Landis+Gyr: Designing and analyzing business models in value networks

Abstract

In cooperation with the University of St. Gallen, Landis+Gyr developed a standardized approach for the design, analysis and comparison of business model ideas that follow the logic of value networks. Within value networks, value is created through the cooperation of several companies that jointly form a business model that generates added value for the end customer as well as for all participants. Focusing on the energy market as area of application for the new model, Landis+Gyr made a major effort to gather various new business model ideas considering the company's future role in the electric power value network. For this purpose, an eight-step approach for the design and analysis of value network business models has been developed that entails the most relevant dimensions required to evaluate the attractiveness of value networks as well as the attractiveness for each participant. The model is useful as it provides a structured approach to describing new, complex business models and ecosystems. Its predictive power has yet to be validated by applying it to existing business models and benchmarking the predicted performance as well as selected roles against real-life data. Only after this has been done with a positive outcome, the model will have a chance of being endorsed by academia and the business community as a tool to support business decision-making.