Detailed Table of Contents
Preface...... xxiii
Section 1 A Word From the Organizers
Chapter 1 Choosing a Business Model: Entrepreneurship, Strategy and Competition...... 1 George Jamil, Informações em Rede Consultoria e Treinamento, Brazil Sthefan Gabriel Berwanger, Escola Superior de Propaganda e Marketing, Brazil
This chapter discusses the critical choice for a business manager, when a business model must be considered for its posterior design and implementation. Different modalities are available today and adaptations or changes are completely admissible, as competition evolves. A solid conceptualization of business models is studied, and some typical initiatives analyzed, observing their potentialities, requirements, and risks. As a market solution, several considerations are proposed at the end, regarding BM adoption in real cases, serving as a basic motivation for a clearer decision process to be pursued by business readers. This chapter contributions reach both scholars, researchers, managers, stakeholders and investors on increasing the comprehension about business models’ propositions, characteristics and implementation aspects.
Chapter 2 Business Models Applicable to IoT...... 21 Manuel Rocha Fiuza Branco Junior, FUMEC University, Brazil Cássio Luís Batista, FUMEC University, Brazil Marco Elisio Marques, FUMEC University, Brazil Claudio Roberto Magalhães Pessoa, FUMEC University, Brazil
Business models have been analyzed in the context of the information technology economy and are aligning the idea of innovation developing with the economy or, in other words, business aligning technology and market. Some care must be taken on the transformation of the Information Systems through the introduction of the new unique IoT offers in many fields. For the IoT systems, a complex value stack needs to be addressed in order to realize the possibilities on the innovation in the services. This induces specific requirements when it comes to designing IoT business models. IoT enables new business models, which create value by connecting existing and new things together to establish new business processes, increase business efficiency, enable greater innovation and drive improved visibility across an organization. To be successful, information systems need to consider all the layers of value
creation in order to enable the collection of information with the agility needed in the modern world of business. This chapter highlights the IoT systems, its features and market expectations. It also suggests the existence of two classes of business models for IOT, the Digitally Loaded Product and another classified as Sensor as a Service, which address the uniqueness of IoT.
Chapter 3 Reflecting on the Orchestra Metaphor: Aligning Business Models Simple Views...... 43 George Jamil, Informações em Rede Consultoria e Treinamento Ltda, Brazil Werner Silveira, Orquestra Filarmônica de Minas Gerais, Brazil
This chapter discusses the potentialities and limitations of metaphors, as simulation techniques applied for decision-making businesses process. A special look is given to the orchestra metaphor, as it is possible to consider one of the most cited method for decades. Approaching orchestra formation definitions, a study of orchestra characteristics and peculiarities was conducted, resulting in an interesting inside view of the orchestra. A brief theoretical analysis about modelling techniques and its application in business process is also developed, allowing, at the end, to discuss how the orchestra metaphor can be applied in a useful way, encompassing several of the aspects we pointed in the text. This results as an orientation for the reader to understand how this specific technique – orchestra metaphor – can be effectively applied in decision-making processes of any level for organizations, escaping from mistakes usually committed when simple views for musical orchestras are adopted.
Section 2 Theoretical Studies on Business Models
Chapter 4 Business Models: Analysis of Its Conceptual and Theoretical Development...... 63 Karina Garcia Coleta, Pontifícia Universidade Católica de Minas Gerais (PUCMG), Brazil & Fundação Dom Cabral (FDC), Brazil Humberto Elias Garcia Lopes, Pontifícia Universidade Católica de Minas Gerais (PUCMG), Brazil Fabian Salum, Fundação Dom Cabral (FDC), Brazil
The objective of this chapter is threefold: (a) assessing the development of the business model (BM) concept, pointing out efforts scholars have made to close eventual inconsistencies; (b) analyzing those shortcomings implications to the concept understanding; and (c) raising convergent themes around which future studies can be built to bring cohesion to the field. The chapter reviews BM research over the last 20 years. It indicates that BM literature still displays a discrepant use of the concept, and that divergence still constitutes an obstacle to common language development and integrated research efforts concerning BM structure and management. However, instead of justifying those gaps in literature relative newness, research and future applications can strengthen convergent themes to move forward. Four themes are identified: BM as a cognitive representation, a value reference frame, a business dynamic tool, and a two-sided view of strategy.
