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Summary Digital Business Models
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Summary of Digital Business Models for BA3 Business Economics at the VUB.
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DIGITAL BUSINESS MODELSBUSINESS ECONOMICS III, SEMESTER II
- Course Introduction p. 1
- Chapter 1: INTRODUCTION Digital Media & Convergence p. 3
- Chapter 2: Configuring Value p. 13
- Chapter 3: Business models/Revenue & Cost Models p. 21
- Chapter 4: Revenue Models p. 49
- Chapter 5 Cost Models p. 57
- Chapter 6: Innovation p. 61
- Chapter 7: Networks p. 83
- Chapter 8: Networks and Companies p. 95
- Chapter 9: Networks of Users p. 105
- Chapter 10: Standards & Openness p. 111
- Chapter 11: Platforms p. 133
- Guest lecture: Data p. 155
p. 167
,DIGITAL BUSINESS MODEL BUSINESS ECONOMICS III
INTERNATIONAL BUSINESS
DIGITAL BUSINESS MODEL: Course Introduction:
Objectives of this course:
- Insight into business model innovation in digital media
- Some background knowledge on digital media economics
- Providing a reference framework for this
- Learning to apply this for. Concrete case
Contents:
- Introduction
- Value Proposition
- Business Models
- Innovation
- Networks
- Standards
- Platforms
- Data
- Context
Approach:
- Elements
o Theories related to business and economic aspects fo digital media
o Applied theory: business model innovation
o Preparation of case study
- Materials
o Slides
o 2 papers
§ “Old & New issues in Media Economics”
§ “Business Modelling revisited”
o Personal case study
Case study: preparation if the Oral exam, not an assignment.
- Only paper where you do not have to worry about footnotes, about how extensive your sources are à the case study
itself will not be graded but it is the explanation of the case study that will be graded.
- About ONE digital application, platform or system
- 20-30 pages
- Questions at the end of each class
- Analyzing a digital business model
o (1) What are the basic business paraments of the case?
o (2) How are the characteristics of the digital economy reflected in the case?
o (3) Analysis of the business model of the case
- Public sources: Yearly reports, Public announcements, Business press (Economist, Financial
Times, NY Times, WSJ, Business Week...) Business blogs…
o It is not needed for you to go on interviews with the CEO of the company.
- Timing:
o (1) Choice of the case (feb)
o (2) Personal case study elaboration (march-may)
§ Explanation and questions communicated in class
§ Conduct your own research
1
,DIGITAL BUSINESS MODEL BUSINESS ECONOMICS III
INTERNATIONAL BUSINESS
o (3) Submission of digital version of case study to TA (14 may)
o (4) Feedback and discussion during last class (19 may)
o (5) Bring final case study in 2 printed/digital copies to exam as written preparation
Exam & Contact:
- Exam:
o Oral exam
o Written preparation: own case study
o Referring to the case study, various themes from the course are treated
- Contact:
o Wed 18-19h
§ ONLY after preliminary appointment via email: Pieter.Ballon@vub.be
o Anything related for case study contact Ibe Delvaux
2
, DIGITAL BUSINESS MODEL BUSINESS ECONOMICS III
INTERNATIONAL BUSINESS
CHAPTER 1: INTRODUCTION: Digital Media & Convergence:
Digital Media:
General Characteristics (Manovich):
- When we talk about digital media, we talk about all types of information and data that is represented in a digital form
o It is in a form of 1s and 0s (bits and bytes)
§ That means it can be read and interpreted by a machine (1 electricity on, 0 electricity off) this is a
language that a machine can understand and as such this media then becomes something that is
machine readable and programmable and can be distributed through digital means
o This simple technological feature, the fact that we do not represent it in a analog form but in binary, machine
readable form will have a lot of consequences, also on the business side and economic side of it.
- This is what this course will explore.
o From the digital media you can separate it in smaller blocks, every digital media is part of a whole.
§ But it maintains its own identity
• If you take something out, you cannot read it anymore, which is not the case for digital
media
o You can take the music out, the color out, the images out, you can make a
video, take the text out
§ Digital media can be split up and put back together later
- Digital representation: all media is represented in binary form, and thus becomes programmable
- Modularity: (the fractal structure of new media) every element is part of a larger whole, but
maintains its own identity, every element can be treated/processed separately
o This modularity represents the way that digital media can be modeled, it can spit up and put back together
while it still works.
- Automation: because of the 2 previous characteristics, part of the information/ communication
process can be automated
o Because of the modularity you can start to modulate all kind of parts of the whole information and
communication process, which can be done by machine and intelligence which is non-human intelligence. In
this way media and information becomes a much larger degree than previously.
§ It becomes a product, a service, even a part of the technological word in itself.
- Variability: there is an endless potential for variety because of different variations of the same
elements of the media database, creation becomes partly a process of selection
o Because I have all those modules, because you can automate there is an almost endless potential to variety,
because now modules can be taken away, they can be added up etc.
§ Pieces of data can be added, you can combine
o Creating, innovation becomes a part of configuration and reconfiguration
o Endless potential for variety, not only on the technical layer but also on the cultural layer, which is the layer
of meaning of narrativity and representation, because all of this data is represents certain information. That
evolves as I am adding, combining all these different layers
§ This can be done in an easy way because it is all automated, but it can also be done is a very diverse
way.
- Cultural transcoding: the cultural layer (narrativity and representation) and the computing layer
(encoding in files, forms of compression…) influence and change each other
- These are some of the basic characteristics of digital media or digital information or digital data
o This digitization had not only an impact on the technological level, but also on the
business aspects of anything that has to do with digital, and also on the cultural aspect on
what we do with all that digital media
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