IOTA-based Business Model Configurations
Type
conference paper
Date Issued
2018-07
Author(s)
Moellers, Thomas
Abstract (De)
Distributed Ledger Technologies have triggered business model innovation activities among firms. While the available design choices are limited by the unique properties of any protocol, management research so far has neglected the architectural differences between the dominant protocol types. In this study, I analyse the business model design elements of firms seeking to utilise the IOTA Tangle as their underlying DLT protocol for innovation. I identify two potential business model patterns the IOTA Tangle facilitates that is a by-demand logic and the monetisation of data stream. I further find that the IOTA protocol is integrated into open or closed platforms.
Language
Subject(s)
Contact Email Address
thomas.moellers@unisg.ch
References
Amit, R., & Zott, C. (2001). Value creation in e-business. Strategic Management Journal, 22(6–7), 493–520.
Aspara, J., Hietanen, J., & Tikkanen, H. (2010). Business model innovation vs replication: financial performance implications of strategic emphases. Journal of Strategic Marketing, 18(1), 39–56.
Baldwin, C. Y., & Woodard, C. J. (2009). The architecture of platforms: a unified view. In A. Gawer (Ed.), Platforms, Markets and Innovation (pp. 19–44). Edward Elgar Publishing.
Birkinshaw, J., Visnjic, I., & Best, S. (2018). Responding to a Potentially Disruptive Technology: How Big Pharma Embraced Biotechnology. California Management Review, 60(4), 1–27.
Björkdahl, J. (2009). Technology cross-fertilization and the business model: The case of integrating ICTs in mechanical engineering products. Research Policy, 38(9), 1468–1477.
Bohnsack, R., & Pinkse, J. (2017). Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles. California Management Review, 59(4), 79–96.
Boudreau, K. (2010). Open Platform Strategies and Innovation: Granting Access vs. Devolving Control. Management Science, 56(10), 1849–1872.
Bramas, Q. (2018). The Stability and the Security of the Tangle To cite this version : HAL Id : hal-01716111.
Bresnahan, T. F., & Greenstein, S. (1999). Technological Competition and the Structure of the Computer Industry. The Journal of Industrial Economics, 47(1), 1–40.
Buterin, V. (2014). A next-generation smart contract and decentralized application platform. Etherum, (January), 1–36.
Casadesus-Masanell, R., & Ricart, J. E. (2011). How to design a winning business model. Harvard Business Review, 89(1–2).
Chesbrough, H. (2007). Why companies should have open business models. MIT Sloan Management Review, 48(Winter), 23.
Chesbrough, H., & Rosenbloom, R. S. (2002). The role of the business model in capturing value from innovation: evidence from Xerox Corporation’s technology spin-off companies. Industrial and Corporate Change, 11(3), 529–555.
Christensen, C. M., Raynor, M., & McDonald, R. (2016). The Disruption Debate. Harvard Business Review.
Clauss, T. (2016). Measuring business model innovation: Conceptualization, scale development, and proof of performance. R&D Management, (1), 1–19.
Croman, K., Decker, C., Eyal, I., Efe Gencer, A., Juels, A., Kosba, A., … Wattenhofer, R. (2016). On Scaling Decentralized Blockchains. International Conference on Financial Cryptography and Data Security, 106–125.
Daly, R., Shen, Q., & Aitken, S. (2011). Learning Bayesian networks: approaches and issues. The Knowledge Engineering Review, 26(2), 99–157.
Demil, B., Xavier, L., Joan Enric, R., & Zott, C. (2015). Introduction to the SEJ Special Issue on Business Model: Business Models within the domain of strategig entrepreneurship. Strategic Entrepreneurship Journal, 1(1), 27–47.
Denzin, N. K., & Lincoln, Y. S. (1994). Handbook of Qualitative Research. Thousand Oaks, CA, US: Sage Publications.
Digiconomist. (2018). Bitcoin Energy Consumption Index - Digiconomist.
Doganova, L., & Eyquem-Renault, M. (2009). What do business models do?. Innovation devices in technology entrepreneurship. Research Policy, 38(10), 1559–1570.
Dorri, A., Steger, M., Kanhere, S., & Jurdak, R. (2017). blockchain - a distributed solution to automotive security and privacy. IEEE Communication Magazine.
Eisenhardt, K. M. (1989). Building Theories from Case Study Research. Academy of Management Review, 14(4), 532–550.
