INTRODUCTION BUSINESS MODEL Product Customer Infrastructure BUSINESS/IT ALIGNMENT Alignment

INTRODUCTION

BUSINESS MODEL• Product• Customer• Infrastructure

BUSINESS/ITALIGNMENT• Alignment• Enterprise model• Applications & platform

BUILDINGONTOLOGY

CONCLUSION

Interop > CAISE-EMOI’05 > June 2005

e-business model ontology for improving business/IT e-business model ontology for improving business/IT alignmentalignment

BFSH1 - 1015 Lausanne - Switzerland - Tel. +41 21 692.3416 - [email protected] - http://www.hec.unil.ch/yp

Université de LausanneEcole des Hautes Etudes Commerciales (HEC)

Table of content

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Université de Lausanne

© 2005 Pigneur

Agenda

• BUSINESS MODEL– Product

– Customer

– Infrastructure

• BUSINESS/IT ALIGNMENT– Alignment

– Enterprise model

– Applications & platform

• BUILDING ONTOLOGY– Logic

– Protégé (& PAL)

– Protégé OWL/DL (Description Logic)

BUSINESS MODEL | BUSINESS/IT ALIGNMENT | BUILDING ONTOLOGY

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Business model > evolution

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

02.janv.9602.janv.9702.janv.9804.janv.9903.janv.0002.janv.0102.janv.0202.janv.03

Nasdaq

Business Models

S&P

Occurrences of the term « business model » in business and academic journals(in Business Source Premier)compared to the NASDAQ

BUZZWORD or MEANINGFUL ARTIFACT?

BUZZWORD or MEANINGFUL ARTIFACT?

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Business model: buzzword or meaningful artifact?

• A buzzword with no precise definition?– […] Executives, reporters and analysts who use the term don't have a clear idea of

what it means. They use it to describe everything from how a company earns revenue to how it structures its organization

or …

• An artifact aggregating …– the value a company offers to one or several segments of customers, and

– the architecture of the firm and its network of partners

– for creating, marketing and delivering this value and relationship capital,

– in order to generate profitable and sustainable revenue streams.

[Linder, 2000]

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A company that defines it’s business model can...

• Understand– The process of modeling social systems or ontologies–

such as an e-business model – helps identifying and understanding the relevant elements in a domain and the relationships between them

• Share knowledge– The use of formalized e-business models helps

managers communicate and share their understanding of a business among other stakeholders

• React to rapid change– Mapping and using e-business models facilitates

change. Business model designers can easily modify certain elements of an existing e-business model

Formal

Document

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A company that defines it’s business model can… (continued)

• Measure– A formalized e-business model can help identifying the

relevant measures to follow in a business, similarly to the Balanced Scorecard Approach

• Simulate & learn– e-business models can help managers simulate

businesses and learn about them. This is a way of doing risk free experiments, without endangering an organization

System

thinking

BSC

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Why a business model approach to e-strategy?

Business Processes

Business Model

StrategyPlanning level

Architectural level

Implementationlevel

Information & Communication

Technology (ICT) pressure

e-Business opportunities & change

e-Businessprocesses

e-Business Technology layer

Conceptual architectureof a business strategy

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Evolution of research in business model

define & classify business models

list businessmodel components

describe business model elements

model business model elements

apply business model concept

Rappa 2001Timmers 1998Tapscott, 2000

Linder & Cantrell 2000 Magretta 2002

Afuah & Tucci 2001Hamel 2000Weill & Vitale 2001

Gordijn 2002Osterwalder & Pigneur 2002Geerts and McCarthy, 2002

definitions & taxonomies

"shopping list" of components

components as building blocks

reference models & ONTOLOGY

applications & conceptual tools

activity

outcomes

authors

Modelling Rigour (towards a business model ontology)

TOVE

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BUSINESS MODEL

Core capability

Value configuration

Partnership

Customer group

Relationship

Distribution channel

VALUE proposition

Revenue

Cost

HOW?

