Innovation 3.0 - The challenge of business modelling in a new innovation era

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The challenge of business modellingin a new innovation era

TII Annual Conference:Innovation 3.0: Challenges, Needs and Skills for the new innovation eraDüsseldorf, 28 to 30 April 2010

Markus Schroll & Joachim Hafkesbrink

R&D Project AchtInnoContract number 01FH09003 funded by:

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Innovation 4.0 ?

Web 4.0Cross-linking

intelligent applications

Ubiquitous Outernet

Web 3.0Cross-linking knowledge

Semantic enterprise

Web 2.0Cross-linking

users

Anthropocentric communities

Web 1.0Cross-linking information

Corporate Individualism

The Emergence of Innovation 3.0

social inclusion and participation

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Embedded Innovation

Open Innovation

Closed Innovation Organi-zational Change

Decentral Social

Communities

Knowledge Embedding

Open Collaborative Learning

Semantic Knowledge

Management

Intelligent Semantic Agents

NDAIPR

Semantic Knowledge Networks

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Market for Hardware

(end-user devices etc.)

Market for Transmission

Carriers

Market for Content

Packaging &Applications

Market for Contents

Convergence of Markets

Market for ...

Market Demand

Innovation System of the Digital Economy

Competition regulation

Institutional Framework(Governance)

Digital Signature Act

Media Law

StandardsPatent-laws

eCommerce-Law

Demographic Change

Globalisation

Internationalisation

Multi-agent system of Innovation

Actors

Telecommunication

Media-Technologies

IT-/Electronics

Basic services

Value-Services

Distri-bution

Add. Services

Content Generation

Pack-aging

Distri-bution

Enduser Devices

PartsSoftware Platforms

Distri-bution

Add. Services

Semantic Techn.

... ... ... ...

Technology Knowledge Sources

Technology Transfer Melting

Kernel

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Outer Knowledge

Space

Organizatio-nal Kernel

Inner Knowledge

SpaceConventional organizational boundary

Gra

vita

tion

al

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ddin

g Fo

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Pro-sumers

Community of Affinity

Feed-backs

Ex-perts

Community of Practice

Community learning

cycle

Innova-tors

Community of Interest

Cross-Innovation: ideas from outside the

city wall

Researchers

Scientific Community

Technology Transfer

Multi-Agent-System – Embedding into Communities -

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The Business Model Canvas Value

Propositions

Channels

Customer Relationships

Customer Segments

Revenue StreamsCost Structure

Key Partners

For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

What are the most important costs inherent in our business model? Which Key Resources are most

expensive? Which Key Activities are most expensive?

Who are our Key Partners? Who are our key suppliers? Which Key Resources are we

acquiring from partners? Which Key Activities do

Partners perform?

Key Activities

What Key Activities do our Value Propositions

require? Our Distribution

Channels? Customer Relationships? Revenue

Streams?

Key Resources

What Key Resources do our Value Propositions

require? Our Distribution

Channels? Customer Relationships?

Revenue Streams?

What value do we deliver to the customer? Which one of our customer´s

problems are we helping to solve? Which customer needs are we satisfying? What bundles of products

and services are we offering to each Customer

Segment?

Through which Channels do our Customer

Segments want to be reached? How are we

reaching them now? How are our Channels

integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating

them with customer routines?

What type of relationship does each of our

Customer Segments expect us to establish

and maintain with them? Which ones have we

established? How costly are they? How are they integrated with the rest of our business model? For whom are we

creating value? Who are our most important

customers?

Source: Osterwalder/Pigneur (2009): Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers

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Type of firm Value Proposition Links to Knowledge Communities in the Context of Business Model Innovation CoA CoP CoI CoS

Publishing house (books and job printing)

Community Platform for book recommendations

User Generated Content – UGC (book recommendations)

Professional Generated Content - PGC (book recommendations)

ECommerce platform for other publishers (co-opetition)

Recommendation engine based on Semantic Technologies

IT-Services

Provision of data security and filter systems for youth endangering contents

Blacklistings based on UGC

Blacklistings based on UGC

Professional Associations against youth endangering contents support

Textrecognition and comprehension based on mathematical algorithms

Documentary Film Production

Edutainment 3.0 platform to deliver HD educational content

UGC PGC from teachers and further education institutions

Associations of further education support

Semi-automated annotation of videos

Publishing house (periodicals)

Interactive Guide from pregnancy to young families

UGC from fora and blogs

PGC - Medical advice Medical associations support

Trendmonitoring based on IT-supported Social Networking Analyses

Full Service Internet Agency

Visualization of Hyperlocal Information

End-users of web 3-D and LBS services

Web 3-D repositories for virtual worlds based on Open Source

Cooperation with eLearning and serious games providers

Fame Mirror Concepts to intrinsically motivate participants

Internet Platform Service Provider

The Best Doctor for your health problem

UGC – evaluations from patients

Semantically enhanced Ontology based on Open Source

Medical associations support

Semantic Technologies for search and annotation

Publishing house (newspaper)

Regional IPTV to complement printed content

UGC – regional and local content (non-professional journalism)

PGC – professional produced regional and local content

Co-opetition with other publishers in the region

Semantic technologies for context-related ads-targeting

Webanalytics Interactive online engine to ensure Compliance with data laws

End-user comments as source of compliance information

PGC (interactive guide for compliance management)

Professional association of the Digital Economy

---

Publishing house (books)

Location Based Services for tourists on mobile devices

UGC of tourists to enhance authentic information

PGC of professional writers

B2B ad-partners for implementing the business model

Fame Mirror Concepts to intrinsically motivate participants

Full Service Internet Agency

Interactive mobile Guide with location based events & gaming services

UGC – evaluations of events, restaurants, etc.

