A DECISION SUPPORT TOOL FOR BUSINESS MODEL ANALYSIS
##plugins.themes.bootstrap3.article.main##
##plugins.themes.bootstrap3.article.sidebar##
Abstract
The business model (BM) concept which has emerged in the scientific literature and business world over the past fifteen years is a new management concept that, although characterised by fuzzy boundaries, can be synthesized as “the rationale of how an organisation creates, delivers and captures value”. Many authors see the BM as an excellent tool for the strategic evaluation of business ideas, but the literature review shows a lack of efficient quali-quantitative tools for evaluating potential BM alternatives and selecting the best BM solution from among them. In this paper, we propose a Business Model Decision Support Tool (BM-DST) based on a quali-quantitative methodology of Multiple Criteria Decision Analysis (MCDA) called Analytic Hierarchy Process (AHP) and specifically based on a modified AHP procedure called Value-Analytic Hierarchy Process (V-AHP). A case study with a numerical example was carried out in the field of industrial plants, specifically in the context of the Industrial Product-Service Systems, in order to select the best BM solution from among three potential BM alternatives usually taken into account by an Original Equipment Manufacturer (OEM) and Engineering-Procurement- Construction (EPC) company: Transactional Project Deliveries, Project Led Solutions and Life-Cycle Solutions.
How to Cite
Downloads
##plugins.themes.bootstrap3.article.details##
Business Model Canvas, Decision Making, Product Service System, Analytic Hierarchy Process, Value-AHP
Adrodegari, F., Saccani, N., and Kowalkowski, C. 2016. A framework for PSS business models: formalization and application, Procedia CIRP, 47, 519-524. Doi: https://doi.org/10.1016/j.procir.2016.03.073
Al-Debei, M. M., Avison, D. 2010. Developing a unified framework of the business model concept. European Journal of Information Systems, 19, 359-376. Doi: https://doi.org/10.1057/ejis.2010.21
Amit, R., Zott, C. 2001. Value creation in e-business. Strategic Management Journal, 22, 493-520. Doi: https://doi.org/10.1002/smj.187
Azevedo, A., and Ribeiro, H. 2013. New business models elements oriented to Product-Service machinery industry. In Advances in sustainable and competitive manufacturing systems (1277-1289). Springer International Publishing. Doi: https://doi.org/10.1007/978-3-319-00557-7_104
Bailetti, T. 2009. How open source strengthens business models. Open Source Business Resource.
Baden-Fuller, C., and Haefliger, S. 2013. Business models and technological innovation. Long Range Planning 46(6), 419-426. Doi: https://doi.org/10.1016/j.lrp.2013.08.023
Barquet, A.P.B., Cunha, V.P., de Oliveira, M.G., and Rozenfeld, H. (2011). Business model elements for Product-Service System. 3rd CIRP International Conference on Industrial Product Service Systems, Braunschweig, 332–337. Doi: https://doi.org/10.1007/978-3-642-19689-8_58
Barquet, A.P.B., de Oliveira, M.G., Román Amigo, C., Cunha, V.P., and Rozenfeld, H. (2013). Employing the business model concept to support the adoption of product–service systems PSS. Industrial Marketing Management, 42, 693-704. Doi: https://doi.org/10.1016/j.indmarman.2013.05.003
Bocken, N. M. P., Short, S. W., Rana, P., and Evans, S. (2014). A literature and practice review to develop sustainable business model archetypes. Journal of Cleaner Production, 65, 42-56. Doi: https://doi.org/10.1016/j.jclepro.2013.11.039
Boritz, J. E., and White, G. 2016. Business models and business model descriptions: A research synthesis. Doi: http://dx.doi.org/10.2139/ssrn.2715555
Bouyssou, D., Marchant, T., Pirlot, M., Perny, P., Tsoukiàs A., Vincke, Ph. (2000). Evaluation and decision models: a critical perspective. Dordrecht: Kluwer Academic. Doi: https://doi.org/10.1057/palgrave.jors.2601380
Casadesus-Masanell, R., Ricart, J. E. 2010. From strategy to business models and to tactics. Long Range Planning, 43, 195-215. Doi: https://doi.org/10.1016/j.lrp.2010.01.004
Chesbrough, H. W., Rosenbloom, R. S. (2002). The role of the business model in capturing value from innovation: Evidence from Xerox Corporation’s technology spinoff companies. Industrial and Corporate Change, 11, 533-534. Doi: https://doi.org/10.1093/icc/11.3.529
Cohen, M.A., Agrawal, N., Agrawal, V. (2006). Winning in the aftermarket. Harvard Business Review, 84(5), 129-134.
