Edward Faber

Balancing customer and network value in business models for mobile services

Designing business models for mobile services is complex. A business model can be seen as a blueprint of four interrelated components: service offering, technical architecture, and organisational and financial arrangements. In this paper the connections among these components are explored by analysing the critical design issues in business models for mobile services, e.g., targeting and branding in the service domain, security and quality of service in the technology domain, network governance in the organisation domain, and revenue sharing in the finance domain. A causal framework is developed linking these critical design issues to expected customer value and expected network value, and hence, to business model viability.

Developing Mobile Services: Balancing Customer and Network Value

Designing mobile services and the business models behind them is a complex undertaking. A business model can be seen as a blueprint of four interrelated components: service offering, technical architecture, and organizational and financial arrangements. How these different components are related to one another, is hardly been object of research. In this paper the connections between these components are explored by analyzing the critical design issues, e.g. targeting, branding and customer retention in the service domain, security, quality of service and system integration in the technology domain, network governance in the organization domain, and revenue sharing in the finance domain. These critical design issues are linked to each other and to expected customer value and expected network value in a conceptual model

STOF Model: Critical Design Issues and Critical Success Factors

In this chapter we will make the transition towards the design of business models and the related critical issues. We develop a model that helps us understand the causalities that play a role in understanding the viability and feasibility of the business models, i.e. long-term profitability and market adoption. We argue that designing viable business models requires balancing the requirements and interests of the actors involved, within and between the various business model domains. Requirements in the service domain guide the design choices in the technology domain, which in turn affect network formation and the financial arrangements. It is important to understand the Critical Design Issues (CDIs) involved in business models and their interdependencies. In this chapter, we present the Critical Design Issues involved in designing mobile service business models, and demonstrate how they are linked to the Critical Success Factors (CSFs) with regard to business model viability. This results in a causal model for understanding business model viability, as well as providing grounding for the business model design approach outlined in Chapter 5.

Design Trade‐offs for Electronic Intermediaries

Electronic commerce offers intermediaries new opportunities for facilitating the transfer of information, goods and services between business customers and suppliers. Designing exchanges is a complex undertaking because of the many design options on the one hand and the diverse, and sometimes conflicting, interests of customers, suppliers and the intermediary to be considered on the other. Our research provides constructive support for balancing interests beyond simple prescriptions like ‘creating win‐win situations.’ We developed an exchange design model and patterns focusing on trade‐offs for electronic intermediaries based upon four in‐depth case studies. The design model offers a systematic insight into themes that are relevant to the interests of customers, suppliers, and the intermediary itself: the role of the intermediary, the linkages between intermediary and customers and suppliers, transparency for customers and suppliers, and the novelty of the intermediary. The patterns discuss specific trade...

Confronting the design and acceptance of electronic intermediaries: a case study in the maritime sector

Electronic business offers opportunities and threats for the firms in business networks, triggering established and new intermediaries to introduce their own electronic business initiatives. Despite their potential, successful designs of electronic intermediaries leading to acceptance by buyers and sellers are intricate and not well understood. The design of an electronic intermediary involves careful balancing of the interests of actors within a vertical business network.In this paper we analyze the design of an electronic intermediary in the maritime sector, and how this design relates to the voluntary acceptance of the intermediary by buyers and sellers. We discuss design choices and expected interests for all actors from the perspective of the intermediary. Acceptance approaches the electronic intermediary from the perspectives of buyers and sellers.The case study shows design choices for a limited role with restricted transparency and little novelty. These choices come mostly with positive expectations of the intermediary for buyers, sellers, and itself. Acceptance results confirm these expectations. Buyers and sellers are moderately positive and satisfied. However, there is the danger that the design has too little added value to convince users, especially buyers.

Balancing Customer and Network Value of Mobile Payment Services

The challenging aspect of business models is that they require managers to connect and balance various design choices and business model components. Mobile payment services are an interesting case because they have two types of customers, buyers – the people who pay – and merchants – the people who receive the payments. Mobile payment services require service providers to find a balance between the interests of buyers (or end-users), merchants, network providers and financial institutions In this chapter we illustrate how three different mobile