Imperatives of Business Models and Digital Transformation for Digital Services Providers

Author(s):  
Ramamurthy Venkatesh ◽  
Liju Mathew ◽  
Tarun Kumar Singhal

Despite the increasing pace of digital transformation initiatives across many industry verticals, lack of understanding among business leadership is cited as one of the major barriers for successful implementation of business transformation. This article explores the imperatives of business models and digital transformation from practical perspective and proposes an improvised business model framework with particular focus on digital services providers. Extant literature covering the trends of business models and digital transformation were reviewed qualitatively along with select reports pertaining to challenges faced by communications service providers. Key findings of this article suggest, a practical framework and business model representation to mitigate the challenges of business models and digital transformation. The authors believe, such an approach shall open up new and innovative opportunities for communication service providers to become true digital service providers which will help their business customers to plan and empirically progress with their business transformation efforts.

2017 ◽  
Vol 7 (4) ◽  
pp. 1-19 ◽  
Author(s):  
Trevor Clohessy ◽  
Thomas Acton ◽  
Lorraine Morgan

Cloud-based digital transformation is having a profound impact on new and incumbent information technology service providers. In transitioning from traditional to cloud-based service provision, some IT service providers are experiencing substantial difficulties in realizing effective business models. Taking the perspective of 20 large business model mature and small and medium enterprise born-on-the-cloud multinational IT service providers, this focus group study contributes to the dearth of research examining the broader impact of cloud computing on IT service providers' business model. The study provides two core insights. First, using the STOF business model framework, the paper provides a vivid contextual understanding of the nuanced impact of cloud computing along four core business model domains: service, technological, organisational and financial. Second, the study identifies a number of salient challenges which are impacting IT service providers' efforts to effectively leverage the benefits of cloud-based digital transformation.


Author(s):  
Dietmar G. Wiedemann ◽  
Wolfgang Palka ◽  
Key Pousttchi

A sizeable body of research on mobile payment evolved in recent years. Researchers analyzed success factors and acceptance criteria as well as strengths and weaknesses of different mobile payment service providers. This chapter explores business models for mobile payment service provision and mobile payment service enabling. While a mobile payment service provider offers a mobile payment procedure to end-users and merchants, a mobile payment service enabler targets on enabling other companies tooffer mobile payment services. The authors primary contribution is to demonstrate the applicability of a general mobile payment business model framework, which was proposed in prior research. In doing so, they analyze, as an example, the case of SEMOPS as a typical mobile service enabler. Representing any m-payment business model, the resulting framework enables researchers and practitioners for comprehensive analysis of existing and future models and provides a helpful tool for M-Payment business model engineering.


2020 ◽  
pp. 1495-1514
Author(s):  
Trevor Clohessy ◽  
Thomas Acton ◽  
Lorraine Morgan

Cloud-based digital transformation is having a profound impact on new and incumbent information technology service providers. In transitioning from traditional to cloud-based service provision, some IT service providers are experiencing substantial difficulties in realizing effective business models. Taking the perspective of 20 large business model mature and small and medium enterprise born-on-the-cloud multinational IT service providers, this focus group study contributes to the dearth of research examining the broader impact of cloud computing on IT service providers' business model. The study provides two core insights. First, using the STOF business model framework, the paper provides a vivid contextual understanding of the nuanced impact of cloud computing along four core business model domains: service, technological, organisational and financial. Second, the study identifies a number of salient challenges which are impacting IT service providers' efforts to effectively leverage the benefits of cloud-based digital transformation.


2015 ◽  
Vol 4 (1) ◽  
pp. 4-24 ◽  
Author(s):  
Julia Selberherr

Purpose – Sustainable buildings bear enormous potential benefits for clients, service providers, and our society. To release this potential a change in business models is required. The purpose of this paper is to develop a new business model with the objective of proactively contributing to sustainable development on the societal level and thereby improving the economic position of the service providers in the construction sector. Design/methodology/approach – The modeling process comprises two steps, the formal structuring and the contextual configuration. In the formal structuring systems theory is used and two levels are analytically separated. The outside view concerns the business model’s interaction with the environment and its impact on sustainability. The inside view focusses on efficient value creation for securing sustainability. The logically deductively developed business model is subsequently theory-led substantiated with Giddens’ structuration theory. Findings – The relevant mechanisms for the development of a new service offer, which creates a perceivable surplus value to the client and contributes to sustainable development on the societal level, are identified. The requirements for an efficient value creation process with the objective of optimizing the service providers’ competitive position are outlined. Research limitations/implications – The model is developed logically deductively based on literature and embedded in a theoretical framework. It has not yet been empirically tested. Practical implications – Guidelines for the practical implementation of more sustainable business models for the provision of life cycle service offers are developed. Social implications – The construction industry’s impact requires it to contribute proactively to a more sustainable development of the society. Originality/value – This paper analyzes the role for the players in the construction sector in proactively contributing to sustainable development on the societal level. One feasible strategy is proposed with a new business model, which aims at cooperatively optimizing buildings and infrastructures and taking the responsibility for the operating phase via guarantees.


E-Management ◽  
2021 ◽  
Vol 3 (4) ◽  
pp. 26-36
Author(s):  
A. A. Dashkov ◽  
Yu. O. Nesterova

The digital transformation of our world and the inevitable interaction between people, digital technologies and physical assets create a rapidly changing and complex environment that requires organizations to be more flexible, better fit and ready to accept new ways of working. Businesses are coming to realize the need for change to operate successfully in the digital age. In the period of global digitalization, information and communication technologies are one of the most important aspects of existence for a business, which makes it more efficient, efficient and allows you to respond quickly to a rapidly changing external environment, as well as customer needs. At the moment, there is a high interest in the possibilities of artificial intelligence for use in business tasks in the world, as there are already examples of successful implementation, when Artificial Intelligence and machine learning radically change the way they work and increase the profit of organizations in different countries.The purpose of this study is to consider how artificial intelligence affects the value proposition and how the elements of the business model change when using this technology. The paper gives the existing examples of the use of technology, the consequences of its application and the emerging prospects for the use of Artificial Intelligence as one of the advanced technologies of digital transformation.


