repetition

Repetition

User

NP

SP

CP

Ctxt P

6. Deliver service

7. Bill for service

2. Provide enabling service (ES)

3. Deliver content

4. Deliver context

2.1 Provide Network Access ES

2.2 Provide QoS ES

2.3 Provide AAA ES

5. Compose service

10. Revenue share 1. Require service

Figure 1. Service execution and delivery activities, presented as numbered Use Cases (and Business Use Cases.

Service, Enabling service, Service platforms

0 1 2 3 4 5 6 7 8 9 10 time (year)

Phase 1: Prototype product

Phase 2: Advanced prototype product

Phase 3: Full product development and scale up of production

Schematic of project FCFs (quantitative estimates in appendices )

Cannibalisation of the service

Plateu of the service portfolio

Figure 5. Phases in real option financing for NGIS R&D process

Services / Service portfolios - Cash Flow optimisation problem

On the State-of-the-art analysis of research on

Business Modelling in IT systems (& communication)

Contents

• Overview of the knowledge on business modelling (BM) methodologies

• BM Framework• BM Definitions• BM Components• BM Taxonomies• BM Representation Tools• Conclusion

The overview of BM knowledge(limited to IT and communication services)

• Authors who contributed to the SOTA systematisation:– Staehler 2001,– Gordijn 2002– Pateli and Giaglis 2003– Osterwalder 2004

Figure 1. Business layers [ Osterwalder 2004]

Figure 2. Business model place in the company [Osterwalder 2004]

BM Framework

• BM Definitions

• BM Components

• BM Taxonomies

• BM Representation tools

BM Definitions

Some examples obtained from the SOTA

Table 1. Business model author list [Pateli 2002, Osterwalder 2004]

BM definitions• Osterwalder 2004 suggested the following working definition of the business model:

A business model is a conceptual tool that contains a set of elements and their relationships and allows expressing a company's logic of earning money. It is a description of the value a company offers to one or several segments of customers and the architecture of the firm and its network of partners for creating, marketing and delivering this value and relationship capital, in

order to generate profitable and sustainable revenue streams.

• Based on the folloowing BM Definitions

Timmers 1998,

Tapscot, Ticoll, Lowy 1998 2000,

Linder and Cantrell 2000,

Weil and Witale 2001,

Rappa 2001, Hawkins 2001,

Amit and Zott 2001, Applegate 2001,

Petrovic et al. 2001,

Osterwalder and Pigneur 2001,

Magretta 2002, Elliot 2002

Figure 10. Hamel's (2002) business model concept

BM Components

Some examples obtained from the SOTA

BM Components

• Alt and Zimmermann 2001 – Six generic elements:– Mission– Structure– Processes– Revenues– Technology– Legal issues

BM Components

• Auhah Tucci 2000– Customer value– Scope– Pricing– Revenue Source– Connected Activities– Implementation– Capabilities– Sustainability

BM Components

• Chesgrough and Rosebloom 2000– Business model functions

• Articulate the value proposition• Identify the market segment• Define the structure of the value chain within the

firm• Define the cost structure and profit potential• Describe the position of the firm within the value

network, including identifications of complementors and competitors

• Formulate the competitive strategy

BM Components• Hamel 2000

– Framework for discussing the BM components• Customer Interface

– Fulfilment and Support– Information and Insight– Relationship Dynamics– Pricing Structure

• Core Strategy– Business Mission– Product Market Scope– Basis for Differentiation

• Strategic Resources– Core Competencies– Strategic Assets– Core Processes

• Value Network– Suppliers– Partners– Coalitions

BM Components

• Veill and Vitale 2001 – four levels– Level 1: Atomic Business Model– Level 2: E-Business Model– Level 3: E-Business Initiative– Level 3-4: Intermediate Level– Level 4: E-Business Implementation

• Atomic elements:– Business Strategy– Organizational Form and Structure– Business Process– Value Chain– Core Competencies

BM Components• Osterwalder and Pigneur 2002

– Four main pillars – principal issues that a BM has to address:• Product Innovation

