Linking Public Utility to the Business Model Framework: A Simulation from the Aerospace Industry

Abstract:     
In the original formulation, the Business Model framework is meant to explain the business logic of private firms. Adapting this framework to public investment projects requires melting the business logic with the public interests involved in such projects. This paper meets this requirement, and it offers an effective combination of the profit-driven-actors view with the social and public issues through what we call the Public Private Business Model (PPBM). Based on the cost-risk evaluation, not only it provides academic with a new conceptual framework, it also represents an effective tool to support the implementation phase of an investment project. With a specific concern on the project-based industries, we validated the PPBM to the satellite services industry on the Emergency Response Core Services (ERCS).

Keywords: business model, economic sustainability, value, risk management, satellite services

JEL Classification: M20, H40

working papers series