Modeling and prediction of monetary and non-monetary business values

Margus Välja, Magnus Österlind, Maria Eugenia Iacob, Marten J. van Sinderen, Pontus Johnson

    Research output: Chapter in Book/Report/Conference proceedingConference contributionAcademicpeer-review

    3 Citations (Scopus)
    25 Downloads (Pure)

    Abstract

    In existing business model frameworks little attention is paid to a thorough understanding of the perceived customer value of a business’ offering as compared to competing offers. In this paper, we propose to use utility theory in combination with e3value models to address this issue. An actor's joint utility function specifies how much value the actor attaches to a given product or service's different qualities. Competing value offerings map to different points on the customer utility function, since they provide certain quantities of each quality. Since the customer can be expected to exhibit a utility maximizing behavior, his/her choices between offerings can be predicted. Thus, given the proposed utility extension, it becomes possible to quantitatively reason about the relative customer value of an offering compared to those of the competition. This, in turn, allows the optimization of price, the key ingredient in any business model.
    Original languageUndefined
    Title of host publication17th IEEE International Enterprise Distributed Object Computing Conference, EDOC 2013
    EditorsD Gasevic, M. Hatala, H.R. Motahari Nezhad, M.U. Reichert
    Place of PublicationUSA
    PublisherIEEE
    Pages153-158
    Number of pages6
    ISBN (Print)978-0-7695-5081-7
    DOIs
    Publication statusPublished - Sep 2013
    Event17th IEEE International Enterprise Distributed Object Computing Conference, EDOC 2013 - Vancouver, Canada
    Duration: 9 Sep 201313 Sep 2013
    Conference number: 17

    Publication series

    NameEnterprise Distributed Object Computing Conference
    PublisherIEEE
    ISSN (Print)1541-7719

    Conference

    Conference17th IEEE International Enterprise Distributed Object Computing Conference, EDOC 2013
    Abbreviated titleEDOC
    CountryCanada
    CityVancouver
    Period9/09/1313/09/13

    Keywords

    • EWI-23831
    • SCS-Services
    • Profitability analysis
    • Utility
    • METIS-300083
    • IR-88272
    • Business models
    • Business value
    • E3value

    Cite this