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Enabling the
Business-Based
Internet of Things and Services
Identification of value objects in IoTS
How to create dynamic value constellations
Translating Knowledge into Growth
FInES Workshop - FI week
9 May 2012
Jesper Thestrup
In-JeT ApS
9 May 2012 Value based Business Models - FInES Workshop - FI week
Things to reflect on from this presentation
Identification of Business Value Objects
Transforming enterprises for growth
What is a value object?
Modelling of IoTS Ecosystems
Value models
Methodologies
Establishing sustainable, dynamic value
constellations
Cases
Conclusion
9 May 2012 Value based Business Models - FInES Workshop - FI week
Trends from Products to Value Services
Product Logistics Installation Commissioning Service
System Integration
Contract Maintenance
Remote Monitoring
Compliance Monitoring
Operational Management
Facility Management
Total Management
Product offerings
Risk/value
9 May 2012 Value based Business Models - FInES Workshop - FI week
… IoTS provides Connectivity and Multimodality
in domains with different technology clockspeeds..
Lifetime typically
more than a decade Rapid changing device
technology ~18 mos
Hitting the ”sound barrier”
9 May 2012 Value based Business Models - FInES Workshop - FI week
The IoTS ecosystem
Pervasive digital environment
Populated by digital components
Evolves and adapts to local conditions
The Digital Ecosystem of IoTS is not a piece of software
It is a digital infrastructure that transport services and knowledge and so empowers the whole business network
Modelling the IoTS
ecosystem
Value models
e3value methodology
9 May 2012 Value based Business Models - FInES Workshop - FI week
A Value Based Business Model
Source: Yves Pigneur, 2006
Customer
group
Value
proposition
Value
configuration
Revenue
Cost
Partnership
Core capability
Dist. Channel
Relationship
Operation and delivery
Collaboration
Key competencies
HOW?
WHAT?
WHO?
Customers
Distribution
Retention
9 May 2012 Value based Business Models - FInES Workshop - FI week
Modelling ontology
Business
Strategy
Organisational
Infrastructure
ICT Product
Strategy
ICT Infrastructure
Business ICT
Functional integration
Str
ate
gic
fit
Process models are designed to give optimum process implementation, but are
not so effective in radically new approaches to the way the company is doing
business
9 May 2012 Value based Business Models - FInES Workshop - FI week
Modelling ontology
Business
Strategy
Organisational
Infrastructure
ICT Product
Strategy
ICT Infrastructure
Business ICT
Functional integration
Str
ate
gic
fit
Value modelling looks at where value is created and for whom. Value modelling
is very suitable for engineering radical strategic changes including new product
strategies and organisational infrastructures
9 May 2012 Value based Business Models - FInES Workshop - FI week
Value modelling
Is the offering feasible in terms of value
proposition to the customer?
Is the offering overall profitable?
Is the global profit fairly distributed on all the
involved actors?
Is the intended offering feasible in terms of
usability?
Is the offering easily understood and acceptable
to all stakeholders?
9 May 2012 Value based Business Models - FInES Workshop - FI week
Elements of the Value Model
Value
propositionValue
configuration
implementsCore
capability
needs
Actor
Value
activity
is a consist of
creates
by
Modelling value configurations
Modelling partnerships
Value
configuration
Core
capability
Distribution
channel
Patnership
agreement
concerns
Actor with
9 May 2012 Value based Business Models - FInES Workshop - FI week
The e3value modelling methodology
A lightweight approach to carry out the value
analysis in a limited timeframe (iterations of the
creativity process)
An economic value aware approach to capture
and evaluate a value proposition (where is the
money?)
A multi-viewpoint approach to deal with a wide
range of stakeholders (who else needs to be in the
game?)
A graphical conceptual modelling approach to
create a common understanding Source: Jaap Gordijn, Vrije Universiteit Amsterdam www.e3value.com
9 May 2012 Value based Business Models - FInES Workshop - FI week
e3value methodology and tool
The e3value ontology expressed in a UML class diagram (Jaap Gordijn, 2002)
Establishing sustainable,
dynamic value
constellations
Cases
9 May 2012 Value based Business Models - FInES Workshop - FI week
The
traditional
business
ecosystem
9 May 2012 Value based Business Models - FInES Workshop - FI week
Baseline Ajax business case
9 May 2012 Value based Business Models - FInES Workshop - FI week
Extended Ajax service business case
9 May 2012 Value based Business Models - FInES Workshop - FI week
Dia
bete
s model in D
enm
ark
9 May 2012 Value based Business Models - FInES Workshop - FI week
Get to Know Your Car!
Raw materials
Energy
Water
Lubricants
Chemicals
Paint
Emissions
Etc…
Per part
Per assembly
Per vehicle
9 May 2012 Value based Business Models - FInES Workshop - FI week
Capture environmental data – for whom?
9 May 2012 Value based Business Models - FInES Workshop - FI week
Conclusions
The business system of industrial goods and related
industrial activiites are changing towards services orientation
Business Modelling of Emerging Service Opportunities in the
IoTS Ecosystem is necessary for IoTS deployment
The importance of applying a value based approach to
business modelling is demonstrated.
De-composing and re-composing value activities is a strong
tool for identifying new IoTS business cases.
In particular, the emergence of new value objects can bring
entirely new actors into the business model.
9 May 2012 Value based Business Models - FInES Workshop - FI week
Please come and visit us…
Jesper Thestrup
www.in-jet.dk
www.public-i.info
www.ebbits-project.eu