WHAT?

HOW MUCH?

What do we offer to our customers?

How do we operate and deliver?

How do we collaborate?

What are our key competencies? What are our revenues? Our pricing?

What are our costs?

Who are our customers?

How do we reach them?

How do we get and keep them?

WHO?

Trust


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Product innovation

Core capability

Value configuration

Partnership

Customer group

Relationship


VALUE PROPOSITION

Revenue

Cost

HOW?

WHAT?

HOW MUCH?How do we operate and deliver?



What are our costs?




WHO?


ProductInnovation

ProductInnovation

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Value proposition What do we offer to our customers?

refined by

• Reasoning (use, risk, effort)

• Life cycle (creation, appropriation, use, renewal, transfer)

• Value level (me-too, innovation/imitation, innovation)

• Price level (free, economy, market, high-end)

• Category (barter, sale, market, buy)

Valueproposition

Customer groupCore capabilitiesrequires targets

1

• To characterize product innovation, the value proposition defines– the actual product or service, and

– the value or benefits perceived by customers of the products and services offered by the firm

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Value proposition > price/value

PR

ICE

VALUE

Val

ue fr

ontie

r

Underperformers

Me-too Imitativeinnovation

excellence innovation

High-end

market

economy

free EasyJet

Exec jet

High-endQuality, comfort

…

Low cost(frequent flight, on-time schedule, service)

Major airlines

[Kambill, 1997]

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Value proposition > Montreux Jazz Festival

MJF concerts

MJF off

MJF frequentation

MJF recordings

MJF brand & franchise

MJF sponsoring

Festival visitors

Shops

Sponsors

Record, TV, artists

Franchisees

CUSTOMERS

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Value proposition > Montreux Jazz Festival

VALUE PROPOSITION Name: MJF sponsorship

Description: The international reputation and the size of the MJF makes it an ideal partner for sponsorships. With its great concerts, large crowd and international media presence it gives affiliated sponsors a large visibility.

Reasoning: {Use}: An MJF sponsorship contract gives a partner the possibility to potentially address 240'000 people and build be co-branded with the MJF.

{Risk}: As the MJF is an established institution with an established brand and a solid customer base the risk of entering a troubled partnership is very low.

Value level: {Me-too}: The MJF is a mass advertising "media" among others. Thought it is one of the top established festivals the value level of a sponsorship with the MJF is com parable to other festivals.

Price level: {Market}: The price level of a sponsorship at the MJF is situated at market levels.

Composed of OFFERINGs: (the detailed OFFERINGs are captured in annex XXX) • Affiliation • Advertising space • Sponsors' events • Free tickets Value for TARGET CUSTOMER: 3: TARGET CUSTOMER Sponsors Based on CAPABILITYies: 2: CAPABILITY Attract and feature great stars and concerts

4: CAPABILITY Attract people

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Customer relationship

Core capability

Value configuration

Partnership

Customer group

Value proposition

Revenue

Cost

HOW?

WHAT?




What are our costs?

WHO?





Customerrelationship

Customerrelationship


Relationship mechanisms

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Customer group Who are our customers?

refined by

Customergroup

Value proposition

• Reasoning (segment, community, …)• CRITERION• Category

targeted by

2

• Categorizations of the population into social class or psychologically defined groups

• Area where a firm can specialize and gain competitive advantage– By having lower costs or customer-satisfying differentiation

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Customer group > Montreux Jazz Festival

MJF concerts

MJF off

MJF frequentation

MJF recordings


MJF sponsoring

Festival visitors

Shops

Sponsors

Record, TV, artists

Franchisees

VALUE PROPOSITION

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How do we reach our customers?

precedes

Distributionlink

Distributionchannel

Customer groupValue proposition

by

delivers serves

Actor

refined byis a

• Customer buying cycle (awareness, evaluation, purchase, after sale) • Category (network, internet, call center, …)

3


• A channel can be defined as a set of links or a network via which a firm “goes to market” and delivers its value proposition.

