Version 1
: Received: 20 October 2023 / Approved: 20 October 2023 / Online: 20 October 2023 (12:10:42 CEST)
How to cite:
Titu, A.M.; Cozmiuc, D. Insight into the Calculation Process to Decide Business Customer Value on the Digital Transformation Market. Preprints2023, 2023101352. https://doi.org/10.20944/preprints202310.1352.v1
Titu, A.M.; Cozmiuc, D. Insight into the Calculation Process to Decide Business Customer Value on the Digital Transformation Market. Preprints 2023, 2023101352. https://doi.org/10.20944/preprints202310.1352.v1
Titu, A.M.; Cozmiuc, D. Insight into the Calculation Process to Decide Business Customer Value on the Digital Transformation Market. Preprints2023, 2023101352. https://doi.org/10.20944/preprints202310.1352.v1
APA Style
Titu, A.M., & Cozmiuc, D. (2023). Insight into the Calculation Process to Decide Business Customer Value on the Digital Transformation Market. Preprints. https://doi.org/10.20944/preprints202310.1352.v1
Chicago/Turabian Style
Titu, A.M. and Diana Cozmiuc. 2023 "Insight into the Calculation Process to Decide Business Customer Value on the Digital Transformation Market" Preprints. https://doi.org/10.20944/preprints202310.1352.v1
Abstract
As a service business models have been ranked by management consultants the management innovation of 2020, and yet are scarcely theorized. Therein, value stipulations in customer contracts lead to the shift from product to service. However, there is no available research about the nature, formula and decisional process about these value stipulations. The motive for this research is to fill in this gap. The goal is to provide first insight about value stipulations in as a service business models: their formula and decisional methodology. The article is a multiple theory building case study on leading platform as a service providers, which aims to contruct the paradigm of the value decision methodology to invest in this technology by purchasing it from dedicated vendors. The methodology works to identify the management instruments involved in the decisional activities to invest in digital technology, where each management instrument is assumed to match an activity at seller and buyer; the sequence of the activities using the Critical Path Method gives the decisional process. Dependent variables are the elements of the as a service business contracts: the customer offering (product-service solution) and the value created, captured and delivered by the solution. Independent variables are given by empirical data analysis. Findings show a relationship between dependent variable value in the as a service business model contracts and independent variables governance objective, strategy, as a service business model type, activity management techniques (roadmap, program, project, operations, lean start-up), capital allocation techniques (equity, debt, options, venture capital typology). If innovation is exploitative, then the customer offering is known and value is determinable via roadmap – project management techniques (program, project, an operations) and capital allocation techniques for precictable environment, If innovation is radical, then the customer offering is not known and value is a target used to architect the solution via lean start-up innovation techniques funded by venture capital. The contribution is a new theoretical construct and deep insight into the practice of digital transformation considering all inherent issues.
Keywords
digital transformation; digital sector; management instruments; paradigm; business models; as a service business models; value based contracts; value creation, capture and delivery; value calculation
Subject
Business, Economics and Management, Business and Management
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