Compagno, L., D’Urso, D., Latora, A. G., Trapani, N. (2013). The Value-Analytic Hierarchy Process: A Lean Multi Criteria Decision Support Method. Manufacturing Modelling, Management and Control, 7(1), 875-880. Doi: https://doi.org/10.3182/20130619-3-RU-3018.00573
Cova, B., Salle, R. (2008). Marketing solutions in accordance with the SD logic: co-creating value with customer network actors. Industrial Marketing Management, 37(3), 270-277. Doi: https://doi.org/10.1016/j.indmarman.2007.07.005
Crespin-Mazet, F., Pervez, Ghauri P. (2007). Co-development as a marketing strategy in the construction industry. Industrial Marketing Management, 36(2), 158-172. Doi: https://doi.org/10.1016/j.indmarman.2006.02.011
Davies, A. (2004). Moving base into high-value integrated solutions: a value stream approach. Industrial and Corporate Change, 13(5), 727-756. Doi: https://doi.org/10.1093/icc/dth029
Davies, A., Brady, T., and Hobday, M. (2006). Charting a path toward integrated solutions. MIT Sloan Management Review, 47(3), 39-48.
De Felice, F., Petrillo, A., (2013). Multicriteria approach for process modelling in strategic environmental management planning. International Journal of Simulation and Process Modelling, 8(1), 6-16. Doi: 10.1504/IJSPM.2013.055190
De Felice, F., Petrillo, A., (2014). Proposal of a structured methodology for the measure of intangible criteria and for decision making. International Journal of Simulation and Process Modelling, 9(3), 157-1660. Doi: 10.1504/IJSPM. 2014.064392.
Doganova, L., Marie Eyquem-Renault, M. (2009). What do business models do? Innovation devices in technology entrepreneurship. Research Policy, 38(10), 1559-1570. Doi: https://doi.org/10.1016/j.respol.2009.08.002
D’Urso, D., Latora, A., Trapani, N. (2011). The Analytical Hierarchy Process for e-Scouting: decision-making for industrial procurement process. Proceedings of the International Symposium on the Analytic Hierarchy Process ISAHP, Sorrento Italy. Doi:
Figueira, J., Greco, S., Ehrgott, M. (2005). Multiple Criteria Decision Analysis. State of the art surveys. Boston: Springer Science. Doi: https://doi.org/10.1007/b100605
Galbraith, J.R. (2002.) Organizing to deliver solutions. Organizational Dynamics, 31(2), 194-207. Doi: https://doi.org/10.1016/S0090-2616(02)00101-8
George, G., Bock, A. J. (2011). The Business Model in practice and its implications for entrepreneurship research. Entrepreneurship Theory and Practice, 35, 83-111. Doi: https://doi.org/10.1111/j.1540-6520.2010.00424.x
Gebauer, H. (2008). Identifying service strategies in product manufacturing companies by exploring environment–strategy configurations. Industrial Marketing Management, 37(3), 278-291. Doi: https://doi.org/10.1016/j.indmarman.2007.05.018
Hacklin, F., and Wallnöfer, M. (2012). The business model in the practice of strategic decision making: insights from a case study. Management Decision, 5(2), 166-188. Doi: https://doi.org/10.1108/00251741211203515
Hedman, J., Kalling, T. (2003). The business model concept: theoretical underpinnings and empirical illustrations. European Journal of Information Systems, 12(1), 49-59. Doi: https://doi.org/10.1057/palgrave.ejis.3000446
Helander, A., Möller, K. (2007). System supplier's customer strategy. Industrial Marketing Management, 36(6), 719-730. Doi: https://doi.org/10.1016/j.indmarman.2006.05.007
Johnson, M. W., Christensen, C. C., Kagermann, H. (2008). Reinventing your business model. Harvard Business Review, 86(12), 50-59.