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Distribution Channel > Montreux Jazz Festival

MJF advertising

MJF concert listing

Free distribution of the MJF program, also as supplement

Advertising for up-coming events

Online program, news feed and real videos

of past concerts

Real videos of past concerts, various

information

www.montreuxjazz.com

MJF event

www.ticket corner.ch

Ticket Corner

MJF program

CHANNEL {Awareness} {Evaluation} {Purchase} {After sales}

Channel strategy at the Montreux Jazz Festival (essentially for Festival visitors)

Emissions, and supplements on the

MJF

Media

www.montreux sounds.com

Artist descriptions, online program, MJF

virtual tour

Ticket office

Online ticketing (48% of tickets) and online shop

Online ticketing

Swiss-wide ticket agency shops

Program distribution

MJF Sponsors

Worldwide promotion

Swiss Tourism: Top Events of

Switzerland

46% of tickets

MJF concert database, taste real

videos

Artist and event descriptions

AFTER SALES

EVALUATIONPURCHASE

AWARENESS

[Moriarty, 1990] [Muther et al., 2000] [Ives et al., 2000]

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Distribution Channel > Montreux Jazz Festival

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Relationship mechanism How do we get and keep our customers?

refined by

Relationshipmechanism

• Reasoning (acquisition, retention, add-on selling, …)• Category (trust, personalization, brand…)

Customer group

Value proposition

concernsDistribution link

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Relationship mechanism

• Customer equity – Customer Acquisition

• How do we get customers?• Growing market share

– Customer Retention• How do we keep customers?• Nurturing customer loyalty

– Add-on selling• How do we get customers to buy more?

Enhancing Average Revenue Per User (ARPU)

• Relationship mechanisms– Trust

– Customization (One-to-one)

– Recommendation …

[Blattberg, 2001]

Certification

Verification et authorization

Escrow

Notary, payments

Expertise

Guarantee of quality

Rating

Reputation of actors

Insurance

Risk management

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Relationship mechanism > Montreux Jazz Festival

• Relationship 1 with Sponsors & VIPs.– The MJF carefully pays attention to its relationships with sponsors and VIPs that it embraces the same

way. During the Festival it makes wants them to live a unique experience. Therefore, they installed a special host and protocol service. Guests of the MJF (i.e. sponsors and VIPs) and guests of the sponsors are escorted through the venue, have access to the VIP zones and bars and even visit the backstage. …{customer equity: retention}

• Relationship 2 with the Festival's visitors. – The MJF maintains an address book of over 60'000 occurrences worldwide which it uses to annually

distribute the MJF program. Furthermore, visitors of the MJF website can subscribe to a newsletter that allows them to keep up-to-date and get the Festival program the instance it becomes official. {customer equity: acquisition/retention}

• Relationship 3 with all customer segments. – Whereas the beginnings of the MJF in the 70s and 80s were characterized by focusing on acquisition

and attracting new festival visitors it has today reached its capacity limits and directs all its efforts to brand building during and after the event. It aims at reinforcing its image of a superior festival and exports this image through franchising.{customer equity: retention}{function: brand}

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Infrastructure management

Value configuration



Value proposition

Revenue

Cost

HOW?

WHAT?




What are our costs?

WHO?




Customer goup


Infrastructuremanagement

Infrastructuremanagement

Partnership agreement

Capability

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Core capabilities and resources What are our key competencies?5

refined by

Resource Value proposition

Actor by

• Category (generative, transformative, …)

required by

Core capability

is a

• Resource (ASSETS)– available & useful in detecting and responding to market opportunities or threats

• Capability (KNOW-HOW)– Aptitude to exploit and coordinate resources to create, produce, and/or offer

products and services to a market

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Capability > Montreux Jazz Festival

