|||"A literature review on the effectiveness and efficiency of business modeling", In e-Informatica Software Engineering Journal, vol. 12, no. 1, pp. 265–302, 2018.
DOI: , 10.5277/e-Inf180111.|
Get article (PDF)View article entry (BibTeX)
Magnus Wilson, Krzysztof Wnuk, Johan Silvander, Tony Gorschek
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 16320 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.
business modeling, business model operationalization, effectiveness, efficiency, context-dependent, governance, software-intensive product development, literature review
 M. Eurich, T. Weiblen, and P. Breitenmoser, “A six-step approach to business model innovation,” International Journal of Entrepreneurship and Innovation Management, Vol. 18, No. 4, 2014, pp. 330–348.
 N.F. Höflinger, “The business model concept and its antecedents and consequences – Towards a common understanding,” Academy of Management Proceedings: Organization Development & Change, Vol. 2014:1, 2014.
 D.P. Lepak, K.G. Smith, and M.S. Taylor, “Introduction to special topic forum value creation and value capture: A multilevel perspective,” Academy of Management Review, Vol. 32, No. 1, 2007, pp. 180–194.
 A. Osterwalder, Y. Pigneur, and C.L. Tucci, “Clarifying business models: Origins, present, and future of the concept,” Communications of the Association for Information Systems, Vol. 15, No. 1, 2005, pp. 1–25.
 J. Krumeich, D. Werth, T. Burkhart, and P. Loos, “Towards a component-based description of business models: A state-of-the-art analysis,” in 18th Americas Conference on Information Systems 2012, AMCIS 2012, Vol. 1, 2012, pp. 266–277.
 J. Buder and C. Felden, “Evaluating business models: Evidence on user understanding and impact to BPM correspondence,” Proceedings of the Annual Hawaii International Conference on System Sciences, 2012, pp. 4336–4345.
 W. Zheng, B. Yang, and G.N. McLean, “Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management,” Journal of Business Research, Vol. 63, No. 7, 2010, pp. 763–771.
 M.M. Al-Debei and G. Fitzgerald, “The design and engineering of mobile data services: Developing an ontology based on business model thinking,” in IFIP Advances in Information and Communication Technology, Vol. 318, 2010, pp. 28–51.
 W. Reim, V. Parida, and D. Örtqvist, “Strategy, business models or tactics – What is product-service systems (PSS) literature talking about?” in Proceedings of the International Conference on Engineering Design, ICED, Vol. 4, 2013, pp. 309–318.
 R. Rohrbeck, L. Konnertz, and S. Knab, “Collaborative business modelling for systemic and sustainability innovations,” International Journal of Technology Management, Vol. 63, No. 1/2, 2013, p. 4.
 C.E. Salgado, R.J. Machado, and R.S. Maciel, “An OMG-based meta-framework for alignment of IS/IT architecture with business models,” in 9th International Conference on the Quality of Information and Communications Technology, 2014.
 S. Schneider and P.A.T. Spieth, “Business model innovation and strategic flexibility: insights from an experimental research design,” International Journal of Innovation Management, Vol. 18, No. 6, 2014, pp. 1–22.
 A. Richter, T. Sadek, and M. Steven, “Flexibility in industrial product-service systems and use-oriented business models,” CIRP Journal of Manufacturing Science and Technology, Vol. 3, No. 2, 2010, pp. 128–134.
 T. Berger, R.H. Pfeiffer, R. Tartler, S. Dienst, K. Czarnecki, A. Wasowski, and S. She, “Variability mechanisms in software ecosystems,” Information and Software Technology, Vol. 56, 2014, pp. 1520–1535.
 V. Sambamurthy, A. Bharadwaj, and V. Grover, “Shaping agility through digital options: Reconceptualizing the role of information technology in contemporary firms,” MIS Quarterly: Management Information Systems, Vol. 27, No. 2, 2003, pp. 237–264.
 A. Zolnowski and T. Böhmann, “Business modeling for services: Current state and research perspectives,” in AMCIS 2011 Proceedings, 2011. [Online]. http://aisel.aisnet.org/amcis2011_submissions/394/
 H. Meier and M. Boßlau, “Design and engineering of dynamic business models for industrial product-service systems,” in The Philosopher’s Stone for Sustainability, Y. Shimomura and K. Kimita, Eds., 2012.
 M. Khurum, T. Gorschek, and M. Wilson, “The software value map – An exhaustive collection of value aspects for the development of software intensive products,” Journal of software: Evolution and Process, Vol. 25, No. 7, 2013, pp. 711–741.
