Emerging Business Models
This website presents reports on emerging business models in Dayton’s (Dayton, Ohio, USA) strategic industry cluster. Industries with a strong presence in Dayton include . . .
Click the links above to see the reports done in each industry. The research was conducted and reported by students in the Raj Soin College of Business, Wright State University.
Industries transcend geographic boundaries. The business models we see emerging in the industries of Dayton’s strategic cluster might not be emerging specifically in Dayton (yet!), but they represent important innovations in industries that are particularly important to Dayton. Dayton firms often compete against, learn from or acquire out-of-town firms in these industries.
A business model is the framework a firm uses to organize its resources and perform activities to deliver value to customers in a competitive environment. As the University of Michigan’s Allan Afuah notes, “A business model is a framework for making money.”[1] Many of us also hope business models will be designed and executed in a way to enhance societies and the natural environment. But making money—earning profits and increasing the value of the owners’ investments—is clearly a defining characteristic of a business model. Business models make money by delivering value to customers, and appropriating that value in the form of sales revenues, while effectively managing costs.
What is an “emerging” business model?
An emerging business model is a new framework for organizing and exploiting resources to deliver value to customers. Some emerging business models are fairly similar to established business models in an industry—that is, they represent “incremental” business model innovation. In contrast, “radical” business model innovation involves the emergence of very unique frameworks for delivering customer value and making money. For these reports, we have tried to identify business models that have either been launched very recently, or that we believe could be launched soon. We also have a preference for radically new business models, but some incrementally innovative business models have been studied as well.
What are “industry clusters”?
Industries of a region’s strategic cluster are those that are primarily responsible for current and future trade and employment. For instance, Los Angeles is very strong in the entertainment industry, the Detroit area is renowned in the automotive industry, the San Francisco area is known for its high tech focus, and Texas is known for energy. The Dayton area is strong in advanced materials and advanced manufacturing (e.g., Robbins & Myers, Thor Industries, EMTEC, National Composite Center), aerospace (e.g., MTC Technologies, Ball Aerospace, LOGTEC, Survice Engineering) and data management and data mining (e.g., NCR, LexisNexis, Reynolds & Reynolds, Standard Register). Moreover, industries in a cluster are interconnected. Firms in advanced materials serve advanced manufacturing and aerospace. Firms in data management serve a broad range of industries, including advanced manufacturing and aerospace. A region's business community benefits from synergies that result from the close interactions among firms in a cluster. Thus, although industries transcend geographic boundaries, regional clustering of firms in related industries is also advantageous.
[1] Afuah, A. (2004). Business models: A strategic management approach. New York: McGraw-Hill. p. 2.