Johnson, M. W. (2010). Seizing the white space: Business Model innovation for growth and renewal. Harvard Business Press.
Kujala, J., Artto, K., Parhankangas, A. (2008). Factors influencing design and performance of the business model of a project-based firm. Project Perspectives, 31, 14-17.
Kujala, S., Artto, K., Aaltonen, P., Turkulainen, V. (2010). Business models in project-based firms–towards a typology of solution-specific business models. International Journal of Project Management, 28(2), 96-106. Doi: https://doi.org/10.1016/j.ijproman.2009.08.008
Kujala, S., Kujala, J., Turkulainen, V., Artto, K., Aaltonen, P., Wikström, K. (2011). Factors influencing the choice of solution-specific business models. International Journal of Project Management, 29(8), 960-970. Doi: https://doi.org/10.1016/j.ijproman.2011.01.009
Magretta, J. (2002). Why business models matter. Harvard Business Review, 80(5), 86-92.
Markeset, T., Kumar, U. (2003). Design and development of product support and maintenance concepts for industrial systems. Journal of Quality in Maintenance Engineering, 9(4), 376-392. Doi: https://doi.org/10.1108/13552510310503231
Markeset, T., and Kumar, U. (2004). Dimensioning of product support: issues, challenges, and opportunities. Annual Reliability and Maintainability Symposium: Los Angeles, California, IEEE Communications Society, 2004, 565-570. Doi: 10.1109/RAMS.2004.1285507
Markeset, T., Kumar, U. (2005). Product support strategy: conventional versus functional products. Journal of Quality in Maintenance Engineering, 11(1), 53-67. Doi: https://doi.org/10.1108/13552510510589370
Morris, M., Schindehutte, M., Allen, J. (2005). The entrepreneur’s business model: Toward a unified perspective. Journal of Business Research, 58, 726-35. Doi: https://doi.org/10.1016/j.jbusres.2003.11.001
Muegge, S. (2012). Business model discovery by technology entrepreneurs. Technology Innovation Management Review. 5-16.
Osterwalder, A., Lagha, S.B., Pigneur, Y. (2002). An ontology for developing e-business models. In Value creation for e-business models (65-97). Butterworth-Heineman. Doi: https://doi.org/10.1016/B978-075066140-9/50006-0
Osterwalder, A., Pigneur, Y. (2010). Business model generation: A handbook for visionaries, game changers, and challenger. New Jersey: John Wiley and Sons. Doi: https://doi.org/10.1111/j.1540-5885.2012.00977_2.x
Peillon, S., Pellegrin, C., and Burlat, P. (2015). Exploring the servitization path: A conceptual framework and a case study from the capital goods industry. Production Planning and Control, 26(14-15), 1264-1277. Doi: https://doi.org/10.1080/09537287.2015.1033492
Penttinen, E., Palmer, J. (2007). Improving firm positioning through enhanced offerings and buyer-seller relationships. Industrial Marketing Management, 6(5), 552-564. Doi: https://doi.org/10.1016/j.indmarman.2006.02.005
Saaty, T.L. (1986). Absolute and relative measurement with the AHP. The most livable cities in the United States. Socio-Economic Planning Sciences, 20, 327-331. Doi: https://doi.org/10.1016/0038-0121(86)90043-1
Saaty, T.L. (1990). The AHP: how to make a decision. European Journal of Operational Research, 48, 9-26. Doi: https://doi.org/10.1016/0377-2217(90)90057-I
Saaty, T.L., France J.W., Valentine K.R., (1991). Modelling the graduate business school admissions process. Socio-Economic Planning Sciences, 25, 155-162. Doi: https://doi.org/10.1016/0038-0121(91)90013-H
Saaty, T.L., Ozdemir M.S. (2003). Why the magic number seven plus or minus two. Mathematical and Computer Modelling, 38(3), 233–244. Doi: https://doi.org/10.1016/S0895-7177(03)90083-5
Saaty, T.L. (2006). Fundamentals of decision making. Pittsburgh: RWS Publications.
