This document discusses how business models are evolving due to changes in technology and society. It defines the business model as an organization's approach to creating and capturing value. Traditional closed models that keep knowledge internal are giving way to more open models that leverage both internal and external resources. The most collaborative model is the co-created model where organizations encourage knowledge sharing between internal and external stakeholders for mutual benefit. The document also discusses how information technology enables user-driven innovation and private-collective knowledge communities that blur organizational boundaries.

1. Exploring Business Models and the Role of Information Technology on Value Creation Paul M. Di Gangi, Ph.D. Western Carolina University www.paulmdigangi.com pdigangi@gmail.com

2. Presentation Structure Start Introduction Drivers of Evolution Types of Business Models Understanding Co-created Value What should I take away from this? Questions Finish

3. I am a product of my... n e t w o r k

5. The Business Model An organization’s line in the sand 1/31/2011

7. Approach to managing value creation1/31/2011

8. Happens 1/31/2011

9. < 1 > PeopleChange...

10. Increased Interactivity

11. Suddenly... everyone’s a 933|<!

12. < 2 > Our0rLD can Change...

14. Explosion of Social Media

15. < 3 > Our choices Change...

16. Networked Individualism (Wellman et al., 2003)

17. 1/31/2011 Social Affordances (boyd, 2007)

18. User-generated Content

19. Our economy changes Closed Open Co-created (Pine Jr. & Gilmore, 1998; 1999)

20. Business Models What happens to them? Johnson, Christensen, and Kagermann (2008)

21. They Evolve... 1/31/2011

22. Closed Model Organizations internalize resources for value creation; restrict access to knowledge, and protect intellectual property.

24. Open Model Organizations leverage both internal and external resources for value creation; strategically interact with its environment

25. User-driven Innovation “Distributed groups of individuals focused on solving a general problem and/or developing a new solution supported by computer-mediated communication.” (Dahlander & Wallin, 2006 p. 1246)

26. User-driven Innovation “Distributed groups of individuals focused on solving a general problem and/or developing a new solution supported by computer-mediated communication.” (Dahlander & Wallin, 2006 p. 1246)

27. Co-created Model Organizations encourages the flow of knowledge between internal and external resources; focuses on a common good where both parties benefit

28. Private-Collective Community Driven by both parties sharing their experiences and co-creating the value of the network.

29. How can we make these models work for us?

30. Balancing the needs of both parties User Interests vs Organizational Interests

31. Getting your customers’ ideas to work for you: Building user innovation communities Paul M. Di Gangi Molly Wasko Robert Hooker Presented at the SIM Workshop on Internet Architectures and Web 2.0 in Phoenix, Arizona in conjunction with the International Conference on Information Systems.

33. Considering Rejected No Status Update Implementing Size by # Ideas Contributed February 2007 Di Gangi, P. M. (2009)

34. Social Processes Social processes for the effective development of an idea were required to transfer end user ideas into adoptable ideas for Dell. Users within adopted ideas collaborated to resolve differences in opinion, create consensus, and provide additional information to Dell.

35. Exploring the Organization-User Relationship in Private-Collective Knowledge Communities Robin Teigland Elia Giovacchini Bjørn-Tore Flåten Paul M. Di Gangi Currently under review at the CK Prahalad SMS Special Conference.

36. Relational Dynamics Theme One

37. “Did you mean the communication between <NAME REMOVED> and the eZ publish community? Yes, it’s very nice!” “I think the communication by <NAMES REMOVED>… is great, but one gets the feeling that they may not have the best communication with eZ Systems.” Responses suggest a distinction among organizational agents (those working within eZ Publish community) and the organization (eZ Systems) when it comes to perceptions about communication. Relational Dynamics

38. Decision Making Process Theme Two

39. “Maybe more trusted people could make/develop eZ Publish. More people from community could become professional or ‘half-professional’ eZ partners, developers…” “… It’s harder to give confidence to an open-source community driven by an editor than a community driven by a democratic or autocratic authority.” Responses suggest a significant interest in understanding the dynamics that exist in terms of the decision making process, “rights” of the community”, and the benefits of commitment to community. Decision Making Process

40. Member Development Theme Three

41. “Creating the badge/grade/xp/achievementsystem…” “Focus heavily on the noob. Hard core devs are already here, but there are not that many in the world. Grooming noobs is a growth opportunity.” Responses focused on interest in developing & nurturing the growth of the community via technical (e.g., achievement system & webinar features) and social adjustments (e.g., training and mentorship for new members & inexperienced developers). Member Development

42. Overarching Finding Need to develop a deeper understanding of the relationships within the eZ Share community. 3OA OA eZ Organizational Agent eZ 3OA 3rd Part Organizational Agent CM OA CM OA CM Community Member

43. How can I 933|< out?

44. Socio-Technical System Platforms People Societal Shifts

45. Thank You for Engaging Contact @ pdigangi@gmail.com | Website @ www.paulmdigangi.com Modified version of these slides will be available @ www.slideshare.com/pmd06c