Chapter 5 New Business Models for Global Economy: Private Individual Transportation Services...... 83 Maria José Sousa, Universidade do Algarve, Portugal Carolina Rodrigues, Universidade do Algarve, Portugal Jorge Miguel Martins, Reykjavik University, Iceland Mário Negas, Universidade Aberta, Portugal George Jamil, Informações em Rede Consultoria e Treinamento, Brazil
This article analyses the concept of business models and their main dimensions and elements for global economy competitive scenarios. The issue studied in this research identifies disruptive business models, and builds a practical model to help the implementation of a business model for private individual transportation services, based on the case of Uber. To accomplish this research, articles were searched based on the keywords “business models concepts” and “business models elements.” The period considered was from 2013 to 2017. The goal was to identify elements of business models and strategies adopted by the company, products and services, corporate image, models and management systems: human resource management, financial management, and marketing, among others, and the formal and informal structure of the companies. The empirical case is based on the Uber business model and the new competitive scenario on personal transportation.
Chapter 6 Dynamic Business Model: Capture of value and generation of sustainable competitive advantage..... 99 Soraya Cardoso Pongelupe Lopes, Pontifícia Universidade Católica de Minas Gerais, Brazil Humberto Elias Garcia Lopes, Pontifícia Universidade Católica de Minas Gerais, Brazil Karina Garcia Coleta, Pontifícia Universidade Católica de Minas Gerais, Brazil & Fundação Dom Cabral, Brazil Vívian Cândido Rodrigues, Pontifícia Universidade Católica de Minas Gerais, Brazil
The goal of this chapter is to demonstrate theoretically that a Business Model Canvas (BMC) might become dynamic to capture value and generate a sustainable competitive advantage. This chapter defines the differences between and definitions of static and dynamic business models. Furthermore, it develops the Dynamic Business Model (DBM) for the assessment of the BMC from a dynamic perspective. This chapter argues that business models are static when they are tools that merely describe the business logic of firms. However, when associated with the dynamic capacity perspective, those business models interact with the business ecosystem, allowing firms to capture value and sustainable competitive advantage.
Chapter 7 Innovation in Laboratory Medicine...... 117 Carlos Lemos, Faculdade de Medicina da Universidade de Lisboa, Portugal
Laboratory medicine has a unique capability to evaluate the correct management of a medical test, its results, and the decisions it can determine. Therefore, laboratory medicine should try to improve patient outcomes, while improving quality and productivity, so that innovation in healthcare may proceed. Innovation in laboratory medicine demands an adequate identification of the unmet clinical need, evidence of clinical and cost-effectiveness of laboratory tests, and a managed implementation that takes into account the process change, appropriate resource management, and monitoring of outcomes. The main objectives of this chapter are to elucidate the role of innovation in laboratory medicine, identifying its main issues and the barriers it faces; to define a value proposition for laboratory tests and to point out several outcome measures that can be adopted in laboratory medicine.
Chapter 8 The Role of Dynamic Capabilities as Influencers of Organizational Intelligence...... 138 Gleison Lopes Fonseca, Centro Universitário Hermínio Ometto, Brazil Pedro Fernandes Anunciação, Escola Superior de Ciências Empresariais do Instituto Politécnico de Setúbal, Portugal Antonio Juan Briones Penalver, Universidad Politécnica de Cartagena, Spain
Dynamic markets have made it extremely difficult for firms to sustain their competitive advantages. Adapting with the reconfiguration of its internal resources has become essential for the survival of firms. In the midst of these changes in the market, the concepts of Dynamic Capability (DC) and Organizational Intelligence (OI) arise, theories that, despite their different approaches to the use of firms’ resources, have as their ultimate objective the creation and maintenance of a sustainable competitive advantage. So, in order to better understand the influence of these theories on the activities of firms, this chapter approaches the relationship between both theories, analyzing their common points, and the way DC influence OI.
