Gomes, Iivari, Ahokangas, Isotalo, Sahlin, and Melén
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business model in finding ways to create value for customers and in return in finding
ways to capture available value from the market, thus successfully exploiting a business
opportunity.
The business model approach entails looking at organizational issues through the
lenses of different business model elements. The most frequently mentioned business
elements in the literature include value creation, value proposition/offering, value capture, partners/actors/suppliers/value networks, customers, customer relationships,
processes/activities/value chain, revenue stream, cost structure/cost drivers/fixed
costs, differentiation/cost leadership/pricing, competencies/capabilities/resources/
assets and technology infrastructure [5,10,14,29].
The business model, seen as a boundary‐spanning unit of analysis [5], connects an
organization with its business environment, other organizations, customers and individuals, as well as to society at large [30]. Thus, since the list of business model elements cover
a wide stream of external organizational elements, it usually comes in handy in analyzing
different situations. When pondering bridging business models and cyber security, there
are two main issues. First, since almost all of the entities operating within the digital sphere
face multifaceted cyber threats, how can the business model approach help organizations
to respond to such situations? Second, how can the business model approach help to
identify opportunities to monetize security in future 5G in particular?
5.3.1 The 4C Typology of the ICT Business Model
Along with the rise of the mobile telecommunications industry, business models have
increasingly been discussed in connection with shifting organizational boundaries
through the vertical and horizontal integration of the industry and complex provision
of new services [31]. This integration in the ICT sector resulted in value‐creation
focused vertical business models, applied mainly by infrastructure and technology
providers, and value‐capture focused horizontal business models, applied mainly by
service providers [31,32].
Wirtz et al. [33] discussed four business models for classifying Internet‐based
business models in particular. They divided Web 2.0 business models based on connection, content, context and commerce. Yrjölä et al. [34] interpreted these business
models as a layered 4C model, where the “lower”, more technically focused level is
required for the “higher” one to exist. These layers are the domains where opportunities for value c reation and capture in the industry can be identified, highlighting
simultaneous value creation and capture. This 4C model can be applied either to
examine a single‐layer player or a player that is active in all four layers [34]. Thus, the
4C model (Figure 5.2) can be used to describe the structure and interaction in the ICT
industry from the business model perspective
The first layer is concerned with a connection‐related business model, where a stakeholder provides connection‐related services [28]. The second layer is the business
model, focusing on monetizing content. In the content layer, all sorts of online content
services (e.g. mobile video streaming) are classified (i.e. relevant, up‐to‐date or interesting) and are conveniently accessible for the end user. The content might be peer‐to‐peer/
user‐oriented content (i.e. the exchange of personal content), web browsing content (i.e.
information storage), or online collected and selected educational and entertainment
content (audio, video, text, etc.). The key is to understand who owns and can monetize
104
business model in finding ways to create value for customers and in return in finding
ways to capture available value from the market, thus successfully exploiting a business
opportunity.
The business model approach entails looking at organizational issues through the
lenses of different business model elements. The most frequently mentioned business
elements in the literature include value creation, value proposition/offering, value capture, partners/actors/suppliers/value networks, customers, customer relationships,
processes/activities/value chain, revenue stream, cost structure/cost drivers/fixed
costs, differentiation/cost leadership/pricing, competencies/capabilities/resources/
assets and technology infrastructure [5,10,14,29].
The business model, seen as a boundary‐spanning unit of analysis [5], connects an
organization with its business environment, other organizations, customers and individuals, as well as to society at large [30]. Thus, since the list of business model elements cover
a wide stream of external organizational elements, it usually comes in handy in analyzing
different situations. When pondering bridging business models and cyber security, there
are two main issues. First, since almost all of the entities operating within the digital sphere
face multifaceted cyber threats, how can the business model approach help organizations
to respond to such situations? Second, how can the business model approach help to
identify opportunities to monetize security in future 5G in particular?
5.3.1 The 4C Typology of the ICT Business Model
Along with the rise of the mobile telecommunications industry, business models have
increasingly been discussed in connection with shifting organizational boundaries
through the vertical and horizontal integration of the industry and complex provision
of new services [31]. This integration in the ICT sector resulted in value‐creation
focused vertical business models, applied mainly by infrastructure and technology
providers, and value‐capture focused horizontal business models, applied mainly by
service providers [31,32].
Wirtz et al. [33] discussed four business models for classifying Internet‐based
business models in particular. They divided Web 2.0 business models based on connection, content, context and commerce. Yrjölä et al. [34] interpreted these business
models as a layered 4C model, where the “lower”, more technically focused level is
required for the “higher” one to exist. These layers are the domains where opportunities for value c reation and capture in the industry can be identified, highlighting
simultaneous value creation and capture. This 4C model can be applied either to
examine a single‐layer player or a player that is active in all four layers [34]. Thus, the
4C model (Figure 5.2) can be used to describe the structure and interaction in the ICT
industry from the business model perspective
The first layer is concerned with a connection‐related business model, where a stakeholder provides connection‐related services [28]. The second layer is the business
model, focusing on monetizing content. In the content layer, all sorts of online content
services (e.g. mobile video streaming) are classified (i.e. relevant, up‐to‐date or interesting) and are conveniently accessible for the end user. The content might be peer‐to‐peer/
user‐oriented content (i.e. the exchange of personal content), web browsing content (i.e.
information storage), or online collected and selected educational and entertainment
content (audio, video, text, etc.). The key is to understand who owns and can monetize