2020 ◽  
pp. 436-463
Author(s):  
Jukka Ojasalo ◽  
Katri Ojasalo

Business models have made a breakthrough both in the academic and in business community in the area business development. Old fashioned business plans are in many cases considered as a waste of time and resources. Particularly start-ups and SMEs have a great potential to take advantage of business model approach which allows lean and agile product and service development. However, the existing widely used business model frameworks are lacking the new service logic orientation. They mostly see the world in terms of goods logic. Since all sizes of businesses in all industries are increasingly adopting the service logic or service-dominant logic, there was a clear need to develop a new service logic based business model framework. Based on an extensive empirical study with both practitioners and academics, a new Service Logic Business Model Canvas was developed to fill this need. This chapter explains the theoretical foundations of this framework in SME and start-up context, as well as the framework itself and its application.


2022 ◽  
pp. 124-148
Author(s):  
Ignitia Motjolopane ◽  
Tshinakaho Relebogile Seaba

In a digital arena, information technology services provision is shifting to a cloud computing ecosystem. Cloud computing is an enabler for digital transformation with cloud computing service providers central to the digital transformation of both companies and higher education. As cloud computing service providers play the role of an ‘architect' for companies as supply chain is digitised and in supporting higher education institutions striving to deliver user-focused services in the face of increasing competition, an understanding of successful characteristics of cloud computing service provider business models is of main interest for providers and may also be of value for companies and higher education institutions when selecting cloud computing service providers. Despite the importance of cloud computing service providers' business models, information systems literature has provided limited analysis on the characteristics of successful business models. As such, the chapter aims to contribute to the emerging research on characteristics of successful business models.


2011 ◽  
pp. 150-173 ◽  
Author(s):  
Pieter Ballon

Mobile Television is potentially the most anticipated mass-market mobile application across Europe. This chapter examines the business model design of Mobile TV by the various stakeholders currently piloting mobile broadcasting in the European national markets. It adapts a generic business model framework to systematically compare five recent pilots of the two mobile broadcasting technologies that are currently trialled most intensively in Europe, i.e. DVB-H and DAB-IP. The article illustrates the cross-impact of cooperation agreements between the various stakeholders with technological, service-related and financial design choices. It also provides insights as to the likely business models in the upcoming commercialisation phase of mobile broadcasting in Europe.


2019 ◽  
Vol 47 (10) ◽  
pp. 1029-1056 ◽  
Author(s):  
Yvonne Haas

Purpose Global trends like digitalization and verticalization increase the complexity within the retail industry and decrease the explanatory power of prevailing retail concepts. This paper responds to the call for new ways of understanding retailers’ business activities. The purpose of this paper is to structure and stimulate the emerging conceptual debate about retail business models (RBM) by developing a literature-based and empirically-substantiated generic retail business model framework (generic RBM). Design/methodology/approach The research is based on a systematic literature review and a qualitative study with 16 expert interviews in the German retail industry. Findings The paper identifies six core elements and respective sub-elements of a generic RBM. Contrasting the literature with empirical data, it confirms some common elements (e.g. “value proposition”) but invalidates others (e.g. “organization” or “governance”). The empirical findings add retail specifics like “horizontal integration,” “vertical integration” and “partners and networks” as core elements of a generic RBM. Originality/value The paper is the first to develop a generic RBM based on a systematic literature review and an empirical study across retailers. The resulting generic RBM can be used as a retail concept for systemizing and typifying the appearances of retailers in retailing theory. It can also be used for building, analyzing and comparing RBMs in retailing practice. The paper further provides a guideline for generic business model design with a hybrid approach based on literature and qualitative data.


Organizacija ◽  
2017 ◽  
Vol 50 (3) ◽  
pp. 255-272 ◽  
Author(s):  
Kristina Bogataj Habjan ◽  
Andreja Pucihar

Abstract Background and Purpose: Bringing several opportunities for more effective and efficient IT governance and service exploitation, cloud computing is expected to impact the European and global economies significantly. Market data show that despite many advantages and promised benefits the adoption of cloud computing is not as fast and widespread as foreseen. This situation shows the need for further exploration of the potentials of cloud computing and its implementation on the market. The purpose of this research was to identify individual business model factors with the highest impact on cloud computing adoption. In addition, the aim was to identify the differences in opinion regarding the importance of business model factors on cloud computing adoption according to companies’ previous experiences with cloud computing services. Methodology: Based on literature review, prior research results, and interviews with cloud computing providers and users, a research model was developed. Statistical analysis focused on identification of factors’ importance on cloud computing adoption and differences in opinions according to respondents’ previous experiences with cloud computing services. The study was done among 80 companies and five major cloud computing providers in Slovenia. Results: The research results reveal statistically significant differences in opinions on the importance of cloud computing business model factors according to respondents’ previous experiences with cloud computing services. The results can provide orientation for redesign or innovation of existing business models towards the creation of a customer-oriented business model for the more successful exploitation of cloud computing services and business opportunities. For potential users, the findings represent guidelines for the successful adoption of cloud computing services. Conclusions: In our research, the investigated business model factors could be classified into so-called “business model organizational factors”, as they primarily need to be considered by cloud service providers when defining or innovating their business models. For future research, the model should also include the impact of environmental factors, such as Competition, Business Partners, Legislation, Economic Situation, in order to investigate their impact on cloud adoption.


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