Information and Knowledge Management using ArcGIS ModelBuilder

5.2 Guiding questions
Monika Magnusson
Another approach that can facilitate the design or evaluation of an eBusiness model is to use ‘guiding
questions’. Some examples of guiding questions are presented in Table 3. Morris et al. (2005), among
others, present similar questions. The questions could also be connected to the different identified
business model elements in Table 2, focusing on the pros and cons of different alternatives. Similar
questions can be used to evaluate an existing business model although the center of attention then
will be on how well the existing design is in terms of the elements ‘values’ and the interplay between
the elements.
Table 3: Guiding questions for eBusiness model design
Strategy level
Value proposition What is our value proposition to the customers? (i.e. What value do we create for our
customers?)
What products and/or services should we offer? (Assortment, quality, customization
etc.)
Target customers In what market segments are our target customers? (Geographically, consumers
and/or organizations, demographically etc.)
What customer needs should our products/services fulfill?
Competitive strategy How will we gain and hold advantage over our competitors?
Revenue model and
cost structure
Distribution and
communication
channels
Key activities/processes
Regarding our value proposition – what distinguish us from our competitors?
Which are our major revenue streams?
Which pricing method should we adopt?
Considering the design of elements at strategy, process level and systems level –
what are the costs?
Process level
Which distribution and communication channels are best for a value proposition and
customer segment?
What are the key processes/activities for enabling our value proposition?
(And what is the most efficient way of performing a key process?)
What are the key resources?
Core competences What are the core competences for accomplishing our value proposition?
Partner network What collaboration partners do we need to be able to offer our value proposition in a
cost efficient way?
System level
Technology What type of eCommerce application(s) best supports our value proposition?
Which technology platforms are most appropriate for our target customers?
Where do we host the eCommerce system?
Security What are the security risks in the technology and how do we handle them?
Systems integration Which data from other IS (internal and external) do we need for our value proposition?
Is it feasible and financially motivated to integrate these systems?
5.3 Interplay between the elements
The idea behind the business model concept is that a number of elements need to harmonize and
interact for a company to succeed. However, we will propose that the difficult puzzle of making a
company successful can be summarized in four elementary pieces that need to fit together; the market
offering, the target customer, the business infrastructure and profitability, see Figure 3. The latter
is in fact the result of the other three. The ‘right’ market offering in terms of value proposition, competitive
strategy, pricing etc. offered to the ‘right’ target customers/market segments and produced by the
‘right’ business infrastructure (in terms of processes, partner networks, resources, technologies, competences,
distribution and communication channels) creates profitability.
6. Contributions and discussion
The here presented framework, building on research on business models and eBusiness models,
acknowledges a number of elements that need to be considered when an eCommerce initiative is
initialized. The same elements and their interplay may be utilized to evaluate if improvements in the
eBusiness model are needed and how. Earlier studies have already proposed frameworks and ontologies
for business models. The framework presented in this paper develops these further by incorporating
the enabling technology in the model. This is valuable as research on organizational
development (see Österlee 1995 and Nilsson, 1999) emphasize that technology need to be designed
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