Component 3 (internal capability factors): What is our source of competence?
Component 4 (competitive strategy factors): How do we competitively position ourselves?
Component 5 (economic factors): How we make money?
Component 6 (personal/investor factors): What are our time, scope and
size ambitions? Each of the above six components is questions), in this way assisting and design of business models.
further analyzed into sub-components (sub- structuring the observation, description and
A very interesting work is the IDEA framework (named after the initials of its four basic modules) (Shubar A. et al, 2004), which supports the development of new business models driven by new and radical technologies. The fundamental hypothesis is that the existing business models of an industry are built and optimized on specific industry assumptions; new technologies change these industry assumptions and necessitate the re-design and re-optimization of business models. The IDEA framework consists of four basic modules. The first one identifies the new design possibilities for the existing business models which result from the new technology. The second module concerns the re-design of the existing business models using the new design possibilities identified in the previous module. In the third module the potential business models are evaluated, in order to identify the ones that have a potential to succeed in the market. Finally, in the forth module, the new business models are aggregated in a value chain. From the above it is concluded that the IDEA framework supports the development of business models not from the beginning, but by evolving existing business models, which might reduce innovative thinking.
In this direction, in order to support innovative design of business models, we have developed a new generic framework for the design of ‘digital’ business models, without having to be based on existing previous ones. Its objective is to design the value proposition, the production architecture (value chain), the actors and the economic model of the business model. Our design framework consists of six stages, as shown in figure 1. Typically, several iterations of these six stages will be required; each iteration provides a better understanding and a more detailed design. Also, the understanding achieved in one stage might necessitate returning and repeating a previous stage(s).
Figure 1: Generic framework for business model design
The six stages of our methodology are described in the following paragraphs: 1. Design of the value proposition: In this stage the value proposition is designed; the basic elements of the product/service that will be offered to each customer segment addressed are