The challenge of business modelling<br />in a new innovation era<br />TII Annual Conference:Innovation 3.0: Challenges, Ne...
The Emergence of Innovation 3.0<br />Web 4.0<br />Cross-linking intelligent applications<br />Web 3.0<br />Cross-linking k...
Innovation System of the Digital Economy<br />Demographic Change<br />Globalisation<br />Convergence of Markets<br />Compe...
Multi-Agent-System – Embedding into Communities -<br />Community ofAffinity<br />OuterKnowledge Space<br />Mutuallearning<...
The Business Model Canvas <br />Value <br />Propositions<br />Customer Relationships<br />Customer <br />Segments<br />Key...
Business Model Cases in the Digital Economy<br />
Business Modeling: new challenges at the customer side <br />Customer Relationships<br />Customer <br />Segments<br />Valu...
B2B customers (restaurants, shops, cultural institutions etc.) and consumers have to deliver content and have to pay for t...
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)</li></ul>1 LocalMobile.NRW ...
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Innovation 3.0 - The challenge of business modelling in a new innovation era

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This paper outlines the increasing challenges of Business Model Innovation in the Digital and New Media Economy. It describes drivers of change, impacts on the innovation and business landscape, consequences for business modeling and the innovation process, as well as the implications for organizational adaptation. It presents in-depth observations from empirical
research on 12 business cases in the Digital and Media Economy in Germany.

