e business model analysis a relational structural view n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
e-Business Model Analysis: A Relational-Structural View PowerPoint Presentation
Download Presentation
e-Business Model Analysis: A Relational-Structural View

Loading in 2 Seconds...

play fullscreen
1 / 71

e-Business Model Analysis: A Relational-Structural View - PowerPoint PPT Presentation


  • 123 Views
  • Uploaded on

e-Business Model Analysis: A Relational-Structural View. Sunghyun Juhn, Ph.D., Professor and Dean Graduate School of Information Science Kookmin University Korea. PACIS June, 2001 Seoul, Korea. The Questions:. The New Business Models in the New Economy . What Are They ?

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'e-Business Model Analysis: A Relational-Structural View' - yair


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
e business model analysis a relational structural view

e-Business Model Analysis: A Relational-Structural View

Sunghyun Juhn, Ph.D.,

Professor and Dean

Graduate School of Information Science

Kookmin University

Korea

PACIS

June, 2001

Seoul, Korea

the questions
The Questions:

The New Business Models in the New Economy.

  • What Are They?
  • Do They Have Any Generic Form?
  • How Do They Function?
  • What Value Do They Generate?
  • How May Firms Reap Revenues From Them?
a mindmap for business model analysis
A Mindmap for Business Model Analysis:

Enablers

Morphology

Motives

Business

Model

Taxonomy

Evolution

Path

Analysis

Levels

Value

business model analysis perspectives
Business Model Analysis Perspectives
  • Focal Organization vs. Network
    • From a particular organization’s viewpoint vs. From a Collective of Organizations’ viewpoint
  • Internal vs. External
    • Internal: BM as Configured Business Processes
    • External: BM as Configured Business Relationships
  • Static vs. Dynamic
    • Static: A State Description
    • Dynamic: A State Transition Description: An Evolution Path
  • Content vs. Morphology
    • Content Description vs. Morphology Description
the new business models what are they
The New Business Models: What Are They?
  • What are Business Models?
    • A Value Creating Mechanism.
    • Both Designed and Emergent.
  • What Does The New Economy Tell Us About Value Creation?
    • A unit of value creation is no longer firm.
    • Value stems as much from relationships as from transformation.
    • IT and Business Strategies engender and enable creative relational arrangements for value generation.
    • Value creators are therefore complex, variable, ingenious and relational
the new business models what are they1
The New Business Models: What Are They?

“The New Business Model is a set of Value Creating Relationships Structure, both intended and emergent, that demonstrates creative business design and productive technology use.”

  • A departure from the focal organization point of view
  • Adopts a structural-relational view
  • Espouses both intended and emergent perspectives of strategy
  • An amalgamation of both business and technology ingenuity
  • Generates Collective, Synergetic, Systemic Value
the new business models what are they2
The New Business Models: What Are They?
  • Three Analysis Realms
    • A Structure Analysis
      • What are the structure of business models?
    • A Function Analysis
      • How do the models function?
    • A Value Analysis
      • What value do the models generate?
      • What revenues do the firms generate?
  • Why the above three?
    • View Business Models as a System Phenomenon.
    • Hence Adopt a Systems Analysis Point of View in Analysis
the new business models what are they3
The New Business Models: What Are They?
  • What to look for in a system?
    • Structural Configuration
      • What it consists of?
      • System Components and their Inter-Relationships
    • Mode of Functioning
      • Core System Activities and how they are executed
    • Goods and Offerings
      • What the system produces and transports
    • System Value
      • The value the system creates;
      • What justifies the the continued existence and survival of the system;
    • System Quality
      • System Level Characteristics
structure analysis the tasks
Structure Analysis: The Tasks

Given Business Model as a Value Creating Relationship Structure (VCRS):

  • 1. Look for a set of generic forms for different value creating relationship structures
  • 2. Identify their attributes
  • 3. Draw strategic implications for firms
structure analysis
Structure Analysis:
  • We identify 5 generic forms of value creating relationship structure (VCRS).
    • A Chain Structure
    • A Shop Structure
    • A Marketplace Structure
    • A Community Structure
    • AnEcosystem Structure
  • The VCRSs are distinguished in terms of:
    • The purpose of the structure and the value it purports to generate.
    • The types of structural arrangement it employs for value creation.
  • The generic forms make up a business model, either alone or in combination with other forms.
generic vcrs a chain structure
Generic VCRS: A Chain Structure
  • A Chain Structure
    • Creates value through a chain of transformation relationships.
    • Transformation of resources is the goal of the structure.
    • Value adding results.
    • Acquisition, Transformation, and Distribution are the key value creating mechanism.
    • Chain is the structural arrangement employed for value creation
    • Cost and Value may spill over from one phase to the next in the chain: Inheritance property
    • A most typical form of VCRS
    • Eg: A firm’s value chain, An industry’s value system, etc

