Service-Dominant Business Model Financial Validation: Cost-Benefit Analysis with Business Processes and Service- Dominant Business Models

Abstract

In this paper, we present our software-supported method for analyzing the economic feasibility of business models. The method integrates the business models and business processes perspectives for analyzing how a company appropriates the financial cost and benefits. In this method, we use the Service-Dominant Business Model Radar to specify business models, then translate the specified business model into a business process for analyzing the financial feasibility of a business model. At the final step in our method, we use the generated business process in the previous step with a software-based tool, The Cost-Benefit Tracker, for analyzing the economic potential of the business model. We designed and developed the Cost-Benefit Tracker as a simple software-based BPMN 2.0 tool by integrating the concepts of the Service-Dominant Business Model Radar tightly. As a result, the software is simple and straightforward to use than enterprise BPMN 2.0 software. Hence, entrepreneurs can use the presented software-supported method to financially evaluate business model concepts specified with the Service-Dominant Business Model Radar.