Attractive MJF Venue

Mobilize volunteer staff

Atmosphere & experience

Contract stars

Attract people

MJF concerts

MJF off

MJF frequentation

MJF recordings


MJF sponsoring

Festival visitors

Shops

Sponsors

Record, TV, artists

Franchisees

VALUE PROPOSITION

CUSTOMER

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Value configuration How do we operate and deliver?6

Valueactivity

Valueconfiguration

Actor by

• Category {Value chain, Value shop, Value network …}• activity level• activity nature

needs (in)implements

Resource Value proposition

refined byis a

Category {principal, support …}

creates (out)

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Value configuration > Montreux Jazz Festival

Contract musicians

Recording concerts

Selling recordings

Merchandising

Food & Beverages

Concerts

Advertising the MJF

Ticketing

Contract sponsors

Manage volunteers

Manage JAZZ

Manage infrastructure

Commerce Production

musicians

Sponsors

JAZZ

venues

recordings

Nobs Network

tickets instruments

flow

flow

flow

flow

fit

fit

flow

fit

fit

flow

share

Programming

flow

by MJF

by MJF

by MJF, Ticket Corner

by MFJ, sponsors, media, Swiss tourism, Montreux

by Montreux Sounds

by MJF, artists

by MJF, caterers, Heineken

by shops

by MJF

by MJF

by MJF

by MJF

by MJF, Municipality

by MJF

by MJF

NETWORK PROMOTION

SERVICE PROVISIONING

NETWORK INFRASTRUCTURE

fit fit

Define concert date and stage to be filled

list music styles and possible artists

Choose artist Put artist in program

Evaluate concert and ticket sales

Problem finding

see focus

Focus: Programming decomposed into its sub-activities (forming a value shop)

Problem solving

Choice Execution

Evaluation

Activity Resource By ACTOR

Legend

Nobs & staff flow

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Value configuration > Montreux Jazz Festival

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Partnership agreement How do we collaborate?

refined by

Partnershipagreement

Actor with

• Category {chain, market, network …}• strategic importance• degree of integration• degree of competition• substitutability

concerns

Core capability


Value configuration

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Partnership agreement > Montreux Jazz Festival

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Value configuration and partnership > e3value

[Gordijn, 2002]

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Financial aspects

Core capability

Value configuration

Partnership agreement



Value proposition

REVENUE

Cost

HOW?

WHAT?




What are our costs?

WHO?




Customer group


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Revenue stream What are our revenues? Our pricing?

refined by

Revenuestream

• Category {subscription, sale, advertisement …}

concerns

Customer group

Value proposition

Distribution link

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Revenue stream > categories

REVENUE

one time

recurrent

sale

registry

subscription

advertisement

use

Income of the subscription fees to become a memberPaid by the buyer and/or the vendor

transaction

commission Income, percentage of a transaction made by the settlement(affiliate program)

Income of online sales paid by the buyer

Income of the ad banners posted on the shopfrontPaid by the vendor

Phone• registry• subscription• Usage

• Time• Services

combinationMobile:

PRE-PAID card

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Profit and cost account What are our costs?

refined by

Costaccount

• Category

concerns

Core capability

Partnership

Value configuration

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Profit model

Revenues

Total net revenue

Cost of goods sold

Total Costs of goods sold

Gross margin

Total Costs of goods sold

Operating expenses

research and development

sales and marketing

general and administration

Total operating expenses

Operating income (loss)

Income (loss) before tax

Net income (loss)

PROFIT = (P – VC).Q – FC

P the unit price of a

product

VC the variable cost of a

unit

Q the number of products

sold

FC fixed costs

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Profitability evaluation > e3value

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Business model (Bird’s eye view)

