A Study On Business Model Innovation Route Of Internet Enterprise

Innovation is the key purpose of the research on business model. Onlyenterprises keep continual business model innovation can they getcompetitive advantages and significant profit. Though existing papers havealready made a in-depth research from different angles adnd levels onbusiness model innovation, and have given a good foundation and supportfor follow-up studies, we found that there are few studies of business modelinnovation of Internet enterprises which is necessary.The object of the study in this paper is the Internet enterprises businessmodel innovation path. First, through extensive reading of the relevantliterature, we classify the background, definitions and elements of thebusiness model, as well as the business model innovation (innovationtheory, system theory and value creation theory. Secondly, we usestandardized research methodology based business models and businessmodel innovation theory and research, combined with the prevalence of theInternet industry’s economic characteristics, draw the path of Internet enterprise business model innovation. Finally, select four typical cases foranalysis, we make a secondary verification for the results got before, andfigure out possible opportunities that Internet enterprises may adapt.Based on a systematic and in-depth research on the Internet enterprisebusiness model innovation path, we draw five important conclusions: First,after reviewing the results of previous studies we found that currentacademic research on business models have made a great effort on the pathof business model innovation; Secondly, we in-depth analysis the economiccharacteristics commonly found in the Internet industry, including networkexternalities, the long tail theory, and the average cost of chemotaxis zero,which give an important guiding for the innovation of business model toInternet companies; Thirdly, using theoretical foundation, combined withinnovative business models theory, system theory and the theory of valuecreation, this paper defines the concept of business model innovation.Fourthly, according to the definition of business model innovation, thetheoretical basis and the economic characteristics of the Internet industry,this article in-depth analysis of the Internet business model innovation path theory, put forward:1)should use the long tail theory and the value curve toinnovate customer value proposition;2)according to the new customervalue proposition, build enterprise value network architecture and customervalue creation system;3) should design mechanism of value capture fromthe third-party revenue and free income;5) on the basis of theoreticalanalysis, the paper uses cross-case research methods on the theoreticalframework of the proposed test and demonstration to draw Internetbusiness model innovation results. There are two distinct features: amultilateral platform and a buyer’s market.Innovation of this paper: First, from the perspective of system theorywe propose that Internet companies can innovate its business modelthrough innovating customer value, buliding customer vaule creationsystem and designing enterprise value capture mechanism; Secondly,combined with the economic characteristics of the Internet industry andvalue network theory, we analyse the theory of Internet enterprise businessmodel innovation path in-depth and figure out:1) to find new long-tail anddepicted the new value curve to achieve customer value innovation;(2) by constructing value network in order to build customer value creationsystem;3) by the third-party income and free income to design enterprisevalue capture mechanisms.