Business model innovation of modern service company: A value network perspective

Abstract

With the fuzzy boundaries from the industry value chain to the industry, and the integration of manufacturing and service industries, business model research which is based on the value chain has transformed to the value network. On the basis of the previous research, we supplement and confirm business model concept and propose an analytical framework of business model based on the value network. Then, we use the analytical framework to analyze 62 modern service companies of Chinese mainland Growth Enterprises Market (GEM) until the end of 2011. The tools of clustering are algorithms and programming of computer science. Finally, we analyze each model to characterize business model of the emerging modern service. It is also provide reference and guidance for practice. We identify six categories of business models, namely, the long tail business model, multi-sided platforms business model, free business model, un-bundling business model, secondary innovation business model and systematic business model.