Modeling e-Business with eBML CIMRE’2001 Mahdia, October 2001 Sarra Ben Lagha Alexander...

Modeling e-Business with eBMLModeling e-Business with eBML

CIMRE’2001Mahdia, October 2001

Sarra Ben LaghaAlexander Osterwalder

Yves PigneurHEC Lausanne

[email protected](+41 21) 692.3420

© 2001 Osterwalder, HEC Lausanne e-business 2

Université de Lausanne

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Why Business Models?

• A buzzword with no precise definition

– Executives, reporters and analysts who use the term don't have a clear idea of

what it means. They use it to describe everything from how a company earns

revenue to how it structures its organization [Linder, 2001]

• Dynamic business environment

– Shorter product life cycles

– Increased & global competition

– New Information and Communication Technologies (ICT)

• Evolving dynamic business networks

– Business Webs [Tapscott & al., 2000]

– Co-opetition [Brandenburger & al., 1996]

– Fluid organizations [Selz, 1999]



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Business Models: Opportunities

A company that defines it’s business model can...

• …react to rapid change

– Business architects/designers

• …share knowledge

– Business decisions

– buy in

• …simulate & learn

– System dynamics

– ScenariosXML

System

thinking

Objects



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Business Models: Research objectives

E-Business Model Ontologyor Framework (eBMF)

- concepts/models (components)- links between concepts/models

E-Business Model Ontologyor Framework (eBMF)

- concepts/models (components)- links between concepts/models

E-Business Model Handbook- navigate in concepts (www)

- graphical representation- illustrative examples

E-Business Model Handbook- navigate in concepts (www)

- graphical representation- illustrative examples

E-Business Model Language (eBML)

- ontology representation (xml)- graphical representation

- knowledge sharing

E-Business Model Language (eBML)

- ontology representation (xml)- graphical representation

- knowledge sharing

E-Business Model Design Tool

- computer assisted design- evaluation

- change management

E-Business Model Design Tool

- computer assisted design- evaluation

- change management

E-Business Model Simulation

- scenarios (system dynamics)- learn about Business Models

- be prepared

E-Business Model Simulation

- scenarios (system dynamics)- learn about Business Models

- be prepared

E-Business Model Games

- play, learn & understand

E-Business Model Games

- play, learn & understand



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Business Models: State of the art

• Ontologies– Enterprise ontologies: TOVE (Toronto Virtual Enterprise), The Enterprise

Ontology (html), Core Enterprise Ontology (CEO)

– e-Business Process ontologies (in XML): Transactions (xCBL, cXML), Ontology.org (html)

• Business Models– Classification: Timmers (pdf), Rappa (htm), Tapscott.

– Modeling (partial…): Hamel, Gordijn, Afuah, Linder (html).

• Tools– MIT eBusiness Process Handbook (html)

– System Dynamics...http://ecommerce.ncsu.edu/business_models.html



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What is a Business Model (I)?

Business Processes

Business Model

StrategyPlanning level

Architectural level

Implementationlevel



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What is a Business Model (II)?

CUSTOMERRELATIONSHIP


InformationInformation

Feel & serveFeel & serve

Trust & loyaltyTrust & loyalty

PRODUCTINNOVATION

PRODUCTINNOVATION

INFRASTRUCTUREMANAGEMENT


value forvalue for resources forresources for

Revenue Value added + CostsRevenue Value added + Costs

profit price

Target CustomerTarget Customer

Value propositionValue proposition

CapabilitiesCapabilities

Resources/assetsResources/assets

Activities/processesActivities/processes

Partner networkPartner network

The e-Business Model Framework (eBMF)



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Case study: ColorMailer

ColorMailer...

• ...is a brand of Colorplaza Ltd., an independent company based in Vevey/Switzerland, active in the field of digital imaging and in the development of multimedia Internet applications.

• ...offers products and services in the domain of digital imaging for private customers.

• …bets on the increasing number of owners of digital cameras and scanners (~ 30 million people).

