Quantifying the Quality of Business Models - A State of the Practice

Christina Di Valentin; Tobias Weiblen; Anton Pussep; Dirk Werth; Peter Loos(2012)
In: International Conference on Advances in Human-oriented and Personalized Mechanisms, Technologies, and Services (CENTRIC-12), Lissabon, Portugal, November 2012, IARIA, S. 13-18

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Companies increasingly show that the choice of the right business model is a crucial success factor. In particular, the software industry is characterized by a high degree of dynamics within their business activities. To stay competitive in a continuously changing business environment, companies must be able to adapt their business models to external or internal influencing factors. Business models are often seen as a mediator between a company’s strategy and its business processes. Hence, this paper has a strong focus on the existing dependencies between business models and business processes. To gain insight on how companies currently measure the quality of their business models, several expert interviews have been carried out. To obtain significant results, the expert interviews have been carried out within one specific industry branch, namely, the software industry. The interviews have shown that, in practice, so far, there does not exist a standardized framework to measure relevant key performance indicators (KPIs) from business processes to determine the existing interrelations between business models and business processes.