Conceptualizing the STOF Model

Abstract

Services and services innovation are directly related to and dependent on innovations in business models. In this chapter, we discuss the main theoretical background of the STOF model and its four core components, i.e. services, technology, organizational arrangements and financial issues, which will lay the foundations for the method used in designing business models for (mobile internet) services. We discuss the conceptual background and translate the theoretical insights into more design-oriented issues. Then, we make the transition to a model that helps us understand the dynamics involved in the success of business models, i.e. long-term profitability and market adoption of the service to be designed. In the next chapter we will discuss the Critical Design Issues (CDIs) and Critical Success Factors (CSFs) that are part of the STOF approach.