conceptualization of something – in this case, of
how a company does business.
We extend this common and simplistic
interpretation of a business model as “the way a
company earns money”, into a broader and more
general definition of the concept: “a simplified
representation that accounts for the known and
inferred properties of the business or industry as a
whole, which may be used to study its characteristics
further, for example, to support calculations,
predictions, and business transformation.”
The last part of the definition above, namely the
indication of the possible uses of a business model is
of particular importance in the context of this paper.
The method we propose not only facilitates the
development of such a design artefact - a business
model - but also takes a business engineering
perspective. Thus, its application will result in two
(or more) business models: one that reflects the “as-
is” situation of the business and one or more
alternative “to-be” business models that represents
possible modifications of the business as result of,
for example, adoption of innovative technologies or
more efficient business processes.
To the best of our knowledge, such a method
does not exist yet for what we define as business
models (Vermolen 2010). In the remainder of this
section, we position our work in the contexts of
design science and method engineering, to which it
is related.
2.1 Design Science
A business modelling method can be seen as a
design-science artefact. It is the process of creating a
product: the business model. We use the seven
guidelines of Hevner et al. (2004) to frame how we
use the methodology engineering approach from
Kumar & Welke (1992) to create our method.
The first guideline advises to design as an
artefact. Design-science research must produce a
viable artefact in the form of a construct, a model, a
method, or an instantiation. As said, we produce a
method.
The second guideline tackles relevance. The
objective of design-science research is to develop
technology-based solutions to important and relevant
business problems. Viable business models lie at the
heart of business problems. However, our solution is
not yet technology-based. Partial automation of the
method is left for future research.
The utility, quality, and efficacy of a design
artefact must be rigorously demonstrated via well-
executed evaluation methods. We demonstrate the
business modelling method using a case study. We
leave more rigorous evaluation for further research.
Research contribution is the topic of the fourth
guideline. Effective design-science research must
provide clear and verifiable contributions in the
areas of the design artefact, design foundations,
and/or design methodologies. We provide a new
artefact to use and study for the academic world.
The methodology may be extended, improved, and
specialized.
Guideline five expresses the scientific rigour:
Design-science research relies upon the application
of rigorous methods in both the construction and
evaluation of the design artefact. We aim to be
rigorous through using the methodology engineering
approach. Existing, proven methods are used as
foundation and methods where applicable.
Evaluation was handled in the third guideline.
The sixth guideline positions design as a search
process. The search for an effective artefact requires
utilizing available means to reach desired ends while
satisfying laws in the problem environment.
Whenever possible, we use available methods for
each of the steps. Following the methodology
engineering approach helps us to satisfy the laws for
creating a new methodology.
The final guideline instructs us to communicate
our research. Design-science research must be
presented effectively both to technology-oriented as
well as management-oriented audiences. This article
is one of the outlets where we present our research.
2.2 Methodology Engineering
Methodologies serve as a guarantor to achieve a
specific outcome. In our case, this outcome is a
consistent and better-informed business model. We
aim to understand (and improve) how business
models are created. With this understanding, one can
explain the way business models help solve
problems. We provide a baseline methodology only,
with a limited amount of concepts. Later, we can
extend, improve and tailor the methodology to
specific situations or specific business model
frameworks.
The business modelling method has both aspects
from the methodology engineering viewpoint:
representational and procedural (Kumar & Welke
1992). The representational aspect explains what
artefacts a business modeller looks at. The artefacts
are the input and deliverables of steps in the method.
The procedural aspect shows how these are created
and used. This includes the activities in each step,
tools or techniques, and the sequence of steps.
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