Context Specific, Networked and Feedback Enhanced

eTransformation Business Model

Ana Hol

Director of Academic Program, Computing / Information Systems, School of Computing Engineering Mathematics,

Western Sydney University, Locked Bag 1797, 1797, Penrith South DC, NSW, Australia

Keywords: eTransformation, Business Transformation, Context Specific Knowledge, Business Networks.

Abstract: Businesses have been transforming for centuries. Each era of civilisation brought in new innovations and new

technologies. Today we find ourselves surrounded by devices, services and applications that in some form

utilise technology. Individuals, utilise it to be more productive, groups exchange and manipulate data using it

and businesses run their day to day operations. Consequently, technology is been implemented to speed

operations, be more reliable and crate new revenues. Based on the scenario analysis of five new businesses

which utilise transformed renewed business model, this study investigates technology factors that drive new

business models and identifies roles that current technological advancements play in shaping the new models.

The study highlights that there is a direct relationship between open access technology platforms and current

technology trends. Furthermore, this study identifies that for the new business model to be established

definition of the specific domain problems and the importance of the access to the resource networks, such as

the network of context specific knowledge, either experts, or the individuals with knowledge and skills who

can provide timely context specific solutions and network of those who have interest in a the specific context

domain are paramount for the model to succeed.

1 INTRODUCTION

Business models and operations have been changing

and transforming for centuries. New implementations

often saw pioneers, however new inventions where

not always fully embraced into daily accepted

routines immediately. For example, when electricity

was discovered, its discovery brought in not just light

but fires, disasters and circuit shortages that had

detrimental effect in the early days of its use. It is only

much after that time that electricity has become a

second nature to day to day living.

Similar was noted when Information Technology

further advanced from personal productivity tools and

storages to more integrated systems and solutions.

The innovations were accepted much quicker than

those of the electricity, however introductions of new

systems to the business environments were not

always smooth. 2000 .com crash created a havocs

across the globe to a large number of businesses.

Sixteen years later businesses are surrounded by the

electronic transaction systems, tracking systems,

production and operation systems. Our lives today are

closely intertwined with the use of the information

systems on a daily basis.

However, even though today technology is an

integral part of many business operations, its full

potentials are still to be fully explored.

To understand how technological advancements

are currently shaping and impacting new innovative

business, a process of business transformation is

reviewed. eTransformation takes into the account that

businesses should never stand still and that to excel

each business needs to go through iterative review, so

that they can establish the most suitable resources,

objective and performance strategy. (Hol and Ginige,

2011). Therefore, when steam engines were invented

factories and transportation began to flourish, when

electricity started to be implemented working

conditions improved, electricity powered machines

started to be used and work became more productive.

This was the transformation of business environment

and the business models known up to that time.

Today, many changes within business

environments can be contributed to the technology

changes and improvements. To study

eTransformation in detail companies and industries

Hol, A.

Context Speciﬁc, Networked and Feedback Enhanced eTransformation Business Model.

DOI: 10.5220/0005967600980105

In Proceedings of the 13th International Joint Conference on e-Business and Telecommunications (ICETE 2016) - Volume 2: ICE-B, pages 98-105

ISBN: 978-989-758-196-0

need to address a change across dimensions Strategy,

Structure, Tasks and Processes and Technology.

First, it is essential to take into the account

Strategy. It defines company’s direction, aims,

objectives, future outlook, expectations and

predictions. It is the guiding dimension that assures

company stays on the goal pathway. Next Structure is

reviewed. It identifies and defines company’s

organisational constitution, that can be bureaucratic,

hierarchical, linear, networked or ad-hoc – initiated

based on a need. After structure is set it is important

to define appropriate Tasks and Processes. These are

the activities that outline workload, production steps

and operations that need to be completed for the

products to be delivered to the customers or services

provided. Finally, Information Technology Tools and

Systems are reviewed. At this point it is important to

take into the account, software, hardware, online

presence, support systems, management,

maintenance, backup and security (Hol and Ginige,

2011).

