C1.3 Business Models in iCargo

www.i-cargo.eu

Intelligent Cargo in Efficient and SustainableGlobal Logistics Operations

Business Models

in iCargo

iCargo Training Series

Webinar

18.02.2015

www.i-cargo.eu


iCargo is a large-scale integrating project co-funded by the European Commission within the FP7

Information and Communication Technologies Work Programme. iCargo involves representatives of

the main stakeholders in the areas of research and technological development, logistics companies,

shippers and public authorities. The 29 partners coming from 13 countries are coordinated by the

Research and Innovation Hub of ATOS Spain.

iCargo will design and implement a decentralized ICT infrastructure allowing real world objects, new

planning services including CO2 calculation capabilities and existing systems to co-exist and

efficiently co-operate at an affordable cost for logistics stakeholders.

The iCargo project aims at supporting new logistics services that:

₋ Synchronize vehicle movements and logistics operations across various modes and actors to

lower CO2 emissions

₋ Adapt to changing conditions through dynamic planning methods involving intelligent cargo,

vehicle and infrastructure systems and

₋ Combine services, resources and information from different stakeholders, taking part in an open

freight management ecosystem.

http://www.i-cargo.eu/


Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian

Business Models in iCargo-iCargo Training Course C1.3-

Valentina Boschian – Bluegreen Strategy srl

3

iCargo Training - 18 February 2015


• Key concept: Business Model

– what is a business model?

– why is it useful?

– Business Model Canvas

• What have we already achieved in iCargo?

– iCargo Ecosystem and Roles

– Reference Business Models

• iCargo Approach

– iCargo product/service ideas: value proposition and business model definition

Agenda









• iCargo Approach


Agenda


Why defining a Business Model?

• Real competitive advantage comes from a combination of technology innovation and business model definition

– product/technology innovation alone is not sufficient

• Not copy from the competitors, but with a strategy driven approach move ahead to a new business model


What is a BUSINESS MODEL?


Business Model Canvas (*)

• Speak the same language to understand each other

• Structured approach to go into the details of the fundamental components of the business model

– business model components = 9 dimensions

• To describe, challenge, design and invent business models more systematically.

(*) Business Model Canvas proposed by A. Osterwalder


Business Model Canvas


Customer

SegmentFor whom are we creating value? Who are our most important customers?



Value

Proposition

Customer

Segment


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?


Value

Proposition

Customer

Segment

Channels


Through which Channels do our Customer Segments want to be reached? How are we reaching them now?


Value

Proposition

Customer

Segment

Channels

Customer

Relationships


What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established?


Value

Proposition

Customer

Segment

Channels

Customer

Relationships

Revenue Streams


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


Value

Proposition

Key

Resources

Customer

Segment

Channels

Customer

Relationships

Revenue Streams


What Key Resources do our Value Propositions require?


Value

Proposition

Key

Activities

Key

Resources

Customer

Segment

Channels

Customer

Relationships

Revenue Streams


What Key Activities do our Value Propositions require?


Value

Proposition

Key

Activities

Key

Resources

Key

Partners

Customer

Segment

Channels

Customer

Relationships

Revenue Streams


Who are our Key Partners? Who are our key suppliers?


Value

Proposition

Key

Activities

Key

Resources

Key

Partners

Customer

Segment

Channels

Customer

Relationships

Revenue StreamsCost Structure


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



Value

Proposition

Key

Activities

Key

Resources

Key

Partners

Customer

Segment

Channels

Customer

Relationships


Which value is created?

For who?How the value

is created?


Skype Business Model Example


What is a Business Model?

Answer

• A business model is a conceptual tool that contains aset of elements and their relationships and allowsexpressing the business logic of a specific firm.

• It is a description of the value a company offers toone or several segments of customers and of thearchitecture of the firm and its network of partnersfor creating, marketing, and delivering this value andrelationship capital, to generate profitable andsustainable revenue streams.









• iCargo Approach


Agenda


• Roles on the iCargo Ecosystem

• Reference Business Model at the current status for:

– LSC, Logistics Service Client

– FSI, Freight Service Integrator

– LSP, Logistics Service Provider

– ISI, Information Service Integrator.

• Approach to systematically analyse the evolution of the reference business model

• New Reference Business Models

iCargo results


iCargo Ecosystem – composition and evolution

Logis cServicesClients(LSCs)

FreightServicesIntegrators(FSI)

Logis cServicesProviders(LSPs)

TransportRegulators

Informa onServicesIntegrators(ISI)

TransportNetworkManagers

Monitor.Pla ormProvider

Func on.asa

Service

Connect.Infrastruct.Provider

SystemIntegrator

AuthoritySecurity

dataserviceprovider

Networkadministr.

VirtualIntegrator

Trafficdataserviceprovider

BasicInfrastruct.Provider

= Provide

= Evolve / spin-off

So ware/HardwareVendor

Environm.focusedretailer

e-Comm.Retailer

Enhancedretailer

Value-add.provider

EnhancedLSP

Asset-boundFSI

Environm.focusedprovider

Environm.focusedManufact.

