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2013/2014  KAN-CIEB2004U  Digital Business Models

English Title
Digital Business Models

Course information

Language English
Exam ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Semester
Course period Spring
Changes in course scheduel may occur
Thursday 09.00-11.30, week 6-15, 17,18
Time Table Please see course schedule at e-Campus
Min. participants 15
Max. participants 40
Study board
Study Board for BSc/MSc in Business Administration and Information Systems, MSc
Course coordinator
  • Jonas Hedman - Department of IT Mangement (ITM)
Main academic disciplines
  • Information Systems
  • Corporate and Business Strategy
Last updated on 17-02-2014
Learning objectives
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
B1 or sufficient knowledge in business terminology
Prerequisites for registering for the exam
Compulsory assignments (assessed approved/not approved)
Mini project hand in, power point presentation based upon mini project, and presentation
Take home exam:
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 May/June
Make-up exam/re-exam
Same examination form as the ordinary exam
Course content and structure
The course portrays the Internet an exciting competitive arena for firms providing digital goods and services. 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 battlefield – an economic arena with its own economic and competitive principles. 

Concepts, models, and economic principles that are useful in analyzing the digital battlefield will be taught and applied on real-life cases. The special characteristics of the products and the industry will be integrated in order to understand the internationalization process of Internet-enabled firms, and the global competitive dynamics among them.
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.

In the 12 lectures, 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 the 10 workshops, students will work 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 fastly 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. Developing, in groups, suitable exercises and content for one workshop is mandatory for course completion. There will also be 3 mandatory assignments 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.
Expected literature
To be decided: 

but some indicative references:

Adobe Systems, Inc.” HBS cases 801-199
Adomavicius, G., Bockstedt J.C., Gupta A. and Kauffman R.J. 2007. Technology roles and paths of influence in an ecosystem model of technology evolution. Information Technology and Management. 8, 2, 185-202.
Amazon.com: The Brink of Bankruptcy” HBS cases 809-014.
Amit and Zott (2001) Value Creation in E-Business. Strategic Management Journal, 22, 493-520
Anderson (2004): The Long Tail, Wired, No. 10
Antero, M. & Riis, P. H. (2011) Strategic Management of Network Resources: A Case Study of an ERP Ecosystem. International Journal of Enterprise Information Systems. 7, 2, s. 18-33.
Brynjolfsson, Hu and Smith (2006)From Niches to Riches:  The Anatomy of the Long Tail . Sloan Management Review, Summer 2006, Vol. 47, No. 4, pp. 67-71.
Chang, W-L. and Yuan, S-T. (2007) ‘An overview of information goods pricing’, Int. J. Electronic Business, Vol. 5, No. 3, pp.294–314.
Cusumano, M. (2008) The Changing Software Business: From Products to Services and Other New Business Models. MIT working paper 236. January, 2008. http://ebusiness.mit.edu/research/papers/236_Cusumano_Changing_Software_Business.pdf
de Vries, H. J. (2006) Standards for business - How companies benefit from participation in international standards setting. http://www.iecchallenge.org/papers/pdf_iecchallenge/vries.pdf
Hedman and Kalling (2003) The Business Model Concept: Theoretical Underpinnings and Empirical Illustrations, European Journal of information Systems, 12, 49-59
Hui & Chau (2002): Classifying Digital Products, Communications of the ACM, 45, 6, pp.73-79
Iyer and Davenport (2008): Reverse Engineering Google’s Innovation Machine, Harvard Business Review, pp. 59-68
Majchrzak, Cherbakov & Ives (2009): Harnessing the Power of the Crowds with Corporate Social Networking Tools: How IBM Does It, MIS Quarterly Executive, 8, 2, pp. 103-108 Total: 66 pages
Schwab,A. (2011) Network effect to keep Facebook safe from Google move. http://www.crikey.com.au/2011/07/04/network-effect-to-keep-facebook-safe-from-google-move/
Symbian, Google & Apple in the Mobile Space (A)” HBS 909-055 (download/purchase from HBSP website)
Van Dyk End of Cash (2012) http://www.time.com/time/magazine/article/0,9171,2103289,00.html
Last updated on 17-02-2014