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The transformative impact of business models

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  • Ghafele, Roya
  • Gibert, Benjamin

Abstract

The 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.

Suggested Citation

  • Ghafele, Roya & Gibert, Benjamin, 2011. "The transformative impact of business models," MPRA Paper 38346, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:38346
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    File URL: https://mpra.ub.uni-muenchen.de/38346/1/MPRA_paper_38346.pdf
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    References listed on IDEAS

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    1. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters,in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87 World Scientific Publishing Co. Pte. Ltd..
    2. Stephen G. Cecchetti, 2006. "The New Economy and the Challenges for Macroeconomic Policy," Chapters,in: The New Economy and Beyond, chapter 4 Edward Elgar Publishing.
    3. Ghafele, Roya & Gibert, Benjamin, 2011. "Crowdsourcing patent application review: leveraging new opportunities to capitalize on innovation?," MPRA Paper 38092, University Library of Munich, Germany.
    4. Indjikian, Rouben & Siegel, Donald S., 2005. "The Impact of Investment in IT on Economic Performance: Implications for Developing Countries," World Development, Elsevier, vol. 33(5), pages 681-700, May.
    5. Yannis Bakos, 2001. "The Emerging Landscape for Retail E-Commerce," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 69-80, Winter.
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    7. Alexander Osterwalder & Yves Pigneur, 2002. "An e-Business Model Ontology for Modeling e-Business," Industrial Organization 0202004, EconWPA.
    8. Arnold Michael A. & Pénard Thierry, 2007. "Bargaining and Fixed Price Offers: How Online Intermediaries are Changing New Car Transactions," Review of Network Economics, De Gruyter, vol. 6(2), pages 1-27, June.
    9. repec:dau:papers:123456789/7127 is not listed on IDEAS
    10. Baye, Michael R. & Morgan, John, 2002. "Information gatekeepers and price discrimination on the internet," Economics Letters, Elsevier, vol. 76(1), pages 47-51, June.
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    More about this item

    Keywords

    pricing strategies; expansion of market spaces; economic impact of elasticity and infinite scalability; cloud computing;

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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