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Modeling e-Business with eBMLModeling e-Business with eBML
CIMRE’2001Mahdia, October 2001
Sarra Ben LaghaAlexander Osterwalder
Yves PigneurHEC Lausanne
[email protected](+41 21) 692.3420
© 2001 Osterwalder, HEC Lausanne e-business 2
Université de Lausanne
WEB | AGENDA | FIN
Why Business Models?
• 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 [Linder, 2001]
• Dynamic business environment
– Shorter product life cycles
– Increased & global competition
– New Information and Communication Technologies (ICT)
• Evolving dynamic business networks
– Business Webs [Tapscott & al., 2000]
– Co-opetition [Brandenburger & al., 1996]
– Fluid organizations [Selz, 1999]
© 2001 Osterwalder, HEC Lausanne e-business 3
Université de Lausanne
WEB | AGENDA | FIN
Business Models: Opportunities
A company that defines it’s business model can...
• …react to rapid change
– Business architects/designers
• …share knowledge
– Business decisions
– buy in
• …simulate & learn
– System dynamics
– ScenariosXML
System
thinking
Objects
© 2001 Osterwalder, HEC Lausanne e-business 4
Université de Lausanne
WEB | AGENDA | FIN
Business Models: Research objectives
E-Business Model Ontologyor Framework (eBMF)
- concepts/models (components)- links between concepts/models
E-Business Model Ontologyor Framework (eBMF)
- concepts/models (components)- links between concepts/models
E-Business Model Handbook- navigate in concepts (www)
- graphical representation- illustrative examples
E-Business Model Handbook- navigate in concepts (www)
- graphical representation- illustrative examples
E-Business Model Language (eBML)
- ontology representation (xml)- graphical representation
- knowledge sharing
E-Business Model Language (eBML)
- ontology representation (xml)- graphical representation
- knowledge sharing
E-Business Model Design Tool
- computer assisted design- evaluation
- change management
E-Business Model Design Tool
- computer assisted design- evaluation
- change management
E-Business Model Simulation
- scenarios (system dynamics)- learn about Business Models
- be prepared
E-Business Model Simulation
- scenarios (system dynamics)- learn about Business Models
- be prepared
E-Business Model Games
- play, learn & understand
E-Business Model Games
- play, learn & understand
© 2001 Osterwalder, HEC Lausanne e-business 5
Université de Lausanne
WEB | AGENDA | FIN
Business Models: State of the art
• Ontologies– Enterprise ontologies: TOVE (Toronto Virtual Enterprise), The Enterprise
Ontology (html), Core Enterprise Ontology (CEO)
– e-Business Process ontologies (in XML): Transactions (xCBL, cXML), Ontology.org (html)
• Business Models– Classification: Timmers (pdf), Rappa (htm), Tapscott.
– Modeling (partial…): Hamel, Gordijn, Afuah, Linder (html).
• Tools– MIT eBusiness Process Handbook (html)
– System Dynamics...http://ecommerce.ncsu.edu/business_models.html
© 2001 Osterwalder, HEC Lausanne e-business 6
Université de Lausanne
WEB | AGENDA | FIN
What is a Business Model (I)?
Business Processes
Business Model
StrategyPlanning level
Architectural level
Implementationlevel
© 2001 Osterwalder, HEC Lausanne e-business 7
Université de Lausanne
WEB | AGENDA | FIN
What is a Business Model (II)?
CUSTOMERRELATIONSHIP
CUSTOMERRELATIONSHIP
InformationInformation
Feel & serveFeel & serve
Trust & loyaltyTrust & loyalty
PRODUCTINNOVATION
PRODUCTINNOVATION
INFRASTRUCTUREMANAGEMENT
INFRASTRUCTUREMANAGEMENT
value forvalue for resources forresources for
Revenue Value added + CostsRevenue Value added + Costs
profit price
Target CustomerTarget Customer
Value propositionValue proposition
CapabilitiesCapabilities
Resources/assetsResources/assets
Activities/processesActivities/processes
Partner networkPartner network
The e-Business Model Framework (eBMF)
© 2001 Osterwalder, HEC Lausanne e-business 8
Université de Lausanne
WEB | AGENDA | FIN
Case study: ColorMailer
ColorMailer...
• ...is a brand of Colorplaza Ltd., an independent company based in Vevey/Switzerland, active in the field of digital imaging and in the development of multimedia Internet applications.
• ...offers products and services in the domain of digital imaging for private customers.
• …bets on the increasing number of owners of digital cameras and scanners (~ 30 million people).
