University: Business Case for Nettavisen DDBM Investment - MIS782

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AI Summary
This report presents a business case for a Data-Driven Business Model (DDBM) investment opportunity for Nettavisen, an online news publisher. It explores DDBM-driven revenue generation ideas, emphasizing product service differentiation and data acquisition techniques. The report identifies key data sources, activities, and monetization strategies, while also addressing potential barriers to implementation. Two implementation options are presented: a two-step process and a pilot implementation plan, each accompanied by risk assessments and cost-benefit analyses. The analysis includes a detailed cost-benefit analysis, break-even analysis and risk register table. The report concludes with a recommendation for the best implementation approach and a high-level project plan, providing a comprehensive overview of the investment opportunity and its potential benefits for Nettavisen.
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Opportunity for further investment
Name of the Student
Name of the University
Author’s Note:
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Executive Summary
The notable determination of the paper is to focus on the development of business care to
motivate an Information Technology investment for organizations. The usability of a DDBM
will be described in the paper in a detailed manner.
This paper will have numerous sections, and each of the section will be contributing to the
effectiveness of the paper. The proposed new DDBM will be supported by the detailed
description of two different types of implementation procedure. Based upon the two different
implementation procedure, the best-suited implementation plan will be selected. The paper will
be concluding with a high level project plan for implementing the idea.
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2OPPORTUNITY FOR FURTHER INVESTMENT
Table of Contents
Introduction......................................................................................................................................4
DDBM driven revenue generation idea...........................................................................................4
Business opportunity.......................................................................................................................5
Generation of revenue..................................................................................................................6
Is it driven by big data.................................................................................................................6
Key data sources and activities of this DDBM............................................................................7
Monetisation of this DDBM in order to generate revenue..........................................................7
Barriers for Nettavisen when pursuing this DDBM....................................................................8
Option 1: Implementation using a 2 step process............................................................................9
Risks (risk register and matrix)..................................................................................................10
C/B Analysis..............................................................................................................................11
Option 2: Pilot implementation plan................................................................................................0
Risks (risk register and matrix)....................................................................................................1
C/B Analysis................................................................................................................................2
Analyse the alternatives...................................................................................................................4
Recommendation.............................................................................................................................5
Best choice.......................................................................................................................................6
Plan for implementing the idea........................................................................................................6
Conclusion.......................................................................................................................................9
References......................................................................................................................................11
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Introduction
The application of a new DDBM can be very much important for the Nettavisen as it can
help them to capture large markets as a result, the existing DDBM made them one of the three
major online news sites in Norway. However, the management team of this organization want to
shift their focus towards a Data-Driven Business Model (DDBM) (Kaiser 2015). It can be said
that the shift in focus is very much challenging due to different types of factors such as the threat
coming from the other similar organization, employee turnover, and collaborations difficulties
with the subsidiary organizations, resource management and the lack of data packets. DDBM can
play a huge role in the management of the datasets, embedded applications. DDBM can play a
huge role in the editorial decision making of Nettavisen (Islam and Barghouthi 2018). The other
aim of Nettavisen is to compete with the legacy new publishers and the social media players.
The following unit of the paper will be presenting one DDBM revenue generation idea,
which will be beneficial for this organization to grow in this competitive market and also identify
the business opportunities.
DDBM driven revenue generation idea
This unit of the paper will be presenting an idea which can be used by Nettavisen as it
will ensure the organizational development (Khurshid, Zahid and Khan 2017). The below
pictorial diagram can be very much important to understand the proposed idea for this
commercial organization.
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Figure 1: Revenue generation idea
(Source: Athanasopoulos 2017)
Business opportunity
Product service differentiation can be an important aspect to the target outcome as
proposed by this DDBM (Inamdar et al. 2017). Distinguishing a particular target can be done in
a professional manner using product service differentiation feature of the new DDBM. The
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product of the competitors can be understood using this business idea. The proposed DDBM can
highlight the importance of data acquisition technique in one of the other specifications of
DDBM. However, it can also be said that Data logger can be an alternative of the data
acquisition technique of this DDBM model (Huang 2019). Issues coming from the SaaS can be
purposefully resolved using Data logging instead of data acquisition technique. Different
categories of cost of Nettavisen can also be purposefully affected using the data logging facility.
