Design Principles for Business-Model-based Management Methods—A Service-dominant Logic Perspective
Journal
Proceedings of the Twelfth International Conference on Design Science Research in Information Systems and Technology (DESRIST) 2017
ISBN
978-3-319-59144-5
Type
conference paper
Date Issued
2017-05-30
Author(s)
Editor(s)
Maedche, Alexander
vom Brocke, Jan
Hevner, Alan
Research Team
ACG, IWI1
Abstract
Extant research gives rise to the notion of business-model-based management that stresses the pivotal role of the business model concept in organizational management. This role entails a shift in research from predominantly examining business model representation to the use of the business model concept in the design of management methods. In designing respective management methods, managers need to not only account for the business model concept, but also consider the characteristics of the emerging business environments in which business models are devised. To this, our study guides the design of business-model-based management methods through exploiting service-dominant logic, a theoretical lens that conceptualizes the emerging business environment. By means of design science research, this study develops four design principles for business-model-based management methods namely, ecosystem-, technology-, mobilization-, and co-creation-oriented management. This study also articulates the principles' rationale and implications and discusses their contribution in achieving business-model-based management.
Funding(s)
Language
English
Keywords
Design Principles
Business Model (BM)
Business-Model-based Management (BMBM)
Service-dominant (S-D) Logic
Design Science Research (DSR)
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Book title
Designing the Digital Transformation
Publisher
Springer International Publishing AG
Publisher place
LNCS Book Series
Volume
10243
Start page
179
End page
198
Pages
19
Event Title
Twelfth International Conference on Design Science Research in Information Systems and Technology (DESRIST) 2017
Event Location
Karlsruhe, Germany
Event Date
30 May-1 June, 2017
Subject(s)
Division(s)
Contact Email Address
michael.blaschke@unisg.ch
References
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37. Pels, J., Vargo, S.L.: Toward a transcending conceptualization of relationship: a service-dominant logic perspective. J. Bus. Ind. Mark. 24, 373–379 (2009).
38. Ranjan, K., Read, S.: Value co-creation: concept and measurement. J. Acad. Mark. Sci. 44, 290–315 (2016).
39. Etgar, M.: A Descriptive Model of the Consumer Co-production Process. J. Acad. Mark. Sci. 36, 97–108 (2008).
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41. Yip, G.S.: Using Strategy to Change Your Business Model. Bus. Strategy Rev. 15, 17–24 (2004).
42. Smedlund, A.: Value Cocreation in Service Platform Business Models. Serv. Sci. 4, 79–88 (2012).
43. Sonnenberg, C., vom Brocke, J.: Evaluations in the science of the artificial–reconsidering the build-evaluate pattern in design science research. In: Design Science Research in Infor-mation Systems. Advances in Theory and Practice. pp. 381–397. Springer (2012).
44. Abraham, R., Aier, S., Winter, R.: Fail Early, Fail Often: Towards Coherent Feedback Loops in Design Science Research Evaluation. (2014).
45. Barrett, M., Davidson, E., Prabhu, J., Vargo, S.L.: Service Innovation in the Digital Age: Key Contributions and Future Directions. MIS Q. 39, 135–154 (2015).
46. Grover, V., Kohli, R.: Cocreating It Value: New Capabilities and Metrics for Multifirm Environments. MIS Q. 36, 225–232 (2012).
47. Chaturvedi, A.R., Dolk, D.R., Drnevich, P.L.: Design Principles for Virtual Worlds. MIS Q. 35, 673–684 (2011).
48. Yang, L., Su, G., Yuan, H.: Design principles of integrated information platform for emer-gency responses: the case of 2008 Beijing Olympic Games. Inf. Syst. Res. 23, 761–786 (2012).
49. Zolnowski, A., Böhmann, T.: Customer Integration in Service Business Models. In: Pro-ceedings of the 46th Hawaii International Conference on System Sciences. pp. 1103–1112 (2013).