For the companies to make holistic and successful

decisions at each step of the journey, it was identified

by Hol in 2014 that eTransformation is not only

defined through eTransformation dimensions as

earlier thought (Hol and Ginige, 2011) but by also the

Domain in which activities are executed as well as the

Context which defines a situation in which certain

services or products are being sought such as time,

place and location (Hol, 2014). Therefore, the

Context Specific Framework takes into the account

carefully drafted analysis of required knowledge

origin, knowledge source essential for the delivery of

service or product and conditions under which such

products and / or services need to be delivered or

provided.

Thus, for the company to be able to successfully

transform, it is also essential to understand the

Domain Knowledge (Hol, 2014) that specifies data

about the industry and in detail defines products and

services being offered. Once Domain is understood,

it is crucial to gather Context specific data (Hol,

2014) about the customers, markets and identify

suitability of the location, time and the scope in which

decisions need to be made, so that company

operations can continue to seamlessly operate.

This study therefore builds upon Context Specific

eTransformation as a base of the investigation and it

further reviews:

- the guiding eTransformation models of 2010’s;

-defining characteristics of new model

companies;

- parameters that new successful companies that

are using technology as a base of their business

operation require to take into the account, so they can

successfully transform;

2 STUDY DESIGN

To test current Contextual eTransformation Model

and identify other characteristics that are impacting

emergence of newly eTransformed business model

companies and recent start-ups that have transformed

existing business models were in-depth analysed.

It was noted that new business models have in

recent times been transforming and even pushing the

boundaries of the previously known business models.

Therefore, the requirement for this study was to

select:

- new companies that have so far operated for a

minimum of three years;

- have purely been designed on the online

platforms where services are not owned by the

organisations, providing the services;

- where the organisations purely provides the

platform that can be utilised for networking, job

posting, expert sourcing, funds exchanges and service

and job reviews;

Five companies, namely well-known

international companies Skillshare, Airbnb and Uber

and two Australian based companies Airtasker and

Parkhound were selected for the study. Consequently,

for each source supporting data was identified. Next,

each case was reviewed, key points summarised and

based on those points scenarios created.

Scenarios were analysed, utilising scenario based

analysis (Di Giovanni et al, 2012). This allowed for

the storyline to be created and based on it most

important data extracted, so that characteristics

essential to eTransformation and /or new business

implementations can be studied in detail.

3 EMERGENCE OF

NETWORKED CONTEXT

SPECIFIC TRANSFORMATION

MODEL

Based on the studied sources, data for each company

was collated. Anlaysis was performed to identify:

- main services companies offered

- main benefits companies offered

- outcomes for the customers

- priviledges for workers

- main distingushing characteristics

Context Speciﬁc, Networked and Feedback Enhanced eTransformation Business Model

Table 1: Three Scenarios.

Compan

Name

Technology and Business Implementation

Skillshare, 2011

Education

(Empson, 2014;

Liu, 2015;

Tracy, 2016

Walgrove,

2014)

Skillshare business model opens its doors to all to participate. Anyone can teach skills they

have and anyone can subscribe to learn. The aim of the company is to assure that those who

require a skill in a certain time can easily obtain it. Focus is also placed on real time

information and data that is based on real life examples and projects.

There are no participation suitability criteria based on prior knowledge or education. Focus

is given to social interactions, engagement with other users, both teachers and students.

Initially teachers are required to market course to their own network. Only after they have

25 students enrolled and those students are providing satisfying results their courses are

advertised.

Airbnb, 2008

Hospitality

(Airbnb 2016a;

Airbnb 2016b;

Ting, 2016)

Airbnb allows anyone to offer their room, unit or a whole house to people who would like

to stay there for a certain time. Stays can range from very short to longer stays. The platform

allows registered users to state the service they offer and for those looking for the

accommodation to identify suitable locations where to spend time. The service utilises

geographical coordinates that allow users to identify exact locations of properties. The

system also incorporates fully feedback response where both providers of the service and

those who utilise the service provide reviews. This makes service in turn more reliable. Those

who gain better ratings in turn become more prone to being offered a service or a place where

to stay in the future. A number of legal and security issues are still to be fully resolved.

