Document Type
Article
Abstract
Business revenue modelling is one of the important aspects of enterprise planning to create values for enterprises. In this study, we construct a system dynamics simulation model to evaluate various business revenue models applied to e-platforms. Machining tools industry is investigated as a case study. Products with different life cycles are examined as applying different business models. Computational experiments are conducted and results are discussed. Specific research issues/contributions of the study include: 1. To propose four effective business revenue models in such an industry. 2. To evaluate the proposed business revenue models as well as their advantages/disadvantages by a system dynamics simulation. 3. To address managerial implications of these business revenue models to the industry. As a conclusion to our research, we show that: (i) Firms with products under growth or mature stage of life cycle adopt/switch appropriate business revenue models conforming to their requirements in different stages and result in high performance outcomes than those remaining in a single business revenue model. (ii) Business revenue models represented by causal loops of system dynamics and examined by system simulation can capture not only steady states but transient states of business activities. By taking advantages of the proposed approach, managers can thus efficiently make right decisions for reducing time and cost.
Recommended Citation
Wang, K.-J.; Tzeng, J.L.; and Jiang, S. P., "Modeling and Evaluating of Business Revenue Models under Different Product Life Cycles Using System Dynamics Simulation" (2009). ICEB 2009 Proceedings (Macau, SAR China). 74.
https://aisel.aisnet.org/iceb2009/74