A Multimethod Approach for Creating New Business Models: The General Motors OnStar Project

Abstract

We developed a multimethod modeling approach to evaluate strategic alternatives for GM's OnStar communications system. We used dynamic modeling to address some decisions GM faced in 1997, such as the company's choice between incremental and aggressive marketing strategies for OnStar. We used an integrated simulation model for analyzing the new telematics industry, consisting of six sectors: customer acquisition, customer choice, alliances, customer service, financial dynamics, and dealer behavior. The modeling effort had important financial, organizational, and societal results. The OnStar business now has two million subscribers, an 80 percent market share of the emerging telematics market, and has been valued at between $4 and $10 billion. The OnStar project set the stage for a broader GM initiative in service businesses that ultimately could yield billions in incremental earnings. Most important, OnStar has saved many lives that otherwise would have been lost in vehicle accidents.

Corporate Business Model Transformation and Inter-Organizational Cognition: The Case of Nokia

“…In general, our assumption that corporate business model is about managerial cognition (or frame of beliefs/logic) as well as about the 'how' question (instead of mere 'which/what/whether' concerns), is consistent with the assumptions of many authors (e.g., Barabba et al, 2002;Osterwalder, 2004;Bossidy and Charan, 2004;Chesbrough and Rosenbloom, 2002;CasadesusMasanell and Ricart, 2007;Tikkanen et al, 2005) e albeit that they do not focus particularly on corporate level business models. Yet indeed, it is possible to view the corporate business model as an integrative, classifying concept or tool that allows for the concise examination of the main aspects of interlinkedness and value creation logics between a firm's businesses over time.…”

Applications of location–based services: a selected review

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Assessing the impact of driving behavior on instantaneous fuel consumption

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