VALUE PROPOSITIONs

MJF Concerts MJF off

Frequentation MJF Sponsorship

Festival recordings MJF Brand & Franchise

CAPABILITYies

Atractive MJF venue Contract stars Attract people

Mobilize volunteers Atmosphere & Experience

CUSTOMERs

Festival visitors Shops

Sponsors Record, TV, artists

Franchisees

RELATIONSHIPs

PARTNERSHIPs

Artists, sponsors, shops, F&B, volunteers, media,

infrastructure, general festival partners, "Friends of the Festival", musical

partners, Montreux municipality

ACTORs

Artists, Media, Sponsors, Montreux, Volunteers,

F&B, Merchants, Montreux Sounds, Sunset Music, Swiss Tourism, IJFO,

SMPA

REVENUE MODEL

Ticket sales {41%} Sponsoring {20%}

F&B {28%} Merchandising {5%}

Recordings {4%} Diverse {2%}

COST STRUCTURE

Infrastructure {20%} Artists {29%} F&B {10%}

Merchandising {2%} Production {16%} Fixed costs {15%} Marketing {4%}

Divers {4%}

PROFIT/LOSS

INFRASTRUCTURE MANAGEMENT

CUSTOMER RELATIONSHIP

PRODUCT INNOVATION

FINANCIAL ASPECTS

CHANNELs

Montreuxjazz.com MJF event

TicketCorner bricks&clicks MJF program

Media Sponsors

MontreuxSounds.com Swiss tourism TEOS

VALUE CONFIGURATION

Contract musicians, contract sponsors, ticketing,

advertising / concerts, F&B, commerce, merchandising, selling recordings / manage

MJF infrastructure, production, manage JAZZ, manage volunteers, record

concerts

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BUSINESS/IT ALIGNMENT

BUSINESSstrategy

ITstrategy

Functionintegration

Strategicfit

BUSINESS IT

strategy

infrastructureIS

infrastructureORGANIZATION

infrastructure

ArchitectureProcessesSkills

Technology scopeSystem competenciesIT governance

Administrative structureBusiness processes

Skills

Business scopeDistinctive competencies

IT governance

[Henderson and Venkatraman, 1993]


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Business/IT alignment: enterprise modeling, applications, ontology …

ORGANIZATIONinfrastructure

ISinfrastructure

BUSINESSstrategy

ITstrategy

BUSINESS IT

strategy

infrastructure

VALUE propositionValue configuration

Customer (relationship)

BUSINESSMODEL

Organization OBJECTBusiness PROCESSTeam (coordination)

ENTERPRISEMODEL

Information OBJECTBusiness TASKUser (interface)

ARCHITECTURE& PLATFORM

Strategicfit

Functionintegration

ONTOLOGY

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Business IT/IS Alignment - IS PLANNING


ISinfrastructure

BUSINESSstrategy

ITstrategy

BUSINESS IT

strategy

infrastructure



BUSINESSMODEL

Strategicfit



• application portfolio• IT infrastructure services• measures

Functionintegration

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Application portfolio

Impact of existing IS

STRATEGIC POTENTIAL

OPERATIONAL SUPPORT

Activities Strategic Key Operational Support High Potential Contracting musicians Database, Office Contracting sponsors Ticketing Website

(NAGRA s ystem) Reservation System Accounting

Promotion Website Mailing Database, Office

CMS

Concerts (NAGRA System) Production F&B (NAGRA System) Paycenter Accounting, Office Commerce (NAGRA System) Paycenter Accounting, Office Merchandising (NAGRA Syst em) Paycenter Accounting, Office Website Selling recordings Concert Database Accounting, Office Website

(Music downloading) manage MJF infrastructure Production Production JAZZ currency & CASH Paycenter & Views Accounting, Office Volunteer m anagement (NAGRA system) Volunteer Database Volunteer Database,

Office

[Ward, 2002]

futu

re

Illustration

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IT infrastructure

Application infrastructure

Communication

Data management

IT management

Security

Architecture & standards

IT research & development

IT education

Illustration

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Measure > Balanced ScoreCard (BSC)

INNOVATION

CUSTOMERS

INFRASTRUCTURE

FINANCE

CUSTOMER

INNOVATION

FINANCE

PROCESSES

Illustration

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Business IT/IS Alignment - Process and task modeling