Eisenhardt, K. M., & Graebner, M. E. (2007). Theory building from cases: Opportunities and challenges. Academy of Management Journal.
Eisenmann, T. R., Parker, G., & Alstyn, M. Van. (2009). Opening platforms: how, when and why? In A. Gawer (Ed.), Platforms, Markets and Innovation. Edward Elgar Publishing.
Evans, P. C., & Gawer, A. (2016). The Rise of the Platform Enterprise: A Global Survey. Retrieved from http://epubs.surrey.ac.uk/id/eprint/811201 (retrieved July 17, 2018)
Evers, E. R. K., de Ven, N. van, & Weeda, D. (2015). The Hidden Cost of Microtransactions: Buying In-Game Advantages in Online Games Decreases a Player’s Status. International Journal of Internet Science, 10(1), 20–36.
Flick, U. (2009). An introduction to qualitative research. Sage Publication (4th ed.). Thousand Oaks, CA.
Foss, N. J., & Saebi, T. (2017). Fifteen Years of Research on Business Model Innovation: How Far Have We Come, and Where Should We Go? Journal of Management, 43(1), 200–227.
Gambardella, A., & McGahan, A. M. (2010). Business-model innovation: General purpose technologies and their implications for industry structure. Long Range Planning, 43(2–3), 262–271.
Gassmann, O., Frankenberger, K., & Csik, M. (2014). The Business Model Navigator: 55 Models that will revolutionize your Business. Harlow Pearson, UK: FT Press.
Gassmann, O., Frankenberger, K., & Sauer, R. (2016). Exploring the field of Business Model Innovation: New Theoretical Perspectives. Palgrave Macmillan.
Gibbert, M., & Ruigrok, W. (2010). The “What” and “How” of Case Study Rigor: Three Strategies Based on Published Work. Organizational Research Methods, 13(4), 710–737.
Glaser, B. G., & Strauss, A. L. (1965). Awareness of Dying. Chicago: Aldine.
Glaser, F. (2017). Pervasive Decentralisation of Digital Infrastructures: A Framework for Blockchain enabled System and Use Case Analysis. HICSS 2017 Proceedings, 1543–1552.
Gupta, V. (2017). The Promise of Blockchain Is a World Without Middlemen. Harvard Business Review Digital Articles, 2–5.
Handy, P. (2017). Introducing Masked Authenticated Messaging. Retrieved June 18, 2018, from https://blog.iota.org/introducing-masked-authenticated-messaging-e55c1822d50e
Hendricks, K. (1992). Reputations technology in the adoption of a new. International Journal of Industrial Organization, 10, 663–677.
Holotiuk, F., Pisani, F., & Moormann, J. (2017). The Impact of Blockchain Technology on Business Models in the Payments Industry. WI 2017 Proceedings, 912–926.
Iansiti, M., & Lakhani, K. R. (2017). The Truth About Blockchain. Harvard Business Review, 118–127.
IOTA Foundation. (2018). Qubic. Retrieved July 17, 2018, from https://qubic.iota.org/
Ito, J., Narula, N., & Ali, R. (2017). The Blockchain Will Do to the Financial System What the Internet Did to Media. Harvard Business Review, 2–6.
Kahlert, J. (2018). A Stakeholder-theoretic View on Seizing New Business Opportunities in the Context of Digital Ecosystems. University of St. Gallen.
Lehdonvirta, V. (2009). Virtual item sales as a revenue model: Identifying attributes that drive purchase decisions. Electronic Commerce Research, 9(1–2), 97–113.
Morabito, V. (2017). Business Innovation Through Blockchain. Springer.
Natarajan, H., Krause, S. K., & Gradstein, H. L. (2017). Distributed Ledger Technology (DLT) and Blockchain (English). FinTech note. Washington, D.C.
Netflix is moving television beyond time-slots and national markets. (2018). The Economist.
Popov, S. (2018a). Local modifiers in the Tangle (White Paper).
Popov, S. (2018b). The Tangle. White Paper.
Silverman, D. (2013). Doing Qualitative Research. Sage.
Spieth, P., Schneckenberg, D., & Ricart, J. E. (2014). Business model innovation – state of the art and future challenges for the field. R&D Management, 44(3), 237–247.
Stenbacka, R., & Tombakb, M. M. (1994). Timing of Adoption of New Technologies Under Uncertainty. Science, 7187(93).