Http://www.colormailer.com
© 2001 Osterwalder, HEC Lausanne e-business 9
Université de Lausanne
WEB | AGENDA | FIN
Case study: Infrastructure Management
CUSTOMERRELATIONSHIP
Information
Feel & serve
Trust & loyalty
INFRASTRUCTUREMANAGEMENT
INFRASTRUCTUREMANAGEMENT
value for resources for
Revenue Value added + CostsRevenue Value added + Costs
profit price
Target Customer
Value proposition
Capabilities
Resources/assetsResources/assets
Activities/processesActivities/processes
Partner networkPartner network
PRODUCTINNOVATION
© 2001 Osterwalder, HEC Lausanne e-business 10
Université de Lausanne
WEB | AGENDA | FIN
Case study: Infrastructure management element at ColorMailer
ACTIVITY CONFIGURATIONACTIVITY CONFIGURATION
Needfor
Resourcesfor
RESOURCES/ASSETSRESOURCES/ASSETS
in-housein-house
Resourcesfor
Needfor
PARTNER NETWORKPARTNER NETWORK
out-houseout-house
uploadimages
Print ofimages
Deliveryof items
Marketingof product
services
Printinginfrastructure
Packingstaff
ColorMailerWebsite
© 2001 Osterwalder, HEC Lausanne e-business 11
Université de Lausanne
WEB | AGENDA | FIN
<eBusinessModel><ProductInnovation>
…</ProductInnovation><CustomerRelationship>
…</CustomerRelationship><InfrastructureManagement>
…</InfrastructureManagement><FinancialAspects>
…</FinancialAspects>
</eBusinessModel>
<eBusinessModel><ProductInnovation>
…</ProductInnovation><CustomerRelationship>
…</CustomerRelationship><InfrastructureManagement>
…</InfrastructureManagement><FinancialAspects>
…</FinancialAspects>
</eBusinessModel>
Case study: Encoding a Business Model with eBML
• Describe Business Models with the “electronic Business Model Language” (eBML)
• eBML is based on XML• Use tags to define the different
elements of a Business Model..– ...with opening/closing tags
– ...and to describe links between the elements
• An eBML starts with the root <eBusinessModel>
• An eBML end with the tag </eBusinessModel>
<Infrastructure_Management><Resources_And_Assets>
…</Resources_And_Assets><Activity_And_Process_Configuration>
…</Activity_And_Process_Configuration><Partner_Network>
…</Partner_Network>
</Infrastructure_Management>
<Infrastructure_Management><Resources_And_Assets>
…</Resources_And_Assets><Activity_And_Process_Configuration>
…</Activity_And_Process_Configuration><Partner_Network>
…</Partner_Network>
</Infrastructure_Management>
© 2001 Osterwalder, HEC Lausanne e-business 12
Université de Lausanne
WEB | AGENDA | FIN
<ActivityAndProcessConfiguration><ValueChain>
<ValueChainActivity><ActivityName>Printing images on physical material</ActivityName><ValueChainActivityDescription>
<ValueChainPrimaryActivities><Operations>This activity consists of printing the virtual digital images on different physicalmaterials, such as photographic paper, T-shirts and mouse pads.</Operations></ValueChainPrimaryActivities>
</ValueChainActivityDescription><ResourceID>004</ResourceID>
</ValueChainActivity><ValueChainActivity>
<ActivityName>Digital Image Upload</ActivityName><ValueChainActivityDescription>
<ValueChainPrimaryActivities><SupplyChainManagement>In order to print the digital images on physical items, thisbinary information must be transmitted to the production facilities over a network. Digitalimage transmission is a complex problem because of the large file size of the images.</SupplyChainManagement></ValueChainPrimaryActivities></ValueChainActivityDescription>
<PartnerID>001</PartnerID></ValueChainActivity>
</ValueChain></ActivityAndProcessConfiguration>
Case study: eBML document extract
© 2001 Osterwalder, HEC Lausanne e-business 13
Université de Lausanne
WEB | AGENDA | FIN
Why XML?
• XML (Extensible Markup Language) is a W3C Recommendation that defines a standard way to add markup to documents.
• A markup language is a mechanism to identify structures in a document containing structured information.
• eBML is a markup language for electronic Business Models (eBM)
• Encoding an eBM in XML (with eBML) helps generating structured documents describing eBM concepts – an eBML document is :
• standardized• reusable• human and application understandable
© 2001 Osterwalder, HEC Lausanne e-business 14
Université de Lausanne
WEB | AGENDA | FIN
Conclusion
• E-Business Model Framework (eBMF)– design, share and simulate
Business Models in an evolving environment with a component based architecture
• e-business Model Language (eBML)– describe, store, reuse and share
Business Models in heterogeneous environments with an XML-based markup language
[email protected]://inforge.unil.ch/aosterwa