M. de Reuver

Governing Mobile Service Innovation in Converging Value Networks

In a converging mobile 3G+ services domain, governing the activities of operators, content providers and application developers in a value network is an important business model design issue. While existing studies provide insight into governance mechanisms as authority, contracts and trust, little is known which mechanisms are most suited for the various phases of mobile service innovation. In this paper, we examine what governance mechanisms are used during the development, implementation and roll-out, and commercialization of a service, by analyzing a survey among 96 practitioners and experts in the mobile Internet services domain. We find that authority-based governance is most commonly used in the early stages of developing service concepts and technologies, while trust-based governance is used during implementation, roll-out and commercialization. Contract-based governance is most common during implementation and roll-out. These results provide important clues to mobile business actors on how to design organizational arrangements in converging value networks.

What Drives Business Model Dynamics? A Case Survey

In the turbulent world of e-business, companies can only survive by continuously reinventing their business models. However, as most literature studies business models as snapshots in time, it is ill-understood how changing market, technology and regulation conditions generally drive revisions in business models. This paper studies which type of external drivers are strongest in forcing business models to change throughout their life cycle. To do so, we survey 45 longitudinal case descriptions on business model dynamics of (networks of) organizations in various industries. According to our results, technology and market forces are most important drivers of business model dynamics, while regulation plays only a minor role. Especially for startups, the effect of technology and market drivers is strongest during the early stages of a new business model, while for established, large companies the effects are moderate over time.

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.

Resource dependencies in mobile services value networks

As mobile infrastructures of 3G and beyond are evolving rapidly, the next generation of mobile Internet services is on its way. Developing and commercializing these mobile Internet services requires a broad set of resources and capabilities ranging from the basic telecommunication network to specific applications, user data and interesting content. As operators, content providers and application developers do not possess all these resources themselves, they need to act collectively in complex value networks. This paper assesses what resource dependencies are most critical in mobile Internet services value networks, and how the level of perceived dependency differs among the various types of actors in the mobile domain, i.e. operators, application providers, content providers, and consultancies. We do so by applying resource dependence theory on the mobile Internet services domain, and by analyzing the results of a survey among 97 practitioners and experts. The results of a confirmatory factor analysis using Amos 7.0 confirm our proposition that resource dependencies can be clustered in those related to access to the network; access to the customer; access to content; and access to applications. Moreover, we found that the level of perceived dependency is significantly different among the actor types. Our results provide a basis for further research on resource dependencies in mobile value networks, as well as guidance for actors in the field on what dependencies to take into account when developing innovative business models and services.

A we-centric service: The policePointer

In this chapter, we discuss the design of a service concept and its underlying business model for a context-aware, we-centric service for Dutch police officers. We-centric services are meant to support people in their communication and collaboration in dynamic groups that may change or emerge over time. Typically, these kinds of services add value by locating colleagues, finding out who has relevant information on the users current situation and/or discovering which group members are available for direct communication. Designing business models for we-centric services is a novel area. As end-users can both consume and provide value for the service offering, unique business model issues emerge especially in the service domain.