Uber, 2009

Transport

(ABC News,

2015;

Hullinger,

2016; Pullen,

2014)

Uber is a company that offers anyone to get transport from A to B and to act as a driver as

long as they meet set criteria, have a car, insurance and drivers licence. The service also

does not require users to have a taxi licence. All that is required to be a driver is for the

driver to be subscribed to a service, have access to the application and be able to collect

passengers that book a vehicles for transport. Both passengers and drivers get rated on their

performance which aids credibility.

Furthermore, Uber service often costs much less then taxi. It is convenient, easy to track and

utilise.

Uber model has also risen concerns about security for customers and service providers alike.

Airtasker, 2012

Multiple

industry

professionals

(Airstriker,

2016, Powell,

2015)

Airtasker allows anyone to post a job and search for people who would be able to complete

it.

Airtasker utilises a review system that allows both sides service expert and customer to

review each other and based on it build a community of respected operators and customers.

It is the responsibility of the service provide to ensure that they are able to conduct the work

is done by the qualified personnel. Airtasker only provides a technical platform that allows

customers and the service providers to meet, communicate, exchange funds and provide

reviews.

Parkhound,

2013

Service –

parking

(Parkhound,

2016, Dillon,

2014)

Operates very similar to Airbnb. In this case owners advertise their parking spots, carports

and garages. This service provides a platform for customers to search for the available

parking nearby based on the geographical coordinates. People who have and are at certain

times not using their parking spots may advertise them on the site and allow others to rent

them for a fee. Fees range based on the type of spot available, security and a location. Spots

can be rented for an hour to a month or even longer.

Consequently, stories for each company were

drafted. It is important to note, that stories were

generated based on the series of available online data.

4 NETWORKED, CONTEXT

SPECIFIC ETRANSFORMED

BUSINESS MODEL

Based on data collected and reviewed in Table 1, it

can be see that there are certain characteristics that

ICE-B 2016 - International Conference on e-Business

100

prevail and are crucial for successful business

operations.

Considering it was identified that in order for the

companies to operate successfully Domain and origin

of the problem, the gap or the requirement of the

service needs to be known.

Next, it is essential to identify Context, time and

place where such problems or services may need to

be provided. This also helps define the environment

in which company is to interact with its customers and

stakeholders.

Following the assessment of the problems, gaps

or generally the requirements for services and

solutions, it is important to identify specific Context

based Knowledge. Such knowledge may come from

books, brochures, experts and even those who self-

select that they have a particular skill, so that

solutions can be smoothly delivered when required.

For the knowledge to be effectively delivered it is

essential to ensure that such knowledge is provided

for the particular circumstances, in a given time and

place for the certain conditions; as it is only valid

under those circumstances.

Furthermore, knowledge, or solutions provided or

services delivered are then subjected to feedback,

where both those offering services as well as those

receiving services are able to provide reviews and

based on the received reviews their credibility is

being measured.

Consequently, a detailed scenario assessment for

the five companies is given below, stating

characteristics essential at each level of decision

making:

Domain

Review of Airbnb identifies that the company

specialises in renting spare rooms, units and homes

and providing accommodation for guests.

Assessment of Uber identifies that they provide

service to customers who require transport from one

location to the other.

Skillshare allows everyone to promote a course,

teach it and learn from the courses others offer.

Airtasker specialises in job advertisements where

individuals can post a task or a job and seek for a

suitable worker. Employees can also be matched to

the roles based on the listed skills.

Finally, Parkhound is similar to Airbnb however

it offers parking spots instead of the accommodation.

Consequently, each of the five assessed

companies is providing a service within the set

industries.

Context

Based on the Context assessment Airbnb

company is in Hospitality sector and it specialises in

providing accommodation to people who are looking

for a place where to stay for a short period of time.

