The Business Models’ Value Dimensions: An Analytical Tool

Abstract

Objective: This paper provides a comparative analysis of the frameworks of business models in the light of  value dimensions that go beyond traditional approaches to value creation and capture. Method: This is a theoretical essay based on propositions of business model framework designs from an inside-out and outside-in perspectives of business strategy. The three business model frameworks chosen were the Choices/Consequences (Casadesus-Masanell & Ricart, 2007), the RCOV (Demil & Lecocq, 2010), and the Business Model Canvas (Osterwalder & Pigneur, 2011). Originality/Relevance: Different frameworks have been proposed to describe the components of business models. However, a critical review carried out by Massa, Afuah and Tucci (2017 p. 97) emphasised that the specialised literature lacks “information necessary to understand their relative merits”. To address this conceptual gap, we argue that both practical and academic debates will benefit from the comparative analysis of these tools herein conducted, as well as from a managerial proposition that relates components theoretically consistent and empirically aligned with value generation. Results: The three business model frameworks were analysed and blended into another proposition focused on value’s dimensions. Contribution: Besides the BM frameworks’ comparison, the essay additionally contributes by the proposition of a tool that constitutes an alternative to both practical and academic use. The new proposition is called ‘(the) value of choices’ (VoC) framework. It points out – but is not limited to – the value offering architecture and enables strategic analysts to keep focus on a broad range of value outcomes: created value, appropriated value, generative value, and distributed value.