c1.1 introduction to i cargo ecosystem v. boschian

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Explain iCargo ecosystem from the business point of view, and the benefits of using it.

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www.i-cargo.eu

Intelligent Cargo in Efficient and SustainableGlobal Logistics Operations

Introduction to iCargo

ecosystem ---

iCargo Training Series-Zaragoza-23.10.2013

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu2

Valentina BoschianBluegreen Strategy srl

Introduction to iCargo ecosystem

iCargo Training Session23rd October 2013, Zaragoza, Spain

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu3

• Context• The iCargo project and ecosystem• The approach to reference Business Models

– Reference Business Models– iCargo Ecosystem evolution

• Business Models evolution in the ecosystem– Example

• Lesson learnt • Conclusions

Contents

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu4

• Context• The iCargo project and ecosystem• The approach to reference Business Models

– Reference Business Models– iCargo Ecosystem evolution

• Business Models evolution in the ecosystem– Example

• Lesson learnt • Conclusions

Contents

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu5

• A business ecosystem is an “intentional community of economic actors” having in common protocols, interfaces and an overall business goal.

• Business Ecosystem concept not new (Moore, 1996), but now prominent in new markets (Amazon, Apple, ...)

• Collaborative business models require to analyze the impact of the ecosystem dimension on the individual company Business Model.

Business Ecosystem

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu6

• Traditional industries, including Logistics, call for collaborative business models to face new challenges and opportunities.

• Business models theory quite developed (and applied) but:

– Lack the collaborative dimensions (traditional Value Chain approach focused on the individual company).

– The Business Model is a taken for granted as strategy cornerstone, assumedly unaffected by external changes.

The Context

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu7

• Context• The iCargo project and ecosystem• The approach to reference Business Models

– Reference Business Models– iCargo Ecosystem evolution

• Business Models evolution in the ecosystem– Example

• Lesson learnt • Conclusions

Contents

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu8

Achieve the iCargo vision through an open freight management ecosystem.

In the case of iCargo this is the provision of door-to-door low-carbon logistic services, i.e., services that:

– cover an entire supply chain or a significant portion of it, – produce less CO2 than alternatives,– make use of the iCargo ecosystem to combine services

through different transport modes and providers.

The iCargo ecosystem

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu9

Aim:• to support cooperation of logistic and financial services

concerning the iCargo ecosystem;• to be an ideal representation of the customer-supplier

relationships. The represented relationships are value-creation links: • the supplier must provide an adequate measure of value to

the customer for the relationship;• to be sustainable in market terms.

The iCargo Reference Value Chain

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu10

There are three user roles in the iCargo value chain:1. Logistic Service Client (LSC): purchasing the door-to-door service

solution (e.g., manufacturing or distribution company). 2. Freight Service Integrator (FSI): providing the combined door-to-door

service to the LSC (typically a freight forwarder).3. Logistic Service Provider (LSP): providing transport and logistic services

contributing to the door-to-door solution (e.g., carriers for the various transport modes).

There are three supporting roles in the iCargo value chain:A. Information Services Integrator (ISI): providing the information

infrastructure of the iCargo ecosystem;B. Transportation Network Manager (TNM): in charge of managing of the

transportation infrastructure sustaining the door-to-door flow;C. Transport Regulator (TR): ensuring that all services are completed

according to existing rules and regulations.

The elements of the iCargo Reference Value Chain

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu11

Players and value-chain

Logistic ServicesClient (LSC)

Low-carbon door-to door

service

Logistic resources and

capabilitiesFreight ServicesIntegrator (FSI)

Logistic ServicesProvider (LSP)

Needs goods delivered with

lower emissions, good performance and no extra cost

Needs to deliver door-to-door service by organizing logistic

resources and capabilities

Needs to make own resources and

capabilities accessibleand well utilised

Information ServicesIntegrator (ISI)

Informationservices

infrastructureTransportation Network

Manager(TNM)

Transportinfrastructure

RegulatoryCompliance

TransportRegulator (TR)

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu12

• Context• The iCargo project and ecosystem• The approach to reference Business Models

– Reference Business Models– iCargo Ecosystem evolution

• Business Models evolution in the ecosystem– Example

• Lesson learnt • Conclusions

Contents

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu13

Main elements to be considered:• starting point: Osterwalder Canvas to describe the

business models;• goal: evaluate the impact of the project on the

exploitation plans;• approach: systematic approach to be applied to the

different subjects involved in the exploitation strategy of the project.

Key elements

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu14

iCargo approach – Business Model evolution

APPROACH:• collection of current business models of LSC, FSI, LSP and ISI

based on the common well-known Osterwalder Canvas;

• mapping current business models by the different involved actors and the business and technical innovations introduced by iCargo (so called “jobs-to-be-done”);

• creation of a template to examine and define reference business models;

• definition and analysis of the iCargo Ecosystem in terms of its components and evolution.