Chapter 9 The Value of Choices: A Business Model Approach to Value...... 150 Fabian Salum, Fundação Dom Cabral, Brazil & Pontifícia Universidade Católica de Minas Gerais, Brazil Karina Garcia Coleta, Pontifícia Universidade Católica de Minas Gerais, Brazil & Fundação Dom Cabral, Brazil Dalini Ferraz, Pontifícia Universidade Católica de Minas Gerais, Brazil Humberto Elias Garcia Lopes, Pontifícia Universidade Católica de Minas Gerais, Brazil
Scholars and practitioners have proposed different frameworks to make business model representation easier. However, more information is still required to understand their applicability, especially concerning value perspective. This chapter focus on three of them: the Choices/Consequences, the RCOV, and the Business Model Canvas. This chapter (1) provides a comparative analysis; (2) discusses their design under the concept of value creation; (3) synthesises a new structure which contemplates their core elements, goes beyond their limitations and constitutes an alternative and useful tool. The new framework is called ‘(the) value of choice’s (VoC). It points out – but is not limited to – the value offering architecture and enables strategic analysts to keep focus on a broad range of value outcomes: created value, appropriated value, generative value, and distributed value. The VoC is illustrated with a Brazilian tourism company’s case.
Chapter 10 Price Management on Global Digital Subscription Services Using Freemium Business Model...... 178 J. C. Rodrigues, Escola Superior de Propaganda e Marketing (ESPM), Brazil
E-commerce definitions allow us to understand the digital environment beyond a simplistic view of packaged products being delivered to one’s home. Content, services, and experiences digitalization also became consumption options, having strong representatives such as Netflix, Spotify, and LinkedIn, among other digital services with revenue coming from recurring payments, here referred as digital subscription services (DSS). Freemium business model has gained prominence in recent years, although much of the literature considers it under a dualistic view (free vs. paid version), though there’s no impediment to more than one paid version (levels). Taking advantage of the global reach, freemium DSSs usually have standardized purchase options (number of paid versions and benefits of each), turning the flexibility to set local prices fundamental to adjust the paid version(s) value perception according to the economic,
market, and consumer expectations in each market. This chapter proposes price positioning strategies in global freemium DSSs, having Cutler and Sterne’s conversion digital consumer lifecycle model in the background and potential scenarios in premium levels management based on the premise of price flexibility for local adaptations. Such proposals will allow global freemium services’ managers to make price adjustments according to the analysis of the consumer distribution among service’s paid versions, and to future studies to seek a possible quantification of the price change due to the asymmetry of consumers’ distribution.
Chapter 11 Challenges to Business Models in the Digital Transformation Context...... 197 Pedro Fernandes da Anunciação, Instituto Politécnico de Setúbal, Portugal Francisco Madeira Esteves, Instituto Politécnico de Setúbal, Portugal
The digital transformation of the economy and society itself is pushing the economic organizations to processes. Multiple digital technologies like data analytics, enterprise mobility, social networks, cloud computing, robotics, block chain, and internet of things (IOT) are pushing radical changes in the ways of working (WoW). People with strong technological skills are demanding changes to organizations towards two-way business interaction in order to meet the needs and expectations. But consumers who are technology users expect new information and knowledge products and services based on technological potential. It remains to the organizations to define strategies for this transformation, seeking to adapt their organizational and information systems to this new paradigm of digital transformation.
Chapter 12 Strategic Vision on the Chain of Decision in Modern Competitive Scenarios: A Case Study in Material Planning in a Public Company...... 211 Jorge Lima de Magalhães, FIOCRUZ, Brazil Daniele Alves de Oliveira, FIOCRUZ, Brazil Jorge Carlos Santos da Costa, FIOCRUZ, Brazil Zulmira Hartz, University of Lisbon, Portugal
Organizations, to achieve their strategic targets, are frequently making decisions facing modern competitive scenarios. The increment of the transparency requirements in the transactions executed is one of the factors that explain the interest in the process modeling, since it can act as a control instrument because it allows one to constantly review the base of the structure and point out problems and failures which will be reflected in chain by the other instruments used by the organizations. The literature review and the experience in the industry of productive processes shows the need to apply better management models to remain in the competitive edge of business, modeling orientation focused on the activities of each area with interfaces involved in the all productive processes. The proposal of this model is to establish the interfaces and dialogues with interaction and participation of the production areas: quality control, regulatory policies, and industrial engineering advisory to contribute technically with information to subsidize the better elaboration of the master production plan.