50. Zolnowski, A., Semmann, M., Böhmann, T.: Introducing a Co-Creation Perspective to Service Business Models. In: Proceedings of Enterprise Modelling and Information Sys-tems Architectures (EMISA) 2011. pp. 243–248 (2011).
51. Richardson, G.L., Jackson, B.M., Dickson, G.W.: A Principles-Based Enterprise Architec-ture: Lessons from Texaco and Star Enterprise. MIS Q. 14, 385–403 (1990).
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53. Leminen, S., Westerlund, M., Rajahonka, M., Siuruainen, R.: Towards IOT Ecosystems and Business Models. In: Internet of Things, Smart Spaces, and Next Generation Network-ing. pp. 15–26. Springer, Berlin, Heidelberg (2012).
54. Ross, J., Sebastian, I., Beath, C., Mocker, M., Moloney, K., Fonstad, N.: Designing and Executing Digital Strategies. ICIS 2016 Proc. (2016).
55. Hanseth, O., Lyytinen, K.: Design theory for dynamic complexity in information infrastruc-tures: the case of building internet. J. Inf. Technol. 25, 1–19 (2010).
56. Henfridsson, O., Bygstad, B.: The Generative Mechanisms of Digital Infrastructure Evolu-tion. MIS Q. 37, 907-A5 (2013).
57. Tilson, D., Lyytinen, K., Sørensen, C.: Digital Infrastructures: The Missing IS Research Agenda. Inf. Syst. Res. 21, 748–759 (2010).
58. Stickdorn, M., Schwarzenberger, K.: Service design in tourism. Entrep. Tour. Unternehmer-isches Denk. Erfolgskonzepte Aus Prax. 2261 (2016).
59. El Sawy, O.A., Malhotra, A., YoungKi Park, Pavlou, P.A.: Seeking the Configurations of Digital Ecodynamics: It Takes Three to Tango. Inf. Syst. Res. 21, 835–848 (2010).
60. Baden-Fuller, C., Morgan, M.S.: Business models as models. Long Range Plann. 43, 156–171 (2010).
61. Day, G.S.: Achieving Advantage with a New Dominant Logic In “Invited Commentaries on ‘Evolving to a New Dominant Logic for Marketing.’” J. Mark. 68, 18–27 (2004).
62. Levy, S.J.: How new, how dominant? In: Lusch, R.F. and Vargo, S.L. (eds.) The Service-Dominant Logic of Marketing: Dialog, Debate, and Directions. pp. 57–64. M. E. Sharpe, New York (2006).
63. Jain, H., Tanniru, M., Spohrer, J., Hsu, C., Zhao, L., Zhao, L.: ICIS 2007 Panel Report: Bridging Service Computing and Service Management: How MIS Contributes to Service Orientation? Commun. Assoc. Inf. Syst. 22, 145 (2007).
64. Akaka, M.A., Stephen L. Vargo, Robert F. Lusch: An Exploration of Networks in Value Cocreation: A Service-Ecosystems View. Rev. Mark. Res. 9, 13–50 (2012).
65. Wade, M., Hulland, J.: The Resource-Based View and Information Systems Research: Review, Extension, and Suggestions for Future Research. MIS Q. 28, 107–142 (2004).
66. Drees, J.M., Heugens, P.P.: Synthesizing and Extending Resource Dependence Theory A Meta-Analysis. J. Manag. 39, 1–33 (2013).
2. Vargo, S.L., Lusch, R.F.: Evolving to a New Dominant Logic for Marketing. J. Mark. 68, 1–17 (2004).
3. Vargo, S.L., Lusch, R.F.: Service-dominant logic: continuing the evolution. J. Acad. Mark. Sci. 36, 1–10 (2008).
4. Vargo, S.L., Lusch, R.F.: Institutions and axioms: an extension and update of service-dominant logic. J. Acad. Mark. Sci. 44, 5–23 (2016).
