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Value networks and business models : formulating and demonstrating a methodology for the development of value networks and alignment of business models based on design science research methodology

Dara, M. (2013) Value networks and business models : formulating and demonstrating a methodology for the development of value networks and alignment of business models based on design science research methodology.

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Abstract:In this study the Business Model Canvas and value networks are prominent subjects that are integrat-ed to formulate a practice oriented methodology for the development of value networks and alignment of business models. Accordingly the main research question of this study is: How can the Business Model Canvas support a methodology for the development of value networks? This research question is answered by formulating the Value Network Development Approach which consists of five activi-ties that guide practitioners in the development of value networks and the alignment of the business models of value network actors. In addition to the main research question three sub-questions are answered in this study. The first sub-question – How are business models and value networks defined and related? – clarifies that the pur-pose of business models is considered to be capturing the business logic of organizations while value networks concentrate on a group of organizations who are related to one another and aim to achieve a common goal. Some business models mainly concentrate on the business logic of a single firm; other business models incorporate value network actors in the business logic of the firm. Yet other business models concentrate equally on all value network actors. Therefore business models clarify the busi-ness logic of organizations from different perspectives ranging from firm-centered to network-centered. For the second sub-question – What methodologies exist for the development of value networks? – two methods – the Network Value Analysis of Peppard and Rylander (2006) and the Value Network Development model of Al-Debei et al. (2013) – are considered to be concrete business practice ori-ented methods for the development of value networks. Finally, the third sub-question – How can representations of a value network and related business models be demonstrated and evaluated? – is answered by including application templates in each of the five activities of the Value Network Development Approach. Templates provide brief overviews of the results that are produced by the Value Network Development Approach. Practitioners who are involved in the development of value networks need to understand the im-portance of each value network actor. It is a prerequisite for practitioners to acknowledge that the success of the value network depends on a coherent collaboration between value network actors. Val-ue network actors need to clearly communicate their expectations from the value network. In order to highlight the potentials for the economic benefits for value network actors, practitioners need to eval-uate scenarios that indicate benefits for all value network actors. Furthermore, value network actors need to establish and maintain a base (or current) business model in order to be able to adapt when circumstances change (for instance when change is required for the alignment of the actor’s business model within a value network). Business models of value network actors need to be aligned in order to achieve coherency, complementarity and consistency for the successful performance of the entire value network.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/63024
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