A Morphology of the Chain structure

generic vcrs a shop structure
Generic VCRS: A Shop Structure
  • A Shop Structure
    • Creates value through chipping in and integration of resources and capabilities of individual parties to solve particular problems.
    • Problem Solving is the goal of the structure.
    • Collaboration, Coordination, and Integration are the key value creating mechanism.
    • Hub is the structural arrangement employed for value creation.
    • A Centrality may exist in the relationships structure: (eg: A below)
    • Value Constellation is a special case of shop where valueco-production is emphasized.

A Morphology of the Shop structure

A

generic vcrs a marketplace structure
Generic VCRS: A Marketplace Structure
  • A Marketplace Structure
    • Creates value through setting up marketplaces and linking together buyers and sellers
    • Transaction Making is the goal of the structure.
    • Assemblage and Intermediation is the key value creating mechanism.
    • Hub is the structural arrangement employed for value creation.

A Morphology of the Marketplace structure

A

generic vcrs a community structure
Generic VCRS: A Community Structure
  • A Community Structure
    • Creates value through setting up communities and linking together their members
    • Community Building is the goal of the structure.
    • Aggregation and Sharing is the key value creating mechanisms.
    • Web is the structural arrangement employed for value creation.

A Morphology of the Community structure

generic vcrs an ecosystem structure
Generic VCRS: An Ecosystem Structure
  • An Ecosystem Structure
    • A habitat for feeding and sustain firms.
    • Adaptation and Growth is the goal of the structure.
    • Co-evolution, Selection, Self-renewal, and Self-Organizing are the key value creating mechanisms.
    • Web is the structural arrangement employed for value creation.
    • Formed typically around a critical technology
    • A largest unit of VCRSs: All Inclusive

A Morphology of the Ecosystem structure

generic vcrss strategic implications for firms
Generic VCRSs: Strategic Implications for Firms
  • 1. Decide Which Ship to Board
    • Select VCRSs for the firm to participate in:
  • 2. Identify the Key Success Factors of the VCRS
    • Those factors that maximize the value creating potentials of the VCRS:
  • 3. Determine What You Can Do In and For the VCRS
    • The firm’s role and position in the VCRS
    • Its contribution to the VCRS KSFs.
    • Get the KSFs right.
function analysis
Function Analysis:
  • VCRSs are founded on two critical functions
    • 1. Resource Join
    • 2. Resource Flow
  • We identify a set of generic forms for resource join and resource flow in the VCRSs

Resource Join

Resource Flow

Resource Exchange

A Dyadic Exchange

Resource Pooling

A Multi-Party Cyclic

Resource Complement

A Multi-Party Inter-linking

Resource Conjugation

function analysis resource join
Function Analysis: Resource Join
  • 4 Generic Types of Resource Join
    • A Resource Exchange Type
    • A Resource Pooling Type
    • A Resource Complementation Type
    • A Resource Conjugation Type

Resource Join

Resource Exchange

Resource Pooling

Resource Complement

Resource Conjugation

function analysis resource join types
Function Analysis: Resource Join Types
  • A Resource Exchange Type
    • A simple exchange relationship
    • The most basic
    • A primary type of join for the Marketplace VCRS
  • A Resource Pooling Type
    • Everyone chipping in resources and form a Resource Pool
    • Homogeneous resources
    • Creates value through Aggregation
    • May result in the Community VCRS
function analysis resource join types1
Function Analysis: Resource Join Types
  • A Resource Complementation Type
    • A join of Complementary resources
    • Generates Synergy Effect
    • Most typical in the Chain VCRS
  • A Resource Conjugation Type
    • A resource join that produces Innovation
    • Demands Ingenuity, Imagination
    • Mostly in the Shop VCRS
function analysis modes and motives of resource join
Function Analysis: Modes and Motives of Resource Join
  • Motives of Resource Join
    • Economy Motive
      • For Efficiency; Money Saving
    • Innovation Motive
      • For Producing Something New and Creative
  • Modes of Resource Join
    • Commensalistic Mode
      • Residing in and sharing a common habitat
      • Eating from the same table
    • Symbiotic Mode
      • Cooperate toward common goals and purposes
function analysis modes and motives of resource join1
Function Analysis: Modes and Motives of Resource Join
  • Resource Joins May Differ in Modes and Motive