EnhancedManufact.

Network-boundFSI

= Existing = New = Disrupted

Facilitators&

Supporters


APPROACH:

1. collection of current business models of LSC, FSI, LSP and ISI based on the common well-known Osterwalder Canvas;

2. mapping current business models by the different involved actors and the business and technical innovations introduced by iCargo (so called “jobs-to-be-done”);

3. creation of a template to examine and define reference business models;

4. definition and analysis of the iCargo Ecosystem in terms of its components and evolution.

Structured Approach to study the Business Model evolution


ValueProposi on

KeyAc vi es

KeyResources

PartnerNetwork

CustomerSegments

Channels CustomerRela onships

CostStructure

RevenueStreams

Example:LSC

CurrentBM

Job1a

Job2a

Job3a

ElementsoftheOsterwalderCanvas

iCargobusinessan

dtechnical

innova

ons

Opportunity

Opportunity Opportunity

Opportunity

Change

Opportunity OpportunityChange

Change Change

Change

Change

Change Change

Change

Change

Change

NoChange

NoChange

NoChange

NoChange

NoChange

NoChange NoChange

NoChange

NoChange NoChange

General example of the mapping


Template features

• This template is defined in different versions, one for each category of actors.

• The columns represent the nine elements of the Canvas and the rows are the jobs that have a deeper impact for the considered category of actors.

• The combination of the different effects of the iCargojobs on the current business models leads to the definition of new business models.


ValueProposi on

KeyAc vi es

KeyResources

PartnerNetwork

CustomerSegments

Channels CustomerRela onships

CostStructure

RevenueStreams

Example:LSC

CurrentBM

Job1a

Job2a

Job3a

ElementsoftheOsterwalderCanvas

iCargobusinessan

dtechnical

innova

ons

Opportunity

Opportunity Opportunity

Opportunity

Change

Opportunity OpportunityChange

Change Change

Change

Change

Change Change

Change

Change

Change

NoChange

NoChange

NoChange

NoChange

NoChange

NoChange NoChange

NoChange

NoChange NoChange

BM3 BM2

BM1

Example of template utilization


LSC – Reference Business Models

LSC

Retailers Manufacturers

Enhanced retailer

e-commerce focused retailer

Environmental focused retailer

Enhanced manufacturer

Environmental focused

manufacturer


FSI – Reference Business Models

FSI

Virtual IntegratorAsset-bound FSINetwork-bound

FSI


LSP – Reference Business Models

LSP

Environment focused provider

Enhanced LSPValue added

services provider


ISI – Reference Business Models

ISI

Basic Infrastructure Providers

System IntegratorsSoftware/Hardware

Vendors

Monitoring Infrastructure

Provider

Connectivity Infrastructure

Provider

Functionality as a service

Virtual Integrator

System Integrators


Connectivity Provider Evolution as Monitoring Infrastructure Provider

Value

Proposition

Key

Activities

Key

Resources

Key

Partners

Customer

Segment

Channels

Customer

Relationships


-Collectionand

monitoringofdatagatheredfromperipheraldevices;

-tosupportadministrative

transactions;-tofaclitateshorttermrelationships.

-monitoringdevicesanddatacollection;

-topublishandmanagelogisticinformationservices;-tooffermarketingand

customersupport.

-toinstallandmonitor

devicesandsensors;-accesstoallthelogistic

operatorsoftheportandinlandterminalarea.

-Complementary

infrastructure

providers.

-Hardwareand

softwarevendors.

-Largecompanies.

-SMEs.

-Direct(large

accounts).

-Resellersnetwork.

-On-line.

Fixedcostsfor

infrastructure

management,

monitoringand

customersupport.

-Fixedsubscription

fee.-Variablefees,e.g.,by

unitofcargomonitored.

-Mostlystandardized

procedures.









• iCargo Approach


Agenda


• Success of new products is not the result of a combination of casual factors, but it comes from a structured strategy-driven approach.

• Main focus on:

– value created for the customers / users

– competitors' positioning

since the early stages of the product conception.

Why applying this approach?


• Idea is the starting ingredient

– the same idea in most cases is already on the market on different forms.

• Idea shaping: definition of the idea in terms of combination of technology, service and business model

– clearly define the motivations for a user to select the product over competition offerings.

Idea definition


New tool support the transformation of ideas into successful products

Shaping Ideas for Growth

Visit http://www.valuemapp.com/• Free book: description of a structured strategy-driven process

• Free App: elaboration of product ides and innovation strategies

To validate new ideas and

assess your business implementation

going beyond the pure design a business model.

http://www.valuemapp.com/


Valentina Boschian

Bluegreen Strategy srl

Thank You

38

iCargo Training - 18 November 2014

www.i-cargo.eu


Credits:

Presented by: Valentina BoschianBluegreen Strategy [email protected]

Material: Valentina Boschian



http://www.bluegreenstrategy.com/

mailto:[email protected]

Technology

C1.3 Business Models in iCargo