A Two-Sided Market Mechanisms Toward Designing a Big Data-Driven Business Model for Mobile Network Operators (MNOs)
Keywords:Big Data, Mobile Advertising, Mobile Operators, Two-Sided Market, Design Science Research Method, Business Model,
AbstractThe mobile ecosystem has experienced a dramatic change as a result of a new entrance, new application, and new business model emerged. Recent trends have shown that the mobile industry is amidst a transformation toward platformisation of the key players' business model. This situation puts a traditional business model of mobile network operators (MNOs) under pressure as they failed to catch up due to lesser capabilities for providing a new value proposition and incentives for those sides of the market to achieve the two-sided platform compared to dominated parties. However, the paucity of extant literature has provided practical solutions to enhance MNOs business model leveraging contemporary information technology tools in combination with managerial design principles and concepts. This study investigates the application of Big Data –driven business model in order to transform MNOs from one-sided business model to two-sided business model. The design science research method (DSRM) will be used to build and evaluate the new business model. The proposed model will help the operators better serve their upstream customers and the end-users in order to counter the stiff competition existing in the mobile ecosystem, and contribute to the Big Data - driven business model.
Hagiu, A. & Rothman, S., 2016. Network effects aren’t enough. Harvard business review, 94(4), p. 17.
Al-Debei, M. & Avison, D., 2010. Developing a unified framework of the business model concept. European Journal of Information Systems, 19(3), pp. 359-376.
Teece, D., 2010. Business models, business strategy and innovation. Long range planning, 43(2), pp. 172-194.
Casey, T. R. & Töyli, J., 2012. Dynamics of two-sided platform success and failure: An analysis of public wireless local area access. Technovation, 32(12), pp. 703-716.
Rochet, J. & Tirole, J., 2003. Platform competition in two‐sided markets. Journal of the european economic association, 1(4), pp. 990-1029.
Lin, Mei, Ruhai Wu, and Wen Zhou. "Two-Sided Pricing and Endogenous Network Effects." (2016).
Eisenmann, T., Parker, G. & Van Alstyne, M., 2006. Strategies for two-sided markets. Harvard business review, 84(10), p. 92.
Wertz, Boris. "5 Tips For Building A Two-Sided Online Marketplace." Forbes. Forbes, 7 Feb. 2013. Web. 31 Jan. 2017. <http://www.forbes.com/sites/ciocentral/2013/02/07/5-tips-forbuilding-a-two-sided-online-marketplace/#761d2db04bc8>.
Choudary, Sangeet Paul, Marshall W. Van Alstyne, and Geoffrey G. Parker. Platform revolution: How networked markets are transforming the economy--and how to make them work for you. WW Norton & Company, 2016.
Amit, R. & Zott, C., 2012. Creating value through business model innovation. MIT Sloan Management Review, 53(3), p. 41.
The Roadmap to New Telco 2.0 Business Models. Rep. STL Partner, Apr. 2011. Web. 31 Jan. 2017. Telco 2.0 Strategy Report.
Raivio, Y. & Luukkainen, S., 2011. Mobile networks as a twosided platform-case open telco. Journal of theoretical and applied electronic commerce research, 6(2), pp. 77-89.
Hagiu, A. & Ha laburda, H., 2014. Information and two-sided platform profits. International Journal of Industrial Organization, 34(1), pp. 25-35.
Emarketer. Global Mobile Ad Market Soars 105% in 2013, Driven by Facebook and Google . N.p., 19 Mar. 2014. Web. 30 Jan. 2017.
Lin, Trisha TC, Fernando Paragas, and John Robert Bautista. "Determinants of mobile consumers' perceived value of locationbased advertising and user responses." International Journal of Mobile Communications 14.2 (2016): 99-117.
Brown, B., Chui, M., & Manyika, J. (2011), Are you ready for the era of ‘big data’. McKinsey Quarterly, 4, 24-35.
Kaisler, S., Armour, F., Espinosa, J.A. and Money, W., 2013, January. Big data: Issues and challenges moving forward. In System sciences (HICSS), 2013 46th Hawaii international conference on (pp. 995-1004). IEEE.
Chen, M., Mao, S. and Liu, Y., 2014. Big data: A survey. Mobile Networks and Applications, 19(2), pp.171-209.
Hashem, I.A.T., Yaqoob, I., Anuar, N.B., Mokhtar, S., Gani, A. and Khan, S.U., 2015. The rise of “big data” on cloud computing: Review and open research issues. Information Systems, 47, pp.98-115.