5. Lusch, R.F., Nambisan, S.: Service Innovation: A Service-dominant Logic Perspective. MIS Q. 39, 155–175 (2015).
6. Prahalad, C.K., Ramaswamy, V.: Co-creating unique value with customers. Strategy Lead-ersh. 32, 4–9 (2004).
7. Macdonald, E.K., Kleinaltenkamp, M., Wilson, H.N.: How business customers judge solu-tions: Solution quality and value in use. J. Mark. 80, 96–120 (2016).
8. Loebbecke, C., Picot, A.: Reflections on societal and business model transformation arising from digitization and big data analytics: A research agenda. J. Strateg. Inf. Syst. 24, 149–157 (2015).
9. Bharadwaj, A., El Sawy, O.A., Pavlou, P.A., Venkatraman, N.: Digital Business Strategy: Toward a Next Generation of Insights. MIS Q. 37, 471–482 (2013).
10. Bharadwaj, A., El Sawy, O.A., Pavlou, P.A., Venkatraman, N.: Visions and Voices on Emerging Challenges in Digital Business Strategy. MIS Q. 37, 633–661 (2013).
11. Tallon, P.P.: A Service Science Perspective on Strategic Choice, IT, and Performance in U.S. Banking. J. Manag. Inf. Syst. 26, 219–252 (2010).
12. Eisert, U., Doll, J.: Business Model Based Management: Bridging the Gap Between Strate-gy and Daily Business. 360° – Bus. Transform. J. 15–28 (2015).
13. Terrenghi, N., Schwarz, J., Legner, C., Eisert, U.: Business Model Management: Current Practices, Required Activities and IT Support. In: Proceedings of the 13th Internationale Tagung Wirtschaftsinformatik (WI 2017). pp. 972–986. , St.Gallen (2017).
14. Zott, C., Amit, R., Massa, L.: The Business Model: Recent Developments and Future Re-search. J. Manag. 37, 1019–1042 (2011).
15. Hedman, J., Kalling, T.: The business model concept: theoretical underpinnings and empiri-cal illustrations. Eur. J. Inf. Syst. 12, 49–59 (2003).
16. Hienerth, C., Keinz, P., Lettl, C.: Exploring the Nature and Implementation Process of User-Centric Business Models. Long Range Plann. 44, 344–374 (2011).
17. Wirtz, B.W., Pistoia, A., Ullrich, S., Göttel, V.: Business Models: Origin, Development and Future Research Perspectives. Long Range Plann. 49, 36–54 (2016).
18. Tsalgatidou, A., Pitoura, E.: Business models and transactions in mobile electronic com-merce: requirements and properties. Comput. Netw. 37, 221–236 (2001).
19. Osterwalder, A., Pigneur, Y., Tucci, C.L.: Clarifying business models: Origins, present, and future of the concept. Commun. Assoc. Inf. Syst. 16, 1 (2005).
20. Veit, D., Clemons, E., Benlian, A., Buxmann, P., Hess, T., Kundisch, D., Leimeister, J.M., Loos, P., Spann, M.: Business models. Bus. Inf. Syst. Eng. 6, 45–53 (2014).
21. Peters, C., Blohm, I., Leimeister, J.M.: Anatomy of Successful Business Models for Com-plex Services: Insights from the Telemedicine Field. J. Manag. Inf. Syst. 32, 75–104 (2015).
22. Ebel, P., Bretschneider, U., Leimeister, J.M.: Leveraging virtual business model innovation: a framework for designing business model development tools. Inf. Syst. J. 26, 519–550 (2016).
23. Giessmann, A., Legner, C.: Designing business models for cloud platforms. Inf. Syst. J. 26, 551–579 (2016).
24. Zott, C., Amit, R.: The fit between product market strategy and business model: implications for firm performance. Strateg. Manag. J. 29, 1–26 (2008).
25. Teece, D.J.: Business models, business strategy and innovation. Long Range Plann. 43, 172–194 (2010).
26. Richardson, J.: The business model: an integrative framework for strategy execution. Strateg. Change. 17, 133–144 (2008).
