Enabling the

Business-Based

Internet of Things and Services

Identification of value objects in IoTS

How to create dynamic value constellations

Translating Knowledge into Growth

FInES Workshop - FI week

9 May 2012

Jesper Thestrup

In-JeT ApS

9 May 2012 Value based Business Models - FInES Workshop - FI week

Things to reflect on from this presentation

Identification of Business Value Objects

Transforming enterprises for growth

What is a value object?

Modelling of IoTS Ecosystems

Value models

Methodologies

Establishing sustainable, dynamic value

constellations

Cases

Conclusion

9 May 2012 Value based Business Models - FInES Workshop - FI week

Trends from Products to Value Services

Product Logistics Installation Commissioning Service

System Integration

Contract Maintenance

Remote Monitoring

Compliance Monitoring

Operational Management

Facility Management

Total Management

Product offerings

Risk/value

9 May 2012 Value based Business Models - FInES Workshop - FI week

… IoTS provides Connectivity and Multimodality

in domains with different technology clockspeeds..

Lifetime typically

more than a decade Rapid changing device

technology ~18 mos

Hitting the ”sound barrier”

9 May 2012 Value based Business Models - FInES Workshop - FI week

The IoTS ecosystem

Pervasive digital environment

Populated by digital components

Evolves and adapts to local conditions

The Digital Ecosystem of IoTS is not a piece of software

It is a digital infrastructure that transport services and knowledge and so empowers the whole business network

Modelling the IoTS

ecosystem

Value models

e3value methodology

9 May 2012 Value based Business Models - FInES Workshop - FI week

A Value Based Business Model

Source: Yves Pigneur, 2006

Customer

group

Value

proposition

Value

configuration

Revenue

Cost

Partnership

Core capability

Dist. Channel

Relationship

Operation and delivery

Collaboration

Key competencies

HOW?

WHAT?

WHO?

Customers

Distribution

Retention

9 May 2012 Value based Business Models - FInES Workshop - FI week

Modelling ontology

Business

Strategy

Organisational

Infrastructure

ICT Product

Strategy

ICT Infrastructure

Business ICT

Functional integration

Str

ate

gic

fit

Process models are designed to give optimum process implementation, but are

not so effective in radically new approaches to the way the company is doing

business

9 May 2012 Value based Business Models - FInES Workshop - FI week

Modelling ontology

Business

Strategy

Organisational

Infrastructure

ICT Product

Strategy

ICT Infrastructure

Business ICT

Functional integration

Str

ate

gic

fit

Value modelling looks at where value is created and for whom. Value modelling

is very suitable for engineering radical strategic changes including new product

strategies and organisational infrastructures

9 May 2012 Value based Business Models - FInES Workshop - FI week

Value modelling

Is the offering feasible in terms of value

proposition to the customer?

Is the offering overall profitable?

Is the global profit fairly distributed on all the

involved actors?

Is the intended offering feasible in terms of

usability?

Is the offering easily understood and acceptable

to all stakeholders?

9 May 2012 Value based Business Models - FInES Workshop - FI week

Elements of the Value Model

Value

propositionValue

configuration

implementsCore

capability

needs

Actor

Value

activity

is a consist of

creates

by

Modelling value configurations

Modelling partnerships

Value

configuration

Core

capability

Distribution

channel

Patnership

agreement

concerns

Actor with

9 May 2012 Value based Business Models - FInES Workshop - FI week

The e3value modelling methodology

A lightweight approach to carry out the value

analysis in a limited timeframe (iterations of the

creativity process)

An economic value aware approach to capture

and evaluate a value proposition (where is the

money?)

A multi-viewpoint approach to deal with a wide

range of stakeholders (who else needs to be in the

game?)

A graphical conceptual modelling approach to

create a common understanding Source: Jaap Gordijn, Vrije Universiteit Amsterdam www.e3value.com

9 May 2012 Value based Business Models - FInES Workshop - FI week

e3value methodology and tool

The e3value ontology expressed in a UML class diagram (Jaap Gordijn, 2002)

Establishing sustainable,

dynamic value

constellations

Cases

9 May 2012 Value based Business Models - FInES Workshop - FI week

The

traditional

business

ecosystem

9 May 2012 Value based Business Models - FInES Workshop - FI week

Baseline Ajax business case

9 May 2012 Value based Business Models - FInES Workshop - FI week

Extended Ajax service business case

9 May 2012 Value based Business Models - FInES Workshop - FI week

Dia

bete

s model in D

enm

ark

9 May 2012 Value based Business Models - FInES Workshop - FI week

Get to Know Your Car!

Raw materials

Energy

Water

Lubricants

Chemicals

Paint

Emissions

Etc…

Per part

Per assembly

Per vehicle

9 May 2012 Value based Business Models - FInES Workshop - FI week

Capture environmental data – for whom?

9 May 2012 Value based Business Models - FInES Workshop - FI week

Conclusions

The business system of industrial goods and related

industrial activiites are changing towards services orientation

Business Modelling of Emerging Service Opportunities in the

IoTS Ecosystem is necessary for IoTS deployment

The importance of applying a value based approach to

business modelling is demonstrated.

De-composing and re-composing value activities is a strong

tool for identifying new IoTS business cases.

In particular, the emergence of new value objects can bring

entirely new actors into the business model.

9 May 2012 Value based Business Models - FInES Workshop - FI week

Please come and visit us…

Jesper Thestrup

jth@in-jet.dk

www.in-jet.dk

www.public-i.info

www.ebbits-project.eu