Case 1: Recent Development and Future Research

Question 1

What are the three phenomena that the BM has been employed to address?

Answer 1

1. E-business and the use of information technology in organizations
2. Strategic issues (value creation, competitive advantage)
3. Innovation and technology management

Question 2

What are the complementary streams that e-business models can be organized on?

Answer 2

1) Describing general e-business models and provide technology
2) Focus on the components of e-business models

Question 3

How Weill and Vitale represented business models ?

Answer 3

Their “e-business model
schematics” are based on three classes of objects:
-participants (firm of interest, customers,
suppliers, and allies),
-relationships,
-flows (money, information, product, or service).

Question 4

What Tapscott suggested for depicting how a business web operates?

Answer 4

The value map depicts all key classes of participants (partners, customers, suppliers) and
value exchanges between them (tangible and intangible benefits and knowledge).

Question 5

What in the domain of strategic marketing of e-business, scholars Pauwels and Weiss examined?

Answer 5

Examined “fee and free” business
models for providing digital content on the Internet. Their work focuses on the firm performance
implications of a shift from the “free” to the “fee” model

Question 6

In terms of degree of Internet advertising effectiveness, What Clemons argues?

Answer 6

He argues that although the majority of attempts to monetize Internet applications targeted
at individuals have focused on natural extensions of traditional media or traditional
retailing, there are several potential online business models that are not based on advertising
and that, given declining advertising effectiveness, might constitute a better choice.

Question 7

What are the four sources of value creation through business models?

Answer 7

1. Novelty - innovation has always involved the introduction of novel products or services or
   processes.
2. Lock-in - this refers to the ability of a business model to prompt users to engage in repeat
   transactions.
   were to switch to a different service provider.
3. Complementaries - companies have long known that they can leverage value creations for their
   own products when they bundle them with complementary products from other suppliers.
   online virtual communities.
4. Efficiency - the internet makes it possible to increase efficiency in several ways. One of the most
   significant is its ability to reduce so-called information asymmetries between buyers and sellers.

Question 8

After the examination of relationship between BMI and firm performance by IBM( Berman, Giesen) . What are the three type of business model innovation?

Answer 8

1. Industry models (innovations in industry supply chain)
2. Revenue models (innovations in how companies generate value)
3. Enterprise models (innovation in the role structure of an enterprise plays in new or existing value
   chains)

Question 9

What a business model is not?

Answer 9

1) First, the business model does
not involve a linear mechanism for value creation from suppliers to the firm to its customers. Value creation is more complex, is an exchange relationship and activities among other players.
2) Second, the business model is
not the same as product market strategy or corporate strategy
3)Third, the business model cannot be reduced to issues that concern the internal organization
of firms (e.g., control mechanisms, incentive systems)

Question 10

What notion does Chesbrough introduced?

Answer 10

Open innovation as a mode of innovation in which firms, rather than relying on internal ideas, look outside their boundaries in order to increase internal and external sources of ideas.

Question 11

What is the concept similar to open innovation?

Answer 11

Collaborative entrepreneurship - the creation of something of economic value based on new jointly
generated ideas that emerge from the sharing of information and knowledge

Question 12

What is the main purpose of e-commerce phenomenon into business model innovation?

Answer 12

To describe new profile and Internet-based ways of “doing business”. Also to offer typologies or
taxonomies

Question 13

What is the main purpose of strategy phenomenon?

Answer 13

To explain new network- and activity system–based value
creation mechanisms and sources of competitive
advantage

Question 14

What is the main purpose of tech and innovation management?

Answer 14

To understand how technology is converted into market
outcomes.
To understand new networked modes of innovation