A Method for Business Model Development

Abstract

Abstract. Currently, business modelling is more an art, than a science, as no widely accepted method exist for the design and specification of business models. This could be an important reason why many IT innovation projects fail to be absorbed in a real life setting. We propose a structured method to create "as-is" business models in a repeatable manner. The method consists of the following steps: identify the involved roles, recognize relations among roles, specify the main activities, and quantify using realistic estimates of the model. The resulting business model reflects the current situation. This is the basis for further analysis of possible business cases, scenarios, and alternative innovations, which may enable successful projects to be implemented, instead of ending on a shelf after the pilot stage. We illustrate the proposed method by means of a case in the healthcare sector.

Business Models & Business Cases for Point-Of-Care Testing

“…The basic BMM consists of four steps to create a single business model in a structured and repeatable way (Meertens et al, 2012). As such, it aims to fill the research gap "Design tools" as defined by Pateli and Giaglis (2004) and Vermolen (2010).…”

“…While step 4 of BMM aims to quantify the model, previous work only focusses on the costs of the model (Meertens et al, 2012). As a business that only spends money will not last long, revenue needs to be generated.…”

“…Step 2 prepares for step 3, and follows naturally from the first step. The result can be as simple as a role-relationship matrix (Meertens et al, 2012). While a stakeholder analysis often follows a hub-andspoke pattern, the second step of the BMM forces to specify and rethink all possible relations between the roles.…”

“…The fourth step turns the qualitative model into a quantitative model by obtaining numbers on cost and volume of the activities, which the previous step specified. This step helps to see what is happening in more detail, and allows for objective comparison between business models (Meertens et al, 2012). Numbers on cost and volume of activities are needed to completely overview the costs captured by the business model.…”

Service tailoring : user-centric creation of integrated IT-based homecare services support independent living of elderly

“…A successful homecare system should include a viable business model in which all stakeholders benefit and can agree upon. Therefore, a value network of homecare systems should be defined where all actors including producers, providers, and consumers of such systems are defined and their value exchanges described [111].…”