 S.C. Lambert and R.A. Davidson, “Applications of the business model in studies of enterprise success, innovation and classification: An analysis of empirical research from 1996 to 2010,” European Management Journal, Vol. 31, No. 6, 2013, pp. 668–681.
 A. Osterwalder and Y. Pigneur, “Designing business models and similar strategic objects: The contribution of IS,” Journal of the Association of Information Systems, Vol. 14, No. 5, 2013, pp. 237–244.
 A. Giessmann, A. Fritz, S. Caton, and C. Legner, “A method for simulating cloud business models: A case study on Platform as a Service,” in 21st European Conference on Information Systems, Completed Research 42, 2013, pp. 1–12.
 C.E. Salgado, J. Teixeira, R.J. Machado, and R.S.P. Maciel, “Generating a business model canvas through elicitation of business goals and rules from process-level use cases,” in Proceedings of the 13th International Conference on Business Informatics Research, 2014, pp. 1–15.
 C. Wohlin, “Guidelines for snowballing in systematic literature studies and a replication in software engineering,” in Proceedings of the 18th International Conference on Evaluation and Assessment in Software Engineering – EASE, 2014, pp. 1–10.
 I. Inayat, S.S. Salim, S. Marczak, M. Daneva, and S. Shamshirband, “A systematic literature review on agile requirements engineering practices and challenges,” Computers in Human Behavior, Vol. 51, 2014, pp. 915–929.
 J. Silvander, M. Wilson, K. Wnuk, and M. Svahnberg, “Supporting continuous changes to business intents,” International Journal of Software Engineering and Knowledge Engineering, Vol. 27, No. 8, 2017, pp. 1167–1198.
 C.J. Woodard, N. Ramasubbu, F.T. Tschang, and V. Sambamurthy, “Design capital and design moves: The logic of digital business strategy,” MIS Quarterly: Management Information Systems, Vol. 37, No. 2, 2013, pp. 537–564.
 R. Hackney, J. Burn, and A. Salazar, “Strategies for value creation in electronic markets: Towards a framework for managing evolutionary change,” The Journal of Strategic Information Systems, Vol. 13, No. 2, 2004, pp. 91–103.
 D. Romero and A. Molina, “Collaborative networked organisations and customer communities: Value co-creation and co-innovation in the networking era,” Production Planning & Control, Vol. 22, No. 5–6, 2011, pp. 447–472.
 A. Goel, H. Schmidt, and D. Gilbert, “Towards formalizing Virtual Enterprise Architecture,” 13th IEEE International Enterprise Distributed Object Computing Conference Workshops (EDOCW), 2009, pp. 238–242.
 J. Gao, Y. Yao, V.C.Y. Zhu, L. Sun, and L. Lin, “Service-oriented manufacturing: A new product pattern and manufacturing paradigm,” Journal of Intelligent Manufacturing, Vol. 22, No. 3, 2009, pp. 435–446.
 G. Schuh, W. Boos, and S. Kozielski, “Life cycle cost-orientated service models for tool and die companies,” in Proceedings of the 1st CIRP Industrial Product-Service Systems (IPS2) Conference, 2009, pp. 249–254.
 M.N. Cortimiglia, A. Ghezzi, and A.G. Frank, “Business model innovation and strategy making nexus: evidence from a cross-industry mixed-methods study,” R&D Management, Vol. 46, No. 3, 2016, pp. 414–432.
 P. Andries and K. Debackere, “Adaptation and performance in new businesses: Understanding the moderating effects of independence and industry,” Small Business Economics, Vol. 29, No. 1–2, 2007, pp. 81–99.
 J. Lindström, “A model for value-based selling: Enabling corporations to transition from products and services towards further complex business models,” Journal of Multi Business Model Innovation and Technology, Vol. 1, 2014, pp. 67–98.
 V. Dmitriev, G. Simmons, Y. Truong, M. Palmer, and D. Schneckenberg, “An exploration of business model development in the commercialization of technology innovations.” R&D Management, Vol. 44, No. 3, 2014, pp. 306–321.
 S.W. Short, P. Rana, N.M.P. Bocken, and S. Evans, “Embedding sustainability in business modelling through multi-stakeholder value innovation,” in Advances in Production Management Systems. Competitive Manufacturing for Innovative Products and Services, Vol. 397, 2013, pp. 175–183.
 Y. Kim, Y. Lee, G. Kong, H. Yun, and S. Chang, “A new framework for designing business models in digital ecosystem,” in 2nd International Conference on Digital Ecosystems and Technologies. IEEE, 2008, pp. 281–287.