1 Foundations of Digital Business Models ..................... 1
1.1 Introduction ...................................... 1
1.2 Development of the Business Model Concept .............. 3
1.3 Analysis of Definitions .............................. 8
1.4 Importance of Business Model Management for Success...... 14
2 The Business Model Concept ............................. 17
2.1 Research Streams of Business Models ................... 17
2.2 Classification of Business Models ...................... 23
2.3 Integrated Business Models ........................... 33
2.4 Levels and Goals of Business Models ................... 39
2.5 Business Models, Value Chain, Core Assets
and Competencies .................................. 43
3 Digital Business ........................................ 51
3.1 Development of Digital Business ....................... 51
3.2 Basics of Digital Business ............................ 54
3.3 Forces of Digital Development ........................ 71
3.4 Business Models in Digital Markets ..................... 79
4 B2C Digital Business Models: Content ...................... 83
4.1 The Content Business Model .......................... 84
4.2 Content Business Model Types ........................ 85
4.3 Value Chain, Core Assets and Competencies .............. 92
4.4 Case Study: Wikipedia .............................. 97
5 B2C Digital Business Models: Commerce .................... 103
5.1 The Commerce Business Model........................ 103
5.2 Commerce Business Model Types ...................... 105
5.3 Value Chain, Core Assets and Competencies .............. 110
5.4 Case Study: eBay .................................. 116

vii

6 B2C Digital Business Models: Context ...................... 121
6.1 The Context Business Model .......................... 121
6.2 Context Business Model Types ........................ 123
6.3 Value Chain, Core Assets and Competencies .............. 125
6.4 Case Study: BING ................................. 130
7 B2C Digital Business Models: Connection.................... 137
7.1 The Connection Business Model ....................... 137
7.2 Connection Business Model Types ..................... 139
7.3 Value Chain, Core Assets and Competencies .............. 142
7.4 Case Study: LinkedIn ............................... 147
8 Hybrid Digital Business Models ........................... 153
8.1 Development of Hybrid Digital Business Models ........... 153
8.2 Hybridization of Business Models: Google ................ 155
9 B2B Digital Business Models.............................. 161
9.1 The Sourcing Business Model ......................... 162
9.2 The Sales Business Model ............................ 165
9.3 The Supportive Collaboration Business Model ............. 168
9.4 The Service Broker Business Model .................... 170
10 Digital Business Model Innovation ......................... 175
10.1 Introduction to Business Model Innovation ................ 175
10.2 Demarcation of Business Model Innovation ............... 185
10.3 Types and Processes of Business Model Innovation ......... 189
10.4 Integrated Approach to Business Model Management ........ 201
11 Google/Alphabet Case Study .............................. 207
11.1 Google’s Organizational History and Development .......... 207
11.2 Google’s Integrated Business Model .................... 210
11.3 Google’s Market Environment ......................... 219
11.4 Case Analyses and Structure of Solutions................. 221
11.5 Google Case: Questions and Solutions ................... 226
References .................................................. 237

The spread of the Internet into all areas of business activities has put a particular focus on business models. The digitalization of business processes is the driver of changes in company strategies and management practices alike. This textbook provides a structured and conceptual approach, allowing students and other readers to understand the commonalities and specifics of the respective business models. The book begins with an overview of the business model concept in general by presenting the development of business models, analyzing definitions of business models and discussing the significance of the success of business model management. In turn, Chapter 2 offers insights into and explanations of the business model concept and provides the underlying approaches and ideas behind business models. Building on these foundations, Chapter 3 outlines the fundamental aspects of the digital economy. In the following chapters the book examines various core models in the business to consumer (B2C) context. The chapters follow a 4-C approach that divides the digital B2C businesses into models focusing on content, commerce, context and connection. Each chapter describes one of the four models and provides information on the respective business model types, the value chain, core assets and competencies as well as a case study. Based on the example of Google, Chapter 8 merges these approaches and describes the development of a hybrid digital business model. Chapter 9 is dedicated to business-to-business (B2B) digital business models. It shows how companies focus on business solutions such as online provision of sourcing, sales, supportive collaboration and broker services. Chapter 10 shares insight into the innovation aspect of digital business models, presenting structures and processes of digital business model innovation. The book is rounded out by a comprehensive case study on Google/Alphabet that combines all aspects of digital business models. Conceived as a textbook for students in advanced undergraduate courses, the book will also be useful for professionals and practitioners involved in business model innovation, and applied researchers.