While technological advances provide opportunities to innovate and develop successful businesses, it is the managers’ business model choices that are critical to realise such potential. At CENTIVE (Centre for New Technologies, Innovation and Enterprise) we conduct research on business models in cutting edge sectors including the creative industries, the Web and mobile App economies, the sharing economy, biotechnology and Formula 1.
How can we improve business models design, building and implementation to exploit the transformative potential of digital technologies?
Supported by a £1 million grant from the EPSRC (EP/K039695/1), and with matching funding from Cass Business School, the Mack Centre at Wharton Business School and other sources, Professor Charles Baden-Fuller, Centenary Professor of Cass Business School, City, University of London is leading an international team of experts to conduct cutting edge, industry-focused research "Building Better Business Models"
The business model is the system that connects sensing customer needs, engaging with those needs, delivering satisfaction and monetizing the value. It deals with both value creation and value capture. Business models are fundamentally linked with technological innovation generally and ICT innovation in particular, yet the business model construct is essentially separable from technology. The business model system describes cause and effect relationships, and is both cognitive and real. It can be used to understand the economic dynamics of firms and industries, and it is also a 'device' that can assist managers and policy makers in thinking about their world. Challenging many widely held views about business models because it stresses the model dimension, is intellectually robust and is built on firm philosophical and practical foundations.
How better business models work in practice
The empirical work will involve undertaking sector studies to examine the co-evolution of technology and business models across important economic sectors (such as software, digital entertainment, pharmaceuticals and satellites). From this and other sources we will document more than 50 cases of successful (and less successful) business model design and execution.
Some of these cases will explore the 'messy' elements of how firms go about introducing business model thinking (such comparing Google's and Yahoo's development paths) to identify more precisely the factors that determine success and failure in different new technology environments. Other cases will catalogue examples of established business model designs in different contexts, tracing their economic consequences, and harvesting hints and possibilities for future endeavours.
Check out our Business Model Zoo here
EPSRC: UK Engineering Physical Sciences Research Council £1 million approx
Cass Business School, City, University of London, £300,000 approx
Mack Center for Technological Innovation, Wharton Business School
SPRU, Science Policy Research Unit, Sussex University,
CREATe, RCUK Centre for Copyright and New Business Models in the Creative Economy, Glasgow University
London School of Economics