PhD Seminar INFORGE/HEC e-Business Models
Transcript of PhD Seminar INFORGE/HEC e-Business Models
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PhD PhD SeminarSeminar INFORGE/HEC INFORGE/HECe-Business Modelse-Business Models
HEC 2002Lausanne, February 14 2002
Alexander OsterwalderHEC Lausanne
[email protected](+41 21) 692.3420
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© 2002 Osterwalder, HEC Lausanne e-business 2
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Agenda
1. Why business models?
1. Economic environment (the market, the enterprise) p3
2. What are they good for? p7
2. State of the art in business models
1. Ontologies, business models, tools p9
3. Structure of the research
1. Research levels, research projects p10
4. Structure of my thesis
1. Ontology, prototype, proof of concept p12
5. Sketch of the business model framework
1. 4 pillars: Product, customer, infrastructure, finance p14
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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
– New Information and Communication Technologies (ICT)
– Increased & global competition
– Shorter product life cycles
• Fluid company borders & dynamic business networks
– Business Webs [Tapscott & al., 2000]
– Co-opetition [Brandenburger & al., 1996]
– Fluid organizations [Selz, 1999]
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e-Business Logic Today
Business Processes
StrategyPlanning level
Implementationlevel
Information & Communication
Technology (ICT) pressure
e-Businessprocesses
e-Business Technology layer
•Positioning•Objectives & goals•Communication of strategy
• Problem: Interpretation of strategy
• Result: Re-inventing strategy
?
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e-Business Logic Tomorrow
Business Processes
Business Model
StrategyPlanning level
Architectural level
Implementationlevel
Information & Communication
Technology (ICT) pressure
e-Business opportunities & change
e-Businessprocesses
e-Business Technology layer
Conceptual architectureof a business strategy
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What is an Business Model anyway?
• A business model is not a description of a complex social system itself with all its actors, relations and processes. Instead it describes the logic of a “business system” for creating value, that lies behind the actual processes.
• A business model is the conceptual and architectural implementation of a business strategy and represents the foundation for the implementation of business processes
Business Processes
Business Model
Strategy Business Im
pact
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A company that defines it’s business model can...
• Understand– The process of modeling social systems or ontologies–
such as an e-business model – helps identifying and understanding the relevant elements in a domain and the relationships between them (Ushold et al., 1995; Morecroft, 1994).
• Share knowledge– The use of formalized e-business models (i.e. an
ontology) helps managers communicate and share their understanding of a business among other stakeholders (Fensel, 2001).
• React to rapid change– Mapping and using e-business models facilitates
change. Business model designers can easily modify certain elements of an existing e-business model (Petrovic et al., 2001).
Objects
XML
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A company that defines it’s business model can… (continued)
• Measure– A formalized e-business model can help identifying
the relevant measures to follow in a business, similarly to the Balanced Scorecard Approach (Norton et al., 1992).
• Simulate & learn– e-business models can help managers simulate
businesses and learn about them. This is a way of doing risk free experiments, without endangering an organization (Sternman, 2000).
System
thinking
BSC
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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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3 Research Levels
Level 1
Level 3
Level 2
e-Business ModelEquations
e-Business ModelOntology
e-Business ModelMeasurements
Understanding model elements and relationships, communicate and share models, change models
Pilote, follow, alert
Simulate models, play and learn by changing models, understand consequences of change
e-Business Model Simulator, e-Business Model Games
e-Business Model Balanced Scorecard
e-Business Model Framework (eBMF), Language (eBML), Handbook (eBMH) and Design Tool
Research ProjectsManagement Use
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Research Objectives/Projects
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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The Thesis
• Literature review and e-Business Model Ontology construction– e-business, ontology and business model review
– formalizing an e-business model ontology (e-BMO)
• e-Business Model Visualizer (prototype)– based on the ontology (e-BMO)
– e-business case
– graphical representation structure
• Proof of concept– interviews with consultants
& executive
– e-business case studies
RepositoryGraphics
CompanyBusiness
ModelEntry
ProgramTransformProgram
GUIread, process,
drawstore graphical representation
structureFull example
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Research Methods
• Conceptual Research– based on literature (articles, books)
– based on observations (case studies)
• Design Science [Au, 2001; Ball, 2001]– development of artifacts
• Validation (!?)– of model
– of completeness
– of utility
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Definition of a Business Model
A business model is nothing else than 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.
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Definition of an e-Business Model
PRODUCTINNOVATION
INFRASTRUCTUREMANAGEMENT
CUSTOMERRELATIONSHIP
FINANCIAL ASPECTS
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Definition of an e-Business Model
CapabilitiesValue
PropositionTarget
Customer
PRODUCTINNOVATION
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Definition of an e-Business Model
CapabilitiesValue
PropositionTarget
Customer
PRODUCTINNOVATION
Resources
ValueConfiguration
PartnerNetwork
INFRASTRUCTUREMANAGEMENT
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Definition of an e-Business Model
CapabilitiesValue
PropositionTarget
Customer
Resources
ValueConfiguration
PartnerNetwork
PRODUCTINNOVATION
INFRASTRUCTUREMANAGEMENT
InformationStrategy
Feel &Serve
Trust &Loyalty
CUSTOMERRELATIONSHIP
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Definition of an e-Business Model
CapabilitiesValue
PropositionTarget
Customer
Resources
ValueConfiguration
PartnerNetwork
InformationStrategy
Feel &Serve
Trust &Loyalty
PRODUCTINNOVATION
INFRASTRUCTUREMANAGEMENT
CUSTOMERRELATIONSHIP
Cost Structure Revenue ModelProfit/Loss
FINANCIAL ASPECTS
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Ontology: Relationships Between Concepts
CUSTOMERRELATIONSHIP
CUSTOMERRELATIONSHIP
PRODUCTINNOVATION
PRODUCTINNOVATION
FINANCIALASPECTS
FINANCIALASPECTS
INFRASTRUCTUREMANAGEMENT
INFRASTRUCTUREMANAGEMENT
resourcefor
resourcefor
sold through
revenue for
resource for
cost
feedback for
buildson
TARGET CUSTOMER
VALUE PROPOSITION
CAPABILITIES
RESOURCES & ASSETS
ACTIVITY CONFIGURATION
PARTNER NETWORK
INFORMATION
FEEL & SERVE
TRUST & LOYALTY
REVENUE MODEL
PROFIT / LOSS
COST MODEL
has needs value for
resource for builds on
to enable supposes
resource for builds on
to improve to collect
to establish to improve
to increase
diminishes
buildson
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Questions & More Information
[email protected]://inforge.unil.ch/aosterwa