Generation of revenue
This revenue generation idea will be very much beneficial for Nettavisen as it will look
after the data source, key activities, and offerings of the organization and the target outcome of
the model.
Is it driven by big data
The key challenges faced by this organization in terms of the legal issues, data privacy
obstacles, legal challenges, hardware issues, resource issues, data quality and integrity issues,
data availability and accessibility, and other organizational issues can be purposefully solved
with the help of this DDBM idea as this idea is compatible with the big data technology.
Key data sources and activities of this DDBM
The current value creation of this organization can be optimised with the help of this
DDBM framework. Both the new data sources as well as the existing data sources, can be
managed in an organized manner using this DDBM. This new DDBM will not be having any
negative effect on the existing data sources of this commercial organization. One of the key
attributes of this DDBM is that it can be very much helpful to categorise the analytics activities
into three broad perspectives such as prescriptive, descriptive and predictive analysis. Different
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types of machine learning techniques will be compatible with this DDBM model. Most of the
optimal decision making of this organization can be significantly boosted using this DDBM
model. Most of the key data sources of this organization can be identified and used accordingly
using this DDBM (Gamel, Menrad and Decker 2016). This DDBM can be very much important
to organize, synthesize, selected and distribute both unstructured as well as structured data from
their databases. The permission and the licensing issues can also be resolved using this DDBM
model (Lee 2016). The key data activities of this DDBM is data acquisition, data generation, and
processing, analytics and data visualization.
Monetisation of this DDBM in order to generate revenue
This DDBM model can be very much useful for Nettavisen as it can help in managing the
asset sale of Nettavisen. All the renting, leasing and lending of the documents of this corporation
can be securely tracked using this data-driven business model (Logan-Robinson, Nunley and
Knox 2017). Most of the data licensing issues faced by this organization can also be addressed if
this DDBM is professionally incorporated in this business organization (Doherty and Torode
2016). The free subscriptions and the usages for the new consumers of thus organization can also
be significantly boosted using this DDBM. Most of the advertising issues of this organization
which can be very much beneficial to increase their market reach can be efficiently addressed
using this DDBM (Dogru and Sirakaya-Turk 2017). This DDBM model can be used as long term
support for this organization as it can significantly help to stop data leakage to the Norwegian
market which is a significant concern for this organization. Thus, it this new DDMN is pursued
by Nettavisen it would help them to increase the net probability of the business.
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Barriers for Nettavisen when pursuing this DDBM
The incorporation of this DDBM can be very much beneficial for Nettavisen
organization. However, there are lots of challenges for this organization regarding the
incorporation of this DDBM. All these challenges will be discussed in this section of the paper.
Both the external as well as the internal stakeholders of this organization should be aware of the
advantages as well as the disadvantages of this new DDBM (Marmot 2017). This new DDBM
must be compatible with most of the emerging technologies which are already in-use in this
organization. Communication between the external and the internal stakeholders is very much
desired so that the implementation procedure of this DDBM is done in a professional manner
(Ding and Meng 2017). The DDBM has to be compatible with the current market conditions and
the service offered by this organization to the consumers. The sales and marketing strategies of
the global social media platforms should also be considered before implementing this business
model. The major editorial decision making must be aligned with the working protocol of this
DDBM (Mason, Botelho and Zygmunt 2017). One of the most significant challenges of the
implementation of this DDBM is it should not be having any compatibility issues with the
existing DDBM, which is already being used in this corporation for many years. The following
unit of the paper will be discussing the two different alternative options for the implementation
of the DDBM model.
Option 1: Implementation using a 2 step process
There are different categories of risk associated with this implementation phase such as
the role of the sales and marketing team, the role of the suppliers and the vendors of the
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organization, stringent government regulations and the cultural issues of the consumers of this
organization.
Steps Explanation
Step 1: First phase The initial phase of this implementation plan
will be considering few departments of
Nettavisen, such as the data sources of the
organization (Memon et al. 2017). Once this
phase is successfully completed, detailed
documentation will be made to find the
effectiveness of phase 1.
