business-eco- system modeling3dae96eb8… · business eco-system modeling for infrastructure...

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At a glance Digitization and urbanization are key trends that change the way citizens work and live, where new forms of housing and accom- modation change the way people live. The sharing economy affects private and business life alike, as new atti- tudes towards ownership, collabora- tion and consumption arise. Moreover, the dash towards circular economy alters citizens expectation towards localized use and refine- ment of resources. So what does this mean for Urban In- frastructure? It changes the expectations and re- quirements of infrastructure services. However, it does not change their ne- cessity. Community economic, social and environmental development and the availability of safe, reliable energy and value-added energy services are inextricably linked. Without an ade- quate and predictable supply of energy and related services, the community cannot respond to the demands of changing residential, commercial and industrial customer needs in a way that will enable their growth and evolution. The challenge The City of Helsinki is setting out to developing the area of Östersundom as a greenfield project. Östersundom shall become a "Smart & Clean" new district of Helsinki City, serving as a testbed for innovative projects and as center for companies and as an attrac- tive place to live and develop local business, sparking economic impulse beyond the district for the wider Hel- sinki area. In this context a "Bio- Integrate" of interested stakeholders has come together to support the for- mation and profiling of the new dis- trict. Focus areas for the bio-economy that shall see rise in Östersundom are Food, Fiber and Energy. Our solution Siemens provided it's Business Eco- System Modeling approach, in order to set a frame and to establish the devel- opment basis for the future definition of interrelated Business Models for key stakeholders. This approach enables the later realization of executable Business Models. At the same time the approach allows to validate design paradigms, such as “circular economy" and identifies potential value gaps. The ultimate objective is to endorse the prosperity of bio-economy activities as set out by the City's vision for Östersundom Smart & Clean District. Key questions addressed How to enable co-creation of inno- vative business models in a green- field district? How to optimally unlock the value creation potential of infrastructure, overcoming the diffused benefits problem? How to optimize value streams? How to jointly attract investors and entrepreneurs? Figure 1: Business Model refinement during workshop Business Eco-System Modeling for Infrastructure Development Communities exist within a wider business ecosystem, and a business ecosystem exists within the communi- ty itself. Like a natural ecosystem, indi- vidual entities within the ecosystem exchange energy and other `value cur- rencies' amongst themselves in an ef- fort to remain viable, to grow, and to prosper. Not every organization within the business ecosystem directly inter- acts with all other organizations; how- ever two of the most significant char- acteristics of all organizations are that they exist within the same community Business-Eco- System Modeling Business-Eco-System Modeling for Hel- sinki's new Smart & Clean District Östersundom siemens.com/power-technologies

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Page 1: Business-Eco- System Modeling3dae96eb8… · Business Eco-System Modeling for Infrastructure Development Communities exist within a wider business ecosystem, and a business ecosystem

At a glanceDigitization and urbanization are keytrends that change the way citizenswork and live, where

· new forms of housing and accom-modation change the way peoplelive.

· The sharing economy affects privateand business life alike, as new atti-tudes towards ownership, collabora-tion and consumption arise.

· Moreover, the dash towards circulareconomy alters citizens expectationtowards localized use and refine-ment of resources.

So what does this mean for Urban In-frastructure?

It changes the expectations and re-quirements of infrastructure services.However, it does not change their ne-cessity. Community economic, socialand environmental development andthe availability of safe, reliable energyand value-added energy services areinextricably linked. Without an ade-quate and predictable supply of energyand related services, the communitycannot respond to the demands ofchanging residential, commercial andindustrial customer needs in a way thatwill enable their growth and evolution.

The challengeThe City of Helsinki is setting out todeveloping the area of Östersundom asa greenfield project. Östersundomshall become a "Smart & Clean" newdistrict of Helsinki City, serving as atestbed for innovative projects and ascenter for companies and as an attrac-tive place to live and develop localbusiness, sparking economic impulsebeyond the district for the wider Hel-sinki area. In this context a "Bio-Integrate" of interested stakeholdershas come together to support the for-mation and profiling of the new dis-trict. Focus areas for the bio-economythat shall see rise in Östersundom areFood, Fiber and Energy.

Our solutionSiemens provided it's Business Eco-System Modeling approach, in order toset a frame and to establish the devel-opment basis for the future definitionof interrelated Business Models for keystakeholders. This approach enablesthe later realization of executableBusiness Models. At the same time theapproach allows to validate designparadigms, such as “circular economy"and identifies potential value gaps. Theultimate objective is to endorse theprosperity of bio-economy activities as

set out by the City's vision forÖstersundom Smart & Clean District.

