Business Insights of Innovative Logistics Services – discussing Models, Strategy and Markets

Abstract

Within this paper, we present and discuss the viability of potential business model for innovative logistics services, as developed within the EC funded AEOLIX project. To overcome the fragmentation and lack of connectivity of ICT-based information systems for logistics decision making, AEOLIX aims to establish a cloud-based collaborative logistics ecosystem for configuring and managing (logistics-related) information pipelines. Its overarching business model, that of a platform, as opposed to the conventional linear flow pipe models, is presented herein, along with the ways it will create value by facilitating exchanges between two or more users and thus allows users to both produce and consume values. The basic structure of the AEOLIX business model is presented, with its users, value unit, filter and core interaction dimensions explicitly described. The paper also positions its efforts in regard to similar endeavours and discusses the pros and cons of an exchange or a platform business model for logistics services before mapping out potential users and innovative approaches to engage them. The paper concludes with insights on the business success factors of logistics platforms and their monetization and economics potential in the short future.