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Business Model Design



                              FITT
– Fostering Interregional Exchange in ICT Technology Transfer –



                                www.FITT-for-Innovation.eu
Except where otherwise noted, this work is licensed under a Creative Commons Attribution 3.0 License.
What is Business Modelling at Tudor?


  
       a process for designing a sustainable business model (BM)
  
       a culture promoting business awareness to newbies
  
       some tools and techniques to design a business model, by
       structuring the approach, driving the process and allowing for
       continuously improving.




2 | April 2011                     Business Model Design
Why do we need such a process?


  
       Our TT staff is junior
  
       We work with researchers, having no (few) business practice (or
       knowledge)
  
       We need to convince stakeholders to join in unusual business
       models, such as top management, external partners, policy makers,
       internal research team.
  
       We observed a lack of creativity in the envisaged business solutions
  
       We struggle against a lack of information to ground business
       decision




3 | April 2011                    Business Model Design
Who has contributed


     Our staff
     External partners in innovation
        
            Pigneur & Osterwalder (Lausanne)
                 
                     Research in Strategy & Business Models, Consultancy in Strategic Innovation (for banks, music,
                     litterature and more)

        
            Gordijn (Amsterdam)
              Research in Value Networks engineering, Consultancy in Service Design & Partnerships (for Power
               supply, music, Policy management and more)

        
            Yu (Toronto)
              Research in Early Requirements Engineering and Strategic Fit.

        
            Philippe De Ridder (Antwerpen)
              Visualisation of value network and business model innovation.


4 | April 2011                                        Business Model Design
How does it work?


  
       process: how to design a sustainable BM
                  inspired from design: "design is thinking made visual" - Saul Bass (1921 – 1996)




  
       Step 1: Mobilize: to prepare for a successful TT effort
                  Involve and motivate the right people (varied, mixed, knowledgeable or representative)


5 | April 2011                                  Business Model Design
How does it work?


 
      Step 2:    Design: iteratively improve your current idea
       
            visualize
       
            brainstorm




6 | April 2011                       Business Model Design
How does it work?


  
       Step 3: Prototype


      several tools
                Business Model Ontology
                BM innovation guide
                value networks engineering
                business model prototyping
                tools under development

7 | April 2011                    Business Model Design
How does it work?


 
     Step 4: Assess
    several tools
          Business Model Ontology
          BM assessment guide & diagnostic
          cash flow sensitivity analysis in value network
          scenario based simulations, alternatives & evolutions
          Strategic impact simulation
          tools under development

 
     Step 5: Select   (Innovate): track decisions in a roadmap for further refining opportunities



8 | April 2011                              Business Model Design
Pro’s & Cons


PRO’S
        
            low learning curve
        
            place for supporting creativity
        
            support communication over different backgrounds
        
            great for handling intangible assets


CON’S
       
            lack of ICT tool integration
       
            difficult customization to each TT project context
       
            not a compensation for bad underlying information



 9 | April 2011                        Business Model Design
Impacts


  
       (visual) understanding/sharing of main stakes
  
       (ongoing) wide adoption by internal stakeholders
  
       general interest in Business Modelling arose




10 | April 2011                  Business Model Design
Outcomes


  
       clearer business speech from TT staff
  
       practical design process was appreciated




11 | April 2011                  Business Model Design
Plans for the future


  
       tools development
         
              library of business models
         
              user-oriented documentation
  
       integration into work practices
  
       integrate new interesting techniques & tools




12 | April 2011                   Business Model Design
Lessons Learned


  
       to do again:
         
              guidelines for tools & techniques selection
  
       to improve:
         
              user-oriented documentation
         
              more basic education from the start
  
       we recommend:
         
              contact us if you want to use any of these
              tools: the toolbox still evolves, any
              contribution is welcome

13 | April 2011                Business Model Design
Suggested Readings


 • business model generation, Alexander Osterwalder & Yves Pigneur,
   (book, October 2009), http://businessmodelgeneration.com/
 • value networks engineering, Jaap Gordijn, (articles and tools, 1999-2009)
             http://e3value.com/e3family/

 • scenario based simulations, alternatives & evolutions, Ulf Pillkahn -
   Using Trends and Scenarios as Tools for Strategy Development (book,
   2008), http://books.google.be/books?id=NvTjBbI3jKoC - http://www.pillkahn.com/
 • business model prototyping, Michael Schrage - Serious Play: How the
   World's Best Companies Simulate to Innovate (book, 1999) -
     http://www.amazon.com/exec/obidos/ASIN/0875848141/ - http://danbricklin.com/log/seriousplay.htm

