Digital Business Models (eBook)

Annabeth Aagaard is Associate Professor at Aarhus University, Denmark, where she conducts research in digital and sustainable business models, innovation management, and open innovation. She is Research Director of Centre for Business Development at Aarhus University, which carries out international research and projects combining business development and digital technologies. In addition, she is the CEO and owner of the consultancy company, KnowledgeHouse, which has designed and implemented strategies and development projects among top 100 companies in Scandinavia. She has 20 years of experience working in these fields, drawing on her experiences in the academic, public, and private sectors, where she was formerly a manager and management specialist. She has published nine textbooks and management handbooks and over 200 scientific papers, conference papers, and public articles in total on management, business development, innovation, and sustainability. Her scientific research is published in acclaimed, peer-reviewed journal articles, including the Journal of Product Innovation Management, Creativity & Innovation Management, and the Scandinavian Journal of Management.

About the Book 5
References 7
Contents 8
Notes on Contributors 10
List of Figures 18
List of Tables 20
1: The Concept and Frameworks of Digital Business Models 21
1 Introduction 21
2 Digital Business Models 24
2.1 Drivers and Challenges of Digital Business Models 27
3 (Digital) Business Model Frameworks 29
3.1 Business Model Canvas 30
The Benefits and Challenges of Using the Business Model Canvas for DBM 31
3.2 St. Gallen Business Model Navigator: Magic Triangle 31
The Benefits and Challenges of Using the Business Model Navigator for DBM 32
3.3 Value Design Model 33
The Benefits and Challenges of Using the Value Design Model for DBM 34
3.4 DNA Model 34
The Benefits and Challenges of Using the DNA Model for DBM 35
3.5 BM Type for IoT Model 36
The Benefits and Challenges of Using the BM Type for IoT Model for DBM 36
3.6 IoT Business Model Framework 37
The Benefits and Challenges of Using the IoT Business Model Framework for DBM 38
4 Discussion and Concluding Remarks 39
References 42
2: The Internet of Things as Driver for Digital Business Model Innovation 47
1 Introduction 47
1.1 What Is the Internet of Things? 48
2 IoT Technologies 49
2.1 IoT Devices 50
2.2 IoT Connectivity 51
2.3 IoT Platforms 54
2.4 Challenges in IoT Technologies 57
3 IoT Application Examples 58
3.1 Industry 4.0: Predictive Maintenance 59
3.2 Smart Logistics: Supply Chain Optimization 59
3.3 Smart City: Citizen Services 59
3.4 Smart Energy: Grid 60
3.5 Smart Appliances, Welfare and Agriculture 60
4 IoT Business Model Innovation 60
4.1 IoT and Business Model Innovation 61
BMI Transition 61
IoT Ecosystem, Technology Stack and Value Flow 62
Think Big Act Small/Lean Elements 62
4.2 IoT Business Model Innovation Canvases 63
4.3 Challenges in IoT Business Model Innovation 64
5 IoT and Ethics 65
5.1 Cases of Data Sharing, Breaches and Device Take-Over 65
Application and Device Take-Over 66
Data Sharing for Other Purposes 66
5.2 Ethics as Corporate Social Responsibility in IoT 67
5.3 Individual Rights and the ‘Common Good’ 68
5.4 Governance 68
5.5 Transparency 69
5.6 Accountability 69
5.7 Privacy 70
5.8 The Currency of Trust: A Challenge and Potential for IoT 71
6 Conclusion 71
References 72
3: Value Creation for Intelligent Connected Vehicles: An Industry Value-Chain Perspective 76
1 Introduction 76
2 How Does Digital Conversion Change the Industry Value Chain for ICVs? 78
2.1 Core Value-Added Shift to the Digital Domain 79
2.2 A Deeper and Extended “Smile Curve” 79
3 Implications for ICV Business Value Creation 83
3.1 Demand-Side Value Creation Logic Shifting to the Network Effect, Long-Tail Effect, and Multi-Sided Platforms 83
Network Effect 83
Long-Tail Effect 83
Multi-Sided Platforms 84
3.2 Supply-Side Value Creation Logic Adding Horizontal Integration 85
Open Innovation 86
Innovation Ecosystems 87
4 Method and Data Collection 88
5 Discussion 89
5.1 Value-Added Distribution 89
5.2 Demand-Side Value Creation 91
5.3 Supply-Side Value Creation 92
6 Conclusion 94
7 Funding 95
References 95
