IT Enabled Buisness Models: Decision Support for Measuring Financial Implications of Business Models in Media Industry

vom Brocke J; Buddendick C

Abstract
The introduction of new IT artefacts has changed business rules in many industries. Companies are faced to challenge the issue of aligning business and IT strategy in order to safeguard competitiveness. In research and practice a large variety of different business models aligning IT and business strategy has been proposed. Against the background of industry structure and existing competencies of a firm, companies need to decide which business model fits best for their specific situation. In addition for decision support the related revenues, costs and risks of a specific business model need to be assessed. With this paper we introduce a systematic approach for decision support method. This approach bases on reliable methods in the field of information systems design, capital budgeting and decision support systems. We apply this approach for business models in the media industry to demonstrate its benefits.

Keywords
business model; strategic alignment; decision support; capital budgeting; risk management