– Target Customer Segment– Capabilities– Value Proposition

• Customer Relationship– Information Strategy– Feel and Serve– Trust and Loyalty

• Infrastructure Management– Resources– Activity or Value configuration– Partner Network

• Financials– Revenue Model– Cost Structure– Profit / Loss

BM components

• Gordijn and Akkermans 2001 - Value Ontology

– Market Segment– Actors– Value Offering– Value Exchange– Value Object– Value Activity – Value Interface – Value Port

BM Taxonomy

Some examples obtained from the SOTA

BM Taxonomy

• Research efforts toward classifying BMs, mainly BMs over the Web, and grouping them under certain categories.

• The BMs belonging to the same category usually share some common characteristics, such as the same pricing policy of the same customer relationship model.

• Anyway, as the criteria for classifying BMs differentiate per researcher, the final resulting taxonomies are quite different.

BM Taxonomy

• Tapscott et al. 2000– Five primary types of business webs

• Agora• Aggregation• Value Chain• Alliance• Distributive Network

Figure 8. b-webs (Tapscot, Ticoll et al. 2000)

BM Taxonomy

• Veill and Vitale 2001– Content Provider– Direct to Customer– Full-Service Provider– Intermediary– Shared Infrastructure– Value Net Integrator– Virtual Community– Whole-of-Enterprise / Government

Figure 6. Timmer's (1998) classification scheme

BM Taxonomy• Applegate 2001 – Four categories

– Focused Distributor Models• Retailer• Marketplace• Aggregator• Infomediary• Exchange

– Portal Models• Horizontal portals• Vertical portals• Affinity portals

– Producer Models• Manufacturer• Service Provider• Advisor• Information and News services• Custom Supplier

– Infrastructure Provider Models – Infrastructure portals

BM Representation Tools

Some examples obtained from the SOTA

BM Representation Tools• Tapscott et al. 2000 – Value Maps, for depicting how a b-web

operates, or will operate in the future• Gordijn and Akkermans 2001 – Value ontology

– Market Segment– Actors– Value Offering– Value Object– Value Activity – Value Interface – Value port

• Weill and Vitale 2001– E-Business Model Schematics– Participants– Relations– Flows

• Money flow• Information flow• Product and service flows

Figure 11. Linder and Cantrell's (2000) business model concept

Figure 12. Business model schematic of the direct to customer model (Weill and Vitale 2001)

Figure 13. e3-value ontology for e-business (Gordijn, Akkermans et al. 2001)

Table 9. Appraising a Business Model: Component Measures (Aufah and Tucci 2003)

Table 11. The nine business model building blocks (Osterwalder 2004)

Figure 15 The business Model Ontology, Osterwalder 2004

The nine business model building blocks (Osterwalder 2004)

The nine business model building blocks (Osterwalder 2004)

Figure 16 Design of a Business Model based on Value Ontology (Gordijn and Akkermans, 2001)

Gordijn 2002, Viewpoints, Requirements Engineering

Figure 19 Value map for Cisco Systems according to Tapscott et al. (2000).

Figure 21. Value model for a free Internet access service: the global actor viewpoint (Gordijn 2002).

Figure 22. Actor a can decide to exchange value objects with actor b, or actor c Gordijn 2002.

Figure 23. A value exchange can be in multiple transactions.

Figure 25. Concepts and relations of the e3-value ontology extended for the detailedactor viewpoint. A composite actor and an elementary actor are generalizedinto an actor. Gordijn 2002

Figure 27 Value model for the free Internet case: the value activity viewpoint.must yield profit or should increase economic value for the performing actor (Gordijn 2002).

Use Case MapsA UCM is a visual notation to be used by humans to understand the behavior of a system at a high level of abstraction (Buhr 1998).

Gordijn 2002

Gordijn 2002

- BM framework - Business Value model is not a Business Process Model - Business Process Model relates to a System Process Model - Relation Business Model and Business Plan ???

ConclusionConclusion