4: Digitization of Value Chains and Ecosystems 99
1 In the (Very) Near Future, Internet of Things Will Be Everywhere 99
2 Emerging Value Models and Business Models 101
2.1 From Linear to Circular, Participatory Value Models 103
2.2 From Closed, Static, Firm-Centric to Open, Dynamic, Crowd-Driven Ecosystem-Centric Business Models 104
2.3 New Business Models and New Regulatory Models Need to be Co-Created with Different Actors 106
3 Open, Dynamic, Ecosystem-Centric Constructs 108
3.1 Open Platforms 110
3.2 Ecosystem Roles 112
4 Supply Chain Use Cases 115
4.1 From Manufacturing to Recycling 117
Lifecycle Management/Recycling 118
Brand Protection 121
Dynamic Pricing Use Case 121
5 Building an Ecosystem 124
5.1 Open Calls 126
Information Moments 128
Policy Meetings as Drivers of Ecosystem Expansion 129
6 Conclusions 132
References 132
5: How Business Value Is Extracted from Operational Data: A Case Study 135
1 Introduction 135
2 Literature Review 136
2.1 Business Models 137
2.2 Big Data 138
2.3 Creating Value 139
2.4 Customer Experience 140
2.5 Data Experts 141
2.6 Leadership 142
3 Research Design 144
3.1 Research Question 144
3.2 Methodology 144
3.3 Unit of Analysis and Case Selection 145
3.4 Case Profile 146
3.5 Data Collection 147
3.6 Data Analysis 149
4 Empirical Report 152
4.1 Better Client Service 152
4.2 Internal Process Improvement 154
4.3 Data Expert-Driven Technical Progress 157
5 Conclusions 159
References 160
6: Digital Business Model Innovation: Implications for Offering, Platform and Organization 164
1 Introduction 165
2 Exposition of Theory 165
2.1 Digitalization 166
2.2 Servitization 166
2.3 Business Model Transformation 167
2.4 Organization Transformation 168
2.5 Aim of the Study 168
3 Research Setting 169
3.1 Husqvarna Group 169
3.2 Methods Used 170
4 Results and Analysis 171
4.1 Servitization at Husqvarna Construction 171
4.2 Challenges 172
Holistic Customer Value Approach 173
Offer Delivery 174
Platform Versus Speed and Autonomy 175
Organization 177
5 Discussion and Conclusions 179
5.1 Managerial Implications 181
5.2 Future Research 182
References 183
7: Service Markets: Digital Business Models and International Expansion 186
1 Introduction 186
2 Literature Review 189
2.1 Geographical Proximity and Locational Advantages as Motives for Offline Presence 189
2.2 Offline Presence as Means to Shorten Psychic Distance on International Markets 191
2.3 Insufficient Theoretical Explanations for OSPs’ Spatial Internationalization Paths 193
3 Method 194
3.1 Data Selection and Data Collection 194
3.2 Limitations of the Case Study 196
4 Case: Truecaller 196
4.1 Global Online Ambition, but Offline Urban Concentration 196
4.2 Data Model-Based Market Prioritization and Online Collaboration as International Mode of Entry 198
5 Analysis 200
5.1 Computer Screen Internationalization, but the Offline Catches Up 200
5.2 Hybrid Set of Motives for Offline Presence to Limit the Online- Offline Asymmetry 202
6 Conclusions and Implications 204
6.1 Theoretical Implications 204
6.2 Determinants for International Scalability for Digital Business Models 205
6.3 Managerial Implications 207
6.4 Concluding Remarks 207
Appendix 208
References 209
8: The Impact of the European General Data Protection Regulation (GDPR) on Future Data Business Models: Toward a New Paradigm and Business Opportunities 217
1 Introduction 217
2 GDPR Overview 218
3 GDPR Key Obligations 220
3.1 Right to be Informed 224
3.2 Right to Access 227
3.3 Right to Rectification 228
3.4 Right to be Forgotten 229
3.5 The Right to Restriction of Processing 230
3.6 Right to Data Portability 231
3.7 The Right to Withdraw Consent 232
3.8 The Right to Object 233
3.9 The Right to Object to Automated Decision-Making 234
4 Impact on Data Business Models 236
5 GDPR Exemptions for Research and Anonymized Data 238
6 Building a New DBM Paradigm 240
7 Conclusion 241
9: Prosumers’ Digital Business Models for Electric Vehicles: Exploring Microfoundations for a Balanced Policy Approach 243
1 Transformation of Energy Markets 243
2 The Evolving EV markets 246
3 Exploring the Digital Business Model for Prosumers 250
4 Results 254
5 Discussion and Conclusions 262
References 266
10: Summary and Concluding Remarks 271
Index 277