The Four Types Of Business Models Essay

The Four Types Of Business Models Essay

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Four Types of Business Models
The most cited authors in Business Model strategy literature are Amit & Zott (2001), Chanal & Caron-Fasan (2008), Magretta (2002), Osterwalder and Pigneur (2009), Voelpel et al. (2004), and Walter & Back (2010)
1) An Open Business Model: Also known as the community model (Rappa, 2005, 2010) with value creation within the community (crowd) and value capture by the firm
2) A Closed Business Model: The closed model is called closed in so far the firm is seen as being a closed pipe where projects enter one way, at the beginning, and can only exit one way, by going into the market (Chesbrough, 2006a, 2006b)
3) An Intermediate Business Model: Innovation intermediaries (platform owners) are companies whose activity is specialized in crowdsourcing for the benefit of their clients.
4) A Hybrid Business Model with an open platform and a closed one: The creation of a new business model successively open and closed models; involves the repositioning of the company 's strategy with an alternative value creation model. It borrows from both the community-based model and and the intermediary-based model with a value proposition for firms wishing to leverage communities for their own R&D efforts (Chanal & Caron-Fasan, 2008) [No further explanations warranted.]
The Open Business Model raises four problems:
1) The first problem is that it doesn 't take into account other types of incentives that have been identified in previous research (Von Hippel and Von Krogh, 2006; West and Gallagher, 2006).
2) The second problem is that the literature has not identified that the incentive model is individually based and can introduce competition within the community (crowd) and therefore may be counterproductive in terms of...

... middle of paper ...

...est or challenge. The goal of the governamce mechanism is not only for setting the rules of innovation management; but rather, the adhere to five major goals including: (1) empowerment; (2) transparency; (3) accountability; (4) participation; and (5) commercialization of the resulting patent or Intellectual Property (IP) produced as part of the crowdsourcing output. Other researchers like Djelassi and Decoopman (2013) have suggested the modeling of an open business model that relies on crowdsourcing; showing the interrelations between the different components of the business model (which is also based on the canvas proposed by Osterwalder and Pigneur, 2009) and the interactions between companies and their customers; their study extends the work on customer participation by providing a framework for examining customers ' contributions through crowdsourcing practices.

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