Http://www.colormailer.com



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Case study: Infrastructure Management


Information

Feel & serve

Trust & loyalty



value for resources for

Revenue Value added + CostsRevenue Value added + Costs

profit price

Target Customer

Value proposition

Capabilities

Resources/assetsResources/assets

Activities/processesActivities/processes

Partner networkPartner network

PRODUCTINNOVATION



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Case study: Infrastructure management element at ColorMailer

ACTIVITY CONFIGURATIONACTIVITY CONFIGURATION

Needfor

Resourcesfor

RESOURCES/ASSETSRESOURCES/ASSETS

in-housein-house

Resourcesfor

Needfor

PARTNER NETWORKPARTNER NETWORK

out-houseout-house

uploadimages

Print ofimages

Deliveryof items

Marketingof product

services

Printinginfrastructure

Packingstaff

ColorMailerWebsite



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<eBusinessModel><ProductInnovation>

…</ProductInnovation><CustomerRelationship>

…</CustomerRelationship><InfrastructureManagement>

…</InfrastructureManagement><FinancialAspects>

…</FinancialAspects>

</eBusinessModel>

<eBusinessModel><ProductInnovation>

…</ProductInnovation><CustomerRelationship>

…</CustomerRelationship><InfrastructureManagement>

…</InfrastructureManagement><FinancialAspects>

…</FinancialAspects>

</eBusinessModel>

Case study: Encoding a Business Model with eBML

• Describe Business Models with the “electronic Business Model Language” (eBML)

• eBML is based on XML• Use tags to define the different

elements of a Business Model..– ...with opening/closing tags

– ...and to describe links between the elements

• An eBML starts with the root <eBusinessModel>

• An eBML end with the tag </eBusinessModel>

<Infrastructure_Management><Resources_And_Assets>

…</Resources_And_Assets><Activity_And_Process_Configuration>

…</Activity_And_Process_Configuration><Partner_Network>

…</Partner_Network>

</Infrastructure_Management>

<Infrastructure_Management><Resources_And_Assets>

…</Resources_And_Assets><Activity_And_Process_Configuration>

…</Activity_And_Process_Configuration><Partner_Network>

…</Partner_Network>

</Infrastructure_Management>



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<ActivityAndProcessConfiguration><ValueChain>

<ValueChainActivity><ActivityName>Printing images on physical material</ActivityName><ValueChainActivityDescription>

<ValueChainPrimaryActivities><Operations>This activity consists of printing the virtual digital images on different physicalmaterials, such as photographic paper, T-shirts and mouse pads.</Operations></ValueChainPrimaryActivities>

</ValueChainActivityDescription><ResourceID>004</ResourceID>

</ValueChainActivity><ValueChainActivity>

<ActivityName>Digital Image Upload</ActivityName><ValueChainActivityDescription>

<ValueChainPrimaryActivities><SupplyChainManagement>In order to print the digital images on physical items, thisbinary information must be transmitted to the production facilities over a network. Digitalimage transmission is a complex problem because of the large file size of the images.</SupplyChainManagement></ValueChainPrimaryActivities></ValueChainActivityDescription>

<PartnerID>001</PartnerID></ValueChainActivity>

</ValueChain></ActivityAndProcessConfiguration>

Case study: eBML document extract



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Why XML?

• XML (Extensible Markup Language) is a W3C Recommendation that defines a standard way to add markup to documents.

• A markup language is a mechanism to identify structures in a document containing structured information.

• eBML is a markup language for electronic Business Models (eBM)

• Encoding an eBM in XML (with eBML) helps generating structured documents describing eBM concepts – an eBML document is :

• standardized• reusable• human and application understandable



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Conclusion

• E-Business Model Framework (eBMF)– design, share and simulate

Business Models in an evolving environment with a component based architecture

• e-business Model Language (eBML)– describe, store, reuse and share

Business Models in heterogeneous environments with an XML-based markup language

[email protected]://inforge.unil.ch/aosterwa

Modeling e-Business with eBML CIMRE’2001 Mahdia, October 2001 Sarra Ben Lagha Alexander...

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