27. Massa, L., Tucci, C., Afuah, A.: A Critical Assessment of Business Model Research. Acad. Manag. Ann. annals.2014.0072 (2016).
28. Afuah, A., Allan, A.: Business Models: A Strategic Management Approach. Mcgraw Hill Book Co, New York (2003).
29. Galvagno, M., Dalli, D.: Theory of Value Co-creation: A Systematic Literature Review. Manag. Serv. Qual. Int. J. 24, 643–683 (2014).
30. Vargo, S.L., Lusch, R.F., Akaka, M.A.: Advancing service science with service-dominant logic. Handb. Serv. Sci. 133–156 (2010).
31. Böhmann, T., Leimeister, J.M., Möslein, K.: Service-Systems-Engineering. Wirtschaftsinformatik. 56, 83–90 (2014).
32. Maglio, P.P., Vargo, S.L., Caswell, N., Spohrer, J.: The service system is the basic abstrac-tion of service science. Inf. Syst. E-Bus. Manag. 7, 395–406 (2009).
33. Alter, S.: Challenges for Service Science. J. Inf. Technol. Theory Appl. 13, 22 (2012).
34. Srivastava, S.C., Shainesh, G.: Bridging the Service Divide Through Digitally Enabled Service Innovations: Evidence from Indian Healthcare Service Providers. MIS Q. 39, 245-A19 (2015).
35. Lusch, R.F., Vargo, S.L., Tanniru, M.: Service, value networks and learning. J. Acad. Mark. Sci. 38, 19–31 (2010).
36. Lusch, R.F., Vargo, S.L., O’Brien, M.: Competing through service: Insights from service-dominant logic. J. Retail. 83, 5–18 (2007).
37. Pels, J., Vargo, S.L.: Toward a transcending conceptualization of relationship: a service-dominant logic perspective. J. Bus. Ind. Mark. 24, 373–379 (2009).
38. Ranjan, K., Read, S.: Value co-creation: concept and measurement. J. Acad. Mark. Sci. 44, 290–315 (2016).
39. Etgar, M.: A Descriptive Model of the Consumer Co-production Process. J. Acad. Mark. Sci. 36, 97–108 (2008).
40. Nenonen, S., Storbacka, K.: Business model design: conceptualizing networked value co‐creation. Int. J. Qual. Serv. Sci. 2, 43–59 (2010).
41. Yip, G.S.: Using Strategy to Change Your Business Model. Bus. Strategy Rev. 15, 17–24 (2004).
42. Smedlund, A.: Value Cocreation in Service Platform Business Models. Serv. Sci. 4, 79–88 (2012).
43. Sonnenberg, C., vom Brocke, J.: Evaluations in the science of the artificial–reconsidering the build-evaluate pattern in design science research. In: Design Science Research in Infor-mation Systems. Advances in Theory and Practice. pp. 381–397. Springer (2012).
44. Abraham, R., Aier, S., Winter, R.: Fail Early, Fail Often: Towards Coherent Feedback Loops in Design Science Research Evaluation. (2014).
45. Barrett, M., Davidson, E., Prabhu, J., Vargo, S.L.: Service Innovation in the Digital Age: Key Contributions and Future Directions. MIS Q. 39, 135–154 (2015).
46. Grover, V., Kohli, R.: Cocreating It Value: New Capabilities and Metrics for Multifirm Environments. MIS Q. 36, 225–232 (2012).
47. Chaturvedi, A.R., Dolk, D.R., Drnevich, P.L.: Design Principles for Virtual Worlds. MIS Q. 35, 673–684 (2011).
48. Yang, L., Su, G., Yuan, H.: Design principles of integrated information platform for emer-gency responses: the case of 2008 Beijing Olympic Games. Inf. Syst. Res. 23, 761–786 (2012).
