Case Study of the Opal Card in Australia Transport System (Case Study Sample)

Business Model Concepts and their application in the Real World: Case Study of the Opal Card in Australia Transport system
Name
Institution
Business Model Concepts and their application in the Real World: Case Study of the Opal Card in Australia Transport system
The terms business model is a concept that is often causally used in current times. With service oriented business model innovation, value creation is a core derivative that emanates from tee development of such a model. Generally business modeling can be described to be the platform found in between the business’ strategy and the practices which describe the design of value creation, delivery and integrates a business structure employed. The essay seeks to review the concepts of a business model and how they can be applied in the real world. Therefore we will review the case of Opal card transportation system implemented in Australia which uses the e business model to shift from the old ticketing system.
In the recent past the business models have been redesigned to bring about service oriented business models. This has also been attributing by the development of the service dominant(S-D) logic. The service dominant logic that is a concept that seeks to establish the importance of that service that extends beyond the traditionally accepted definition of service as an intangible good (Chesbrough and Rosenbloom, 2002). In this concept of service dominant logic, company offerings are not perceived as output rather it is the considered to be input in the customer value creation processes.
In service-oriented business model value creation as well as capturing value and in order to achieve the two, one has that consider how value is created for customers and how value is captured by the service provider. From the quest answer the two evaluations, that in
The idea of business model design became well-known towards the beginning the 1990s, and has been considered to be main in the conversation of e-business, as the failing or success of a firm is often linked to the stability of its company structure. Despite its well-known utilization, there is no contention among scholars as to what the phrase 'business model' should accurately mean. In accordance to business literary works, business model is evaluated to be the actual structure that a company adopts, such as a method of performing company operations(Chesbrough and Rosenbloom, 2002). On the other hand, business model in the Information System literature, it is defined as virtue reflection of business concepts found in the actual world, often with the aid of some visual and business modeling methods. So far, research concerning business modeling has dwelled mainly on descriptive aspect; the conceptual aspect of business models and how business practices in the actual life can be taken as types of business models with a name and textual explanations. Thus, there is less evaluation on the application and systematic abilities of business modeling. On the contrary, the prospect of business models in the IS engineering group is something for comprising the company ideas, such that they can be effectively indicated, developed and examined using various conceptual modeling techniques(Hedman and Kalling, 2002). Thus, the soundness of a business structure in this case would correspond with how accurately it shows the reality; whereas the soundness of a business structure in the business group would be calculated by how well it helps a company to successfully perform in its business functions.
Technological advancement by itself has no specific purpose value. The financial value of a technology remains latent until it is commercialized in a particular manner such as through establishment of a business model. Additionally, the technology commercialized in two different methods is bound to generate two different profits. In some cases, advancement can successfully implement an organization structure or business model already known to the organization, while, in other cases, a company may have a business model that can utilize of the technology through certification. However, a prospective new technological innovation may have no apparent business model, and situations such as this, technology managers must increase their viewpoints to find an appropriate Business model so that they are able to capture value from that technological innovation(Hedman and Kalling, 2002). As a matter of fact, it is possibly accurate that an average technology implemented within an excellent business model may be more significant than an excellent technological innovation being exploited through a sub standard business model. Unless the right design can be developed, the technological innovations may continue to produce lower value for a business than they would otherwise have. Additionally if other businesses were to within the an industry, were to discover a business model far better to a given technological innovation, they may recognize far more value from it than the company that originally found the technology
When evaluating about a business design it is very vital for one to consider the economic stand point in which the value gotten form the business model is worth the cost and the input while providing efficiency and the estimated returns. Therefore the costing, pricing methods and the structure of the revenue are key considerations and the sustainability of the process. Additionally the business model needs to be competitive which is evaluated by how sustainable the model is. In light of this factors a good(Hedman and Kalling, 2002). However the innovation of a business model would be necessary especially in order to meet the required value needs of the particular segment of the market that is being targeted by the business enterprise.
Business model innovation may is considered in three scenarios. Firstly the there is industry model innovation where a new model is innovated to redefine the current models design and provide an overhauls of the structure. This however does not necessarily mean that the basic concepts of a business model are entirely written off. For instance the one can decide to redesign the value chain, format of conducting processes as well as to deliver more efficient service. A good example is the introduction of e business and mortar and brick business model. In this instant the basic concept of a business model does not entirely change, however the inclusions of technology would create room for adjustment in terms of value delivery(Zott et al, 2011). That is instead of having physical access to client, one has to virtually interact with them and thereby requiring is configuration of the same business concept into a virtual design. Other scenarios which business model can be conceptualized are into the development of the revenue model innovation where revenue is produced by redesigning the offering such as the products or service as well as the value mix. This scenario mainly evaluates the pricing model as the key areas focus. Their other scenario is that enterprise model innovations which refers to changing of the entire that value network configuration such as the employees, suppliers’ relationships and redesign the resource distribution.
In this paper we review the changes that take have taken place in the development of the Australian transportation payment system where there is a switch from the old ticking system into the new smart card payment systems. Following the continuous reliance on technologically supported systems, the development of an e transport payment system was inevitable. Opal card smart card system is one of the newest business model where transport customers acquired a smart card that has the ability to deduct a transport fare form the previously load credit on the card. The concept of the e transportation model work more like a credit card where the card is configured to load a monetary value of one’s choosing and when one taps the card on the information system input gadget, it will deduct a fee equivalent to the fair value of fare paid for a particular trip.
The opal card is a real world implementation of a business model which works to deliver value to the intended target market. It is a virtual actualization of the transport model where in the past one was required to have a ticket that was previously paid for and with each travel the card was used as an indicator or payment of fare. The value chain in this process has been redesign where instead of one physically paying for a ticket, the opal card can be loaded with an amount of the monetary value through one creditor or debit card. Therefore in this instance one needs not to physically get to cashier at the train station and stand in a line to pay for a ticket. Instead using the many online models of money transfer, one can load an amount of money one requires and from there on access transportation services by only tapping the card. This kind of business model innovation is lies on the industry innovation model where a reconfiguration or the particular business model is applied to added value to an already preexisting business model.
We find that the two questions that should be evaluated in the development of business model have been considered n the generation opal card. The first questi...