 • value networks visualisation, Philippe De Ridder & Nick De Mey, (tools
   and posts, 2009-2011), http://www.boardofinnovation.com/


14 | April 2011                             Business Model Design

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FITT Toolbox: Business Model Design

  • 1. Business Model Design FITT – Fostering Interregional Exchange in ICT Technology Transfer – www.FITT-for-Innovation.eu Except where otherwise noted, this work is licensed under a Creative Commons Attribution 3.0 License.
  • 2. What is Business Modelling at Tudor?  a process for designing a sustainable business model (BM)  a culture promoting business awareness to newbies  some tools and techniques to design a business model, by structuring the approach, driving the process and allowing for continuously improving. 2 | April 2011 Business Model Design
  • 3. Why do we need such a process?  Our TT staff is junior  We work with researchers, having no (few) business practice (or knowledge)  We need to convince stakeholders to join in unusual business models, such as top management, external partners, policy makers, internal research team.  We observed a lack of creativity in the envisaged business solutions  We struggle against a lack of information to ground business decision 3 | April 2011 Business Model Design
  • 4. Who has contributed  Our staff  External partners in innovation  Pigneur & Osterwalder (Lausanne)  Research in Strategy & Business Models, Consultancy in Strategic Innovation (for banks, music, litterature and more)  Gordijn (Amsterdam)  Research in Value Networks engineering, Consultancy in Service Design & Partnerships (for Power supply, music, Policy management and more)  Yu (Toronto)  Research in Early Requirements Engineering and Strategic Fit.  Philippe De Ridder (Antwerpen)  Visualisation of value network and business model innovation. 4 | April 2011 Business Model Design
  • 5. How does it work?  process: how to design a sustainable BM  inspired from design: "design is thinking made visual" - Saul Bass (1921 – 1996)  Step 1: Mobilize: to prepare for a successful TT effort  Involve and motivate the right people (varied, mixed, knowledgeable or representative) 5 | April 2011 Business Model Design
  • 6. How does it work?  Step 2: Design: iteratively improve your current idea  visualize  brainstorm 6 | April 2011 Business Model Design
  • 7. How does it work?  Step 3: Prototype  several tools  Business Model Ontology  BM innovation guide  value networks engineering  business model prototyping  tools under development 7 | April 2011 Business Model Design
  • 8. How does it work?  Step 4: Assess  several tools  Business Model Ontology  BM assessment guide & diagnostic  cash flow sensitivity analysis in value network  scenario based simulations, alternatives & evolutions  Strategic impact simulation  tools under development  Step 5: Select (Innovate): track decisions in a roadmap for further refining opportunities 8 | April 2011 Business Model Design
  • 9. Pro’s & Cons PRO’S  low learning curve  place for supporting creativity  support communication over different backgrounds  great for handling intangible assets CON’S  lack of ICT tool integration  difficult customization to each TT project context  not a compensation for bad underlying information 9 | April 2011 Business Model Design
  • 10. Impacts  (visual) understanding/sharing of main stakes  (ongoing) wide adoption by internal stakeholders  general interest in Business Modelling arose 10 | April 2011 Business Model Design
  • 11. Outcomes  clearer business speech from TT staff  practical design process was appreciated 11 | April 2011 Business Model Design
  • 12. Plans for the future  tools development  library of business models  user-oriented documentation  integration into work practices  integrate new interesting techniques & tools 12 | April 2011 Business Model Design
  • 13. Lessons Learned  to do again:  guidelines for tools & techniques selection  to improve:  user-oriented documentation  more basic education from the start  we recommend:  contact us if you want to use any of these tools: the toolbox still evolves, any contribution is welcome 13 | April 2011 Business Model Design
  • 14. Suggested Readings • business model generation, Alexander Osterwalder & Yves Pigneur, (book, October 2009), http://businessmodelgeneration.com/ • value networks engineering, Jaap Gordijn, (articles and tools, 1999-2009) http://e3value.com/e3family/ • scenario based simulations, alternatives & evolutions, Ulf Pillkahn - Using Trends and Scenarios as Tools for Strategy Development (book, 2008), http://books.google.be/books?id=NvTjBbI3jKoC - http://www.pillkahn.com/ • business model prototyping, Michael Schrage - Serious Play: How the World's Best Companies Simulate to Innovate (book, 1999) - http://www.amazon.com/exec/obidos/ASIN/0875848141/ - http://danbricklin.com/log/seriousplay.htm • value networks visualisation, Philippe De Ridder & Nick De Mey, (tools and posts, 2009-2011), http://www.boardofinnovation.com/ 14 | April 2011 Business Model Design