Step 2: Second phase Based upon the detailed documentation of the
first phase, phase two of this implementation
will start (Ogbokor 2018). The phase two of
this implementation will start considering
each of the business unit of this organization.
Table 1: 2 step implementation procedure
(Source: Created by the author)
The risk register table can be very much suitable for this organization to have an idea
about the likelihood of each of the risks which can be considered for this 2 step implementation.
Risks (risk register and matrix)
Risk Risk
Owner
Likelihood Impact Severity Mitigation strategy
Customer
insight
Sales and
marketing
team
Medium Low Low Recent market
trends should be
understood from the
consumers using the
communication
platform channels
for this
implementation
procedure.
Generation
of data
Third party
vendors
Low High High Selection of the
external
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stakeholders must be
done in a
professional manner
in this
implementation
procedure.
Legal
challenges
Stringent
government
regulations
High Medium Medium Risk management
team of Nettavisen
must be considering
all the government
regulations for this
implementation
procedure (Sudmant
et al. 2017).
Cultural
problems
Consumers Medium High High Conflict
management
technique must be
considered in the
first place to resolve
the cultural issues of
the proposed idea.
Table 2: Risk Register Table
(Source: Created by the author)
The risk matrix of this 2 step implementation of the proposed DDBM is presented in the
following table.
Risk Matrix
Risks Likelihood Explanatio
n
Negligible Marginal Critical Catastrophic
Customer
insight
Unlikely Not likely
to occur
Low Medium Medium Medium
Generation
of data
Possible May occur Low Medium High High
Legal
challenges
Likely Expected to
occur
Medium Low High High
Cultural
problems
Almost
certain
Expected to
occur
regularly
Medium Low High High
Table 3: Risk Matrix Table
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(Source: Created by the author)
C/B Analysis
Cost benefit analysis of the implementation of the DDBM model using 2-step
implementation plan.
C/B Analysis: Implementation of the DDBM model using 2-step implementation plan
Implementation of the plan 60000
Additional cost 10000
Total Cost for the project 70000
Year of Project
year 0 year1 year 2 year 3 year 4 year 5 TOTALS
Net economic benefit $0.00 $35,000.00 $35,000.00 $35,000.00 $35,000.00 $35,000.00
Discount Rate 8% 1 0.9259 0.8573 0.7938 0.7350 0.6806
PV Of Benefits $0.00 $32,407.41 $30,006.86 $27,784.13 $25,726.04 $23,820.41
NPV of all BENEFITS $0.00 $32,407.41 $62,414.27 $90,198.39 $115,924.44 $139,744.85 $440,689.36
One Time Costs $70,000.00
Recurring Costs $0.00 $100.00 $100.00 $100.00 $100.00 $100.00
Discount Rate 8% 1.0000 0.9259 0.8573 0.7938 0.7350 0.6806
PV Of Recurring Costs $0.00 $92.59 $85.73 $79.38 $73.50 $68.06
NPV Of All Costs $70,000.00 $70,092.59 $70,178.33 $70,257.71 $70,331.21 $70,399.27 $421,259.11
Overall NPV $19,430.25
Total Cost for the project
Figure 2: Cost Benefit Analysis of the 2 step implementation plan
(Source: Created by the author)
Overall NPV $19,430.25
Overall ROI = (Overall NPV / NPV Of All Costs 0.05
Break-Even Analysis
Yearly NPV Cash Flow $0.00 $32,314.81 $29,921.12 $27,704.75 $25,652.54 $23,752.35
Overall NPV Cash Flow $70,000.00 ($37,685.19) ($7,764.06) $19,940.68 $45,593.23 $69,345.58
Project break-even occurs between years 2 and 3
Use 1st year of positive cash flow to calculate break-even fraction 2.2802 years
Figure 2: Break-even occurrence of this implementation plan
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(Source: Created by the author)
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The following unit of the paper will be discussing the second implementation procedure
of the proposed DDBM model.
Option 2: Pilot implementation plan
. Co-operation of each of the stakeholders of Nettavisen is very much desired in this type
of implementation plan. All the business risks faced by this organization has to be considered in
this plan (Deng et al. 2017). It can be said that the basic concept of this implementation plan can
be derived from the concept of lawn six sigma. This implementation plan will be very much
beneficial for both the proposed DDBM mode as well as for the organization as it will support
operational improvement (Taliotis et al. 2016). Strategic planning is required for this
implementation plan. The detailed description of the pilot plan is presented in the following
table.
