www.i-cargo.eu

Intelligent Cargo in Efficient and SustainableGlobal Logistics Operations

Introduction to iCargo

ecosystem ---

iCargo Training Series-Zaragoza-23.10.2013

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Valentina BoschianBluegreen Strategy srl

Introduction to iCargo ecosystem

iCargo Training Session23rd October 2013, Zaragoza, Spain

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• 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

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• 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

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• 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

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• 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

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• 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

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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

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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

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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

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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)

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• 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

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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

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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.

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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;

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Osterwalder Canvas

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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”);

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General example of the mapping

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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.

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Example of template utilization

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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.

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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.

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iCargo Ecosystem – composition and evolution

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• 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

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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.

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FSI – Reference Business Models

FSI

Virtual IntegratorAsset-bound FSI Network-bound FSI

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FSI evolution in the iCargo ecosystem

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• 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

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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

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Example – ACME company

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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

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Example – ACME company

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• 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

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• 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

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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