Wamba, Samuel Fosso, et al. "How ‘big data’can make big impact: Findings from a systematic review and a longitudinal case study." International Journal of Production Economics 165 (2015): 234-246.
Lin, M. & Hsu, W. J., 2014. Mining GPS data for mobility patterns: A survey. Pervasive and Mobile Computing, 12(1), pp. 1-16.
Zheng, K. et al., 2016. Big Data-Driven Optimization for Mobile Networks toward 5G. IEEE Network, 30(1), pp. 44-51.
Erevelles, S., Fukawa, N. & Swayne, L., 2015. Big Data consumer analytics and the transformation of marketing. Journal of Business Research, 1(1), pp. 1-8.
Gnyawali, D. R. & Park, B.-J., 2009. Co-opetition and Technological Innovation in Small and Medium-Sized Enterprises: A Multilevel Conceptual Model. Journal of Small Business Management, 47(3), pp. 308-330.
European Commission. Business opportunities: Big Data. Rep. European Commission, July 2013. Web. 30 Jan. 2017. <https://ec.europa.eu/growth/toolsdatabases/dem/sites/default/files/page-files/big_data_v1.1.pdf>.
Solcansky, M. and Simberova, I., 2010. Measurement of marketing effectiveness. Economics and management, (15), pp.755-759.
Mitchell, T. and Makienko, I., 2014. Beyond the Return on Advertising: Elasticity of the Return on Advertising as a Diagnostic Metric to Maximize Profit. Journal of Promotion Management, 20(2), pp.250-265.
Eastin, M.S., Brinson, N.H., Doorey, A. and Wilcox, G., 2016. Living in a big data world: Predicting mobile commerce activity through privacy concerns. Computers in Human Behavior, 58, pp.214-220.
LaValle, S. et al., 2011. Big Data, Analytics and the Path from Insights to Value, Massachusetts: MIT Sloan Management Review.
J. van der Lande, "Big data analytics: Telecoms operators can make new revenue by selling data", Apr. 2013, [online] Available: http://www.analysysmason.com/.
Bohé Astrid, Seong Lee, Joon, Perkins, Jim and Wright Jonathan. Accenture. “Winning the Intensifying Battle for Customers” Nextgeneration customer analytics enable mobile carriers to make sense of—and profit from—a treasure trove of data. 2011.
Vaishnavi, V. K. & Kuechler, W., 2015. Design Science Research Methods and Patterns: Innovating Information and Communication Technology. 2nd Edition ed. Boca Raton, Florida: CRC Press.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries, game changers, and challengers. John Wiley & Sons.
Peffers, K., Tuunanen, T., Rothenberger, M.A. and Chatterjee, S., 2007. A design science research methodology for information systems research. Journal of management information systems, 24(3), pp.45-77.
Frankenberger, K., Weiblen, T., Csik, M. and Gassmann, O., 2013. The 4I-framework of business model innovation: A structured view on process phases and challenges. International Journal of Product Development, 18(3-4), pp.249-273.
March, S.T. and Smith, G.F., 1995. Design and natural science research on information technology. Decision support systems, 15(4), pp.251-266.
Fischer, C. and Gregor, S., 2011, May. Forms of reasoning in the design science research process. In International Conference on Design Science Research in Information Systems (pp. 17-31). Springer Berlin Heidelberg.
Gregor, S. and Hevner, A.R., 2013. Positioning and presenting design science research for maximum impact. MIS quarterly, 37(2), pp.337-355
How to Cite
TRANSFER OF COPYRIGHT AGREEMENT
The manuscript is herewith submitted for publication in the Journal of Telecommunication, Electronic and Computer Engineering (JTEC). It has not been published before, and it is not under consideration for publication in any other journals. It contains no material that is scandalous, obscene, libelous or otherwise contrary to law. When the manuscript is accepted for publication, I, as the author, hereby agree to transfer to JTEC, all rights including those pertaining to electronic forms and transmissions, under existing copyright laws, except for the following, which the author(s) specifically retain(s):
- All proprietary right other than copyright, such as patent rights
- The right to make further copies of all or part of the published article for my use in classroom teaching
- The right to reuse all or part of this manuscript in a compilation of my own works or in a textbook of which I am the author; and
- The right to make copies of the published work for internal distribution within the institution that employs me
I agree that copies made under these circumstances will continue to carry the copyright notice that appears in the original published work. I agree to inform my co-authors, if any, of the above terms. I certify that I have obtained written permission for the use of text, tables, and/or illustrations from any copyrighted source(s), and I agree to supply such written permission(s) to JTEC upon request.