Page - 70 - in Digital Entrepreneurship - Impact on Business and Society

businessmodel, it is required to alsowork on the revenuemodel. However, if we work on a revenue model, it is not necessarily required to change the whole business model (Cavalcante et al. 2011). Every entrepreneur’s task is to get the equation in a business model right. A company’s value proposition needs to be valuable for a user and create a proper willingness to pay, which is able to com- pensate the costs of the value creation and capturedwith a proper revenuemodel. All components need to be coherently aligned to a businessmodel fit. Digital business models define how a firm creates and captures value through extensiveuseofdigitalartifacts.Digitalartifactsasbitsandbytesdifferfromphysical artifacts as theycanbecharacterized as editable, interactive, open/reprogrammable, anddistributed(Kallinikosetal.2013).Theycan thusbeeasilymodifiedandscaled. Remane et al. (2017) distinguish pure digital and digital-enabled businessmodels. Puredigital businessmodels, likeGoogle as a search engineorAirbnbas anonline broker,createandcapturethevalueandbuildtheirbusinessmodelondigitalartifacts only, without the use of physical assets in their value creation activities. Digital-enabled business models like sensor-as-a-service business models require both—physicalassetsanddigitalartifacts—for thecreationofvalue.Puredigitaland digital-enabledbusinessmodels alike share the characteristics of digital artifacts. In this chapter,wewill focusour thoughtsonpuredigital businessmodels. Inorder to shed light on the differences in the development ofminimum viable products, we follow the 4-Cdigital businessmodel typologyofWirtz (2019). The author distin- guishes four businessmodel categories for B2C-businesseswith different business model types (see the business model categories and types in Table 2).1 These business model types are deviated based on the functional aspects of the value propositionof the businessmodel (Wirtz 2019). 2.2 Development Processes of Digital BusinessModels The development of an attractive, repeatable, and scalable business model is the objective of everyfirmandhas received a lot of attention in research in the last ten years. Following Osterwalder et al. (2014), the identification of a replicable and scalablebusinessmodelbuildsuponproduct-marketfit andabusinessmodelfit. Fit canbeunderstoodas a situationwhere theproduct or the businessmodel favorably matches the conditions in the environment of afirm (Miles and Snow1984). This idea is consistent with the contingency theory in strategicmanagement, where the fit of a company’s activities with its environment is an essential prerequisite for a company toexist.Achievingasituationoffit requiresadynamicsearchprocess that aligns the business with its environments and deploys resources alike (Miles and Snow 1984; Blank 2010). Entrepreneurs make their decisions in circumstances of high uncertainty and causal ambiguity (Furr and Ahlstrom 2011). Customer needs are unknown in the early stages, and proper solutions, technologies, or business models need to be 1In addition,Wirtz (2019) discusses four B2B-businessmodel categories for digital businesses. BusinessModel Development and Validation… 73