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Authors: Arash Golnam 1 ; Paavo Ritala 2 ; Vijay Viswanathan 1 and Valerian Hanser 1

Affiliations: 1 Ecole Polytechnique Fédérale de Lausanne, Switzerland ; 2 Lappeenranta University of Technology, Finland

Keyword(s): Amazon.com, Modeling, Service-Oriented Business Models, Value Capture, Value Creation.

Abstract: Many firms redesign their business models to be service-oriented in light of the increasingly central role that services play in their business models. Two fundamental questions should be addressed in designing service-oriented business models: how is value created for and with the customers by the service provider? and, how is the value captured by the service provider?. The first question deals with “value creation” while the second addresses “value capture” in the “service value equation”. A service-oriented business model that addresses these two questions can sustain the viability and competitiveness of the firm as a service provider. The extant research mainly focuses on the service design from the value creation perspective. Thereby, there has been little discussion about service providers’ value capture and its trade off with value created for and with service customers. In this paper, adapting a holistic perspective, we introduce a modeling framework that can assist in under standing, analysis and design of value (i.e. value creation and capture and their interplay) in service-oriented business models. Our modeling framework is grounded in insights and conceptualizations of the extant theories, constructs and frameworks on value creation and capture in business and service systems. We illustrate the applicability of our framework by conducting a descriptive case study of the value creation and capture in Amazon service system in the period between 1997 and 2001. (More)

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Paper citation in several formats:
Golnam, A.; Ritala, P.; Viswanathan, V. and Hanser, V. (2012). Modeling the Design of Value in Service-oriented Business Models. In Proceedings of the Second International Symposium on Business Modeling and Software Design - BMSD; ISBN 978-989-8565-26-6, SciTePress, pages 81-93. DOI: 10.5220/0004461400810093

@conference{bmsd12,
author={Arash Golnam. and Paavo Ritala. and Vijay Viswanathan. and Valerian Hanser.},
title={Modeling the Design of Value in Service-oriented Business Models},
booktitle={Proceedings of the Second International Symposium on Business Modeling and Software Design - BMSD},
year={2012},
pages={81-93},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0004461400810093},
isbn={978-989-8565-26-6},
}

TY - CONF

JO - Proceedings of the Second International Symposium on Business Modeling and Software Design - BMSD
TI - Modeling the Design of Value in Service-oriented Business Models
SN - 978-989-8565-26-6
AU - Golnam, A.
AU - Ritala, P.
AU - Viswanathan, V.
AU - Hanser, V.
PY - 2012
SP - 81
EP - 93
DO - 10.5220/0004461400810093
PB - SciTePress

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