Mode of Join

Commensalistic

Symbiotic

Motive

of

Join

Change

Economics

Resource

Exchange

Resource

Complement

Create

Innovation

Resource

Pooling

Resource

Conjugation

function analysis resource join characteristics
Function Analysis: Resource Join Characteristics

Resource

Exchange

Resource

Pooling

Resource

Complement

Resource

Conjugation

Motives

Economy

Innovation

Economy

Innovation

Modes

Commensal

Commensal

Symbiotic

Symbiotic

Strategic Mindset

Competitive

Competitive

Collective

Collective

Resource Homogeneity

Hetero

Homo

Hetero

Hetero

Resource VRIO

Low

Low

Medium

High

Resource Dependency

Low

Low

Medium

High

Join Effect

Acquire

Amplify

Complement

Invent

Value Created

Transaction

Aggregation

Complement

innovate

VCRS

Marketplace

Community

Chain

Shop

function analysis resource flow
Function Analysis: Resource Flow
  • Resource Flow
    • Transfer of Goods from One Party to Another
    • Goods include Product, Service, Information, Capital, Attention, Reputation, Authority, Trust
    • Tangible and Intangible, Actual and Anticipated
  • We Identify 3 Topological Units of Resource Flow based upon the Resource Flow Closure Hypothesis
    • A Dyadic Exchange Pattern
    • A Multi-Party Cyclic Pattern
    • A Multi-Party Inter-Linking Pattern
function analysis a resource flow closure hypothesis
Function Analysis: A Resource Flow Closure Hypothesis
  • A Resource Flow Closure Hypothesis
    • A Resource Flow is Closed When the sum utility of outbound resource flow is compensated by the sum utility of inbound resource flow
    • A firm participates in business relationships if and only if there is a resource flow closure, i.e., for each outbound resource flow is a corresponding inbound resource flow.
function analysis 3 topological units of resource flow
Function Analysis: 3 Topological Units of Resource Flow

A) A Dyadic Exchange Pattern

A

B

B

B) A Multi-Party Cyclic

Pattern

A

C

C) A Multi-Party Inter-Linking

Pattern

A

B*

C

function analysis profiles of resource flow units
Function Analysis: Profiles of Resource Flow Units

A Dyadic

Exchange

A Multi-Party

Cyclic

A Multi-Party

Inter-Linking

Flow Form

Exchange

Cycle

Inter-Link

Causal Driver

Disintermediation

Value Redemption

Infomediation

Effect

Remove Margin

Expand Flow Cycle

Facilitate Trans

Principals

A Value Dyad

A Value Cycle

A Navigator

value analysis the question
Value Analysis: The Question

What Value Do New Business Models Generate?

We Identify 4 Value Drivers

-The Underlying Motives-

-The Form of VCRS-

-The Nature of Resource Join-

-The Nature of Resource Flow-

motive analysis the question
Motive Analysis: The Question
  • The Questions:
    • What are the motives that underlie and are at work in the business model ?
    • How do the motives conjoin with one another to generate value?
    • What value do the motives collectively generate?

The value that a business model generates is the result of

a complex interplay and intertwining of various motives,

both technological and business,

which occurs at an individual level as well as at a collective level.

motive analysis the types
Motive Analysis:The types

Technological

Motives

Motives

Business

Motives

technological motives what and where
Technological Motives: What and Where
  • The Question
    • What is it that IT makes possible? - IT as an Enabler
    • What is it that IT calls for? – IT as a Driver
  • IT Effects
    • Nature of Change:
      • Change Economics
      • Create Innovation
    • Realms of Change:
      • Transformation
      • Linking

Realms of Change

Transforming

Linking

Nature

of

Change

Change

Economics

Increase

Efficiency

Increase

Interaction

Create

Innovation

Create

Goods

Create

New Space

business motives the questions
Business Motives: The Questions

How can we exploit the technology for business?

