This PhD thesis presents methods for improving e-business design through business model analysis. The thesis addresses three research questions: how to design business models considering goal models, business collaborations, and e-services. It develops artifacts including a method for designing goal-aligned business models using means templates and transformation rules, a method for business model design based on analyzing business transaction types and resource identification, and a method for e-service design based on transforming business models. The contributions are methods for business model and e-service design that integrate intentions, objectives and stages of business interactions.

1. Improving E-Business Design through Business Model Analysis PhD Thesis TharakaIlayperuma Department of Computer and Systems Sciences Stockholm University Sweden December 8, 2010

2. December 8, 2010 2 Overview Introduction Research Questions and Goals Research Process Improving E-Business Design Through Business Model Analysis Business Modeling Methods E-Service Design Method Contributions

3. December 8, 2010 3 Introduction Business modeling and e-service design have become important parts in developing e-business applications There are various business model design frameworks However, most frameworks do not address the integration on intentions, objectives and stages of business-oriented interactions

4. Introduction From a business point of view, e-business applications should help achieving strategic interests of business stakeholders This can be achieved by considering alignment between different aspects such as goal, business and e-services in the modeling process December 8, 2010 4

5. Research Questions How to design business models and e-services whilst taking into account stakeholder intentions and businessenvironments? By mapping stakeholder intentions and businessenvironments, to goals and businesscollaborations, we derive three specific research questions: How to design business models considering goal models? How to design business models considering business collaborations? How to design e-services based on business models? December 8, 2010 5

6. Research Goals and Overview of the design artifacts in relation to goals To address the research questions presented above, we thus formulate the goals as: To develop a method for designing business models based on goal models To develop a method for designing business models based on business collaboration models To develop a method for designing e-services based on business models December 8, 2010 6

7. Research Process In this research study we have followed a design science research approach to build a set of artifacts to improve e-business design These artifacts are developed in the form of methods for developing a business model considering stakeholder goals and business environments that can be used as a basis for designing economically viable e-services December 8, 2010 7

8. December 8, 2010 8

9. General Background – Business Modeling Why we need business models? To articulate vague business ideas We want to distribute our music electronically We want to outsource our ICT support We want to form a joint venture with a movie-making company What does a Business Model Answer? Which is our value proposition? How does our company create and market this value? Which actors are needed to offer the value? What value do the actors offer each other? ... December 8, 2010 9

10. Analyzing Basic Notions in Business Modeling Economic Resources vs. Internal Values An economic resource is an object that can be offered by one actor to another. Examples can be goods such as cars, books, etc, and services such as medical treatments, hair cuts, etc An internal value is a particular way of providing a resource, e.g. convenience attached to home delivery of a product Resource Transfers Resource Transfer is an activity that transfers economic resources between actors We identify three components of a resource transfer between two actors, for instance, A and B transfer of right from A to B transfer of custody (enabling access to the resource) to B evidence documents from A to B December 8, 2010 10

11. December 8, 2010 11 Analyzing Basic Notions in Business Modeling RESOURCE Movie RESOURCE EVIDENCE DOCUMENT Ticket Transfer of 1 Right 2 Custody (access, enabling) 3 Evidence of right Custody Evidence RIGHT Watch TRANSFER Right

13. Improving Goal – aligned Business Models by Analyzing Business Collaborations December 8, 2010 13 Analyze reciprocal resource transfers in the business model Primary care physician offers basic treatment and referral to Patient e.g. InitialTreatment transactionbetween Patient and Primary care physician Introduce transaction concerning establishment of future commitments PatientRegistration: for registering patients by the health services office Identify resources along different stages of business collaboration RegistrationServiceInfo Identify resources using internal values convenience eCatalogueandPrintedCatalogue

14. E-Services Design Based on Business Models December 8, 2010 14 Business transaction types Different phases of a business collaboration Internal values Business transaction types Business model fragments with business transactions Goal aligned Business Model Means templates Transformation rules Information about Business Business Modeling Identifying Business Transactions Identifying Resources and Value Transfers Designing Business Model Computation Independent Model (CIM) Elicitation of services Method for Designing e-services creating CIM-level process model for each elicited service Transformation rules PIM/Service Behavior Models PIM/Service Profile Models Platform Independent Model(PIM)

15. E-Services Design Based on Business Models December 8, 2010 15 Business transaction types Different phases of a business collaboration Internal values Business transaction types Business model fragments with business transactions Goal aligned Business Model InitialTreatment transaction Means templates Transformation rules Information about Business Identify business services considering business transaction phases Business Modeling depicting exchanged resources TreatmentScheduling service correspond to resource offerings in the negotiation phase Identifying Business Transactions Determine basic activities & resources that describe behavior of the service Identifying Resources and Value Transfers Activity: Provide accreditation Information resource: Accreditation Designing Business Model Business-Oriented Model (CIM) Elicitation of services Apply transform rules (rule 3.a: every information resource is transformed to a message) Method for Designing e-services creating CIM-level process model for each elicited service Transformation rules Message element: accreditaion PIM/Service Behavior Models PIM/Service Profile Models System-Oriented Model (PIM)

16. December 8, 2010 16 Contributions Method for Designing Goal-aligned Business Model Means templates Transformation rules Business transaction types Different phases of a business collaboration Internal values Business transaction types Business model fragments with business transactions Goal aligned Business Model BusinessInformation Method for Designing Business Models Considering Transaction Types A method for designing goal-aligned business model - means templates, transformation rules A method for designing explorative business model by analyzing business collaborations - business transaction types, identification of resources Identifying Business Transactions Business Oriented Models (CIM) Identifying Resources and Resource Transfers Elicitation of services A method for designing e-services based on business models - developing business-oriented models, transformation rules Method for Designing e-services Business-Oriented Service Behavior Models Designing Business Model Transformation rules Service Behavior Models Service Profile Models System Oriented Models (PIM)

17. December 8, 2010 17 Thank you! Questions/Comments