A look at business model innovation's crucial role in today's global business environment.

Showing organizations how business model innovation should be a key focus area in today's global economy, this book features cases from businesses around the globe that have developed customized business models and achieved spectacular levels of performance.

Filled with interviews with key executives, this book reveals the role of technology in driving and enabling changes to fundamental facets of a business. Companies around the world are innovating their business models with tremendous results.IT-Driven Business Models shows interested organizations how they can start the process.

DR. HENNING KAGERMANN is the former CEO of SAP AG, the world's largest provider of enterprise software, where he served as CEO from 1998 until 2009. He currently serves as president of acatech, the German Academy of Science and Engineering.

DR. HUBERT OSTERLE is Director of the Institute of Information Management at the University of St. Gallen. He is involved in teaching and research in the areas of business models for the information age and business engineering.

JOHN M. JORDAN is a clinical professor in the Department of Supply Chain and Information Systems at the Smeal College of Business, Penn State University, where he teaches IT strategy to undergraduates, MBAs, and executives. His research focuses on emerging technologies and their impact on business strategy, design, and practice.

Foreword ix

Preface xi

Acknowledgments xix

Chapter 1 Enterprise Value from Customer Value 1

Customer Value and Enterprise Value 3

Context 4

Shaping a Response 9

Business Models, Business Concepts, and the Role of IT 13

Case Study: Apple 15

Realizing the Information Vision: The Technology Dimension 21

Checklist 27

Chapter 2 Customer Value from the Customer Process 29

Management Summary 29

Vision 32

From Product to Solution Provider 33

Process Focus: Waste Disposal and Management 36

Concepts of the Customer Process 38

Realizing the Vision 44

Checklist 48

Chapter 3 More Customers and More for the Customer 49

Management Summary 49

Vision 52

Turning Employees and Customers into Fans 53

Concepts of Market and Customer Development 55

Realizing the Vision 64

Checklist 67

Chapter 4 Innovation and Personalization Trump Commoditization 69

Management Summary 69

Vision 72

From Single Standardized Product to Personalized Service Package: Endress+Hauser 72

Procter& Gamble (Innovation) 74

Pioneering Co-creation: LEGO Group 77

The Tata Nano: A Case of Disruptive Innovation? 79

Concepts of Product and Service Development 80

Realizing the Vision 90

Checklist 92

Chapter 5 Silent Commerce 93

Management Summary 93

Vision 96

Seamless Fulfillment, Silent Commerce 97

Concepts of Fulfillment 99

Realizing the Vision 108

Checklist 110

Chapter 6 Strategy-Compliant Management 111

Management Summary 111

Vision 113

From Reporting to Strategy Implementation 114

Concepts of Operative Management 122

Realizing the Vision 131

Checklist 133

Chapter 7 Value Chain Redesign 135

Management Summary 135

Vision 138

From Value Chain to Ecosystem: Seven Redesigns 139

Competition in Networks 147

Concepts of Value Chain Redesign 150

Realizing the Vision 167

Checklist 169

Chapter 8 ITs Role in Business Model Transformation 171

Management Summary 171

Vision 174

High-Performance IS Organizations 175

Concepts of IS Organizational Performance 179

Realizing the Vision 191

Checklist 194

Conclusion IT-Driven Innovation in the 2010s 195

Notes 197

About the Authors 209

Index 211