• Process Viewpoint• IS Viewpoint


ISinfrastructure

BUSINESSstrategy

ITstrategy

BUSINESS IT

strategy

infrastructure



BUSINESSMODEL


ENTERPRISEMODEL

Strategicfit

Functionintegration



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AMSTERDAM FUA

Business/IT alignment > from business model to process model

From business valueto organization efficiency …

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STOCKHOLM KTH


From business valueto organization efficiency …

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LUXEMBOURG


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GoalsTasksUsers - Architecture & standardsIT research & developmentIT educationValue propositionTarget customersDistribution channelsCustomer relationshipCapabilitiesActivitiesPartnershipsRevenuesCosts

Business/IT alignment > requirement engineering

Multi-goalsProcessesAgents - Architecture & standardsIT research & developmentIT educationValue propositionTarget customersDistribution channelsCustomer relationshipCapabilitiesActivitiesPartnershipsRevenuesCosts

BUSINESSPROCESS

BUSINESSTAKS

Individual OBJECTSBusiness tasksUser (interface)

Organization OBJECTSBusiness processesAgent (conversation)

QuickTime™ et undécompresseur TIFF (LZW)

sont requis pour visionner cette image.

BUSINESSMODEL

GOAL-BASED MODEL?

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Business/IT alignment > requirement engineering

TORONTO

• goal-based• dependency

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Business IT/IS Alignment - Ontology

• Terminology• Standard


ISinfrastructure

BUSINESSstrategy

ITstrategy

BUSINESS IT

strategy

infrastructure



BUSINESSMODEL


ENTERPRISEMODEL

Strategicfit

Functionintegration

ONTOLOGY



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computer-assisted tool

Computer Aided Business Design

• Business Model Design & Communication (i.e. the drawing board)• Requirements Engineering• Balanced Scorecard• Knowledge Management & Visualization

visualizationIndicators/measuresrequirementscommunication

xy

modelling &formalizationlayer

applicationlayer

usagelayer

which model?

which artefact?

Has management improved?

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Business model > Computer-Aided Business Design

HTML Document

SVG Document

PDF Document

Word Document

e.g. a two page overview of a company’s business model

e.g. a ten page report of a company’s business model

e.g. a detailed n-page description of the company’s business model

e.g. a graphical view of a business model issue such as the channel strategy

ValueProposition

ValueProposition

Characteristics

SetOfOfferings

SetOfOfferings

OfferingCharacteristics

Description

Name

Offering

ValueLevel

Reasoning

LifeCycle

PriceLevel

Risk

Use

Effort

InnovativeInnovation

MeToo

Excellence

Innovation

Economy

Free

Market

HighEnd

Description

Name

ValueLevel

Reasoning

LifeCycle

PriceLevel

InnovativeInnovation

MeToo

Excellence

Innovation

Economy

Free

Market

HighEnd

Risk

Use

Effort

element

element

element obligatory element

optional element

choice between

sequence of

1 - n elements

Legend

ValuePropositionIDAddressesCustomerIDREFBasedOnCapabilityIDREF

LifeCyclePhase{Creation, Purchase, Use,Renewal, Transfer}

LifeCyclePhase{Creation, Purchase, Use,Renewal, Transfer}

OfferingID

XML-based document management

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BUSINESS MODEL ONTOLOGY

Channel CustomerPropositionConfigurationCapability

LinkActivity

Cost Revenue

Partnership RelationshipActor

Needsrequires

Profit

HOW?

WHAT?

HOW MUCH?

WHO?

Resource


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Formal rules > definition

A VALUE PROPOSITION is an overall view of a firm’s bundle of products and services that together represent a value for its customer.

A CUSTOMER GROUP define the type of customers a company wants to address.

A DISTRIBUTION CHANNEL describes how a company gets in touch with its customers.