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu15

iCargo approach – Business Model evolution (1)

APPROACH:• collection of the description of the current business models

applied by the role involved in the iCargo reference value chain:– high-level definition of current business models for:

• LSC, Logistic Service Client ,• FSI, Freight Service Integrator,• LSP, Logistic Service Provider ,• ISI, Information Service Integrator;

– utilization of the common well-known approach by Osterwalder;

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu16

Osterwalder Canvas

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu17

iCargo approach – Business Model evolution (2)

APPROACH:• collection of current business models of LSC, FSI, LSP and ISI

based on the common well-known Osterwalder Canvas;

• mapping current business models by the different involved actors and the business and technical innovations introduced by iCargo (so called “jobs-to-be-done”);

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu18

General example of the mapping

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu19

iCargo approach – Business Model evolution (3)

APPROACH:• collection of current business models of LSC, FSI, LSP and ISI

based on the common well-known Osterwalder Canvas;

• mapping current business models by the different involved actors and the business and technical innovations introduced by iCargo (so called “jobs-to-be-done”);

• creation of a template to examine and define reference business models;– the template allows to examine the new business models:– the template is used to systematically consider alternative approaches to

value creation in terms of reference business models.

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu20

Example of template utilization

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu21

Template features

• This template is defined in different versions, one for each category of actors.

• The columns represent the nine elements of the Canvas and the rows are the jobs that have a deeper impact for the considered category of actors.

• The combination of the different effects of the iCargo jobs on the current business models leads to the definition of new business models.

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu22

iCargo approach – Business Model evolution (4)

APPROACH:• collection of current business models of LSC, FSI, LSP and ISI

based on the common well-known Osterwalder Canvas;

• mapping current business models by the different involved actors and the business and technical innovations introduced by iCargo (so called “jobs-to-be-done”);

• creation of a template to examine and define reference business models;

• definition and analysis of the iCargo Ecosystem in terms of its components and evolution:– common understanding of what is a business ecosystem,– evolution of the current market to the future iCargo ecosystem.

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu23

iCargo Ecosystem – composition and evolution

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu24

• Context• The iCargo project and ecosystem• The approach to reference Business Models

– Reference Business Models– iCargo Ecosystem evolution

• Business Models evolution in the ecosystem– Example

• Lesson learnt • Conclusions

Contents

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu25

Example: Logistic Services Client (Retailer)Current B.M.:

Compete on price, position, service

iCargo “Jobs”:1a: Logistics plans with environm. criteria2a: Integrate logistics with production3a: Manage carbon footprint cross-chain

Evolved Business Models: BM1: Enhanced Retailer: exploits collaboration to improve efficiency and footprint.BM2: “Green” Retailer: exploits collaboration to sell low-CO2 products.BM3: e-Commerce Retailer: exploits collaboration to sell to new customers on-line.

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu26

FSI – Reference Business Models

FSI

Virtual IntegratorAsset-bound FSI Network-bound FSI

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu27

FSI evolution in the iCargo ecosystem

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu28

• Context• The iCargo project and ecosystem• The approach to reference Business Models

– Reference Business Models– iCargo Ecosystem evolution

• Business Models evolution in the ecosystem– Example

• Lesson learnt • Conclusions

Contents

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu29

What is the current Business Model?• Refer to the Osterwalder Framework, and:

– Produce a Business Model Canvas of the organization’s current business model.

Lesson learnt – how to use the proposed approach

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu30

Example – ACME company

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu31

How will the business model change?• Refer to the Osterwalder Framework, and:

– Produce a Business Model Canvas of the organization’s target business model, including:

• How each category is changed compared to the current business model.

INPUT for business model evolution

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu32

Example – ACME company

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu33

• Context• The iCargo project and ecosystem• The approach to reference Business Models

– Reference Business Models– iCargo Ecosystem evolution

• Business Models evolution in the ecosystem– Example

• Lesson learnt • Conclusions

Contents

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu34

• The logistics industry sustainability, in both business and environmental terms, calls for collaborative Business Models.

• Business players will evolve jointly, not individually, through the creation of a business ecosystem where information is easily exchanged and chains of specialized actors outperform individual service providers.

• The dynamics of this transformation need to be investigated through experimentation, to be initiated in the iCargo project.

Conclusions and next steps

iCargo Training Series: Overcoming the challenges of using multi-modal services www.i-cargo.eu35

Valentina BoschianBluegreen Strategy srl

Thank You

35

iCargo Training Seminar - ECITL 23 October, 2013 - Zaragoza

www.i-cargo.eu

Intelligent Cargo in Efficient and SustainableGlobal Logistics Operations

Credits:

Presented by: Valentina BoschianBluegreen Strategy srlvalentina.boschian@bluegreenstrategy.comwww.bluegreenstrategy.com

Material: Valentina BoschianBluegreen Strategy srl

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