They operate across the world. Based on

availabilities, owners post information and clearly

state dates when the property and or room is

available. Furthermore, properties are also plotted on

the map which allows the users to see exactly where

the accommodation is located.

Uber belongs to the industry of Transport. The

role of the Uber driver is to provide quick and

responsive service based on customer needs and

transport them to a certain location. Furthermore,

customers are able to identify when and where the

cars currently are and based on the map location

identify where they could hail the car from/

Skillshare is an Education based company. It

allows anyone with a skill to teach and share that skill

with those who would like to learn and excel within

the field.

Airtasker is a part of the Service industry. The

company allows individuals to advertise jobs and to

claim jobs creating a network between those who

require services and those who can provide them.

Parkhound is Service based Hospitality oriented

organisation that offers accommodation for cars.

Customers based on their location are able to identify

the most suitable place where to park their car.

Current Knowledge within Domain

Potential customers of Airbnb are also able identify

other accommodation information, including data

about hotels.

Potential customers of Uber can also reach the

required location by utilising other types of transport-

Taxi, public transport or a combination.

Potential customers of Skillshare can search for

courses that they would like to study. Often they have

a particular goal in mind when selecting courses,

however alternatively such skills can be gained via

online classes, colleges, universities and industry

offered courses.

Airtasker allows for the jobs to be advertised and

based on who enquires about them offers them to

those with skills to complete them. Airtasker also acts

as a recruitment site that matches individuals’ skills

to particular jobs. Alternatively customers can also

search Yellow pages or trade websites to identify

adequate workers or search sites like seek.com.au to

identify suitable job adds.

Parkhound offers a unique service that allows

customers to find parking nearby usually much

cheaper then offered by garages. Alternatively

customers may search for parking either on the streets

or in garages at the locations near the destination.

Context Speciﬁc, Networked and Feedback Enhanced eTransformation Business Model

101

Contextual Knowledge - Knowledge specific to

problem, time and place

Once Contextual data is reviewed the specific data

that potential customers may generate is that possibly

staying with Airbnb is much more affordable then for

example staying at a hotel, however that staying with

Airbnb may be riskier than staying at a hotel. To

counteract this scenario new business model

integrates a feedback loop.

The contextual data for Uber is similar to that of

Airbnb. Uber is quicker to hail and is cheaper in many

parts of the world then taxi. Hoverer, Uber cars do not

necessarily meet the same requirements that taxis are

required to meet, their cars are not of a specific fleet

and their drivers are not specifically trained. They do

however provide the service customers require,

nevertheless Uber’s safety as well as legal regulations

under which they operate are not of the same standard

as those of taxis.

Skillshare introduces a very different educational

model. It allow everyone regardless of their

certification and experiences to teach, share

knowledge and learn. It ensures that there are no pre-

set barriers to further learning. Therefore, anyone

with a particular interest is able to participate and is

able to act as a class participant and/or educator. This

also allows for the quick, almost ad-hoc, role swap,

where one person can be a teacher for one field, and

in the other class they may be a student.

Airtasker allows anyone to advertise for jobs and

anyone to claim the jobs. This system raises issues of

security. Airtasker provides security as the insurance

however does not guarantee jobs quality.

Parkhound allows those searching for parking to

review places prior to leaving their cars at the location

however again provokes issues of safety, standards

and security. Parkhound often provides cheaper

parking particularly in busy cities when compared to

parking stations. Also, it is often easier and quicker to

search for the availabilities, particularly for the longer

stays via Parkhound.

Feedback Loop – Knowledge Acceptance and New

Knowledge Generation

It can be seen that the Contextual Knowledge within

Domain alone is not sufficient. For the system to

operate seamlessly three scenarios need to be met.

First is the application to real problem. In Airbnb case

it is the ability to stay at the identified location and

pay for the stay online. Second is the ability to

confirm whether in fact a stay like this is seen as safe

and whether this option is in fact able to meet the

customer’s requirements. Therefore, system

implements feedback and rating from both those who

stay at locations as well as owners of properties who

are able to rate guests. Each in return receive

feedback. This process vets the model and also

provides a continuous loop that allows for the

services to be checked, confirmed and if suitable rated

highly, therefore making them more likely choices in

the future. If either of the parties receives negative

reviews, this acts as a warning sign to new potential

guests / owners when accepting them. Therefore, for

a healthy system operation, it is essential that both

hosts and guests act in accordance to regulations.