…

Channel Customer GroupValue propositiondelivers reaches

targets

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Formal rules > relationships

Each VALUE PROPOSITION targets one or several CUSTOMER GROUPs

targets (v, c)

A DISTRIBUTION CHANNEL can deliver VALUE PROPOSITIONs and reach CUSTOMER GROUPs

delivers (d,c)

reaches (d,c)

If a VALUE PROPOSITION targets a CUSTOMER GROUP, then the later is targeted by the former

isTargetedBy (c, v) = targets (v, c)

[…]

(1)

(2)

(3)

(4)

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Formal rules > axioms

If a DISTRIBUTION CHANNEL delivers a VALUE PROPOSITION and

reaches a CUSTOMER GROUP,

then this VALUE PROPOSITION targets this CUSTOMER GROUP:

delivers (d,c) reaches (d,c) target (v,c)

If a VALUE PROPOSITION targets a CUSTOMER GROUP,

then it exists a DISTRIBUTION CHANNEL which delivers this VALUE PROPOSITION and

reaches this CUSTOMER GROUP:

target (v,c) d . delivers (d,c) reaches (d,c)

(7)

(8)

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Protégé

OBJECT

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Protégé > PAL

delivers(d,c) reaches (d,c) target (v,c)

target (v,c) d . delivers(d,c) reaches (d,c)

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Protégé/OWL

DESCRIPTION LOGIC

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Protégé/OWL > basic concepts

A VALUE PROPOSITION targets CUSTOMER GROUPs and

is delivered by DISTRIBUTION CHANNELs.

In OWL abstract syntax

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Protégé/OWL > basic concepts (cont’d)

A DISTRIBUTION CHANNEL can deliver VALUE PROPOSITIONs and

reach CUSTOMER GROUPs

A CUSTOMER GROUP is targeted by VALUE PROPOSITIONs and

Is reached by DISTRIBUTION CHANNELs

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Protégé/OWL > desirable properties

A VALUE PROPOSITION targets at least one CUSTOMER GROUP and

should be delivered by at least one DISTRIBUTION CHANNEL

We first defined the DesirableValueProposition subsuming the BMElement

with the restriction defining the range of the targets property

plus a minimal cardinality

Then …

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Protégé/OWL > desirable properties > reasoning

The RACER classifier result was to suggest to move the

DesirableValueProposition from the BMElement to the ValueProposition.

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Protégé/OWL > desirable properties > final solution

DesirableValueProposition subsumes ValueProposition and

inherites its two properties restricting targets and isDeliveredBy

with additional cardinality constraints …

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Protégé/OWL > instances

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Protégé/OWL > axiom 7

• If a DISTRIBUTION CHANNEL delivers a VALUE PROPOSITION and reaches a CUSTOMER GROUP, then this VALUE PROPOSITION targets this CUSTOMER GROUP


Rewritten as:

• For a given VALUE PROPOSITION, the CUSTOMER GROUPs reached by the DISTRIBUTION CHANNELs delivering this given VALUE PROPOSITION should be included in the CUSTOMER GROUPs targeted by this given VALUE PROPOSITION

(7)

Channel Customer GroupValue propositiondelivers reaches

targets

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Protégé/OWL > axiom 7 > instanced object

We introduce an “instanced” ValueProposition named “anyVP”

Or …

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Protégé/OWL > axiom 7 > alternative

• If a DISTRIBUTION CHANNEL delivers a VALUE PROPOSITION and reaches a CUSTOMER GROUP, then this VALUE PROPOSITION targets this CUSTOMER GROUP


Rewritten as:

• for a given CUSTOMER GROUP, the VALUE PROPOSITIONs delivered by the DISTRIBUTION CHANNELs reaching this given CUSTOMER GROUP should be included in the VALUE PROPOSITIONs targeting this given CUSTOMER GROUP:

(7)

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Protégé/OWL > axiom 7 > comment

• The solution we found for modelling the axiom (7) is not fully satisfactory• since the inclusion constraint is specified for an “instanced” concept; • the reasoner won’t be able to work on all the instances we could have been

added in the database.

