Can emotion provide a new approach to business model innovation?

Companies require new strategies to drive growth and survival, as the fast pace of change has created the need for greater business flexibility. Therefore, industry leaders are looking to business innovation as a principle source of differentiation and competitive advantage. However, most companies rely heavily on either technology or products to provide business innovation, yet competitors can easily and rapidly surpass these forms of innovation. Business model innovation expands beyond innovation in isolated areas, such as product innovation, to create strategies that incorporate many business avenues to work together to create and deliver value to its customers. Existing literature highlights that a business model’s central role is ‘customer value’. However, the emotional underpinnings of customer value within a business model are not well understood. The integration of customer emotion into business model design and value chain can be viewed as a way to innovate beyond just products, services and processes. This paper investigates the emotional avenues within business strategy and operations, business model innovation and customer engagement. Three propositions are outlined and explored as future research. The significance of this research is to provide companies with a new approach to innovation through a deeper understanding and integration of their customers’ emotions.

Enterprise social networks : a business model perspective

Enterprise Social Networks continue to be adopted by organisations looking to increase collaboration between employees, customers and industry partners. Offering a varied range of features and functionality, this technology can be distinguished by the underlying business models that providers of this software deploy. This study identifies and describes the different business models through an analysis of leading Enterprise Social Networks: Yammer, Chatter, SharePoint, Connections, Jive, Facebook and Twitter. A key contribution of this research is the identification of consumer and corporate models as extreme approaches. These findings align well with research on the adoption of Enterprise Social Networks that has discussed bottom-up and top-down approaches. Of specific interest are hybrid models that wrap a corporate model within a consumer model and may, therefore, provide synergies on both models. From a broader perspective, this can be seen as the merging of the corporate and consumer markets for IT products and services.

Business model adaptation in new ventures: are technology-based firms different?

A firm’s business model (BM) is an important driver of its relative performance. Constructive adaptation to elements of the BM can therefore sustain the position in light of changing conditions. This study takes a configurational approach to understanding drivers of business model adaptation (BMA) in new ventures. We investigate the effect of human capital, social capital, and technological environment on BMA. We find that a universal, direct effects, analysis can provide useful information, but also risks painting a distorted picture. Contingent, two-way interactions add further explanatory power, but configurational models combining elements of all three (internal resource, external activities, environment) are superior.

Business model publicness and socialness of the social enterprise

Social enterprise is important. Yet, there has been diverse understanding of the phenomenon in the literature. This paper attempts to make sense of the social enterprise phenomenon in the literature from a two-layer framework of two-by-two matrices. The first layer juxtaposes social enterprise against other organizations (a typology of organizations) and the second layer classifies different types of social enterprises (a typology of social enterprise). This framework may provide researchers with tools to develop a clear and comprehensive definition of social enterprise. For practitioners, the ability to recognize structures of different types of social enterprises may offer them guideline to design the appropriate business model to serve their purposes.

The role of emotion in product, service and business model design

Designers have become aware of the importance of creating strong emotional experiences intertwined with new tangible products for the past decade, however an increased interest from firms has emerged in developing new service and business models as complimentary forms of emotion-driven innovation. This interdisciplinary study draws from the psychological sciences – theory of emotion – and the management sciences – business model literature to introduce this new innovation agenda. The term visceral hedonic rhetoric (VHR) is defined as the properties of a product, (and in this paper service and business model extensions) that persuasively induce the pursuit of pleasure at an instinctual level of cognition. This research paper lays the foundation for VHR beyond a product setting, presenting the results from an empirical study where organizations explored the possibilities for VHR in the context of their business. The results found that firms currently believe VHR is perceived in either their product and/or services they provide. Implications suggest shifting perspective surrounding the use of VHR across a firm’s business model design in order to influence the outcomes of their product and/or service design, resulting in an overall stronger emotional connection with the customer.

