Performance Estimation of Networked Business Models: Case Study on a Finnish eHealth Service Project

  • Marikka Heikkilä
  • Sam Solaimani
  • Aki Soudunsaari
  • Mila Hakanen
  • Leni Kuivaniemi
  • Mari Suoranta
Keywords: Business Model, Business model innovation, Performance Metrics, Performance indicators, Business network, collaborative network

Abstract

Purpose: The objective of this paper is to propose and demonstrate a framework for estimating performance in a networked business model. 

Design/methodology/approach: Our approach is design science, utilising action research in studying a case of four independent firms in Health & Wellbeing sector aiming to jointly provide a new service for business and private customers. The duration of the research study is 3 years. 

Findings: We propose that a balanced set of performance indicators can be defined by paying attention to all main components of the business model, enriched with of network collaboration. The results highlight the importance of measuring all main components of the business model and also the business network partners’ view on trust, contracts and fairness. 

Research implications: This article contributes to the business model literature by combining business modelling with performance evaluation. The article points out that it is essential to create metrics that can be applied to evaluate and improve the business model blueprints, but it is also important to measure business collaboration aspects. 

Practical implications: Companies have already adopted Business model canvas or similar business model tools to innovate new business models. We suggest that companies continue their business model innovation work by agreeing on a set of performance metrics, building on the business model components model enriched with measures of network collaboration. 

Originality/value: This article contributes to the business model literature and praxis by combining business modelling with performance evaluation.

Published
21-08-2014