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Business Model Innovation in the Digital Economy

Business Model Innovation in the Digital Economy

Chung-Shing Lee, Nicholas S. Vonortas
Copyright: © 2004 |Pages: 19
ISBN13: 9781591401582|ISBN10: 1591401585|ISBN13 Softcover: 9781591402671|EISBN13: 9781591401599
DOI: 10.4018/978-1-59140-158-2.ch011
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MLA

Lee, Chung-Shing, and Nicholas S. Vonortas. "Business Model Innovation in the Digital Economy." Social and Economic Transformation in the Digital Era, edited by Georgios Doukidis, et al., IGI Global, 2004, pp. 163-181. https://doi.org/10.4018/978-1-59140-158-2.ch011

APA

Lee, C. & Vonortas, N. S. (2004). Business Model Innovation in the Digital Economy. In G. Doukidis, N. Mylonopoulos, & N. Pouloudi (Eds.), Social and Economic Transformation in the Digital Era (pp. 163-181). IGI Global. https://doi.org/10.4018/978-1-59140-158-2.ch011

Chicago

Lee, Chung-Shing, and Nicholas S. Vonortas. "Business Model Innovation in the Digital Economy." In Social and Economic Transformation in the Digital Era, edited by Georgios Doukidis, Nikolaos Mylonopoulos, and Nancy Pouloudi, 163-181. Hershey, PA: IGI Global, 2004. https://doi.org/10.4018/978-1-59140-158-2.ch011

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Abstract

A viable business model in the digital economy must follow the fundamental economic principles and be able to capitalize on the disruptive characteristics of the Internet commerce. This chapter presents an analytical method to assist business executive and entrepreneurs in evaluating and building a viable business model in the digital economy. This method is based on the concept of disruptive innovation, economies of scale and scope, and the theories of switching costs and transaction cost economics. It takes into account various cost models from both demand- and supply-side perspectives. The chapter contrasts the business transformation process and value creation strategies in the physical and digital economies, and discusses several e-commerce revenue models and pricing issues in the digital economy.

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