18/04/23

1

Conceptual business models and ontology'sA design perspective

eGlobal, 17th Bled eCommerce ConferenceJune 21- 23, 2004

Harry Bouwman, TUDelft

ICT, Faculty TPM, Delft University of Technology

18/04/23 2

Out line

• From hype to design • Projects

• Business models 2000-2001definition, taxonomy’s, assessment of Internet start ups

• Business Models for Innovative Telematics Applications 2002: 20 case studies: location aware, mobile and broadband services

• Freeband B4U 2003-2004design methodology oriented

• Freeband Uexperience 2004-2008actual design, mock ups, demonstrators, prototypes,….

.. .

.. .

A SP

eTail

B roker

Combined roles in companies ,based on:

Process Design

Type of service

• e-Commerce• Mediation• Appl ication hosting• ...

RevenueModels

• Flat fee (subscription)• Charge per transaction• Usage-based charging• Sponsoring• ...

Service RevenueSources

Combined revenue models

Tariff scheme &revenue flow

Specific service

• CD/DVD Webshop• Internet digital

music portal• ERP-application

serviceprovisioning

• ...

Specific applications

• System architecture• Software architecture• Specific web server• specific database• ...

• Subscription fee• Charge per transaction• Advertisement•...

BusinessModel

Roles & relations

•Strategy•Capabilit ies•Customer value

BusinessCase

Abstraction

BusinessDesign

Specification

• Subscription: $25• Transaction fee:

$1.25 + 5% of value• Advertisement: $79

/1000 hits

Technical viewpoint Financial viewpointOrganisational viewpoint

Value offering& creation

Value system

Bro-ker

eTail

ASP

……….

Business cases

F ……..

Business models

Strategy

Processes

Businessmodelling

ResourcesCapabilities

Channels

Channels

Channels

IT-infrastructure

Customervalue

Revenue models

Access to

customer

18/04/23 3

Descriptive framework

SERVICE OFFERING

Value propositionMarket segment

TECHNOLOGY ARCHITECTURE

Functionality required

FINANCE ARRANGEMENTS

Cost structureProfit potential

ORGANIZATIONARRANGEMENTSStructure of value

network

TECHNICAL DEVELOPMENTSECONOMIC VALUE

e.g. UMTS, Web servicese.g. profit, branding

BUSINESS MODEL

CUSTOMER VALUE

e.g. usefulness

MARKET OPPORTUNITIESe.g. improvement of communication in Healthcare

REGULATORY CHANGESe.g. Unbundling of value chain

SERVICE OFFERING

Value propositionMarket segment

TECHNOLOGY ARCHITECTURE

Functionality required

FINANCE ARRANGEMENTS

Cost structureProfit potential

ORGANIZATIONARRANGEMENTSStructure of value

network

TECHNICAL DEVELOPMENTSECONOMIC VALUE

e.g. UMTS, Web servicese.g. profit, branding

BUSINESS MODEL

CUSTOMER VALUE

e.g. usefulness

MARKET OPPORTUNITIESe.g. improvement of communication

REGULATORY CHANGESe.g. Unbundling of value chain

18/04/23 4

ActorsResources &Capabilities

Value activities

Perform

Combine to

Delivered value

Have

Are used in

Costs

Generate

Value network

Interactions

Consists of

Consists of

Technologicalarchitecture

Is a

Have

Strategies & goals

Have

To participate in

Investmentsources

Roles

Organisationalarrangements

Financial Arrangements

Define

ORGANIZATIONDESIGN

Relations

Puts requirements on

May grow into

Define

Influences

Part-of

Define

Negotiate/ enforce

Select partners

18/04/23 5

Causal model

Security

System Integration

Quality of serviceAcceptable quality of service delivery

is a requirement for

co-determines

enables

Critical design issues Critical success factors

Targeting

Value elements

Clear target group

Compelling value proposition

results in a

enable a

Non obtrusive Customer retention

Customer reachBranding

User profilemanagement

enables

enables

Pricing

Viability of business model

Expected Customer value

(+)

(+)

is part of amay be a

(+)

(+)

Security

System Integration

Quality of serviceAcceptable quality of service delivery

is a requirement for

co-determines

enables

Critical design issues Critical success factors

Targeting

Value elements

Clear target group

Compelling value proposition

results in a

enable a

Non obtrusive Customer retention

Customer reachBranding

User profilemanagement

enables

enables

Pricing

Viability of business model

Expected Customer value

(+)

(+)

is part of amay be a

(+)

(+)

18/04/23 6

Next step design

Definitions

Components

Classifications

Causal frameworks

Evaluation frameworks

Processframeworks

RequiredIntegration

Low High

High

Low

Today’s position

Added value of furtherinvestigation

Descriptive frameworks

Adapted from Pateli & Giaglis, 2003

18/04/23 7

Live Contacts

• Live contacts offers context information via a mobile device (not now!) for your partners.