Steps Description
Step 1 Role-playing is the initial step of the plan where fake inputs through the
process are used as test cases with all the stakeholders who is associated with
the new DDBM.
Step 2 Both the software as well as the hardware compatibility issues, will be
checked. Orientation training and skill development training can play a huge
role for the stakeholders who is associated with the new DDBM. Role of all
the Key Performance indicators will be defined in step 2.
Step 3 Bottleneck, as well as the co-ordination issues, will be addressed using secure
communication channels.
Step 4 All the consumers and services offered by Nettavisen must be aligned with
the functionality and the practical application of the new DDBM.
Step 5 The new DDBM must be running in parallel with the existing DDBM, which
is already in-use in the business environment of Nettavisen. This is the final
step of this implementation plan
Table 4: Pilot implementation procedure
(Source: Created by the author)
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The ensuing unit of the paper will be presenting the likelihood as well as the risk
associated with the pilot implementation plan
Risks (risk register and matrix)
Risk Risk Owner Likelihood Impact Severity Mitigation strategy
Knowledge
gap
All the
employees
associated
with
Nettavisen
Medium Low Low Each and every
employee must be
aware of the
limitations as well
as the benefits of
the new DDBM.
Bottle-neck
issues
Internal
stakeholders
who works
in the
production
houses.
Medium High High The bottleneck
issues can be
resolved with the
help of the strategic
planners.
Co-
ordination
issues
Project
managers
and the
employees
of the
organization.
Medium High High Project managers
must play a huge
role in addressing
the coordination
issues.
Compatibility
issue
Existing
technologies
used in the
organization.
Medium Low Low Each and every
employee must be
understanding the
business systems
which exists in this
organization.
Table 5: Risk Register Table
(Source: Created by the author)
The risk matrix of this 2 step implementation of the proposed DDBM is presented in the
following table.
Risk Matrix
Risks Likelihood Explanatio
n
Negligible Marginal Critical Catastrophic
Knowledge Unlikely Not likely Low Medium Medium Medium
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gap to occur
Compatibility
issue
Possible May occur Low Medium High High
Bottle-neck
issues
Likely Expected to
occur
Medium Low High High
Co-
ordination
issues
Almost
certain
Expected to
occur
regularly
Medium Low High High
Table 6: Risk Matrix Table
(Source: Created by the author)
C/B Analysis
The detailed description of the cost-benefit analysis will be presented in the following
table.
C/B Analysis: Implementation of the DDBM model using pilot implementation plan
Implementation of the plan 70000
Additional cost 5000
Total Cost for the project 75000
Year of Project
year 0 year1 year 2 year 3 year 4 year 5 TOTALS
Net economic benefit $0.00 $35,000.00 $35,000.00 $35,000.00 $35,000.00 $35,000.00
Discount Rate 8% 1 0.9259 0.8573 0.7938 0.7350 0.6806
PV Of Benefits $0.00 $32,407.41 $30,006.86 $27,784.13 $25,726.04 $23,820.41
NPV of all BENEFITS $0.00 $32,407.41 $62,414.27 $90,198.39 $115,924.44 $139,744.85 $440,689.36
One Time Costs $75,000.00
Recurring Costs $0.00 $100.00 $100.00 $100.00 $100.00 $100.00
Discount Rate 8% 1.0000 0.9259 0.8573 0.7938 0.7350 0.6806
PV Of Recurring Costs $0.00 $92.59 $85.73 $79.38 $73.50 $68.06
NPV Of All Costs $75,000.00 $75,092.59 $75,178.33 $75,257.71 $75,331.21 $75,399.27 $451,259.11
Overall NPV ($10,569.75)
Total Cost for the project
Figure 3: Cost Benefit Analysis of the pilot implementation plan
(Source: Created by the author)
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Overall ROI = (Overall NPV / NPV Of All Costs -0.02
Break-Even Analysis
Yearly NPV Cash Flow $0.00 $32,314.81 $29,921.12 $27,704.75 $25,652.54 $23,752.35
Overall NPV Cash Flow $75,000.00 ($42,685.19) ($12,764.06) $14,940.68 $40,593.23 $64,345.58
Project break-even occurs between years 2 and 3
Use 1st year of positive cash flow to calculate break-even fraction 2.4607 years
Figure 4: Break-even occurrence of this implementation plan
(Source: Created by the author)
Analyse the alternatives
2 step implementation plan Pilot implementation plan
Feasibility: It can be said that most of this
implementation plan can be easily considered
by the management team of Nettavisen as it
will not be having any effect on the existing
DDBM with the help of this implementation
plan (Tran 2018). However, it can be said the
product service should only be done by
professional experts who has the experience
of working in similar projects.