Consequently with Uber there is a feedback loop

created. Customers who call Uber cars are able to rate

drivers and many articles highlight that in fact rating

of a driver is the one that carries more waiting then

rating of the user. However, as with Airbnb customers

of Uber can also be rated which also builds credibility

and provides feedback to future drivers.

Parkhound provides a very similar feedback loop

for parking places and rates renters and service

providers.

Skillshare has a very closely integrated feedback

loop. Before a teacher is able to share their skill with

general public, they are required to network and share

the content with their network circle. Following this

they are required to look for adequate marketing

avenues. This initial group is a testbed that is acting

as a review group to a course offered. Teachers are

payed only after they have 25 students, which in fact

allows only for the well-developed courses to move

ahead, be listed and be open to recruiting new

students. Furthermore, teachers can learn from their

students and can improve. All teachers and student

belong to a network, where they can form new

collaborations and partnerships. They can also initiate

online discussions, track each other’s progress and

when suitable even be able to organise face to face

meetings.

Airtasker provides the ability for both customers

and those completing jobs to leave feedback. Some

work does require certifications, however it is up to

customer and the company to assure this is followed

as required. Both customers and service providers are

rated which also gives reputation to those who are

performing well.

5 CONTEXT SPECIFIC,

NETWORKED AND

FEEDBACK ENHANCED

ETRANSFORMATION MODEL

Based on the analysis of the data presented in the

section above, it can be see that over the time

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business models have been changing and that

different innovations and discoveries brought new

inventions. Initially computers software

applications and user productivity. Next

developments sow the rise of web applications and

tools that allowed for data exchanges and

information systems to be implemented. Next

innovation was the invention of applications and

social media technologies that is now allowing users

to network with their friends, seek for people with

same interests provide feedback, answer questions,

follow interests and rate those who are performing

well.

Therefore, five companies are based on principles

defined by social networking that assures

communication, technically well integrated

platforms, ability to exchange and review data and

means to make decisions. Detailed analysis is

presented below:

Open Access to All (Strategy)

Open access means that all system users can equally

participate, their education and/or past experiences

and involvements are not at all pre-determining

factors of their success. Therefore, anyone can

provide service and anyone can seek for a specific

service. Initially access to such network is open,

however to stay as valued members of the network

participants are required to follow certain terms and

conditions.

Also, strategy in new model companies needs to

take into the account services and products that are to

be provided and delivered. Furthermore, it is also

important to focus on enabling electronic platforms

suitable for data sharing.

Open Service Platform (Structure, Technology)

Service and operation are provided via the technology

platform. Platform is just a medium via which

specific skill / goods can be provided. As it can be

seen from the reviews of the five companies, they are

all technology based service oriented organisations

and have no knowledge of particular trades. They are

however designed in a way that attracts customers or

people searching for jobs, training or locations to

engage. Skills are purely a domain of service /

product providers, not the main organisations’

running the business.

Domain, Context Specific Knowledge Provided

(Tasks and Processes)

This identifies knowledge that is being delivered via

credible sources, or from experts themselves.

However, for the knowledge to be delivered,

following needs to be taken into the account:

- Context – the Industry sector, specific time and

location or a condition where service and or

knowledge is needed. Location, may also be a guiding

factor in how solution is being delivered.

Furthermore, the organisation may need to deploy

parameters required for the technology company to

operate seamlessly which forms the first base layer of

the company. Second layer allows for the services

offered to be mapped, so that the company can attract

certain type of customer or providers.

- Network - needs to be present. It allows those

seeking solutions and /or services to interact.

Furthermore, such Network opens doors to

sourcing specific Skills or Services. During

interaction network participants can learn from one

another, can collaborate and can also provide

feedback that can lead to future changes and

improvements.

