify definitions and components of this concept, and produce business model classification schemes. In the present paper, initially in section 2 we present a review of the definitions and the theoretical foundations of the business model concept and we elaborate on its discrete components. Then, in section 3 we focus on the research that has been conducted so far concerning methodologies for designing new business models; we identify shortcomings and areas where further research is required, and we propose a new framework for business model design. Then, in section 4 we validate our proposed methodology in a real business case. Finally, the conclusions are presented.

2 Theoritical background

The business model concept unifies important enterprise decision variables from the areas of economics, operations and strategyIt constitutes a useful unifying unit of analysis that can facilitate theory development concerning entrepreneurship. However, although the roots of business model theory are discernible in the above areas, the same does not hold for the definition of a “business model”, as there exist many diverse definitions of the term. At the most fundamental level the business model is limited to the economic model, namely how revenues and profits are generated. Business model is a statement of how a firm will make money and sustain its profit stream over time” (Stewart and Zao, 2000). Other approaches include value proposition and value generation architecture as well. The business model is the organization’s core logic for creating value. (Linder and Cantrell, 2000) ”. “Business model describes the logic of a business system for creating value that lies behind the actual processes, according to Petrovic (Petrovic at al, 2001). In 2002, Magretta (Magretta, 2002) defines business


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