Strauss, A., & Corbin, J. (2008). Basics of Qualitative Research: Techniques and Procedures for Developing Grounded Theory. Basics of Qualitative Research Grounded Theory Procedures and Techniques (3rd ed.). Thousand Oaks, CA: Sage Publications.
Suddaby, R. (2006). What grounded theory is not. Academy of Management Journal, 49(4), 633–642.
Tapscott, D., & Tapscott, A. (2016). Blockchain Revolution. Blockchain Revolution. New York: Penguin.
Teece, D. J. (2010). Business models, business strategy and innovation. Long Range Planning, 43(2–3), 172–194.
Teece, D. J. (2016). Profiting from Innovation in the Digital Economy : Standards , Complementary Assets , and Business Models In the Wireless World. Working paper Series No. 16.
Tsukerman, M. (2016). The Block is hot: A Survey of the State of Bitcoin Regulation and Suggestions for the Future. Berkeley Technology Law Journal, 30(4), 1127–1169.
Tushman, M. L., & Anderson, P. (1986). Technological Discontinuities and Organizational Environments. Administrative Science Quarterly, 31(3), 439–465.
Velamuri, V. K., Schneckenberg, D., Haller, J. B. A., & Moeslein, K. M. (2017). Open evaluation of new product concepts at the front end of innovation: objectives and contingency factors. R&D Management, 47(4), 501–521.
West, J. (2003). How open is open enough? Melding proprietary and open source platform strategies. Research Policy, 32(7), 1259–1285.
Wheelwright, S. C., & Clark, K. B. (1992). Revolutionizing Product Development: Quantum Leaps in Speed, Efficiency, and Quality. Simon and Schuster.
White, G. R. T. (2017). Future applications of blockchain in business and management: A Delphi study. Strategic Change, 26(5), 439–451.
Wirtz, B. W., Pistoia, A., Ullrich, S., & Göttel, V. (2016). Business Models: Origin, Development and Future Research Perspectives. Long Range Planning, 49(1), 36–54.
Wright, A., & De Filippi, P. (2015). Decentralized Blockchain Technology and the Rise of Lex Cryptographia. SSRN Electronic Journal.
Yin, R. K. (2014). Case Study Research: Design and Methods (5th ed.). Thousand Oaks, CA: Sage.
Zhang, Y., & Wen, J. (2017). The IoT electric business model: Using blockchain technology for the internet of things. Peer-to-Peer Networking and Applications, 10(4), 983–994.
Zott, C., Amit, R., & Massa, L. (2011). The Business Model: Recent Developments and Future Research. Journal of Management, 37(4), 1019–1042.
Aspara, J., Hietanen, J., & Tikkanen, H. (2010). Business model innovation vs replication: financial performance implications of strategic emphases. Journal of Strategic Marketing, 18(1), 39–56.
Baldwin, C. Y., & Woodard, C. J. (2009). The architecture of platforms: a unified view. In A. Gawer (Ed.), Platforms, Markets and Innovation (pp. 19–44). Edward Elgar Publishing.
Birkinshaw, J., Visnjic, I., & Best, S. (2018). Responding to a Potentially Disruptive Technology: How Big Pharma Embraced Biotechnology. California Management Review, 60(4), 1–27.
Björkdahl, J. (2009). Technology cross-fertilization and the business model: The case of integrating ICTs in mechanical engineering products. Research Policy, 38(9), 1468–1477.
Bohnsack, R., & Pinkse, J. (2017). Value Propositions for Disruptive Technologies: Reconfiguration Tactics in the Case of Electric Vehicles. California Management Review, 59(4), 79–96.
Boudreau, K. (2010). Open Platform Strategies and Innovation: Granting Access vs. Devolving Control. Management Science, 56(10), 1849–1872.
Bramas, Q. (2018). The Stability and the Security of the Tangle To cite this version : HAL Id : hal-01716111.
Bresnahan, T. F., & Greenstein, S. (1999). Technological Competition and the Structure of the Computer Industry. The Journal of Industrial Economics, 47(1), 1–40.
Buterin, V. (2014). A next-generation smart contract and decentralized application platform. Etherum, (January), 1–36.
Casadesus-Masanell, R., & Ricart, J. E. (2011). How to design a winning business model. Harvard Business Review, 89(1–2).
Chesbrough, H. (2007). Why companies should have open business models. MIT Sloan Management Review, 48(Winter), 23.
