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)
15 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

Välja, M., Österlind, M., Iacob, M. E., van Sinderen, M. J., & Johnson, P. (2013). Modeling and prediction of monetary and non-monetary business values. In D. Gasevic, M. Hatala, H. R. Motahari Nezhad, & M. U. Reichert (Eds.), 17th IEEE International Enterprise Distributed Object Computing Conference, EDOC 2013 (pp. 153-158). (Enterprise Distributed Object Computing Conference). USA: IEEE. https://doi.org/10.1109/EDOC.2013.25
Välja, Margus ; Österlind, Magnus ; Iacob, Maria Eugenia ; van Sinderen, Marten J. ; Johnson, Pontus. / Modeling and prediction of monetary and non-monetary business values. 17th IEEE International Enterprise Distributed Object Computing Conference, EDOC 2013. editor / D Gasevic ; M. Hatala ; H.R. Motahari Nezhad ; M.U. Reichert. USA : IEEE, 2013. pp. 153-158 (Enterprise Distributed Object Computing Conference).
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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.",
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author = "Margus V{\"a}lja and Magnus {\"O}sterlind and Iacob, {Maria Eugenia} and {van Sinderen}, {Marten J.} and Pontus Johnson",
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Välja, M, Österlind, M, Iacob, ME, van Sinderen, MJ & Johnson, P 2013, Modeling and prediction of monetary and non-monetary business values. in D Gasevic, M Hatala, HR Motahari Nezhad & MU Reichert (eds), 17th IEEE International Enterprise Distributed Object Computing Conference, EDOC 2013. Enterprise Distributed Object Computing Conference, IEEE, USA, pp. 153-158, 17th IEEE International Enterprise Distributed Object Computing Conference, EDOC 2013, Vancouver, Canada, 9/09/13. https://doi.org/10.1109/EDOC.2013.25

Modeling and prediction of monetary and non-monetary business values. / Välja, Margus; Österlind, Magnus; Iacob, Maria Eugenia; van Sinderen, Marten J.; Johnson, Pontus.

17th IEEE International Enterprise Distributed Object Computing Conference, EDOC 2013. ed. / D Gasevic; M. Hatala; H.R. Motahari Nezhad; M.U. Reichert. USA : IEEE, 2013. p. 153-158 (Enterprise Distributed Object Computing Conference).

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

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AB - 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.

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BT - 17th IEEE International Enterprise Distributed Object Computing Conference, EDOC 2013

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Välja M, Österlind M, Iacob ME, van Sinderen MJ, Johnson P. Modeling and prediction of monetary and non-monetary business values. In Gasevic D, Hatala M, Motahari Nezhad HR, Reichert MU, editors, 17th IEEE International Enterprise Distributed Object Computing Conference, EDOC 2013. USA: IEEE. 2013. p. 153-158. (Enterprise Distributed Object Computing Conference). https://doi.org/10.1109/EDOC.2013.25