General Contractor Business Model for Smart Cities

3On Business Models

This chapter examines the existing academic literature on business models. This is fundamental because the prime aim of this study is to design a new business model that would be a better fit, say more appropriate for the handling of large construction projects. The business model that we intend to build is that of a general contractor (strategi or central operator) who would be consigned (by a project owner) for the administration of smart developments, from conception until delivery of the final product. Yet, for this to be conceivable, we, to begin, endeavor to comprehend the specificities of business models. We will then search to recognize the various paths to business model innovation. In other words, we intend to describe the rationales based on which companies seek to create and capture value in various settings (economic, social and environmental) and elucidate the process of business model innovation which, we believe, is part of a company’s open set of business strategies. With that said, Chapter 3 is structured as follows:

• – First, the business model notion is clarified – an overview of the most prominent representations of business models is presented – and the relationship between different sets of business model arrangements and value creation is embarked upon.
• – Next, we demonstrate how business models are forthrightly linked to a company’s business strategies and, as a result, are decisive regarding its business tactics.
• – Then, we examine ...