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3Purpose: To facilitate the design of viable business models by proposing a novel business model design framework for viability.
Design: A design science research method is adopted to develop a business model design framework for viability. The business model design framework for viability is demonstrated by using it to design a business model for an energy enterprise. The aforementioned framework is validated in theory by using expert opinion.
Findings: It is difficult to design viable business models because of the changing market conditions, and competing interests of stakeholders in a business ecosystem setting. Although the literature on business models provides guidance on designing viable business models, the languages (business model ontologies) used to design business models largely ignore such guidelines. Therefore, we propose a business model design framework for viability to overcome the identified shortcomings. The theoretical validation of the business model design framework for viability indicates that it is able to successfully bridge the identified shortcomings, and it is able to facilitate the design of viable business models. Moreover, the validation of the framework in practice is currently underway.
Originality / value: Several business model ontologies are used to conceptualise and evaluate business models. However, their rote application will not lead to viable business models, because they largely ignore vital design elements, such as design principles, configuration techniques, business rules, design choices, and assumptions. Therefore, we propose and validate a novel business model design framework for viability that overcomes the aforementioned shortcomings.
ARTIKEL
Publicatie ism TU Delft voor Proceedings of DESRIST 2018, 3-6 June, Madras, India. As digital technologies are transforming enterprises, the interest in business models is increasing. Technological disruptions like the Internet of Things (IoT) drive enterprises to redefine their business models to create and capture value, and eventually, to stay competitive. The need for business model innovation may be urgent, yet it is not always clear what to change in a business model. In these cases, business model exploration is needed. Within academia and practice, business model tools are mainly focused on formalizing single business model designs rather than facilitating systematic exploration of alternative business models. In this study, we present the design and prototype of a digital tool created to facilitate business model exploration. We use Design Science Research (DSR) as our research approach. In this paper, we present the results from the first cycle evaluation of the design and prototype.
CONFERENTIEPAPER
Business rule models are widely applied, standalone and embedded in smart objects. They have become segregated from information technology and they are now a valuable asset in their own right. As more business rule models are becoming assets, business models to monetize these assets are designed. The goal of this work is to present a step towards business model classification for organizations for which its value position is characterized by business rule models. Based on a survey we propose a business model categorization that is aligned to different types of assets and business model archetypes. The results show five main categories of business models: The value adding business rule model, the ‘create me a business rule model’ business model, the KAAS business model, the bait and hook business model and the market place business model.
CONFERENTIEBIJDRAGE
In het licht van fundamentele ontwikkelingen, zoals digitalisering, verduurzaming en globalisering, is het belangrijk dat ondernemingen voortdurend werken aan hun business model. Voor mkb-bedrijven is dat vaak lastig, er ontbreekt capaciteit en urgentie. In het programma Business Booster van de HR Business School hebben studenten een impuls gegeven aan het business model innovatie bij 55 mkb-bedrijven. In dit paper wordt daar verslag van gedaan. De opbrengst aan nieuwe business proposities in het programma is beperkt, de opbrengst in termen van leren innoveren is groter.
RAPPORT
Pressure on natural resources, unsustainable production and consumption, inequality and a growing global population lie at the base of the big challenges that people face. This chapter investigates how businesses can take responsibility in dealing with these challenges by means of frugal business model innovation. The notion of ‘frugal innovation’ was first introduced in the context of emerging markets, giving non-affluent customers opportunities to consume affordable products and services suited to their needs. Business modelling with a frugal mindset opens up a path that provides significant value while minimizing the use of resources such as energy, capital and time. Business models require intentional design if they are to deliver aspired sustainability impacts. Diminish or simplify resources can be described as the means to remove or reduce features, resources, required activities and/or waste streams. Decompose can be described as the removal of resources from the commercial value proposition and replacing them with resources the user/consumer already can access or uses. This is an Accepted Manuscript of a book chapter published by Routledge/CRC Press in Circular Economy : Challenges and Opportunities for Ethical and Sustainable Business on 2021, available online: https://doi.org/10.4324/9780367816650
BOEKDEEL
Business model innovations emerge over time and are influenced by managerial interaction with stakeholders. Especially with regard to business model innovation for sustainability, manager-stakeholder interaction can radically change a company’s business model and underlying logic. However, the majority of the literature shows how manager–stakeholder interaction may limit business model innovation when stakeholders reinforce existing managerial cognitions. In this chapter we study how stakeholders can also stimulate business model innovation by affecting managerial cognitive change. Through three case studies, we find that this can occur through three shaping processes: market approach shaping, product/service offering shaping, and credibility shaping. We also find that the impact of new or latent stakeholders is greater than that of existing stakeholders. We end the chapter by sketching a research agenda to further unravel the role of stakeholders affecting managerial cognition around business model innovation for sustainability.
HOOFDSTUK
The Dutch government and leading academics in the field of circular economy propose that “repurposing”, i.e., finding new usages for discarded material, is important to reduce resource usage. Waste collectors, municipalities and start-ups increasingly find ways to develop circular business models, aiming for minimum loss of material integrity. Repurpose is a circular business model strategy which entails using a discarded product or its parts in a new product with a different function.
The aim of this research is to gain a better understanding of this promising but academically underexposed circular strategy by empirically exploring its key characteristics and developing a taxonomy that reflects the scope and potential of the concept. The taxonomy development was based on clustering and comparing 96 case examples using key characteristics and critical factors empirically collected by means of 11 semi-structured expert interviews. The taxonomy was iteratively refined and validated by means of workshops with experts.
This paper proposes a taxonomy and a comprehensive definition for repurposing. The Repurpose taxonomy distinguishes three main categories with increasing levels of material integrity: “Reprocess”, “Reshape” and “Recontextualize”. The taxonomy provides a refinement of existing circular business model patterns and frameworks for closing material loops strategies. It shows how repurposing may exploit the creative potential of design to fill the gap between reuse and recycling by retaining previously added value with three levels of physical adjustment.
PAPER
Sufficiency-oriented business models are increasingly recognised as essential for achieving circular economy transitions within planetary boundaries (Bocken & Short, 2016, 2020). Despite growing academic attention and numerous pilot initiatives, such business models struggle to diffuse beyond niche contexts.
CONFERENTIEBIJDRAGE
Business model innovation is essential to drive the systemic change required for a new economy. The Sustainable Development Goals (SDGs) provide focus and direction towards this transition. For companies in the agriculture and horticulture sectors, SDG 12, Responsible Consumption and Production, is particularly relevant. Designing, renewing, and innovating business models requires courageous and creative leadership. A new business model involves more than just analyzing problems and making well-considered decisions. It’s about creating something new, discovering innovative solutions, and testing them in practice. Design thinking is a method well-suited to addressing complex challenges that do not yet have clear solutions, such as the societal issues that characterize this era of transition. In this publication, the method is applied to real-world challenges faced by entrepreneurs in the agricultural and horticultural value chain. The iterative nature of design thinking leads to unexpected and innovative outcomes. This creative approach makes a valuable contribution to the realization of SDG 12.
CONFERENTIEBIJDRAGE
A major challenge associated with the implementation of CL initiatives lies with their economic and financial long-term success. In this context, the business model concept can support assessing the business side of stakeholders’ decision-making processes as major determinants for such success. The purpose of this work is to overcome the shortcomings of the business model approach applied to CL systems. To this end, a conceptual model is built from a role-based business ecosystem modelling approach to provide a business model representation of the CL business ecosystem, able to identify and explore the components of the system and their dynamics.
CONFERENTIEBIJDRAGE