Two Scenarios for How Scholarly Publishers Could Change Their Business Model to Open Access

The Internet has made possible the cost-effective dissemination of scientific journals in the form of electronic versions, usually in parallel with the printed versions. At the same time the electronic medium also makes possible totally new open access (OA) distribution models, funded by author charges, sponsorship, advertising, voluntary work, etc., where the end product is free in full text to the readers. Although more than 2,000 new OA journals have been founded in the last 15 years, the uptake of open access has been rather slow, with currently around 5% of all peer-reviewed articles published in OA journals. The slow growth can to a large extent be explained by the fact that open access has predominantly emerged via newly founded journals and startup publishers. Established journals and publishers have not had strong enough incentives to change their business models, and the commercial risks in doing so have been high. In this paper we outline and discuss two different scenarios for how scholarly publishers could change their operating model to open access. The first is based on an instantaneous change and the second on a gradual change. We propose a way to manage the gradual change by bundling traditional “big deal” licenses and author charges for opening access to individual articles.

Two Scenarios for How Scholarly Publishers Could Change Their Business Model to Open Access

The Internet has made possible the cost-effective dissemination of scientific journals in the form of electronic versions, usually in parallel with the printed versions. At the same time the electronic medium also makes possible totally new open access (OA) distribution models, funded by author charges, sponsorship, advertising, voluntary work, etc., where the end product is free in full text to the readers. Although more than 2,000 new OA journals have been founded in the last 15 years, the uptake of open access has been rather slow, with currently around 5% of all peer-reviewed articles published in OA journals. The slow growth can to a large extent be explained by the fact that open access has predominantly emerged via newly founded journals and startup publishers. Established journals and publishers have not had strong enough incentives to change their business models, and the commercial risks in doing so have been high. In this paper we outline and discuss two different scenarios for how scholarly publishers could change their operating model to open access. The first is based on an instantaneous change and the second on a gradual change. We propose a way to manage the gradual change by bundling traditional “big deal” licenses and author charges for opening access to individual articles.

Component Assembling Model and Its Application to Quasi-Brittle Damage

Potential energy can be approximated by ‘‘pair-functional’’ potentials which is composed of pair potentials and embedding energy. Pair potentials are grouped according to discrete directions of atomic bonds such that each group is represented by an orientational component. Meanwhile, another kind of component, the volumetric one is derived from embedding energy. Damage and fracture are the changing and breaking of atomic bonds at the most fundamental level and have been reflected by the changing of these components’ properties. Therefore, material is treated as a component assembly, and its constitutive equations are formed by means of assembling these two kinds of components’ response functions. This material model is referred to as the component assembling model. Theoretical analysis and numerical computing indicate that the proposed model has the capacity of reproducing some results satisfactorily, with the advantages of physical explicitness and intrinsic induced anisotropy, etc.

Study Of The Damage-Induced Anisotropy Of Quasi-Brittle Materials Using The Component Assembling Model

Damage-induced anisotropy of quasi-brittle materials is investigated using component assembling model in this study. Damage-induced anisotropy is one significant character of quasi-brittle materials coupled with nonlinearity and strain softening. Formulation of such complicated phenomena is a difficult problem till now. The present model is based on the component assembling concept, where constitutive equations of materials are formed by means of assembling two kinds of components' response functions. These two kinds of components, orientational and volumetric ones, are abstracted based on pair-functional potentials and the Cauchy - Born rule. Moreover, macroscopic damage of quasi-brittle materials can be reflected by stiffness changing of orientational components, which represent grouped atomic bonds along discrete directions. Simultaneously, anisotropic characters are captured by the naturally directional property of the orientational component. Initial damage surface in the axial-shear stress space is calculated and analyzed. Furthermore, the anisotropic quasi-brittle damage behaviors of concrete under uniaxial, proportional, and nonproportional combined loading are analyzed to elucidate the utility and limitations of the present damage model. The numerical results show good agreement with the experimental data and predicted results of the classical anisotropic damage models.

Validation of component assembly model and extension to plasticity

Material potential energy is well approximated by '' pair-functional '' potentials. During calculating potential energy, the orientational and volumetric components have been derived from pair potentials and embedding energy, respectively. Slip results in plastic deformation, and slip component has been proposed accordingly. Material is treated as a component assembly, and its elastic, plastic and damage properties are reflected by different components respectively. Material constitutive relations are formed by means of assembling these three kinds of components. Anisotropy has been incorporated intrinsically via the concept of component. Theoretical and numerical results indicate that this method has the capacity of reproducing some results satisfactorily, with the advantages of physical explicitness, etc. (c) 2007 Elsevier Ltd. All rights reserved.