Evolution of Business Models: A Case Study of SAP

Michelle C. Antero, Jonas Hedman, Stefan Henningsson

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    Abstract

    The ERP industry has undergone dramatic changes over the past decades due to changing market demands, thereby creating new challenges and opportunities, which have to be managed by ERP vendors. This paper inquires into the necessary evolution of business models in a technology-intensive industry (e.g., develop new offerings, engage in partnerships, and the utilize new sales channels). This paper draws from strategy process perspective to develop an evolutionary business model (EBM) framework that explains the components and processes involved. The framework is then applied to a longitudinal case study of SAP to explain how its success in a technology-intensive industry hinges on its ability to reconfigure its business model. The paper contributes to the extant literature on business models in two ways: first, by identifying and explaining the need for an evolutionary perspective; and second, by adopting different value configurations to reflect the convergence of customers, suppliers and vendors.
    Original languageEnglish
    Title of host publicationECIS 2013 Proceedings
    Number of pages12
    Place of PublicationAtlanta, GA
    PublisherAssociation for Information Systems. AIS Electronic Library (AISeL)
    Publication date2013
    Article numberPaper 204
    ISBN (Print)9783834924421
    Publication statusPublished - 2013
    EventThe 21st European Conference on Information Systems (ECIS) 2013 - Utrecht University, Utrecht Science Park 'de Uithof', Utrecht, Netherlands
    Duration: 5 Jun 20138 Jun 2013
    Conference number: 21
    https://sites.google.com/site/ecis2013nl/home

    Conference

    ConferenceThe 21st European Conference on Information Systems (ECIS) 2013
    Number21
    LocationUtrecht University, Utrecht Science Park 'de Uithof'
    CountryNetherlands
    CityUtrecht
    Period05/06/201308/06/2013
    Internet address
    SeriesProceedings of the European Conference on Information Systems
    ISSN0000-0034

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