160 likes | 339 Views
Business models. In the context of ITS. August, 2008. Frank Berkers MSc frank.berkers@tno.nl +31 6 109 687 93. Goal of the workshop. Introduce/recap business modelling in the context of ITS Outline Personal introduction Business model Business model, case & plan Value web RTTI
E N D
Business models In the context of ITS August, 2008 Frank Berkers MSc frank.berkers@tno.nl +31 6 109 687 93
Goal of the workshop • Introduce/recap business modelling in the context of ITS Outline • Personal introduction • Business model • Business model, case & plan • Value web • RTTI • Value web • NRA scenario, TomTom scenario • Summarizing business modelling as a process
Business model Business model - RTTI Discussion HOME Content Introduction …. Introduction Frank Berkers MScTNO Information and Communication Technologysenior consultantDepartment Business Innovation and Modelling - Finance & Business Impact EconometricsComputer Science/Technology ManagementMarketing Intelligence Analyst ABN AMROMethodological consultant in MRsenior consultant TNO ICT BIM
Business model A business model describes the way in which an organisation or network of organizations wants to create value and earn money by applying technology.
When/why do business modelling? • From a historical perspective on development of NRA role • ↓ From… building and managing infrastructure independently • ↓ To… procuring infrastructure realisation • ↓ To… supplying to and cooperating with private parties • Deal with (need for) change–in technology, service..- by exploring strategic alternatives (scenarios), assess risk, – in a structured analytical way • Use available methods (from private domain) also in public and public/private domains • in conversation with industry • Preparation for an investment-decision (business case) • To facilitate, simplify and unify comparison of countries and services • as a preparation for the implementation framework • Remarks on terminology • ‘business’ is not strictly a private domain concept (public domain produces services that lead to ‘utility’ in exchange for funds) • (Business) model and case have different meanings in different contexts • ´case´ is often used as casus, to refer to a situation/ scenario/ circumstance/ affair/ business
Business case Business plan How it connects Business model • The term ‘business case’ mostly referres to a financial analysis. This can be considered as a more extensive elaboration of the financial domain • A ‘business plan’ is a plan to convince decision makers and investors - also includes operational processes and track records of the management team are included
SERVICE DOMAIN TECHNICAL DOMAIN ORGANISATION DOMAIN FINANCIALDOMAIN STOF: business model domains Organisation domain describes the roles, activitiesand required parties (valueweb) to create value for a customer Service domain describes the service concept of an organisation to a specific customer/end user in a specific market segment. Financial domain describes the way an organisation wants to generate business for a specific service. Important elements: Revenue, costs, risks and investments. Technical domain describes the technical architecture and functionalities that are required to realise the service
Value web analysis Roles Who is the (end) user? Which roles/activities are required to make & deliver the service? What is the added value of each role? Relations Who delivers to who? What is the flow of money? Parties Which party is best capable to perform a certain role? Are there combination of roles possible that can be performed by one party? Power Where is the power in the web? Which roles are required to get started? Which cooperations are essential for a good service delivery?
Why business modelling using value web and STOF? • Astructured approach • framework: complete, customizable • not formal, easily understandable • many approaches are variants of this • ‘Backbone’ is a service/process decomposition • in line with historical perspective, i.e. shift from infrastructure (tangible) to service provider in a multi party market • Identifies key roles and generates strategic alternatives (scenarios) • reveals implicit choices (and power) – in cases part of the model is ‘predetermined’
With permission of end user via service provider Storage / Hosting Data infrastructure provider Data collection Data aggregation Decision making Wholesale Service Provider Service Provider End user Regulation Application Provider Communi- cation Provider Advertising Device Provider Data gathering Data processing Content providing Content Utilisation Value web RTTI
Business model RTTIScenario: NRA as business owner With permission of end user via service provider Storage / Hosting Data infrastructure provider Data collection Data aggregation Decision making Wholesale Service Provider Service Provider End user RWS - Traffic- mgt RWS - Traffic- mgt RWS RWS -TIC RWS - loops RWS -TIC IR detect 0900-9622,SMS Regulation Application Provider Communi- cation Provider Services: stand-alone Technique: loops - radio Organization Finance: public Advertising Device Provider
Business model RTTIScenario: TomTom as business owner Storage / Hosting Data infrastructure provider Data collection Data aggregation Decision making Service provider End user Regulation Application provider Communi- cation provider NRA Advertising Device provider Services: PND integrated Technique: cell phone - PND Organization Finance: subscription service
Business model RTTI: monetary flowScenario: TomTom as business owner Storage / Hosting Data infrastructure provider Data collection Data aggregation Decision making Service provider End user Communi- cation provider Regulation Application provider Flow of money NRA Advertising Device provider
Business modelling process • Take a current service or design a (hypothetical) service • Describe the service as a process in a value web comprising roles/activities, relations (flows of products, services, information and money). Separate subprocesses • Primary: from content creation to deployment to user • Secondary: from enabling platform to additional services • Populate/instantiate the value web by assigning parties to the roles and investigate power. • Further elaborate the value web by denoting specifics of the four domains: service, technology, organization and finance. • This is a business model (also referred to as business modelscenario).
From business models to business case • Generate: Create new scenarios or business models (for instance by choosing another technology, or playing “what if…?” ). • Appraise: Each model has it’s own pros and cons and can be evaluated against a (preferrably predefined) set of requirements. • Selection and detailing: After selecting an acceptable model all relevant flows and effects are quantified. This is the business case. • A business case is positive if it adds value* in a given timeframe.(*utility ) It is advisable to prepare a list of requirements and priorities in advance
Frank Berkers TNO ICT T +31 15 285 72 33 E frank.berkers@tno.nl Questions