Saaty, T.L. (2008). Relative measurement and its generalization in decision making. RACSAM, 102(2), 251-318.
Sawhney, M. (2006). Going beyond the product: defining, designing and delivering customer solutions. In The service-dominant logic of marketing: Dialog, debate and directions (365-380). New York: M.E. Sharpe.
Shin, J., Park, Y. (2009). On the creation and evaluation of e-business model variants: The case of auction. Industrial Marketing Management, 38(3), 324-337. Doi: https://doi.org/10.1016/j.indmarman.2007.06.017
Slywotzky, A. J., Morrison, D. J., Andelman, B. (2007). The profit zone: How strategic business design will lead you to tomorrow's profits. Random House Digital, Inc.
Stevens, S.S. (1946). On the theory of scales of measurement. Science, 25(2684), 677–680. Doi: 10.1126/science.103.2684.677
Teece, D. J. (2010). Business models, business strategy and innovation. Long Range Planning, 43, 172-194. Doi: https://doi.org/10.1016/j.lrp.2009.07.003
Timmers, P. (1998). Business models for electronic markets. Electronic Markets, 8(2), 3-8.
Tukker, A. (2004). Eight types of product-service system: Eight ways to sustainability? Experiences From Suspronet. Business Strategy and the Environment, 13(4), 246-260. Doi: https://doi.org/10.1002/bse.414
Vargo, S.L., Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68(1), 1-17. Doi: https://doi.org/10.1509/jmkg.68.1.1.24036
Windahl, C., Andersson, P., Berggren, C., Nehler C. (2004). Manufacturing firms and integrated solutions: characteristics and implications. European Journal of Innovation Management, 7(3), 218-228. Doi: https://doi.org/10.1108/14601060410549900
Zott, C., Amit, R. (2008). The fit between product market strategy and business model: implications for firm performance. Strategic Management Journal, 29, 1-26. Doi: https://doi.org/10.1002/smj.642
Zott, C., Amit, R. (2010). Designing your future business model: An activity system perspective. Long Range Planning, 43, 216-226.
Copyright of all articles published in IJAHP is transferred to Creative Decisions Foundation (CDF). However, the author(s) reserve the following:
- All proprietary rights other than copyright, such as patent rights.
- The right to grant or refuse permission to third parties to republish all or part of the article or translations thereof. In case of whole articles, such third parties must obtain permission from CDF as well. However, CDF may grant rights with respect to journal issues as a whole.
- The right to use all or parts of this article in future works of their own, such as lectures, press releases, reviews, textbooks, or reprint books.
- The authors affirm that the article has been neither copyrighted nor published, that it is not being submitted for publication elsewhere, and that if the work is officially sponsored, it has been released for open publication.
The only exception to the statements in the paragraph above is the following: If an article published in IJAHP contains copyrighted material, such as a teaching case, as an appendix, then the copyright (and all commercial rights) of such material remains with the original copyright holder.
CDF will receive permission for publication of copyrighted material in IJAHP. This permission is not transferable to third parties. Permission to make electronic and paper copies of part or all of the articles, including all computer files that are linked to the articles, for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage.
This permission does not apply to previously copyrighted material, such as teaching cases. In paper copies of the article, the copyright notice and the title of the publication and its date should be visible. To copy otherwise is permitted provided that a per-copy fee is paid.
To republish, to post on servers, or redistribute to lists requires that you post a link to the IJAHP article, which is available in open access delivery mode. Do not upload the article itself.
Authors are permitted to present a talk, based on a paper submitted to or accepted by IJAHP, at a conference where the paper would not be published in a copyrighted publication either before or after the conference and where the author did not assign copyright to the conference or related publisher.