Measuring Business Model Transformation

Pressure amongst competitors combined with a rapidly changing economy drive enterprises to continuously adapt their current business models to prevail over competitors. Business models nowadays must be flexible enough to cope with external or internal changes and therefore should be managed and controlled dynamically. Hence, enterprises must be aware of the interconnections between the strategic level and the operational level of business processes for being able to adjust their current business models to external or internal influencing factors. However, for enterprises it is not enough to solely adapt their business models. Enterprises must also be able to measure the quality of their adapted business model as they continuously need feedback about the quality of their current business models. Therefore the transformation mechanism from business models into business processes has to be evaluated. This paper presents an approach for measuring business model adaptation. With regard to the software industry an approach is presented to measure the degree and the quality of business model adaptation by evaluating a company's business processes that result from business model adaptations.