IT-Driven Business Models

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 ixPreface xiAcknowledgments xixChapter 1 Enterprise Value from Customer Value 1Customer Value and Enterprise Value 3Context 4Shaping a Response 9Business Models, Business Concepts, and the Role of IT 13Case Study: Apple 15Realizing the Information Vision: The Technology Dimension 21Checklist 27Chapter 2 Customer Value from the Customer Process 29Management Summary 29Vision 32From Product to Solution Provider 33Process Focus: Waste Disposal and Management 36Concepts of the Customer Process 38Realizing the Vision 44Checklist 48Chapter 3 More Customers and More for the Customer 49Management Summary 49Vision 52Turning Employees and Customers into Fans 53Concepts of Market and Customer Development 55Realizing the Vision 64Checklist 67Chapter 4 Innovation and Personalization Trump Commoditization 69Management Summary 69Vision 72From Single Standardized Product to Personalized Service Package: Endress+Hauser 72Procter & Gamble (Innovation) 74Pioneering Co-creation: LEGO Group 77The Tata Nano: A Case of Disruptive Innovation? 79Concepts of Product and Service Development 80Realizing the Vision 90Checklist 92Chapter 5 Silent Commerce 93Management Summary 93Vision 96Seamless Fulfillment, Silent Commerce 97Concepts of Fulfillment 99Realizing the Vision 108Checklist 110Chapter 6 Strategy-Compliant Management 111Management Summary 111Vision 113From Reporting to Strategy Implementation 114Concepts of Operative Management 122Realizing the Vision 131Checklist 133Chapter 7 Value Chain Redesign 135Management Summary 135Vision 138From Value Chain to Ecosystem: Seven Redesigns 139Competition in Networks 147Concepts of Value Chain Redesign 150Realizing the Vision 167Checklist 169Chapter 8 IT’s Role in Business Model Transformation 171Management Summary 171Vision 174High-Performance IS Organizations 175Concepts of IS Organizational Performance 179Realizing the Vision 191Checklist 194Conclusion IT-Driven Innovation in the 2010s 195Notes 197About the Authors 209Index 211