The Role of Control Points in Determining Business Models for Future Mobile Generative Systems

Abstract

This paper investigates how the concepts of value network analysis and control points can be used as a valid methodology to identify profitable business models for the mobile telecoms industry. The paper's focus of analysis is on application platforms that result from the generative system that is the mobile Internet combined with mobile devices, further enhanced by advanced user interaction modalities. Conceptual parallels are drawn between the concerns of “cyberlaw” scholars and those of companies that make up the mobile telecoms industry in order to provide a theoretical basis for this paper. "Cyberlaw" scholarship concerns the need to legally control, or regulate, the Internet against abuse, whilst maintaining its innovative essence. The mobile telecoms industry seeks to control the mobile Internet for profit, whilst maintaining its capacity for innovative and appealing content and services. As part of this research, current and emergent revenue models are identified for the components that make up the mobile industry. Methods of analysing these business models are proposed using value networks and control points, which are functional areas in a value chain or network where power can be exercised, as the unit of analysis. This method of analysis is illustrated with an initial example and an agenda for further research is outlined. The work covered in this paper is part of a current research programme, namely the User Interfaces for Breakthrough Services work area of the Core 5 Research Programme of the Virtual Centre of Excellence in Mobile & Personal Communications (Mobile VCE). The programme is jointly funded by the Mobile VCEs’ industrial member companies and the UK Government, through the Engineering and Physical Sciences Research Council (EPSRC).