Tourist information based on professional writings, special technology solution providers

B2B Cooperation with ad-partners, local trade-, tourism & event marketing organizations

---

Learning Management system provider

Web 2.0 based learning and competences monitoring

UGC from learners PGC from training experts

Professional association of further education institutions

Competences ontology

CMS provider

Mobile CMS system to deliver content effectively to mobile devices

UGC from mobile device users (usability feedbacks)

link to mobile CMS based on Open Source

Professional association of the Digital Economy

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Business Model Cases in the Digital Economy

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Business Modeling: new challenges at the customer side

B2B

Pro-sumers

Communities of Affinity

B2C

C2C

Customer Segments

For whom are we creating value? Who

are our most important customers?

Value Propositions

What value do we deliver to the customer? Which one of our customer´s

problems are we helping to solve? Which customer needs are we satisfying? What bundles of products

and services are we offering to each Customer

Segment?

Customer Relationships

What type of relationship does each of our

Customer Segments expect us to establish

and maintain with them?

Revenue Streams

For what value are our customers really willing to pay? For what do they currently pay?

How can we combine our products / services with user

generated value?

Does user generated value support our value

proposition?

Do we understand the relationships between our

customers?

How should we support conversation in the market and between customers?

Do we need to address prosumers different from

consumers?

Who is creating value for our business model?

What are the dynamics of value creation in our

customers community?

Is it possible to exploit user generated value commercially?

The practice: LocalMobile.NRW1

• no marketable products/services without

UGC

• B2B customers (restaurants, shops, cultural

institutions etc.) and consumers have to

deliver content and have to pay for the

products/services

• initiating of a premium user community

• setting up of a decisive incentive system

• clear IPR regulations

• cross lateral exploitation (e.g. combine

revenue streams from pay per transaction

and adverts)

1 LocalMobile.NRW is a mobile application for local

personalized and context-sensitive content.

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Business Modeling: new challenges at the producing side Value

Propositions

What value do we deliver to the customer? Which one of our customer´s

problems are we helping to solve? Which customer needs are we satisfying? What bundles of products

and services are we offering to each Customer

Segment?

Cost StructureWhat are the most important costs inherent in our

business model?

Key Activities

What Key Activities do our Value Propositions

require?

Key Resources

What Key Resources do our Value Propositions

require?

Key Partners

Who are our Key Partners? Who are our

key suppliers?

Innova-tors

Community of Interest

Ex-perts

Community of Practice

Researchers

Scientific Community

What are the cost impacts of Community involvement intoour business model?

How can we combine our products / services with user generated value?

Can we provide added value with complementary

services our partners or communities?

What key activities are required to sustain our

communities of knowledge?

How can we ensure mutual learning within

communities and

knowledge transfer to our business model?

What key ressources and organizational antecedents are

required to embed successfully in our

communities?

The practice: LocalMobile.NRW1

• pro-active community engineering

• setting up of a decisive incentive system

• setting up of learning arenas

• trendscouting in the communities

• development and managing of

organizational readiness, collaborative

capabilities, absorptive capacities

• integrating new enabling technologies

• collaborative design and development

• transaction costs of community

engineering

1 LocalMobile.NRW is a mobile application for local

personalized and context-sensitive content.

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A new important player: ProsumersKey Partners

Who are our Key Partners? Who are our key suppliers? Which Key Resources are we

acquiring from partners? Which Key Activities do

Partners perform?

Customer Segments

For whom are we creating value? Who are

our most important customers?

Pro-

sumers

Communities of Affinity

Are selected prosumers expected to evolve being key suppliers?

e.g. business travellers, mobile nerds

How do we need to support key-prosumer’s interaction with our business model architecture?

e.g. setting up of common communication/learning arenas

How do we mash-up contributions from key-prosumers within our business model?

e.g. clear IPR regulations and incentives(establishing of win-win situations)

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Communities and the innovation processKey Resources

What Key Resources do our Value Propositions

require? Our Distribution

Channels? Customer Relationships?

Revenue Streams?

Pro-sumers

Co-ideation Co-design Co-development Co-production

Ex-perts

Innova-tors

Researchers

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Innovation 3.0 – what does this mean?More than a new buzzword!

• synchronization of organizational structures, processes and cultures of the firm with

• open collaborative learning processes in surrounding communities, networks and stakeholder groups

Integrating the firm into communities to ensure knowledge absorption and to exploit this knowledge for commercial ends.

Business modelling for innovation 3.0?A never ending story!

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Thank you for your interest.

Contact:

Markus [email protected]

Dr. Joachim [email protected]

Bürgerstr. 1547057 DuisburgGermany

Tel. +49-203-393764-0

www.innowise.eu