Chapter 13 Performing Enterprise Architectures Through Gamified Business Models...... 232 Ricardo Pateiro Marcão, Universidade Europeia, Portugal Gabriel Pestana, Universidade Europeia, Portugal Maria José Sousa, Universidade Europeia, Portugal
The profitability of performance and the reduction of turnover are the main challenges of the big companies of the professional services sector. While it is not always possible to achieve all the goals of the large multinationals in each country, it is necessary to assess their development in order to do so. In this way, the steps are identified, going to the new version of new business models, under an organization perspective that can be accompanied by interesting results with a different structure. However, for the sake of management, in order to ensure the cohesion between the teams, it is necessary to create mechanisms for obtaining high income, in order to support the enterprise architecture and the intended business model, which highlights the use of the concept of gamification as one of these mechanisms. This chapter aims to review the literature on the use of architectures and performance demonstrations. In addition to using the gamification concept, the profitability of capital invested in different business activities and the improvement of employee engagement are used. It is intended to consolidate good practices for the implementation of architectures through business models.
Chapter 14 Mindset of Design as a Tool for Alignment Between the Brands’ Business Model and Their Value Delivered: A New Approach in the Business Model Management...... 247 Alisson Duarte, Universidade FUMEC, Brazil
Business models are an important basis for defining how companies structure the way they create, deliver, and capture value. It is an important business management activity, but it often does not receive due attention from the executives of the brands. This gap promotes, frequently, incongruities between companies’ business models and what they deliver to their consumers. The lack of resources to evaluate business models and a clear understanding of how to do this activity might be as reasons for the lack of the business models’ management. Thus, this chapter approaches a study about the use of a management oriented by the design. This approach can be a relevant guide the efforts in the evaluation and rebalancing between business model of the brands and their deliverables (products and services).
Chapter 15 The Interdisciplinarity of the Information Science...... 267 José Rascão, Instituto Politécnico de Setúbal, Portugal
This chapter presents the conceptual evolution of interdisciplinarity, transdisciplinarity, and discipline under information science from a theoretical framework. The text is a research whose primary purpose is to analyze scientific research developed in the context of interdisciplinary information science with participation in more than one area of knowledge. Using the concepts presented and those that contemporary authors studied in different areas for composition of the conceptual framework that presents itself, the results of the research have enabled profiling of research in the area about the use of different approaches and concluded that different forms and levels of interaction are found in information science. It is, therefore, concluded that the concepts have changed and that caused significant changes in their meanings. These changes lead to an ongoing re-evaluation and updating in the context of information science and its implications because it is an interdisciplinary science.
Section 3 Case Studies on Business Models
Chapter 16 Effects of Demographic Characteristics on Business Success: An Evidence From Turkish Banking Sector...... 304 Hasan Dinçer, İstanbul Medipol University, Turkey Serhat Yüksel, İstanbul Medipol University, Turkey Serkan Eti, İstanbul Medipol University, Turkey Ali Tula, İstanbul Medipol University, Turkey
The aim of this chapter is to evaluate the causality relationship between education level of the personnel and profitability of the banks. For this purpose, annual data of 15 Turkish deposit banks, between the years 2002 and 2016, is taken into the consideration. Additionally, Dumitrescu Hurlin panel causality analysis is used to achieve this objective. The findings show that education level of the personnel has a positive influence on the profitability of Turkish deposit banks. Hence, it can be said that Turkish banks should employ more personnel who are university graduate or have master or PhD degree. The main reason behind this issue is that these personnel can work more effectively with the qualification taken from the university. Another important point is that Turkish banks do not have to spend too much money to increase the training level of these personnel at the work because these personnel have taken these qualifications in their university life. Hence, it is recommended that these banks should follow their wages policies to attract the attention of educated candidates.
