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A Literature Review on the Effectiveness and Efficiency of Business Modeling
Blekinge Institute of Technology, Faculty of Computing, Department of Software Engineering.
Blekinge Institute of Technology, Faculty of Computing, Department of Software Engineering.
Blekinge Institute of Technology, Faculty of Computing, Department of Software Engineering.
Blekinge Institute of Technology, Faculty of Computing, Department of Software Engineering.
2018 (English)In: e-Informatica Software Engineering Journal, ISSN 1897-7979, E-ISSN 2084-4840, Vol. 12, no 1, p. 265-302Article, review/survey (Refereed) Published
Abstract [en]

Background: Achieving and maintaining a strategic competitive advantage through business and technology innovation via continually improving effectiveness and efficiency of the operations are the critical survival factors for software-intensive product development companies. These companies invest in business modeling and tool support for integrating business models into their product development, but remain uncertain, if such investments generate desired results. Aim: This study explores the effects of business modeling on effectiveness and efficiency for companies developing software-intensive products. Method: We conducted a systematic literature review using the snowballing methodology, followed by thematic and narrative analysis. 57 papers were selected for analysis and synthesis, after screening 16 320 papers from multiple research fields. Results: We analyzed the literature based on purpose, benefit, challenge, effectiveness, and efficiency with software and software-intensive products as the unit of analysis. The alignment between strategy and execution is the primary challenge, and we found no evidence that business modeling increases effectiveness and efficiency for a company. Any outcome variations may simply be a result of fluctuating contextual or environmental factors rather than the application of a specific business modeling method. Therefore, we argue that governance is the fundamental challenge needed for business modeling, as it must efficiently support simultaneous experimentation with products and business models while turning experiences into knowledge. Conclusion: We propose a conceptual governance model for exploring the effectiveness and efficiency of business modeling to occupy the missing link between business strategy, processes and software tools. We also recommend managers to introduce a systematic approach for experimentation and organizational learning, collaboration, and value co-creation.

Place, publisher, year, edition, pages
WROCLAW UNIV TECHNOLOGY , 2018. Vol. 12, no 1, p. 265-302
Keywords [en]
business modeling, business model operationalization, effectiveness, efficiency, context-dependent, governance, software-intensive product development, literature review
National Category
Software Engineering
Identifiers
URN: urn:nbn:se:bth-17049DOI: 10.5277/e-Inf180111ISI: 000445123800003OAI: oai:DiVA.org:bth-17049DiVA, id: diva2:1251393
Note

open access

Available from: 2018-09-27 Created: 2018-09-27 Last updated: 2019-04-04Bibliographically approved
In thesis
1. Towards Effective and Efficient Business Model change: Opportunities and challenges for software-intensive product development companies
Open this publication in new window or tab >>Towards Effective and Efficient Business Model change: Opportunities and challenges for software-intensive product development companies
2019 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

Digitalization initiates and drives significant changes to the process level, organization level, and business level of software-intensive product development (SIPD) companies and their customers. Digitalization creates new opportunities through digital transformation strategies of the business environment. Digitalization also significantly reduces the turnaround-time on a transaction, driving new challenges for the alignment of business and technology changes. For a successful business model realization, a company must understand what capabilities the organization has (in staff and products), what is required, and more importantly, how to turn these capabilities into good-enough abilities without disturbing the effectiveness and efficiency of the daily operations. Integrating the product and service development and the value delivery with a learning organization is critical for efficient business model change (BMCh).

This thesis seeks to develop conceptual models for how BMCh is linked to value, learning organization design, and the transformation of capabilities into abilities derived from business model activities and actor interactions. Such conceptual models facilitate to investigate and identify critical mechanisms and capabilities needed to effectively and efficiently manage BMCh at full scale for SIPD companies, allowing them to exploit the on-going digitalization, may it be through (disruptive) business model innovation, technology innovation, or by continuously adapting and evolving the business operations.  

I use the SIPD company as the unit of analysis, with the dual-lens of value and knowledge, set in the context of a business model and how the value creation and capture are influenced by the interaction between two actors performing a business model activity. I build on the business model literature and infuse theories for knowledge creation, learning organizations, and contractual promises to create value. Conducting a cross-disciplinary literature review, followed by a synthesis of related literature, industry best-practices, and an associated design science study, my propositions were validated in a longitudinal case study exploring a service industrialization program in the telecommunication industry.

I have produced five conceptual models and seven propositions as a start to be able to support the design of a governance mechanism, as the critical engine for both the learning organization and effective and efficient BMCh. The industry now explores the models found during the case study.

My synthesis shows a need for further research into BMCh regarding early detection and measurements of gaps in value, gaps in knowledge, ambiguity, equivocality, and abilities. Flexible role-based governance views present the measurements, as part of the governance mechanisms for full-scale, effective, and efficient BMCh. Further, I also aim to implement such governance mechanisms in software, by using the associated research in intent-driven systems. In the meantime, I propose industry to build knowledge and experience related to the seven propositions.

Place, publisher, year, edition, pages
Karlskrona: Blekinge Tekniska Högskola, 2019
Series
Blekinge Institute of Technology Licentiate Dissertation Series, ISSN 1650-2140 ; 6
Keywords
business modeling, business flexibility, Learning organization, digitalization, governance, value capture, value creation, knowledge creation, knowledge management
National Category
Other Electrical Engineering, Electronic Engineering, Information Engineering
Identifiers
urn:nbn:se:bth-17759 (URN)978-91-7295-375-8 (ISBN)
Presentation
2019-05-07, Karlskrona, 08:20 (English)
Opponent
Supervisors
Funder
Knowledge Foundation, Professional Licentiate of Engineering Research School
Available from: 2019-04-05 Created: 2019-04-04 Last updated: 2019-05-09Bibliographically approved

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Wilson, MagnusWnuk, KrzysztofSilvander, JohanGorschek, Tony

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