Feasibility: The implementation of this plan
is much easier as compared with the
difficulties of the 2-step implementation plan.
However, it can be said that support from
each level of workforces is a must for the
implementation of this plan.
Costs: The cost of this implementation of this
DDBM can be a little source of concern for
the management team of Nettavisen. The
prime area of investment for the management
team is to focus data quality and integrity
issue of the organization (Davidsson 2015).
The cost of the data sources is the other
source of concern for this organization. Data
analysis and data acquisition is the other cost
associated with the proposed idea.
Costs: The cost of this implementation plan is
much less than the 2 step implementation
plan. The cost benefit analysis of the two
categories of implementation plan helps in
identifying that the project break-even occurs
in 2.4607 years (Ullah et al. 2018). Financial
management plan may be need to manage the
cost of implementations as well as for the
maintenance of the plan.
Benefits: The complexities of the proposed
idea can be addressed with the help of this
implementation plan. The products of the
competitors and their business strategies can
also be detected using the data logger
(Valencik and Cervenka 2016). Benefits of
Benefits: This implementation plan is much
economical as compared with the 2step
implementation plan.
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the catalogues and the leaflets can be very
much important to attract more consumers as
compared with the social media marketing
strategies.
Table 7: Analysing the alternative implementation plan
(Source: Created by the author)
Recommendation
It can also be said that the cultural problems of the consumers has to be understood and
addressed in the first place before the enactment of this idea. The needs and requirement of the
consumers of this organization is always changing which has to be understood by the strategic
team of this organization so that this proposed idea can be valuable for this organization. This
attractive opportunity will be very much useful for Nettavisen as their big data analytics
capability will be significant enhanced using this opportunity. The revenue coming from the
practical issues of this model can also be a concern for Nettavisen which has to be addressed in a
structured manner using the project governance plan. The limitation of the non-data product
service must be also migrated in the first place using stream analytics. The issues coming from
the clients due to the free subscription and other facilities can also be mitigated in the first place
using the customer support team.
Best choice
Considering the features of each of the two implementation procedures it can be said that
the 2 step implementation procedure can be more useful for Nettavisen as compared with the
facilities provided by the pilot as the complexities and the risk factors of this implementation
procedure is much less than the pilot implementation procedure (Chen, Li and Ng 2018). The
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following unit of the paper will be presenting the plan for implementing the idea in a tabular
format.
Plan for implementing the idea
Steps Explanation
Step 1: Understanding the value of this
attractive opportunity
The deliverables of the project have to be
understood in the first place. The deliverables
of the implementation of this business
opportunity has to be aligned with the
organizational target of Nettavisen (Bolton,
Foxon and Hall 2016). Meeting the deadlines
of the implementation of this attractive
business opportunity is very much important.
Most of the non-human and the human
resources must be understanding the business
opportunity so that the efficiency of this
attractive DDBM can be used by the
company.
Step 2: Research to find out the risks There are different categories of risks and
opportunities associated with this business
opportunity such as the cultural problems,
personnel issues, data integrity issues,
hardware and resources issues, practicality
issues, and the legal challenges associated
using this opportunity which has to be solved
in the first place so that this DDBM can be
useful for Nettavisen
Step 3: Create project plan outline Approval from the consumers of this
organization is very much recommended
regarding the implementation of this attractive
business opportunity. Timeframes associated
with each phase of the implementation should
be considered in the first place using project
scheduling (Bakre and Dorasamy 2017). All
the assumptions of the implementation phase
should be considered in the before the
implementation of this business opportunity.