49. Zolnowski, A., Böhmann, T.: Customer Integration in Service Business Models. In: Pro-ceedings of the 46th Hawaii International Conference on System Sciences. pp. 1103–1112 (2013).
50. Zolnowski, A., Semmann, M., Böhmann, T.: Introducing a Co-Creation Perspective to Service Business Models. In: Proceedings of Enterprise Modelling and Information Sys-tems Architectures (EMISA) 2011. pp. 243–248 (2011).
51. Richardson, G.L., Jackson, B.M., Dickson, G.W.: A Principles-Based Enterprise Architec-ture: Lessons from Texaco and Star Enterprise. MIS Q. 14, 385–403 (1990).
52. Aier, S., Fischer, C., Winter, R.: Construction and Evaluation of a Meta-Model for Enter-prise Architecture Design Principles. In: Bernstein, A. and Schwabe, G. (eds.) Proceedings of the 10th International Conference on Wirtschaftsinformatik (WI 2011). pp. 637–644. , Zurich (2011).
53. Leminen, S., Westerlund, M., Rajahonka, M., Siuruainen, R.: Towards IOT Ecosystems and Business Models. In: Internet of Things, Smart Spaces, and Next Generation Network-ing. pp. 15–26. Springer, Berlin, Heidelberg (2012).
54. Ross, J., Sebastian, I., Beath, C., Mocker, M., Moloney, K., Fonstad, N.: Designing and Executing Digital Strategies. ICIS 2016 Proc. (2016).
55. Hanseth, O., Lyytinen, K.: Design theory for dynamic complexity in information infrastruc-tures: the case of building internet. J. Inf. Technol. 25, 1–19 (2010).
56. Henfridsson, O., Bygstad, B.: The Generative Mechanisms of Digital Infrastructure Evolu-tion. MIS Q. 37, 907-A5 (2013).
57. Tilson, D., Lyytinen, K., Sørensen, C.: Digital Infrastructures: The Missing IS Research Agenda. Inf. Syst. Res. 21, 748–759 (2010).
58. Stickdorn, M., Schwarzenberger, K.: Service design in tourism. Entrep. Tour. Unternehmer-isches Denk. Erfolgskonzepte Aus Prax. 2261 (2016).
59. El Sawy, O.A., Malhotra, A., YoungKi Park, Pavlou, P.A.: Seeking the Configurations of Digital Ecodynamics: It Takes Three to Tango. Inf. Syst. Res. 21, 835–848 (2010).
60. Baden-Fuller, C., Morgan, M.S.: Business models as models. Long Range Plann. 43, 156–171 (2010).
61. Day, G.S.: Achieving Advantage with a New Dominant Logic In “Invited Commentaries on ‘Evolving to a New Dominant Logic for Marketing.’” J. Mark. 68, 18–27 (2004).
62. Levy, S.J.: How new, how dominant? In: Lusch, R.F. and Vargo, S.L. (eds.) The Service-Dominant Logic of Marketing: Dialog, Debate, and Directions. pp. 57–64. M. E. Sharpe, New York (2006).
63. Jain, H., Tanniru, M., Spohrer, J., Hsu, C., Zhao, L., Zhao, L.: ICIS 2007 Panel Report: Bridging Service Computing and Service Management: How MIS Contributes to Service Orientation? Commun. Assoc. Inf. Syst. 22, 145 (2007).
64. Akaka, M.A., Stephen L. Vargo, Robert F. Lusch: An Exploration of Networks in Value Cocreation: A Service-Ecosystems View. Rev. Mark. Res. 9, 13–50 (2012).
65. Wade, M., Hulland, J.: The Resource-Based View and Information Systems Research: Review, Extension, and Suggestions for Future Research. MIS Q. 28, 107–142 (2004).
66. Drees, J.M., Heugens, P.P.: Synthesizing and Extending Resource Dependence Theory A Meta-Analysis. J. Manag. 39, 1–33 (2013).
Additional Information
This work has been supported by the Swiss National Science Foundation (SNSF).
Eprints ID
250724
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