Chapter 17 The New Financial System: A Revolution Made by Fintechs...... 325 Luciana Caruso de Assis, Fundação Dom Cabral, Brazil
This chapter shows the revolution that is happening in the financial system, having as main actor the technological companies—the fintechs—that don’t have financial knowhow. The traditional banks didn’t structure their business trying to attend the client’s needs. The clients always suited themselves to banks’ services. The fintechs are changing this reality by putting the client in another baseline, filling the gaps left by the banks, offering new services, and acting in places where banks have never gone before. The fintechs are offering these services with a lower price and more quality for the clients.
Chapter 18 The Business in Orchestras: A Concise Comparison Between Fundraising Methods in Brazil and United States...... 341 Gabriela de Souza, Instituto Cultural Filarmônica, Brazil
What many people cannot see is the structure that an orchestra requires to exist. Beyond the whole group of musicians who stand up in front of the audience, there are people working on the orchestra’s image, needs, fundraising, organization, programming, management, and taking care of every detail to please the audience and also the musicians themselves. As any organization, orchestras need revenue and experienced professionals to move forward. It’s not a one-man work; it has to be done by many hands and brains. This chapter shows how fundraising works in orchestras in the US and in Brazil— with some similarities with European model—including which lessons each country could take from the other when talking about this subject. It also describes some examples of how musicians are being
involved in administrative issues and/or solutions, and how music education can result in a better basis to the art’s management.
Chapter 19 Integrated Municipal Markets in Central America: A Model of Cooperation for Local Development From Honduras...... 356 Antonio Juan Briones-Peñalver, Technology University of Cartagena, Spain José Poças Rascao, Polytechnic Institute of Setúbal, Portugal Julio César Maldonado-Hernández, Grupo Surco, Honduras
By its very nature, the characteristics of the informal economy are largely negative, since it can hold people and companies into a spiral of low productivity and poverty. A coherent national strategy to facilitate the transition to the formality has to recognize that the costs of informality of work are high for companies, workers, and the community. From the point of view of workers without protection, the negative aspects of work in the informal economy outweigh the positive aspects. Workers are not recognized, registered, regulated, or protected under labor and social protection legislation and, therefore, cannot enjoy their fundamental rights, exercise, or defend them. As they are usually not organized, collective representation before employers or public authorities is insufficient or non-existent. This chapter explains the informal economy in Honduras and Latin America, the problems of municipal markets, and its transition into the formal economy through the plan of cooperation for local development between the various participants in the country.
Chapter 20 People Management and Its Relationship With Business Models...... 368 Antônio César Nunes Cruz, Fumec University, Brazil
The purpose of this chapter is to present a study that provokes a reflection and understanding about the importance of people management in the corporate world as a strategy and a fundamental resource for the success of companies and institutions. In practice, many new-company projects focus on business modeling and business plans as an initial and sufficient condition for the success of these companies or organizations that they intend to create. Little is seen about the actions concerning the importance of the human capital dimension to the desired success in a business project. Organizations cannot be successful only because of failures in the business model or in their business plan, but in the fundamental link of value creation and supply, which is boiled down to the human resource they have. People have come to occupy a place where they are seen as key elements of the value-based management model, as Kaplan and Norton in 1997 conclude, showing us that the problem of human resource management could be addressed under the strategic perspective through the balanced scorecard (BSC). It means that it becomes necessary to use organizational strategic planning as the basis for the strategic planning of human capital essential to the business.
Chapter 21 Orquestra Filarmônica de Minas Gerais: An Artistic Business Model Which Enlightens Business Complexities, Challenges, and Affirmation...... 389 Fábio Mechetti, Orquestra Filarmônica de Minas Gerais, Brazil
The lights gradually dim. Like an army of warriors dressed in black and white, one hundred musicians enter the stage under the applause of the public. They take their positions awaiting the entrance of the
concertmaster, who solemnly advance to the first chair acknowledging, one more time, the applause. A sound from the Principal Oboist is heard, followed by the other musicians, looking for a common understanding, each one searching to meet the proposed “A.” Then, all stay quiet. With a determined and resolute pace, the Maestro enters the stage moving to the podium, warmly greeted by an expecting audience. The Symphony is about to start. Could it be that this moment, though, is much more than an experience of bringing to life a musical work from the past? Could this also be the utmost symbol of an ideal demonstration of society’s quest for organization, functionality and purpose?
