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In the context of ITS
Business models
Frank Berkers MSc
+31 6 109 687 93
August, 2008
Goal of the workshop
Introduce/recap business modelling in the context of ITS
OutlinePersonal introductionBusiness model
Business model, case & planValue web
RTTIValue webNRA scenario, TomTom scenario
Summarizing business modelling as a process
Content ….HOME
Introduction
Frank BerkersFrank Berkers MSc MScTNO Information and Communication TNO Information and Communication TechnologyTechnologysenior consultantsenior consultantDepartment Business Innovation and Department Business Innovation and Modelling Modelling - Finance & Business Impact- Finance & Business Impact
Introduction
Business model
Business model - RTTI
Discussion
EconometricsEconometricsComputer Science/Technology ManagementComputer Science/Technology ManagementMarketing Intelligence Analyst ABN AMROMarketing Intelligence Analyst ABN AMROMethodological consultant in MRMethodological consultant in MRsenior consultant TNO ICT BIM senior consultant TNO ICT BIM
Business model
A business model describes the way in which an organisation or network of organizations wants to create value and earn money by applying technology.
When/why do business modelling?
From a historical perspective on development of NRA role↓ From… building and managing infrastructure independently↓ To… procuring infrastructure realisation↓ To… supplying to and cooperating with private parties
Deal with (need for) change –in technology, service..- by exploring strategic alternatives (scenarios), assess risk, – in a structured analytical wayUse available methods (from private domain) also in public and public/private domains
in conversation with industryPreparation for an investment-decision (business case)To facilitate, simplify and unify comparison of countries and services
as a preparation for the implementation framework
Remarks on terminology•‘business’ is not strictly a private domain concept (public domain produces services that lead to ‘utility’ in exchange for funds)•(Business) model and case have different meanings in different contexts
•´case´ is often used as casus, to refer to a situation/ scenario/ circumstance/ affair/ business
The term ‘business case’ mostly referres to a financial analysis. This can be considered as a more extensive elaboration of the financial domain
A ‘business plan’ is a plan to convince decision makers and investors - also includes operational processes and track records of the management team are included
How it connectsHow it connects
Business caseBusiness case Business planBusiness planBusiness modelBusiness model
STOF: business model domains
Service domain describes the service concept of an organisation to a specific customer/end user in a specific market segment.
Technical domain describes the technical architecture and functionalities that are required to realise the service
Organisation domain describes the roles, activities and required parties (valueweb) to create value for a customer
Financial domain describes the way an organisation wants to generate business for a specific service. Important elements: Revenue, costs, risks and investments.
SERVICE DOMAIN
ORGANISATION DOMAIN
TECHNICAL DOMAIN
FINANCIALDOMAIN
Value web analysis
Who is the (end) user? Which roles/activities are required to make & deliver the service? What is the added value of each role?
Roles
Who delivers to who? What is the flow of money?
Relations
Which party is best capable to perform a certain role?Are there combination of roles possible that can be performed by one party?
Parties
Where is the power in the web?Which roles are required to get started?Which cooperations are essential for a good service delivery?
Power
Why business modelling using value web and STOF?
A structured approachframework: complete, customizablenot formal, easily understandablemany approaches are variants of this
‘Backbone’ is a service/process decompositionin line with historical perspective, i.e. shift from infrastructure (tangible) to service provider in a multi party market
Identifies key roles and generates strategic alternatives (scenarios)
reveals implicit choices (and power) – in cases part of the model is ‘predetermined’
Datainfrastructure
provider
Datacollection
Storage / Hosting
Data gathering
Dataaggregation
Decisionmaking
Regulation
Data processing
End user
Content Utilisation
With permission of end user via service
provider
Value web RTTI
ApplicationProvider
ServiceProvider
Communi-cation
Provider
DeviceProvider
Advertising
Content providing
Wholesale ServiceProvider
Datainfrastructure
provider
Datacollection
Dataaggregation
Decisionmaking
RegulationApplication
Provider
ServiceProvider
Storage / Hosting
End user
Communi-cation
Provider
DeviceProvider
Advertising
With permission of end user via service
provider
Wholesale ServiceProvider
RWS - loops
RWS RWS -TIC
RWS -TIC
RWS - Traffic-
mgt
IR detect
RWS - Traffic-
mgt
Business model RTTIScenario: NRA as business owner
0900-9622,SMS
Services: stand-alone
Technique: loops - radio
Organization
Finance: public
Datainfrastructure
provider
Datacollection
Dataaggregation
Decisionmaking
RegulationApplication
provider
Serviceprovider
Storage / Hosting
End user
Communi-cation
provider
Deviceprovider
Advertising
NRA
Business model RTTIScenario: TomTom as business owner
Services: PND integrated
Technique: cell phone - PND
Organization
Finance: subscription service
Datainfrastructure
provider
Datacollection
Dataaggregation
Decisionmaking
RegulationApplication
provider
Serviceprovider
Storage / Hosting
End user
Deviceprovider
Advertising
NRA
Business model RTTI: monetary flowScenario: TomTom as business owner
Communi-cation
providerFlow of money
Business modelling process
Take a current service or design a (hypothetical) serviceDescribe the service as a process in a value web comprising roles/activities, relations (flows of products, services, information and money). Separate subprocesses
Primary: from content creation to deployment to userSecondary: from enabling platform to additional services
Populate/instantiate the value web by assigning parties to the roles and investigate power. Further elaborate the value web by denoting specifics of the four domains: service, technology, organization and finance.This is a business model (also referred to as business model scenario).
From business models to business case
Generate: Create new scenarios or business models (for instance by choosing another technology, or playing “what if…?” ). Appraise: Each model has it’s own pros and cons and can be evaluated against a (preferrably predefined) set of requirements.Selection and detailing: After selecting an acceptable model all relevant flows and effects are quantified. This is the business case.
A business case is positive if it adds value* in a given timeframe.(*utility )
It is advisable to prepare a list of requirements and priorities in advance
criterium / b.m. scenario PND dynamic PND static I2V Model Norway Model SwedenNRA span of control To service provider To map provider To broadcast … …
Extensibility / integration On top of other nav. device services
“stand alone”, no feedback loop
# parties “many” "medium" "few"Reach / accessibility top PND users most PND users
Developments required Speedlimitmap Speedlimitmap Roadside infrastructure Map-standard Map-standard deviceupdate mechanism dispatch OBU installation
Customer service Telecom provider TomTom (NRA)Finance Subscription Subscription / fee of
deviceVia tax
Technology Internet/gprs software of NPD DSRCAverage vehicle delay
Journey time savingSafety
EmissionEconomy / Vehicle operating cost can be combined with
fuel economy alertsMarket / competition
TraceabilityPan- European collaboration
Commercial viability
--- can we think of more criteria? ---