-What kinds of business to pursue with the technology?-

-What value will the business generate?-

business motives what business to pursue with the technology
Business Motives:What business to pursue with the technology?

on

  • The 5 options
    • Business On the Internet
    • Business For the Internet
    • Business With the Internet
    • Business Through the Internet
    • Business Around the Internet

For

Around

Internet

Business

Through

With

On

Business

For

Business

With

Business

Through

Business

Around

Business

internet as action space

e-Shop

internet as product domain

ISP

Internet as action mechanism

e-Procurement

Internet as basis for business design

Virtual Corp

Internet Related businesses

Telecom Animation

motives create value
Motives Create Value:

Technological Motives and Value

Motives

Value

Transforming

Increase

Efficiency

Value at

Transforming

Change

Economics

Increase

Interaction

Value at

Linking

Linking

IT Effects

Create

Goods

Value at

Goods Creation

Create

Innovation

Transforming

Create

New Space

Value at

Market Making

Linking

motives create value1
Motives Create Value:

Business Motives and Value

Motives

Value

On

Business

Value at

Market/Transaction Making

For

Business

Value at

Goods Creation

With

Business

Value at

Business Process Facilitating

Around

Business

Value at

Business Complementation

Through

Business

Value at

New Business Design

motives also conjoin for more value
Motives Also Conjoin for More Value:

Technological and Business Motives

On

Business

For

Business

With

Business

Through

Business

Around

Business

Increase

Efficiency

Increase

Interaction

Create

Goods

Create

New Space

vcrs form specifies value
VCRS Form Specifies Value:

VCRS Form and Value

VCRS

Form

Value

Chain

Value Adding

Shop

Problem Solving

Marketplace

Transaction Making

Community

Community Building

resource join creates value
Resource Join Creates Value:

Resource Join and Value

Motives

Value

Resource Join

Commensal

-istic

Resource

Exchange

Value at

Transacting

Change

Economics

Resource

Complement

Value at

Complementation

Symbiotic

Resource

Pooling

Value at

Aggregation

Commensal

-istic

Create

Innovation

Resource

Conjugation

Value at

Innovation

Symbiotic

resource flow and their causal driver
Resource Flow and their Causal Driver

Disintermediation

A

B

Value Redemption Cycle

B

A

C

Infomediation

A

B*

C

resource flows engender new business entities
Resource Flows Engender New Business Entities

Aggregator

Community

A

B

Value Cycle

B

A

C

Navigator

Infomediary

A

B*

C

resource flow generates value
Resource Flow Generates Value

Value

Resource

Flow

Value at Transacting

-Remove Intermediary-

A

B

Value at Co-Living (共生)

-Expand Flow Cycle-

B

A

C

Value at Consolidating

-Facilitate Transaction-

A

B*

C

value constellation value drivers summary
Value Constellation: Value Drivers Summary

Technology

Motives

Business

Motives

VCRS

Form

VCRS

Functions

-Resource Join-

VCRS

Function

-Resource Flow-

Value

Value

Value

Value

Value

Value at

Transforming

Value at

Market/Trans Making

Value Adding

Value at

Transacting

Value at

Transacting

Value at

Linking

Value at

Goods Creation

Problem Solving

Value at

Complementation

Value at

Co-Living

Value at

Goods Creation

Value at

B. Proc Facilitating

Trans Making

Value at

Aggregation

Value at

Consolidating

Value at

Market Making

Value at

B. Complementation

Com Building

Value at

Innovation

Value at

New Bus Design

value constellation
Value Constellation

The Value Drivers Conjoin to Form Various

Types of Value Constellations

-The Technological Motives and the Business Motives-

-The VCRS and the Business Motives-

-The Technological Motives and the VCRSs-

-The Resource Join and the Resource Flow-

-The Resource Join, Flow, and VCRSs-

----

----

An Implication: We have an infinite set of configurations

for business model values.

value constellation1
Value Constellation
  • Types of Value Conjoin
    • Generative Join
      • Join Between the Same Types of Value Drivers
      • Technology Motive Join, Business Motive Join VCRS Form Join, VCRS Function Join
      • eg.) VCRS Form x VCRS Form (Chain x Marketplace)
    • Configurative Join
      • Join between Complementary Value Drivers
      • VCRS Form x Function Join
      • Technology Motive x Business Motive Join
    • Integrative Join
      • Generative Join x Configurative Join
      • VCRS Form x VCRS Function x Technology Motives x Business Motives
value constellation an exmaple
Value Constellation: An Exmaple

Technology Motives x VCRS Function (Resource Join)

Value at

Transacting

Value at

Complementation

Value at

Aggregation

Value at

Innovation

Value at

Transforming

Value at

Linking

Value at

Goods Creating

Value at

Market Making

the question
The Question:

Where and How Can Revenue be Generated in a VCRS?

