An evaluation framework for viable business models for m-commerce in the information technology sector
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GENERAL RESEARCH
An evaluation framework for viable business models for m-commerce in the information technology sector Sulabh Sharma & Jairo Alberto Gutiérrez
Received: 24 July 2009 / Accepted: 11 January 2010 / Published online: 27 February 2010 # Institute of Information Management, University of St. Gallen 2010
Abstract This paper presents a study of the characteristics of viable business models in the field of Mobile Commerce (m-commerce). Mobility has given new dimensions to the way commerce works. All over the world various stakeholder organisations are consistently probing into the areas where m-commerce can be exploited and can generate revenue or value for them, even though some of those implementations are making the business environment more complex and uncertain. This paper proposes a viable business model evaluation framework, based on the VISOR model, which helps in determining the sustainability capabilities of a business model. Four individual cases were conducted with diverse organisations in the Information Technology sector. The four cases discussed dealt with mobile business models and the primary data was collected via semi structured interviews, supplemented by an extensive range of secondary data. A cross-case comparative data analysis was used to review the patterns of different viable business components across the four cases and, finally, the findings and conclusions of the study are presented. Keywords Business models . M-commerce . Evaluation framework
Responsible editor: Hans-Dieter Zimmermann S. Sharma Auckland Regional Council, Auckland, New Zealand e-mail: [email protected] J. A. Gutiérrez (*) ISOM Department, University of Auckland, Private Bag 92019, 1142 Auckland, New Zealand e-mail: [email protected]
JEL L14 . L22 . L80
Introduction The fast pace of development in the field of wireless and mobile technologies is leading to a significant number of mobile applications deployed over faster and cheaper mobile broadband services. As a result of that, the trend of using mobile applications is increasing rapidly (with popular mobile services in the areas of m-shopping and m-payment among others). Because of this trend, there are huge market opportunities and high commercial expectations for mobile commerce. Thus, more and more organizations have been implementing or intend to implement m-commerce as another distribution channel into their day to day operations in order to fulfil high users’ expectations and to benefit from the hardware and software infrastructure provided by telecommunications providers and companies such as Yahoo, IBM, Google and Amazon. However, m-commerce is a young field and m-commerce business models are different from traditional business models. The issue of how to build viable business models for m-commerce is becoming very important for both organizations and researchers. Organizations need to understand the key components of viable business model for m-commerce; they need to know how those components help organizations make money. As a re
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