Chapter 22 Business Models: An Illustrative Study of E-Commerce Businesses in India...... 398 Badar Alam Iqbal, Monarch University, Australia Arti Yadav, Delhi University, India
The concept of business model is not new now, but organizations construct, identify, and innovate their models from the beginning of the business itself. The purpose of this study is to understand the importance of e-commerce business models and explore their connections to provide an overview of the concept of business model. In this study, the authors describe the business model concept in an organization, how the same works as the blueprint of how a company does business. Further, it provides an insight to understand the importance of e-commerce business models and explore their connections with various e-commerce businesses prevailing currently in India.
Chapter 23 Firm Performance and Business Models Based on Exports: Can This Shy Flirtation Become a True Love Story?...... 409 José Pablo Abeal Vázquez, University of A Coruña, Spain Begoña A. García, University of A Coruña, Spain Javier Tarrío Saavedra, University of A Coruña, Spain
This chapter aims to contrast if internationalization is a key element to explain the performance of a company, especially focusing on small and medium-size entreprises (SMEs), and to identify if a business model (BM) based on exports leads to more successful companies. There is a broad theoretical body and a representative set of methodological approaches in this area of knowledge; however, the conclusions reached are very different and in many cases hardly comparable, being limited to a specific temporal and geographical scope. For the purpose of giving a step further in the investigation of BM based on exports, the SMEs from the Autonomous Community of Galicia (Spain) are analyzed through an exploratory research over the 2002-2013 period. The empirical analysis takes into account a range of firm variables linked to both firm management and fixed factors, such as the type of sector, the location, and the economic situation.
Chapter 24 Creating Shared Value (CSV) and Creating Competitive Business...... 432 Roohollah Ebrahimnejad, Shahid Beheshti University, Iran Mona Milani, Allameh Tabataba’i University, Iran Zahra Faraji, Iran University of Medical Sciences (IUMS), Iran Leila Nemati-Anaraki, Iran University of Medical Sciences (IUMS), Iran
Shared value concept could reshape capitalism and its relationship to society. It’s not just about corporate social responsibility or philanthropy. It’s a new approach for business strategy regarding social issues. It could also drive the next wave of innovation and productivity growth in the global economy as it opens managers’ eyes to immense human needs that must be met, large new markets to be served, and the internal costs of social deficits—as well as the competitive advantages available from addressing them. But our understanding of shared value is still in its genesis. Attaining it will require managers to develop new skills and knowledge and governments to learn how to regulate in ways that enable shared value rather than work against it. A big part of the problem lies with companies themselves, which remain trapped in an outdated, narrow approach to value creation. Focused on optimizing short-term financial performance, they overlook the greatest unmet needs in the market as well as broader influences on their long-term success. Why would companies ignore the wellbeing of their customers, the depletion of natural resources vital to their businesses, the viability of suppliers, and the economic distress of the communities in which they produce and sell? Companies could bring business and society back together if they redefined their purpose as creating “shared value”—generating economic value in a way that also produces value for society by addressing its challenges. A shared value approach reconnects company success with social progress. Firms can do this in three distinct ways: reconceiving products and markets, redefining productivity in the value chain, and building supportive industry clusters at the company’s locations.
Chapter 25 How Multinational Companies Create and Capture Value From Innovation Through Business Model Dynamics...... 454 Mariane Figueira, University of Lavras, Brazil Annika Rickne, Linköping University, Sweden Joel Yutaka Sugano, University of Lavras, Brazil
Willing to answer to the research question of how multinational companies succeed in creating and capturing value from a new technology, this chapter aimed at filling the gaps in the existing literature with regards to defining business model dynamics and demonstrating business model dynamics in practice. Through a case study of Monsanto, and of the way the company’s subsidiary managed to successfully adapt and innovate in Brazil, this chapter showed that external pressures such as new technology, the need to respond to the customers’ demand for information concerning the company’s new value proposition, existing regulation (among other external pressures) forced the multinational company to implement changes and create new elements in some of the business model components. Results also showed that to capture part of the value created with a new technology it might be necessary to complete business model design and evaluation with the analysis of the external environment.
Compilation of References...... 472
About the Contributors...... 529
Index...... 535