business models in the internet of services -

© Fraunhofer IAO, Stuttgart

Business Models in the Internet of ServicesBusiness model methods to strengthen innovations

Nico WeinerFraunhofer IAOCompetence Center Electronic Business

15. September 2010Xinnovations 2010, Berlin

© Fraunhofer IAO, IAT Universität Stuttgart

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Agenda

Business Models – Between Business Ideas and Business Plans

Business model trends in the »Internet of Services«

Selected use cases

Outlook on business model management


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Fraunhofer IAO – Ideas for success

Found in: IAO – 1981IAT – 1991

Head of Institute: Prof. Dr.-Ing. Dr.-Ing. E.h. Dieter Spath

Financial volume: 28 Mio €, davon 35% im Auftrag der Wirtschaft

Permanent staff: 400 employees(Data of the year 2009, inclusive IAT of the University of Stuttgart)

Information and communication

intelligent exploitation of the full IT-potential

successfull implementation of process innovation

intuitive design of systems


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Motivation

»Business models are perhaps the most discussed and least understood aspect of the web. There is so much talk about how the web changes traditional business models. But there is little clear-cut evidence of exactly what this means.« Rappa 2001

Kubicek, Brückner, Businesspläne für IT-basierte Geschäftsideen, 2010

Product

innovative

existing

Business model

existing innovative

New producte.g. Notebook

New industrye.g. Netscape, Google, eBay

Existing industrye.g. various PC-

vendors

New business model

e.g. DELL


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The Business Model-Stack

Osterwalder, Pigneur, Tucci in comm. of AIS (2005)


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Business Models as preliminary stage of Business Plans

Business Model Business Plan

Target group

Business Developer, Partner Investors (Venture Capitalists, Banks ...)

Time relation

Usually a snapshot at one point in time

Shows changes in time and predicts the market

Form of presetation

visual textual

Granularity Reduced to most important facts Many details

ObjectiveEarly identification and brainstorming of

chances, risks and activitiesto realize a business idea

Description of all chances, risks and activities related to an coming or already existing business


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Business Model ConceptIn

tern

alPe

rsp

ecti

veEx

tern

alPe

rsp

ecti

ve

•Market segments•Distribution Channel•Target Customer

•Groupings of Customers and Customers•Customer Relationship

•Business Web•Partners and Resellers•Business Relationship

•Competition•Competitors

•Value Proposition describing

•Value Intention

•Customer Experience

•Partner Experience

•Use Case Scenarios

•Products & Services

•Product Offerings

•Service Offerings

•Complementary Offerings

•Business Rules

•Business Processes

•Capabilities

• IT-Resources

•Human Resources

Value Approach

Market Interface

Products & Services

Value Creation & Capabilities

Financial Domain•Investors & Investment Streams•Revenue Streams•Pricing•Costs


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Agenda



Selected use cases



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Side trip – German IT-Vendors and the »Internet of Services«

Current german publications »Geschäftsmodelle im Internet der Dienste« – Aktueller Stand in Forschung Praxis and Trends und Entwicklungen auf dem deutschen IT-Markt

Addresses vendors, scientists and other interestedparties in the area of internet services

German version free to download at www.itbusinessmodels.org (Rubric Publications –English summaries currently only available as presentations)


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Infrastructure as a Service An option for German IT-Providers?

How do you rate the attractiveness of Infrastructure as a Service-Providers like Amazon EC2, S3 for the operation of SaaS-solutions?

Replies of German IT-Providers; n=114


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Responsiblities and Roles to realize SaaS

Replies of German IT-Providers; n=114

How would you realize the distribution of responsibilities and roles within a partner-network to offer a SaaS-solution?

Almost similar results for cooperative outsourcing of »Software-Customization«, »Software-Integration« and »Training of the customer«


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Software as a ServicePricing criteria

Replies of German SaaS-Providers; n=89

What are the criterions for your pricing?


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Agenda



Selected use cases



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Excerpt of the Amazon business model

Value Approach

Value Creation & Capabilites

Financial Domain

Infrastruktur-Dienste

Plattform-Dienste

Anwendungen und Dienstleist-

ungen

Market Interface

Products & Services

Ausbildungsmaterial für Schulen zu speziellen KonditionenUnternehmens-kunden (Käufer)

Corporate Accounts (Unternehmensrabatte)

Privatpersonen (Käufer) Soziales Netzwerk:

Empfehlungen, Kommentare, Wunschliste, die persönliche

Seite, Foren

AmazonPrime-Mitgliedschaft (kostenloserExpress/Premiumversand)

Author Fresh (verderbliche

Produkte)

Kindle & eBooks

Multimediainhalte (MP3, Video on

Demand)

Amazon Visa Karte

IMDb (Filmdatenbank)

Author BlogsAmazon AuthorsCentral/Connect

AmazonAdvantage (Selbstverlag)

Privatpersonen (Verkäufer)

Produkte & Dienste (z.B. Fotobücher)

Fulfillment by Amazon (Auftragsbearbeitung inkl.

Lagerung und Versand)

Amazon WebStore (angepasster Webshop mit

eigenem Branding)

Amazon Elastic Compute Cloud (Rechenleistung)

Amazon Cloud Front (Bereitstellung von Inhalten, z.B. Medieninhalten)

Amazon S3 (Speicherung von Inhalten)

Amazon SimpleDB, SQS, SNS, CloudWatch (Bereitstellung von

technischen Diensten)

Amazon FWS, FPS, DevPay (Dienste zur Abwicklung und Abrechnung)

Unternehmens-kunden

(Verkäufer) & Entwickler


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OnLive - revolution in entertainment?

Value Approach

Market Interface

Products & Services


Financial Domain

Target customers

Publishers

Hardware-providers

Telecommunication-providers /

Infrastructure-providers

MicroConsole adapter

Game Service

Playing modern games restricted by almost no hardware-requirements

Using the serviceeverywhere (?)

"Free the user" of storageand performance

Competitors (?)

High server-performance requirements

Game Management (online-profiles and storage)

Multiple server-farms in many locations (~600

km to customer)

fixed one-time + monthly fee

High bandwidth (5Mbit)


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The business model of the iTunes-offering

Value Approach

Market Interface

Products & Services


Financial Domain

Hardware-providers

Competition in different areas - microsoft, amazon, maxdome

Content-providers -Music Labels

Payment-providers -Click&Buy

Target Customers

High End ProductsSoftware developers

Image & Lifestyle

AllInOne-Funcationality (apps, movies, pictures,

music, contacts ...)

Software-Engineering

Hardwaredesign

"Green" Products

Server infrastructure

Hardwaredesign

Marketing and PRIntegration of Hard- and Software

iTunes-Software

"iTunes-aware" Hardware -iPod, iPhone, iPad, AppleTV

Apps- and 3rd-Party Apps

Content


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Agenda



Selected use cases



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[moby:designer]Software-supported Business Model Design


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Thanks for your time!

Download of publications and presentations at www.itbusinessmodels.org/?q=content/publications. (partially german)

Nico WeinerDipl.-Wirt-Inf.

Competence Center Electronic BusinessFraunhofer Institute of industrial engineering IAONobelstrasse 12 | 70569 Stuttgart, GermanyPhone: +49 711 [email protected]

business models in the internet of services -

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business models

business model

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