• In this particular case, since there is an equivalencederived from the two rules (7) and (8),

• we could have solved this problem in DL by declaring the identity (same-as) between the direct property (targets) and the composition of the indirect properties (isDeliveredByreaches).

• However OWL does currently not allow the composition of properties [7].

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Business model > Protégé/OWL > axiom 7 > SWRL

• Another way to deal with this kind of axioms could be to use SWRL(Semantic Web Rule Language),

• Using this language, the axiom (7) could be written in a identical way:

delivers(?d, ?v) ∧ reaches(?d, ?c) ⇒ targets(?v, ?c)

• To the detriment of the loss of decidability

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Questions …

http://www.hec.unil.ch/yp/TALK/slides/Emoi05.ppt


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“Clearing right” case study

• A case study about the clearance of music rights, including the special case of clearing music for Internet radio stations. – It focuses on one particular intellectual property right (IPR) in the music business,

which is the right to make public.

– This right needs to be obtained by everyone who plays music in public, which is outside a private environment.

• The case study includes three actors– Right users acquiring this right to make public include radio & television stations,

restaurants, bars, barbers, in short every one who plays music in public.

– Right owners possessing these rights are artists, producers, composers, and text writers.

– Right societies, intermediaries positioned between the right users and right owners. These societies obtain a fee from right owners for clearing the right to make public. Furthermore, they collect and redistribute the fees owned to right owners by right users

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“Clearing rights” using BMO

Partnership for other national ownership rights

PARTNERSHIP AGREEMENT

VALUE CONFIGURATION

RESOURCE & CAPABILITY

VALUE PROPOSITION

IT infrastructure

COST ACCOUNT

SENA's revenue streams cover its fixed and variable costs and allow it to make a decent profit.

PROFIT/LOSS

RELATIONSHIP MECHANISM

SENA board

DISTRIBUTIONCHANNEL

Transaction cut on broadcasters' making public rights

REVENUE STREAM

CUSTOMER SEGMENT

Offer

SENA business model

FinancialAspects

InfrastructureManagement

CustomerInterface

Umbrella organization of professional users

Right owners

Broadcast media

Professional users

Rights collection and redistribution

Rights clearing

artist acquisition department

active artist acquisition for famous artists

passive web sign-up for unknown artists

standardized mailings

Ability to collect and redistribute fees

Ability to clear rights

Ability to enforce rights

Partnership for international making public rights

connecting rights owners and rights users

Transaction cut on professional users'' making public rights

Personnel cost

...

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“Clearing rights” using e3value

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Comparison of business model ontologies

Area BMO e3value

Network constellation related concepts

The notion of resources and core capabilities present in BMO and important to business management theory could contribute to e3value. Similarly, the reasoning behind partnership agreements in BMO could be integrated into e3value.

The e3value ontology embraces all the actors of the value constellation of a business case and additionally assesses their interest to participate in a particular configuration. This complementary aspect could be merged with BMO's more company-centric view.

Offer-related concepts

The descriptive nature of BMO and the subsequent structured description of a company's value proposition could be integrated into e3value.

Customer-related area

The explicitly modelled distribution channels and relationship mechanisms in BMO are complementary to e3value and could be integrated.

Value exchange related area

The modelling of value exchanges in e3value is very detailed and complementary to BMO. Additionally they can serve as a basis to introduce profitability calculation to BMO, which is absent.

Tool support & usages

Business model navigation and its decomposition in different levels of detail are aspects where BMO is complementary to e3value.

The e3value design tools are already quite advanced and could serve as a basis for a BMO design tool. Similarly, the e3value change methodology is complementary to BMO.

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SKYPE Telcos

Comparaison of business models

Disruption innovation …

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Comparaison of business models > value configuration

SKYPE Telcos

[Gordijn, 2002]

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Comparaison of business models

INTRODUCTION BUSINESS MODEL Product Customer Infrastructure BUSINESS/IT ALIGNMENT Alignment

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