Chesbrough, H., & Rosenbloom, R. S. (2002). The role of the business model in capturing value from innovation: evidence from Xerox Corporation’s technology spin-off companies. Industrial and Corporate Change, 11(3), 529–555.
Christensen, C. M., Raynor, M., & McDonald, R. (2016). The Disruption Debate. Harvard Business Review.
Clauss, T. (2016). Measuring business model innovation: Conceptualization, scale development, and proof of performance. R&D Management, (1), 1–19.
Croman, K., Decker, C., Eyal, I., Efe Gencer, A., Juels, A., Kosba, A., … Wattenhofer, R. (2016). On Scaling Decentralized Blockchains. International Conference on Financial Cryptography and Data Security, 106–125.
Daly, R., Shen, Q., & Aitken, S. (2011). Learning Bayesian networks: approaches and issues. The Knowledge Engineering Review, 26(2), 99–157.
Demil, B., Xavier, L., Joan Enric, R., & Zott, C. (2015). Introduction to the SEJ Special Issue on Business Model: Business Models within the domain of strategig entrepreneurship. Strategic Entrepreneurship Journal, 1(1), 27–47.
Denzin, N. K., & Lincoln, Y. S. (1994). Handbook of Qualitative Research. Thousand Oaks, CA, US: Sage Publications.
Digiconomist. (2018). Bitcoin Energy Consumption Index - Digiconomist.
Doganova, L., & Eyquem-Renault, M. (2009). What do business models do?. Innovation devices in technology entrepreneurship. Research Policy, 38(10), 1559–1570.
Dorri, A., Steger, M., Kanhere, S., & Jurdak, R. (2017). blockchain - a distributed solution to automotive security and privacy. IEEE Communication Magazine.
Eisenhardt, K. M. (1989). Building Theories from Case Study Research. Academy of Management Review, 14(4), 532–550.
Eisenhardt, K. M., & Graebner, M. E. (2007). Theory building from cases: Opportunities and challenges. Academy of Management Journal.
Eisenmann, T. R., Parker, G., & Alstyn, M. Van. (2009). Opening platforms: how, when and why? In A. Gawer (Ed.), Platforms, Markets and Innovation. Edward Elgar Publishing.
Evans, P. C., & Gawer, A. (2016). The Rise of the Platform Enterprise: A Global Survey. Retrieved from http://epubs.surrey.ac.uk/id/eprint/811201 (retrieved July 17, 2018)
Evers, E. R. K., de Ven, N. van, & Weeda, D. (2015). The Hidden Cost of Microtransactions: Buying In-Game Advantages in Online Games Decreases a Player’s Status. International Journal of Internet Science, 10(1), 20–36.
Flick, U. (2009). An introduction to qualitative research. Sage Publication (4th ed.). Thousand Oaks, CA.
Foss, N. J., & Saebi, T. (2017). Fifteen Years of Research on Business Model Innovation: How Far Have We Come, and Where Should We Go? Journal of Management, 43(1), 200–227.
Gambardella, A., & McGahan, A. M. (2010). Business-model innovation: General purpose technologies and their implications for industry structure. Long Range Planning, 43(2–3), 262–271.
Gassmann, O., Frankenberger, K., & Csik, M. (2014). The Business Model Navigator: 55 Models that will revolutionize your Business. Harlow Pearson, UK: FT Press.
Gassmann, O., Frankenberger, K., & Sauer, R. (2016). Exploring the field of Business Model Innovation: New Theoretical Perspectives. Palgrave Macmillan.
Gibbert, M., & Ruigrok, W. (2010). The “What” and “How” of Case Study Rigor: Three Strategies Based on Published Work. Organizational Research Methods, 13(4), 710–737.
Glaser, B. G., & Strauss, A. L. (1965). Awareness of Dying. Chicago: Aldine.
Glaser, F. (2017). Pervasive Decentralisation of Digital Infrastructures: A Framework for Blockchain enabled System and Use Case Analysis. HICSS 2017 Proceedings, 1543–1552.
Gupta, V. (2017). The Promise of Blockchain Is a World Without Middlemen. Harvard Business Review Digital Articles, 2–5.
Handy, P. (2017). Introducing Masked Authenticated Messaging. Retrieved June 18, 2018, from https://blog.iota.org/introducing-masked-authenticated-messaging-e55c1822d50e
Hendricks, K. (1992). Reputations technology in the adoption of a new. International Journal of Industrial Organization, 10, 663–677.