Figure 1: Networked, feedback enhanced eTransformation model.

Context Speciﬁc, Networked and Feedback Enhanced eTransformation Business Model

103

From Fig. 1 it can be seen that there are many

domains, however that for a particular knowledge to

be sourced Domain Context needs to be defined. Such

Context specifies types of products and /or services

that need to be provided and / or offered.

Following this, it is important to source a network

of interested participants. Individual skills within the

network domain can range from expert to novice to

those that just require services and / or products.

Consequently, data gathered needs to be filtered,

so it can meet specific parameters such as time,

location and circumstances where certain decisions or

services are required. This for example can be done

utilising the geographical coordinates to map exactly

where opportunities for services are, and which

providers are closest in proximity and can offer them

in a timely manner. Once service is being delivered

and requirements of the customer attended to, system

has an inbuilt feedback loop that require all

participants to provide it.

Feedback helps define quality, remove

redundancies and acknowledge those who act in

accordance to the requirements. Consequently, a

feedback loop crates valued network chains and helps

stream traffic in a direction where value is being

created (positive reviews).

Actors or participants new to the market often are

required to spend additional efforts marketing their

services, so that they can become a valued node

within the network.

Therefore, the system mimics characteristics of

the organic system. Such systems source resources

for survival from those who can provide them. Its

wellbeing or usability depends on a number of people

that interact within and across its value networks.

As members of the networks interact they are

being rated and their performance acknowledged.

Members of networks learn, provide feedback and

teach those who require skills.

The only drawback of the network like this is that

it corresponds to the “historic cave times” where

those who were able to hunt were rewarded (those

who provide services) and those who did not got

killed (get extracted from the network, either due to

not participating or due to not behaving in accordance

to regulations).

During “the cave times” there were no legal

regulations that were governing operations. Tribe

chiefs or the tribes themselves, in the electronic case

the followers of specific services or providers,

determine future of participants (both those requiring

service as customers and those providing services). It

is expected however that in the future there will be

strictly determined policies and legal regulations that

will seamlessly help drive and support electronic

network driven exchanges.

6 CONCLUSIONS

In the future it can be noted that there will be many

new business models that will be based and delivered

purely on a technology platforms. It can be noted that

companies as Uber, Airbnb, Skillshare, Airtasker,

Parkhound have all been started by technology gurus,

not industry experts. None of these companies have

experts in hospitality, education, transport, parking

nor services.

Inventors in each of the five cases were able to

identify a demand in a sector, identify gaps in current

services and propose solutions that are helping fill

current known operation gaps.

Solutions proposed therefore identify that we live

in a networked world, where most working

individuals in developed countries are connected

24/7.

Considering, inventors identify that anyone with

the skill or resources can for a fee provide a service

or deliver a product utilising a technology platform as

a medium commonly used for social networking

exchanges.

By doing so, they remove any entrance barriers

and regulations, strict check procedures and

educational pre-requisites. They do however provide

certain terms and condition that do cover some

insurance.

All five companies’ systems operate organically.

They give those who are effective rewards and shame

those who are not providing suitable services or

behave inappropriately. Consequently, systems run as

a semi-open loop, keeping and rewarding those who

are performing well, acknowledging new entrants

who have reached certain standards and providing

negative feedback to those who are not meeting the

expectation.

Systems like these are mimicking natural

selection. Those who are successful and well

supported by their networks are regarded highly, are

continuously engaged and are also based on the

reviews more likely to be selected by the new

entrants. For those with poor ratings it is becoming

harder and harder to prove their worth and stay

competitive.

Future studies are required to study organically

behaving transformed organisational systems. It is

expected that future studies will look into how

organic systems could become more robust and how

in the future they may be able to incorporate stricter

ICE-B 2016 - International Conference on e-Business

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but more streamlined and system embedded check

points, user confirmations, qualification checks and

more comprehensive global legal regulations and

policies, so that systems can automatically warrant

security and safety of the network and the

participants.

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