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2015/2016  KAN-CEBUV2024U  Digital Business Models

English Title
Digital Business Models

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Semester
Start time of the course Spring
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 70
Study board
Study Board for BSc/MSc in Business Administration and Information Systems, MSc
Course coordinator
  • Ben Eaton - Department of IT Mangement (ITM)
Main academic disciplines
  • Information technology
  • Strategy
Last updated on 12-11-2015
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors: After completing the course, the students should be able to:
  • Identify and describe the specific characteristics of digital business models
  • Describe and apply business model concepts in digital business
  • Explain the business and consequences of taking part of digital ecosystems
  • Reflect on current and potential future developments in the digital arena and develop suggestions on digital business models in the economy.
  • Analyze the opportunities and challenges for international and Danish companies in taking part of the digital competition and the internationalization of Internet-enabled firms.
Course prerequisites
Strategic and tactical tools should be passed or sufficient knowledge in business terminology
The course has homogeneity with Digital battle field at CM(it.).
Prerequisites for registering for the exam
Number of mandatory activities: 1
Compulsory assignments (assessed approved/not approved)
Over the course students will work in groups of 4-5 individuals with a mini-project about a Danish digital company applying the models and tools learnt in the course.

The output of this project will be a team report and presentation. The mini-project report will be submitted in session 11, and the teams will present their work in weeks 11 and 12.
Examination
Take home exam:
Exam ECTS 7,5
Examination form Home assignment - written product
Individual or group exam Individual
Size of written product Max. 15 pages
Assignment type Case based assignment
Duration Written product to be submitted on specified date and time.
Grading scale 7-step scale
Examiner(s) Internal examiner and second internal examiner
Exam period Spring, Exam will take place in May/Jun
Make-up exam/re-exam
Same examination form as the ordinary exam
Course content and structure

The world is becoming digital. This give raise to Digital Business Models with a new competitive logic. International giants, such as Facebook and Google, are in the center of digital ecosystems that creates opportunities and challenges also for Danish companies. Many start-up and growth companies can today be found in the fast growing businesses of digital marketing, app development, social media, online news and information services, and online innovation services. In addition, traditional businesses such as publishing, entertainment, and banking are facing an ongoing digitalization that drags them onto the digital arena – an economic arena with its own economic and competitive principles. 
 
Concepts, models, and economic principles that are useful in analyzing the digital business models will be taught and applied on real-life cases.
Teaching methods
The course evolves over two parallel strands: one taking a global and general view on Internet as a battlefield for digital goods and services, and one exploring the opportunities and challenges in a specifically Danish context.

Over 12 sessions (comprising of 2 lectures each), a combination of lecture-mode instruction and case discussion will be used to enable students to identify and describe characteristics, concepts, models, and principles of digital competition and information economics.

In 10 of the sessions there will be additional 2 hour workshops, where students will work on the Danish side of digital competition, developing knowledge and skills in describing opportunities, challenges and consequences for Danish companies. We will also work with the outlook for the fast developing digital economy, and how these developments affect the business opportunities and challenges in the digital arena.


Students are expected to take active part in the development of workshops, in order to capture the most current trends and developments in the area. There is a mandatory group assignment in the application of concepts, models, and economic principles of information economics in a Danish context, as well as description of (existing and future) opportunities and challenges for Danish companies in taking part of the digital competition and the internationalization of Internet-enabled firms.
Student workload
Lectures 24 hours
Prepare to class 100 hours
Workshops 20 hours
Exam and prepare 63 hours
Expected literature

 

Amit, R., and Zott, C. "Value creation in e‐business," Strategic management journal (22:6‐7) 2001, pp 493-520.
Chang, W.-L., and Yuan, S.-T. "An overview of information goods pricing," International Journal of Electronic Business (5:3) 2007, pp 294-314.
Eaton, B. "The Dynamics of Digital Platform Innovation: A Study of Apple's Strategy to Control Modular and Architectural Innovation in iOS,") 2014.
Eaton B, Hallingby H, Nesse P and Hanseth O "Achieving Payoffs from an Industry Cloud Ecosystem at BankID", MIS Quarterly Executive (13:4) 2014
Eaton, B., Elaluf-Calderwood, S., and Sørensen, C. "A Methodology for Analysing Business Model Dynamics for Mobile Services using Control Points and Triggers," Proceedings of the 2nd Business Models for Mobile Platforms Workshop (BMMP 2010), Berlin, Germany, 2010.
Eaton, B. D. "The dynamics of digital platform innovation: unfolding the paradox of control and generativity in Apple's iOS," London School of Economics, 2012.
Eisenmann, T., Parker, G., and Van Alstyne, M. W. "Strategies for two-sided markets," Harvard Business Review (84:10) 2006, p 92.
Farrell, J., and Klemperer, P. "Coordination and lock-in: Competition with switching costs and network effects," Handbook of industrial organization (3) 2007, pp 1967-2072.
Gerlitz, C., and Helmond, A. "The Like economy: Social buttons and the data-intensive web," New Media & Society) 2013, p 1461444812472322.
Hedman, J., and Kalling, T. "The business model concept: theoretical underpinnings and empirical illustrations," European Journal of Information Systems (12:1) 2003, pp 49-59.
Henderson, R. M., and Clark, K. B. "Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of Established Firms," Administrative Science Quaterly (35:1), March 1990, pp 9-30.
Hui, K. L., and Chau, P. Y. "Classifying digital products," Communications of the ACM (45:6) 2002, pp 73-79.
Iansiti, M., and Levien, R. "Strategy as ecology," Harvard Business Review (82:3) 2004, pp 68-81.
Jensen, T., Bjørn-Andersen, N., and Vatrapu, R. "Avocados crossing borders: the missing common information infrastructure for international trade," Proceedings of the 5th ACM international conference on Collaboration across boundaries: culture, distance & technology, ACM, 2014, pp. 15-24.
Katz, M. L., and Shapiro, C. "Systems competition and network effects," The Journal of Economic Perspectives) 1994, pp 93-115.
Moore, J. F. "Predators and prey: a new ecology of competition," Harvard Business Review (71:3) 1993, pp 75-86.
Nalebuff, B. J., and Brandenburger, A. M. "Co-opetition: Competitive and cooperative business strategies for the digital economy," Strategy & leadership (25:6) 1997, pp 28-35.
Osterwalder, A., Pigneur, Y., and Tucci, C. L. "Clarifying business models: Origins, present, and future of the concept," Communications of the association for Information Systems (16:1) 2005, p 1.
Parker, G. G., and Van Alstyne, M. W. "Two-Sided Network Effects: A Theory of Information Product Design," Management Science (51:10) 2005, pp 1494-1504.
Selander, L., Henfridsson, O., and Svahn, F. "Transforming ecosystem relationships in digital innovation,") 2010.
Shapiro, C., and Varian, H. R. "VERSIONING: THE SMART WAY TO," Harvard Business Review) 1998, p 107.
Shapiro, C., and Varian, H. R. Information rules: a strategic guide to the network economy Harvard Business Press, 2013.
Shapiro, C., and Varían, H. R. "The Art of Standards Wars," California Management Review (41:1) 1999.
Sheth, J. N., Newman, B. I., and Gross, B. L. "Why we buy what we buy: a theory of consumption values," Journal of business research (22:2) 1991, pp 159-170.

 
Last updated on 12-11-2015