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Towards Effective and Efficient Business Model change: Opportunities and challenges for software-intensive product development companies
Blekinge Tekniska Högskola, Fakulteten för datavetenskaper, Institutionen för programvaruteknik. Ericsson AB.
2019 (engelsk)Licentiatavhandling, med artikler (Annet vitenskapelig)
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.

sted, utgiver, år, opplag, sider
Karlskrona: Blekinge Tekniska Högskola, 2019.
Serie
Blekinge Institute of Technology Licentiate Dissertation Series, ISSN 1650-2140 ; 6
Emneord [en]
business modeling, business flexibility, Learning organization, digitalization, governance, value capture, value creation, knowledge creation, knowledge management
HSV kategori
Identifikatorer
URN: urn:nbn:se:bth-17759ISBN: 978-91-7295-375-8 (tryckt)OAI: oai:DiVA.org:bth-17759DiVA, id: diva2:1302227
Presentation
2019-05-07, Karlskrona, 08:20 (engelsk)
Opponent
Veileder
Forskningsfinansiär
Knowledge Foundation, Professional Licentiate of Engineering Research SchoolTilgjengelig fra: 2019-04-05 Laget: 2019-04-04 Sist oppdatert: 2019-05-09bibliografisk kontrollert
Delarbeid
1. Business Modeling and Flexibility in Software-Intensive Product Development - A Systematic Literature Review
Åpne denne publikasjonen i ny fane eller vindu >>Business Modeling and Flexibility in Software-Intensive Product Development - A Systematic Literature Review
2018 (engelsk)Inngår i: 17th IFIP WG 6.11 Conference on e-Business, e-Services, and e-Society, I3E 2018, Kuwait City, Kuwait, October 30 – November 1, 2018, Proceedings / [ed] Springer, Springer, 2018, s. 292-304Konferansepaper, Publicerat paper (Fagfellevurdert)
Abstract [en]

Continuously achieving and maintaining competitive advantage is the critical survival factor for software-intensive product development companies undergoing digitalization transformation. These companies remain uncertain if investments in business modeling is sufficient to cope with rapidly changing business models, technology, and customer demands. We conducted a Systematic Literature Review using the snowballing methodology to explore the effects of business modeling on business flexibility and variability in the realization. Our results confirm a research gap regarding translating desired strategic flexibility into business options that can efficiently and effectively be implemented using software-based variability in the realization. We conclude that more research is needed consolidating business model innovation, experimentation, and operationalization. Building on theories for learning and knowledge creation, we propose a framework for describing change and analyzing strategic, tactical and operational choices in business model experimentation.

sted, utgiver, år, opplag, sider
Springer, 2018
Serie
Lecture Notes in Computer Science, ISSN 0302-9743 ; 11195
Emneord
business modeling
HSV kategori
Identifikatorer
urn:nbn:se:bth-17334 (URN)10.1007/978-3-030-02131-3 (DOI)978-3-030-02130-6 (ISBN)
Konferanse
Conference on e-Business, e-Services and e-Society I3E, Kuwait City
Tilgjengelig fra: 2018-11-26 Laget: 2018-11-26 Sist oppdatert: 2019-04-04bibliografisk kontrollert
2. Towards Multi-context Goal Modeling and Analysis with the Help of Intents
Åpne denne publikasjonen i ny fane eller vindu >>Towards Multi-context Goal Modeling and Analysis with the Help of Intents
2018 (engelsk)Inngår i: Proceedings - 2018 8th International Model-Driven Requirements Engineering Workshop, MoDRE 2018 / [ed] Moreira A.,Mussbacher G.,Sanchez P.,Araujo J., IEEE Computer Society Digital Library, 2018, s. 68-72, artikkel-id 8501496Konferansepaper, Publicerat paper (Fagfellevurdert)
Abstract [en]

This vision paper discusses the need for enriching goal modeling with intents and context frame to provide much richer contextual information over goals and realization strategies. Based on the extensive experience of business modeling at Ericsson and a review of current goal modeling approaches, we suggest possible research directions towards enriching goal modeling.

sted, utgiver, år, opplag, sider
IEEE Computer Society Digital Library, 2018
Emneord
Intents, business modeling, flexibility
HSV kategori
Identifikatorer
urn:nbn:se:bth-17337 (URN)10.1109/MoDRE.2018.00015 (DOI)9781538684061 (ISBN)
Konferanse
8th International Model-Driven Requirements Engineering Workshop, MoDRE 2018; Banff; Canada; 20 August 2018
Prosjekter
PLENG
Tilgjengelig fra: 2018-11-26 Laget: 2018-11-26 Sist oppdatert: 2019-04-04bibliografisk kontrollert
3. The implications of digitalization on business model change
Åpne denne publikasjonen i ny fane eller vindu >>The implications of digitalization on business model change
(engelsk)Inngår i: Business & Information Systems Engineering, ISSN 1867-0202Artikkel i tidsskrift (Annet vitenskapelig) Submitted
Abstract [en]

Many software-intensive product development companies are still struggling with the alignment of business and technology changes to find an optimal balance between products and services while remaining agile, effective, and efficient. Business model alignment is highlighted as a new business model research area for understanding the relationships between the dynamic nature of business models, organization design, and the value creation in the business model activities.

In this paper, we synthesize the impact of digitalization on business model change for the software-intensive product development industry. Based on established theories, we link effectiveness and efficiency, to value creation in business model activities and organizational learning, in a step towards conceptualizing business model change as a significant part of developing software architectural support for a business model change in a learning organization.  

Our unit of analysis is the value created in a transaction between two actors in a business model activity, and how that value is supporting transforming a capability into an efficient ability. Based on our results and to facilitate the cross-disciplinary analysis of business model dynamics, we present seven propositions and a conceptual model linking effectiveness, efficiency, value, transaction, and organizational learning to business model change via the \textit{value membrane}. 

Emneord
business flexibility, digital business modeling, equivocality, knowledge creation, knowledge management, intent-driven systems, learning organization, value capture, value creation, value membrane
HSV kategori
Identifikatorer
urn:nbn:se:bth-17756 (URN)
Forskningsfinansiär
Knowledge Foundation, rofessional Licentiate of Engineering (PLEng) Pilot Run 2014-2018
Tilgjengelig fra: 2019-04-02 Laget: 2019-04-02 Sist oppdatert: 2019-04-05bibliografisk kontrollert
4. A Literature Review on the Effectiveness and Efficiency of Business Modeling
Åpne denne publikasjonen i ny fane eller vindu >>A Literature Review on the Effectiveness and Efficiency of Business Modeling
2018 (engelsk)Inngår i: e-Informatica Software Engineering Journal, ISSN 1897-7979, E-ISSN 2084-4840, Vol. 12, nr 1, s. 265-302Artikkel, forskningsoversikt (Fagfellevurdert) 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.

sted, utgiver, år, opplag, sider
WROCLAW UNIV TECHNOLOGY, 2018
Emneord
business modeling, business model operationalization, effectiveness, efficiency, context-dependent, governance, software-intensive product development, literature review
HSV kategori
Identifikatorer
urn:nbn:se:bth-17049 (URN)10.5277/e-Inf180111 (DOI)000445123800003 ()
Merknad

open access

Tilgjengelig fra: 2018-09-27 Laget: 2018-09-27 Sist oppdatert: 2019-04-04bibliografisk kontrollert

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