Ojala and Tyrvainen 2011 (†654)Ojala, Arto, and Pasi Tyrvainen. "Developing Cloud Business Models: A Case Study on Cloud Gaming" IEEE Software 28:4 (July/August 2011), p.42-47.
- business model (p.42-43): The term “business model” tends to be loosely defined. Essentially, a business model is a story that explains how a firm works. However, firms often depend on other actors in the market. So, to understand how a firm works, we must know the other important actors in its network. For this reason, we apply Alexander Osterwalder and his colleagues’ recent definition of a business model, which takes the entire firm’s network into consideration: "[A business model is] a description of the value a company offers to one or several segments of customers and of the architecture of the firm and its network of partners for creating, marketing, and delivering this value and relationship capital, to generate profitable and sustainable revenue streams." Business models are often depicted as static descriptions of a firm’s activities in the market. However, markets aren’t static, and firms must respond to market changes. In addition, a change in a software firm’s products can change its business model. So, a business model that succeeds today might not be successful tomorrow, and firms must adjust their software offerings and business models to adapt to changing market conditions. (†1493)
- business model (p.47): Generally speaking, a business model change might come from outside the firm (a change in the market situation) or inside the firm (development of a new or existing product). When a software vendor starts a firm, develops a new product, or expands a product line, it must evaluate how these changes impact the business model. In addition, in assessing a business model, the vendor should evaluate a new product’s or service’s added value to other actors and customers. (†1494)