Key questions addressed· How to enable co-creation of inno-

vative business models in a green-field district?

· How to optimally unlock the valuecreation potential of infrastructure,overcoming the diffused benefitsproblem?

· How to optimize value streams?

· How to jointly attract investors andentrepreneurs?

Figure 1: Business Model refinement duringworkshop

Business Eco-System Modeling forInfrastructure DevelopmentCommunities exist within a widerbusiness ecosystem, and a businessecosystem exists within the communi-ty itself. Like a natural ecosystem, indi-vidual entities within the ecosystemexchange energy and other `value cur-rencies' amongst themselves in an ef-fort to remain viable, to grow, and toprosper. Not every organization withinthe business ecosystem directly inter-acts with all other organizations; how-ever two of the most significant char-acteristics of all organizations are thatthey exist within the same community

Business-Eco-System ModelingBusiness-Eco-System Modeling for Hel-sinki's new Smart & Clean DistrictÖstersundom

siemens.com/power-technologies

Page 2: Business-Eco- System Modeling3dae96eb8… · Business Eco-System Modeling for Infrastructure Development Communities exist within a wider business ecosystem, and a business ecosystem

and they use energy as an input to thecreation of value. Hence, the return tothe initial roots and purpose of energyinfrastructure, as an enabler for allmodern economic activity:

Siemens Model captures the economicactivities and relations of the BusinessEco-System, displaying the complexityof relations and perspectives.

The most atomic view is an individualBusiness Model and its components.The broadest view shows the entireEco-System Network and it's multi-dimensional interconnections. Also,the model allows to define systemboundaries for the economic activitiesthat can be re-defined if necessary.Hence, the Eco-System" Model ap-proach describes, analyzes and alsoallows to optimize Business eco-systems.

· It allows to cope with the complexi-ty inherent to the system.

· The Meta-model creates a commonlanguage that helps - cross domain -to establish agreements on transac-tions prior to investment decisions.This allows to capture value and po-tentially optimize the eco-system inspecific areas or in it's entirety.

For Östersundom’s Smart & Clean dis-trict the bio-integrate Siemens has

· Created an integrated Business Eco-System Overview (cf. Figure andFigure )

Figure 2: Eco-System Overview

Figure 3: Eco-System Zoom-In

· Validated the New Smart & CleanDistrict Design Paradigms for its ef-fectiveness on the economic devel-opment goals.

· Facilitated a “communityhackathon” of interested stakehold-ers with more than 100 invited par-ticipants, representing start-upcompanies, incumbent industry andcity planning departments. The par-ticipants had to challenge the validi-ty of initially defined business mod-els and value proposition. Addition-ally, co-creation of the intercon-nected eco-system community wasinitialized.

· More than 25 interrelated BusinessModels were identified and extend-ed, connecting the business focusareas energy, food and fiber.

· Derived the Value Chain Network tolater determine the implementationroad map, ensuring infrastructuresupports the business needs mosteffectively.

ConclusionThe Bio-Integrate’s key question for thenew Smart & Clean district is to max-imize local value generation while min-imizing the outflow of investment re-sources.

The Business Eco-System approach hascreated a common language for all thestakeholders and their diverse back-grounds.

Thus, it enables value oriented deci-sion making, overcoming single per-spective silos. Ultimately, it shall ena-ble a new rather ground breaking ap-proach to Community Decision Mak-ing, ensuring energy infrastructure willcreate value for the individual actorbut also and foremost for the society.

Finally, transparency has been createdon the value gaps of the envisionedbusiness eco-system. A clear under-standing of the required next steps foreffective continuation of the develop-ment is established for the decisionmakers of the City Planning Depart-ment.

Published bySiemens AG 2017

Energy Management DivisionFreyeslebenstrasse 191058 Erlangen, Germany

For more information, please [email protected]

Subject to changes and errors. The infor-mation given in this document only con-tains general descriptions and/or perfor-mance features which may not alwaysspecifically reflect those described, orwhich may undergo modification in thecourse of further development of theproducts. The requested performance fea-tures are binding only when they are ex-pressly agreed upon in the concluded con-tract.

siemens.com/power-technologies

Testimonials from Business-Eco-System Workshop Participants:

“Now we see some linksbetween the entities, itstarts to look like busi-ness”

“Who will buy all theseproducts, is there mar-ket?”

– here we really see thelinkage between entitiesnow”

“This is more than anstart, excellent basis tocontinue”