Business modelling in the fuzzy front end of innovation camera ready 29june11

Business Modelling in the Fuzzy Front End of InnovationExploring an approach

Sander Limonard*1 , Frank Berkers1, Omar Niamut1, Thomas Bachet1, Mark de Reuver2

Acknowledgement

This research was performed and funded within the FP7 EU funded Integrated Project FascinatE (www.fascinate-project.eu)

R&D management conference 2011, 28-30 june 2011, Nörrkoping, Sweden

* Presenting author1 TNO Applied Research, Delft, the Netherlands2 Technical University of Delft, the Netherlands

Outline presentation

Challenge

Research gap

Proposed methodology

First exploration of legitimacy and validity in case study

Conclusion

The challenge*

time

Flexibility in design choices

Articulation of user/b

usiness requirements

low

high

* Adapted from Collingridge (1980) and Christensen (2002)

Fuzzy Front End

Datum4

Outline presentation

Challenge

Research gap

Proposed methodology

First exploration of legitimacy and validity in case study

Conclusion

Research gap

Nu

mb

er

of

pa

rtn

er

org

an

isa

tion

s

1

5

15

Runtime of collaboration in years

42

Lack of concepts and methodology to coordinate and align strategies and make collaborative business decisions

Research gap in adressing the challenge

time

Flexibility in design choices

Articulation of user/b

usiness requirements

low

high

Fuzzy Front End

Adressed in business modelling literature: scenario’s

Not or poorly adressed in NPD literature: ‘Stakeholder analysis’; ensuring strategic commitment

GAP

Problem statement

How and to what extent might the application of a business modelling

methodology add value in the fuzzy front end of technological driven,

networked R&D projects?

Overall: to link technology design with its impact on the business ecosystem in order to reduce

complexity in decision making

This requires a business modelling framework that:

Allows to map and scope the business ecosystem relevant to the R&D collaboration

Enables to demonstrate how technical design has an impact on networked business

environments

Gives room to the fuzzy, creative process of idea generation

Provides a single heuristic framework to facilitate the dialogue between disciplines

Enables techno-economic design as well as the evaluation of these design choices and the

organisation of a feedback loop

Requirements for a business modelling methodology in the fuzzy front-end

Datum9

Outline presentation

Challenge

Research gap

Proposed methodology

First exploration of legitimacy and validity in case study

Conclusion

Proposed methodology

Proposed methodology

1. Map the business ecosystem

Enables intra project stakeholder mapping and analysis

Enables positioning the technological components under construction to be positioned vis a vis the value

Enables scoping of external environment: markets, rival R&D

2. Create service concepts

Means to explore how technology can be integrated

Sanity check on step 1.

3. Map and analyse techno-economic implications

Identify inclusive set of techno-economic design scenario’s

Means to organize the feedback loop between tech and business

1. Map the business ecosystem

Datum12

Outline presentation

Challenge

Research gap

Proposed methodology

First exploration of legitimacy and validity in case study

Conclusion

Format-Agnostic SCript-based INterAcTive Experience (FascinatE)

Step 1: Mapping the business ecosystem

Result: stakeholder map, scope and high level segmentation

Step 2: Creating service concepts

Result: longlist, boiled down to 5 generic service concepts

Step 3: map and analyze techno-economic design

What if..

Result: 6 x 3 = 18 techno economic design scenario’s: ‘real options’

Datum17

Outline presentation

Challenge

Research gap

Proposed methodology

First exploration of legitimacy and validity in case study

Conclusion

To link technology design with impact on the business ecosystem to reduce complexity in decision

making PARTLY

This requires a business modelling framework that:

Allows to map and scope the business ecosystem relevant to the R&D collaboration YES

Enables to demonstrate how technical design has an impact on networked business environments

YES

Gives room to the fuzzy, creative process of idea generation YES

Provides a single heuristic framework to facilitate the dialogue between disciplines YES/NO

Enables techno-economic design as well as the evaluation of these design choices and the

organisation of a feedback loop NO

Did we meet the requirements?

Conclusion, limitations and future research

How and to what extent might the application of a business modelling methodology add value in the fuzzy front end of technological driven, networked R&D projects?

Valuable as a strategic planning and alignment tool, but not valuable (or poorly timed?) to

organize feedback loop technology-business

Limitations

N=1

No link yet with later phases

Future research

Validate FFE methodology in other projects

Validate how it impacts/susstains as a strategic tool in later phases

Thank you

[email protected]