Advantages Of University Business Model

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University Business Model This part gives the answer for the second part of the third question: "What is the university’s self sustainable competitive advantage and what are the required activities to achieve it?" This part is based on Chesbrough (2003a, 2006) and the author adjusted it to be compatible with the university strategy. OI means that a university needs to combine internal research with external ideas and then integrate both ideas within its own business model and also through other partners' businesses. The main key for a university is to find out what crucial missing parts should be internally supplied and how to integrate both internal and external pieces together into systems and architectures, (Chesbrough, 2006). The university…show more content…
As mentioned before, the added-value of a new technology developed by a university can be achieved only through transformation of this technology (e.g. gaining tangible value from commercialization, or providing it for free to achieve intangible value from serving the society). Sometimes, the business model is called "the architecture of the revenue" to create and capture value from that technology. The right selection of the model will allow the university to yield more value, (Chesbrough, 2006). According to (Chesbrough and Rosenbloom, 2002) business model has to be comprehensive and operational in order to successfully allow the organization to capture a maximum value from its developed technology. It is considered as mediating construct between technology and economic value, (Osterwalder, 2004). The business model is defined through the following six functions: (Chesbrough and Rosenbloom, 2002) 1. To explain the value proposition, that is, the value created for users by the offering based on the technology. This requires a comprehensive understanding of what technology offering will be and what form a customer will use. 2. To identify a market segment, that is, the users to whom the technology is useful and for what purpose. The business model must focus on a group of customers, or a market segment, to whom the proposition will be appealing and from whom resources will be…show more content…
The framework describes main collaborators with the university to establish a win-win relationship (e.g. industry, government, customers, and new market). It provides a general business model representation that can be considered as circumstances based view because all possible methods, their positions and roles can differ according to each university status. Meanwhile, the framework does not mention all available methods (e.g. trade secrets, know-how, and copyrights etc). According to (Mets, 2009) there are two different perspectives of a university business model: first is a broad vision sees university as a producer of intellectual and social assets in and for the society. Second is a narrower view to university commercialization activities of research as fund-generation

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