Business Model Design Methodology for Digital Services

Abstract: The contemporary network economy is built on powerful fixed and mobile network infrastructures. These infrastructures provide the solid ground for the continuous introduction of innovative both telecommunication services and business application services. Nevertheless, the exploitation and the profitability of these network infrastructures depend heavily on the commercial success of the services running on them. A critical precondition for the success of these services is to be based on sound business models, as business model is one of the most common factors encountered for, when Internet firms succeed in business. Especially today, in the networked economy, the concept of business model is not a theoretical tool but a prerequisite for success. Furthermore, the rapid introduction of innovative applications necessitates the rational design of their business model. However, despite the extensive use, and sometimes misuse, of the business model concept and design methodology, there exist very limited attempts in design methodology in scientific research. In the present paper, we propose a new framework for ‘digital’ business model design