www.FITT-for-Innovation.eu

Business Model Design

FITT

(Fostering Interregional Exchange in ICT Technology Transfer)

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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 BM: structure - drive - improve

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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

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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.

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How does it work?

process: how to design a sustainable BM

"design is thinking made visual" - Saul Bass (1921 – 1996)

inspired from design

Step 1: Mobilize: to prepare for a successful TT effort

Mob

ilize

Des

ign

Man

age

Understand

Brainstorm(visualize)

PrototypeAssess

Innovate(select)

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Step 2: Design: iteratively improve your current idea

visualize

brainstorm

How does it work?

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How does it work?

Step 3: Prototype

several tools

Business Model Ontology

BM innovation guide

value networks engineering

business model prototyping

tools under development

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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): A roadmap in refining opportunities

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Pro’s & Cons

low learning curve

place for supporting creativity

support communication over different backgrounds

great for handling intangible assets

PRO’S

CON’S

lack of ICT tool integration

difficult customization to each TT project context

not a compensation for bad underlying information

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Impacts

(visual) understanding/sharing of main stakes

(ongoing) wide adoption by internal stakeholders

general interest in Business Modelling arose

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Outcomes

clearer business speech from TT staff

practical design process was appreciated

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Plans for the future

tools development

library of business models

user-oriented documentation

integration into work practices

integrate new interesting techniques & tools

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Lessons Learned

redo

guidelines for tools & techniques selection

improve

user-oriented documentation

more basic education from the start

recommend

contact us if you want to use this, it still evolves, any contribution is welcome

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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