Step 4: Stakeholder of the project Both the external as well as the internal
stakeholders of Nettavisen needs to
understand all the minute details of this
attractive business opportunity such as
distribution, asset sale, licensing fee and the
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usage fee (Vithessonthi, Schwaninger and
Müller 2017). Both the external as well as the
internal data sources must also be understood
by the project managers of Nettavisen.
Step 5: Complete project plan The implementation of this attractive business
opportunity can be done in two phases which
will be discussed in this section of the paper.
Phase 1: The enactment can be done
considering few departments of the
organization. Based on the completion of the
first place it can be said that a thorough
documentation can be very much important so
that the final phase of the implementation can
be started.
Phase 2: This is the final phase of the
enactment phase of this attractive business
opportunity which can be started after a
detailed analysis of the document which is
done at the end of the phase 1. This phase will
be considering each of the departments of
Nettavisen so that all the employees of this
organization can enjoy the benefits of this
attractive business opportunity.
Step 6: Publish the plan and estimation of
the cost
Both the internal as well as the external
shareholders of this organization of this
organization must be understanding the
importance and the opportunities of this idea.
Every minute details of the enactment of this
business opportunity must be notified to the
employees of this organization in the portal of
the organization (Xindong and Jing 2018).
Cost of each of the 2 step implementation
phase has to be understood by the finance
team of this organization. Estimation of the
cost should be done in such a way so that
there are no delays in the employment phase.
Step 7: Make the employees under the
value of this attractive opportunity
The negatives as well as the positives of this
attractive business opportunity has to be
understood by the employees of Nettavisen. It
must be said that the proposed opportunity
must be useful for both the employees as well
as for the top level management of this
organization. The advantages of the latest
specification of the big data technology has to
be understood by each of the stakeholders of
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this organization.
Step 8: Resource plan It can also be said that resource management
plan can be very much important for the
implementation of this attractive business
opportunity for further investments in big data
and analytics (Bai, Dhavale, and Sarkis,
2016). It must also be said that the existing
business process of this corporation must not
be affected during or after the implementation
of this business opportunity. The human
resources who will be working in the
implementation phase must be having an idea
about data leakage. The data sets owned by
this organization should not be hampered
using this attractive business opportunity. The
digital disruptions of this organization can
also be managed in a useful manner using the
resource management plan.
Step 9: Communication plan Effective communication between each of the
stakeholders is very much important
regarding the enactment of this highly
attractive opportunity. The data sources of
this organization should be saved from the
business uncertainties. Communication
between each of the stakeholders are very
much important for the successful completion
of this project (Athanasopoulos 2017). All the
key activities of this model must be discussed
between every member of Nettavisen so that
the challenges of this model can be addressed.
The entire roadmap of this project must also
be considered in the communication plan,
which must be done by the project manager of
Nettavisen (Yan 2016). Frequency of events
must be also be planned and communicated
among each of the stakeholders of this
organization in order to avoid any kinds of
confusion.
Step 10: Effectiveness of the opportunity The advertising revenue of Nettavisen should
not be affected during the implementation of
the highly attractive opportunity.
Table 8: High level project plan
(Source: Created by the author)
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Conclusion
The paper helps in concluding a new DDBM which will be very much beneficial for
Nettavisen to be one of the most dominant corporation among all the other online newspaper
organizations in Norway. The paper identifies a new DDBM, which is very much compatible
with the working environment of Nettavisen. The specifications of the new DDBM has been
discussed in a detailed manner. The paper also discusses two different types of implementation
technique which can be used for the new DDBM. Risks, cost limitations and benefits of each of
the two implementation procedures was mentioned in the paper. The selection of the appropriate
implementation with justification was also provided in the paper. The plan for implementing the
business model has been discussed using a high level project plan.
The primary objective of this business organization, which is to compete with the social
media organization such as Facebook and Google can be done with the new DDBM. It can be
said that DDBM can help this organization to identify the potential value of their business data.
Thus, it can be concluded that the new DDBM can play a huge role in the growth and
development of Nettavisen in the coming years.
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References
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