Influential Article Review - Market Structures, Acquisition of Value, and Digital Business

Abstract

This paper examines business models. We present insights from a highly influential paper. Here are the highlights from this paper: Firms across all industries are embracing internet-based digitization strategies to expand or improve their business. In many cases, though, internet-based businesses pursue customer growth ahead of profits. The path to profitability, which is a core element of a business model, should not be an afterthought. A well-designed business model balances the provision of value to customers with the capture of value by the provider. The elements of a business model and the dynamic capabilities that help design, implement, and refine a model for an organization and its business ecosystem are reviewed. The article then translates these concepts with respect to key organizational design decisions such as that of licensing versus practicing innovation, insourcing versus outsourcing, and building a business ecosystem. For our overseas readers, we then present the insights from this paper in Spanish, French, Portuguese, and German.