The transformative impact of business models
AbstractThe macroeconomic impact of advances in information and communications technologies is significant but problematic to assess. Research on these developments has been isolated to specific disciplines, easily outpaced by new innovations and few studies describe the multiple changes and their macroeconomic consequences in a holistic way. The increasing ability to organize, price and transmit information to the market is ushering in an era where economic actors are highly responsive to the market. Technological advance alone does not capture the benefits of these developments. It is the innovative business model that lies at the heart of this revolution in responsiveness. We outline four major economic shifts in this study by reference to some paradigmatic business models. These shifts include pricing strategy innovations and their effect on the creation and expansion of market spaces, structural shifts in electronic markets and the effects on transaction costs, the deeper interaction between firms and consumers and the effects on more efficient matching of supply and demand, and finally the economic impact of elasticity and infinite scalability in computing resources when delivered as a utility by cloud computing providers. These advances do not only increase the commercial possibilities, they actively alter the competitive landscape and the role of the firm and consumer. This paper establishes some key areas where the increased responsiveness of economic actors is increasingly stimulating innovation, efficiency and productivity.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 38346.
Date of creation: 2011
Date of revision:
pricing strategies; expansion of market spaces; economic impact of elasticity and infinite scalability; cloud computing;
Find related papers by JEL classification:
- E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
- M00 - Business Administration and Business Economics; Marketing; Accounting - - General - - - General
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-02 (All new papers)
- NEP-BEC-2012-05-02 (Business Economics)
- NEP-MAC-2012-05-02 (Macroeconomics)
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