-What Are the Value Junctures Where Revenue Can be Generated?-

-Develop A Revenue Model for Firms-

Revenue Analysis calls for a change in perspective from that of a network’s to that of a focal organization’s.

revenue source conceptual instrumental branching
Revenue Source: Conceptual, Instrumental Branching
  • General versus VCRS specific Sources
  • On VCRS versus For VCRS Sources
  • Support versus Twist Sources
  • Structural versus Functional Sources
  • Infra Support versus Method/Application Support
  • Execution versus Modal Change
revenue source general versus vcrs specific sources
Revenue Source: General versus VCRS Specific Sources
  • General
    • Revenue Domain
      • VCRS Structure: Actors and Relationships
      • VCRS Function: Execution and Execution Infrastructure
    • Revenue Generator
      • Provide Support for the VCRS
      • Make a Twist of the VCRS
  • VCRS specific
    • Identify the KSF’s of the VCRS
      • At Structure and Function of VCRS
    • Determine what you can offer for the KSF’s
      • Support and Twist
revenue source
Revenue Source:

VCRS Structure

Actors and Relationships

VCRS Function

Execution and Infrastructure

Support

Marketization

Aggregation

(Amplify Actors)

Infra Support

Method Development

Twist

Role Reversing

Disintermediation

(Actor Displacement)

Modal Twist

vcrs revenue source a general model
VCRS Revenue Source: A General Model

VCRS Form

VCRS Function

Actors

Relationships

Execution

Infrastructure

Role Expansion

(Participation)

Role Enlarging

(Infomediary)

PowerAmplification

(Demand Pooling)

Relationships

Solidifying

(Concentration)

(Institutionali-

Zation)

Execution

Support

(Service

Provider)

(Method

Develop)

Infrastructure

Support

(Standardization)

Support

Role Reversing

(Reverse Auction)

Role Bypassing

(Disintermediation)

Relationships

Disruption

(Marketization)

Execution

Twist

(Method Substi.)

(Tech.

Irrelevance)

Infrastructure

Twist

(Modal Twist)

(Decoupling of

Info and Things)

Twist

vcrs revenue source a vcrs specific model
VCRS Revenue Source: A VCRS-specific Model

VCRS Form

VCRS Function

Actors

Relationships

Execution

Infrastructure

S

T

S

T

S

T

S

T

KSF

1

KSF

2

VCRS KSFs

KSF

--

<A Revenue Model for A VCRS>

revenue source a chain structure
Revenue Source: A Chain Structure
  • What are KSFs for the Chain VCRS?
    • Resource Acquisition
    • Transform
    • Linkage
  • What you can offer:
    • Facilitate Resource Acquisition: B2B
    • Develop Transformation Method and Technology
    • Reduce Interdependence: B2B, B2C

A Morphology of the Chain structure

revenue source a shop structure
Revenue Source: A Shop Structure
  • What are KSF’s for the Shop VCRS?
    • Expertise
    • Coordination and Integration
  • What you can offer:
    • Solicit and assemble expertise: P2P
    • Facilitate coordination and integration: Play Integrator
    • Develop and Provide Collaborative Technology

A Morphology of the Shop structure

A

revenue source a marketplace structure
Revenue Source: A Marketplace Structure
  • What are KSF’s for the Marketplace VCRS
    • Buyer-Seller Participation
    • Transaction Making
  • What you can offer:
    • Help assemble buyers and sellers: Community
    • Facilitate Transaction: Price Determination Mechanism

A Morphology of the Marketplace structure

A

revenue source a community structure
Revenue Source: A Community Structure
  • What are KSF’s for the Community VCRS?
    • Participation
    • Loyalty
  • What you can offer:
    • Induce Participation
    • Cultivate Loyalty

A Morphology of the Community structure

conclusions
Conclusions
  • Contributions
    • An Enriched Conceptualization of Business Models
    • A Contexualized View of Business
    • A Good Exercise in Theorizing…
  • Needs further research on:
    • A Generic Revenue Model: How revenue can be generated in a VCRS
    • A dynamic, evolutionary account of Business Model generation
    • Empirical validation of the analysis models
    • Draw practical implications and guidelines for business
    • Develop Context-driven Strategy Model for Firms
conclusions1
Conclusions
  • Implications for Business and Firms – The Ten Commandments
    • 1. Understand the New Economy Context for Business
    • 2. Determine What You Can Do with Technology
    • 3. Consider Value Creation from A Network Perspective
    • 4. Determine Which VCRSs to Join
    • 5. Maximize Value Potentials of the VCRS
    • 6. Generate Revenue by Contributing to the VCRS Value Maximization
    • 7. Design Value Redemption Cycle
    • 8. Develop Resources Others Want – It’s a small world
    • 9. Be Creative in Resource Join – Imagination is the only resource to run out of
    • 10. Learn to Live with Others – You never go at it alone anymore.