• That makes it possible to assess which communication channel is most appropriate.

• Your partners can assess status of your calendar and your preferences

• Available information:• messenger status (online, offline, away, ...)• calendar-information (type of appointments)• location-information (work, mobile, home).

18/04/23 8

Quick Scan Live Contacts: walkthrough

18/04/23 9

Quick Scan Live Contacts

Userorganisatio

n

Applicationprovider

CP

Licence

feePay for connectivity

Operator

ServiceProvider

use fee

Connectivity fee

Server model Service model

user

Userorganisatio

n

Userorganisatio

n

user

Applicationprovider

CPOperator

user

use fee

18/04/23 10

Uexperience

• Support we centric user experience, with 4th generation mobile service bundles• A service bundle aimed at supporting

dynamic user groups which automatically adapts to changes in the context of the group (e.g. changes in group composition, goals, interests) and pushes and pull information based on group profiles

• Domain• Police officers, Health care, ….

18/04/23 11

Research approach

Group awareness & personalization Dynamic service bundling

Userperspective

e.g.• Measuring user

experiences• Factors influencing

usage

Provisioningperspective

Technology perspective

Platform add-on & application development

sto

ryli

ne

sS

peci

fic t

rack

•R

atio

nale

for

sel

ectin

g ta

rget

gro

up a

nd a

pplic

atio

ns•

Join

t de

sign

of

serv

ice

conc

epts

for

the

pol

ice

and

heal

thca

re

va

lida

tio

nS

peci

fic t

rack

Tes

ting

of t

heor

ies

and

conc

epts

in p

olic

e an

d he

alth

care

pilo

ts

We-centric user experiences

Generic track Specific tracke.g.• User requirements

for police/ care application

Generic track Specific tracke.g.• Design issues in we-

centric services (e.g. network governance)

e.g.• Factors influencing

use of service bundles

Generic track Specific tracke.g.• User requirements for

police/ care application

e.g.• Design issues in

service bundling (e.g. pricing)

Generic track Specific tracke.g.• Co-design of service

concepts for police/care

Generic tracke.g.• Design issues in we-centric services (e.g.

profile management)• Generic functionality needed for we-centric

services

Generic tracke.g.• Design issues in service bundling (e.g.

billing and accounting) • Generic functionality needed for service

bundling

Specific tracke.g.• Building demonstrators & prototypes for police and care applications• Building service platform add-on• Building tools to measure user experiences

e.g.• Co-design of service

concepts for police/care

18/04/23 12

Conclusions

• Moving from definitions, taxonomy’s, et cetera towards causal frameworks and prescriptive models

• Testing causal frameworks is problematic• Number of cases, accessibility of core data

• Freeband B4U• FBBM Quick scan and methodology: supportive tools• Framework supports design process: practical value;

validation both in mobile domain but also in insurance• To be applied in Uexperience

18/04/23

13

More information

www.freeband.nlwww.freeband.nl/b4uwww.freeband.nl/frux

18/04/23 14

SERVICE DOMAIN

ContextCustomers or end-users

Value activities

Expected value(consumer)

Intended value (provider)

Delivered value (provider)

Perceived value (consumer)

Technological functionalities

TechnicalArchitecture

Previous experience

Previous versions

Effort

Value networkPuts requirements on

Co-determine

Delivers

Puts requirements on

Co-determine

Requires

Has

Has

Influences

Tariff

Influences

Influence

Value propositionSummarised in

Financialarrangements

Influence

DeliversInfluences

Co-determines

Market segment

Are part of

Revenue source

Influences

18/04/23 15

ActorsResources &Capabilities

Value activities

Perform

Combine to

Delivered value

Have

Are used in

Costs

Generate

Value network

Interactions

Consists of

Consists of

Technologicalarchitecture

Is a

Have

Strategies & goals

Have

To participate in

Investmentsources

Roles

Organisationalarrangements

Financial Arrangements

Define

ORGANIZATIONDOMAIN

Relations

Puts requirements on

May grow into

Define

Influences

Part-of

Define

Negotiate/ enforce

18/04/23

16

TechnicalFunctionality

Services

Costs

Generates

Applications

Technologicalarchitecture

BackboneInfrastructure

Devices

Deliver

Consists of

Data

Is used in

Actors

Own andinvest in

Access Networks

Produce

Service Platforms

Billingplatform

Customerdata

platform

Have requirement

s for

TECHNOLOGYDOMAIN

18/04/23 17

Technologicalarchitecture

Costsources

ServiceRevenuesources

Costs

Are divided over actors according to

Is a

Value activities

RevenuesGenerate

Is a

FINANCEDOMAIN

Investmentsources Provid

e

Induce

Generate

RisksGenerate

Capital

Are divided over actors according to

Threaten

Tariffs

Risk sources

Performanceindicators

Monitored using

Monitored using

Financialarrangements

Determine

Market segment

Co-determine