Holotiuk, F., Pisani, F., & Moormann, J. (2017). The Impact of Blockchain Technology on Business Models in the Payments Industry. WI 2017 Proceedings, 912–926.
Iansiti, M., & Lakhani, K. R. (2017). The Truth About Blockchain. Harvard Business Review, 118–127.
IOTA Foundation. (2018). Qubic. Retrieved July 17, 2018, from https://qubic.iota.org/
Ito, J., Narula, N., & Ali, R. (2017). The Blockchain Will Do to the Financial System What the Internet Did to Media. Harvard Business Review, 2–6.
Kahlert, J. (2018). A Stakeholder-theoretic View on Seizing New Business Opportunities in the Context of Digital Ecosystems. University of St. Gallen.
Lehdonvirta, V. (2009). Virtual item sales as a revenue model: Identifying attributes that drive purchase decisions. Electronic Commerce Research, 9(1–2), 97–113.
Morabito, V. (2017). Business Innovation Through Blockchain. Springer.
Natarajan, H., Krause, S. K., & Gradstein, H. L. (2017). Distributed Ledger Technology (DLT) and Blockchain (English). FinTech note. Washington, D.C.
Netflix is moving television beyond time-slots and national markets. (2018). The Economist.
Popov, S. (2018a). Local modifiers in the Tangle (White Paper).
Popov, S. (2018b). The Tangle. White Paper.
Silverman, D. (2013). Doing Qualitative Research. Sage.
Spieth, P., Schneckenberg, D., & Ricart, J. E. (2014). Business model innovation – state of the art and future challenges for the field. R&D Management, 44(3), 237–247.
Stenbacka, R., & Tombakb, M. M. (1994). Timing of Adoption of New Technologies Under Uncertainty. Science, 7187(93).
Strauss, A., & Corbin, J. (2008). Basics of Qualitative Research: Techniques and Procedures for Developing Grounded Theory. Basics of Qualitative Research Grounded Theory Procedures and Techniques (3rd ed.). Thousand Oaks, CA: Sage Publications.
Suddaby, R. (2006). What grounded theory is not. Academy of Management Journal, 49(4), 633–642.
Tapscott, D., & Tapscott, A. (2016). Blockchain Revolution. Blockchain Revolution. New York: Penguin.
Teece, D. J. (2010). Business models, business strategy and innovation. Long Range Planning, 43(2–3), 172–194.
Teece, D. J. (2016). Profiting from Innovation in the Digital Economy : Standards , Complementary Assets , and Business Models In the Wireless World. Working paper Series No. 16.
Tsukerman, M. (2016). The Block is hot: A Survey of the State of Bitcoin Regulation and Suggestions for the Future. Berkeley Technology Law Journal, 30(4), 1127–1169.
Tushman, M. L., & Anderson, P. (1986). Technological Discontinuities and Organizational Environments. Administrative Science Quarterly, 31(3), 439–465.
Velamuri, V. K., Schneckenberg, D., Haller, J. B. A., & Moeslein, K. M. (2017). Open evaluation of new product concepts at the front end of innovation: objectives and contingency factors. R&D Management, 47(4), 501–521.
West, J. (2003). How open is open enough? Melding proprietary and open source platform strategies. Research Policy, 32(7), 1259–1285.
Wheelwright, S. C., & Clark, K. B. (1992). Revolutionizing Product Development: Quantum Leaps in Speed, Efficiency, and Quality. Simon and Schuster.
White, G. R. T. (2017). Future applications of blockchain in business and management: A Delphi study. Strategic Change, 26(5), 439–451.
Wirtz, B. W., Pistoia, A., Ullrich, S., & Göttel, V. (2016). Business Models: Origin, Development and Future Research Perspectives. Long Range Planning, 49(1), 36–54.
Wright, A., & De Filippi, P. (2015). Decentralized Blockchain Technology and the Rise of Lex Cryptographia. SSRN Electronic Journal.
Yin, R. K. (2014). Case Study Research: Design and Methods (5th ed.). Thousand Oaks, CA: Sage.
Zhang, Y., & Wen, J. (2017). The IoT electric business model: Using blockchain technology for the internet of things. Peer-to-Peer Networking and Applications, 10(4), 983–994.
Zott, C., Amit, R., & Massa, L. (2011). The Business Model: Recent Developments and Future Research. Journal of Management, 37(4), 1019–1042.
Eprints ID
257117