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

  1. 1. The challenge of business modelling<br />in a new innovation era<br />TII Annual Conference:Innovation 3.0: Challenges, Needs and Skills for the new innovation era<br />Düsseldorf, 28 to 30 April 2010<br />Markus Schroll & Joachim Hafkesbrink<br />R&D Project AchtInno<br />Contract number 01FH09003 <br />funded by:<br />
  2. 2. The Emergence of Innovation 3.0<br />Web 4.0<br />Cross-linking intelligent applications<br />Web 3.0<br />Cross-linking knowledge<br />Intelligent Semantic Agents<br />Innovation 4.0 ?<br />Ubiquitous Outernet<br />Semantic <br />enterprise<br />ConvergenceTurn ?<br />Embedded Innovation<br />Knowledge Embedding<br />Semantic Knowledge Networks<br />Semantic Knowledge Management<br />Know-howTurn<br />Open Collaborative Learning<br />knowledge inclusion and technological enhancement<br />Open Innovation<br />Web 2.0<br />Cross-linking users<br />Web 1.0<br />Cross-linking information<br />CollaborativeTurn<br />Decentral Social Communities<br />Closed Innovation <br />Organi-zational Change<br />NDA<br />IPR<br />Anthropocentric communities<br />Corporate Individualism<br />social inclusion and participation<br />
  3. 3. Innovation System of the Digital Economy<br />Demographic Change<br />Globalisation<br />Convergence of Markets<br />Competition regulation<br />Technology Knowledge Sources<br />Standards<br />Market for <br />Contents<br />Patent-laws<br />Multi-agent system of Innovation Actors<br />Telecommunication<br />Basic services<br />Value-Services<br />Distri-bution<br />Add. Services<br />Market for <br />Content <br />Packaging &<br />Applications <br />Media-Technologies<br />Market Demand<br />Melting Kernel<br />Technology Transfer<br />Content Generation<br />Pack-<br />aging<br />Distri-<br />bution<br />Enduser <br />Devices<br />Market for <br />Transmission <br />Carriers<br />IT-/Electronics<br />Parts<br />Software <br />Platforms<br />Distri-bution<br />Add. Services<br />Market for <br />Hardware<br />(end-user devices etc.)<br />Semantic Techn.<br />Media Law<br />eCommerce-Law<br />...<br />...<br />...<br />...<br />Market for <br />...<br />Digital Signature Act<br />Institutional Framework(Governance)<br />Internationalisation<br />
  4. 4. Multi-Agent-System – Embedding into Communities -<br />Community ofAffinity<br />OuterKnowledge Space<br />Mutuallearning<br />Virtual organizationalboundary<br />Pro-sumers<br />Real organizationalboundary<br />InnerKnowledge Space<br />Community learningcycle<br />Conventionalorganizationalboundary<br />Feed-backs<br />Innova-tors<br />Organizatio-nalKernel<br />Ex-perts<br />Community <br />of Interest<br />Community <br />of Practice<br />Cross-Innovation: ideasfrom outside thecity wall<br />Researchers<br />Gravitational Embedding Force<br />Technology Transfer<br />ScientificCommunity<br />
  5. 5. The Business Model Canvas <br />Value <br />Propositions<br />Customer Relationships<br />Customer <br />Segments<br />Key Partners<br />Key Activities<br />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?<br />What Key Activities do our Value Propositions require? <br />Our Distribution Channels? Customer Relationships? Revenue Streams?<br />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?<br />Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do Partners perform?<br />For whom are we creating value? Who are our most important customers?<br />Channels<br />Key Resources<br />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?<br />What Key Resources do our Value Propositions require? <br />Our Distribution Channels? Customer Relationships?<br />Revenue Streams?<br />Revenue Streams<br />Cost Structure<br />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?<br />What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?<br />Source: Osterwalder/Pigneur (2009): Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers<br />
  6. 6. Business Model Cases in the Digital Economy<br />
  7. 7. Business Modeling: new challenges at the customer side <br />Customer Relationships<br />Customer <br />Segments<br />Value <br />Propositions<br />The practice: LocalMobile.NRW1<br /><ul><li>no marketable products/services without UGC
  8. 8. B2B customers (restaurants, shops, cultural institutions etc.) and consumers have to deliver content and have to pay for the products/services
  9. 9. initiating of a premium user community
  10. 10. setting up of a decisive incentive system
  11. 11. clear IPR regulations
  12. 12. cross lateral exploitation (e.g. combine revenue streams from pay per transaction and adverts)</li></ul>1 LocalMobile.NRW is a mobile application for local personalized and context-sensitive content.<br />Pro-sumers<br />C2C<br />Communities of Affinity<br />B2B<br />B2C<br />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?<br />What type of relationship does each of our Customer Segments expect us to establish and maintain with them? <br />For whom are we creating value? Who are our most important customers?<br />Do we understand the relationships between our customers?<br />How should we support conversation in the market and between customers?<br />Do we need to address prosumers different from consumers?<br />Who is creating value for our business model?<br />What are the dynamics of value creation in our customers community?<br />How can we combine our products / services with user generated value?<br />Does user generated value support our value proposition?<br />Revenue Streams<br />For what value are our customers really willing to pay? For what do they currently pay? <br />Is it possible to exploit user generated value commercially? <br />
  13. 13. Business Modeling: new challenges at the producing side <br />Value <br />Propositions<br />Key Activities<br />Key Partners<br />The practice: LocalMobile.NRW1<br /><ul><li>pro-active community engineering
  14. 14. setting up of a decisive incentive system
  15. 15. setting up of learning arenas
  16. 16. trendscouting in the communities
  17. 17. development and managing of organizational readiness, collaborative capabilities, absorptive capacities
  18. 18. integrating new enabling technologies
  19. 19. collaborative design and development
  20. 20. transaction costs of community engineering</li></ul>1 LocalMobile.NRW is a mobile application for local personalized and context-sensitive content.<br />Ex-perts<br />Community <br />of Practice<br />What Key Activities do our Value Propositions require? <br />What key activities are required to sustain our communities of knowledge?<br />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?<br />Who are our Key Partners? Who are our key suppliers? <br />Innova-tors<br />Community <br />of Interest<br />Key Resources<br />How can we ensure mutual learning within communities and <br />knowledge transfer to our business model?<br />What Key Resources do our Value Propositions require? <br />How can we combine our products / services with user generated value?<br />Can we provide added value with complementary services our partners or communities?<br />What key ressources and organizational antecedents are required to embed successfully in our communities?<br />Researchers<br />ScientificCommunity<br />Cost Structure<br />What are the most important costs inherent in our business model? <br />What are the cost impacts of Community involvement into<br />our business model?<br />
  21. 21. A new important player: Prosumers<br />Key Partners<br />Customer <br />Segments<br />Pro-sumers<br />Communities of Affinity<br />Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do Partners perform?<br />For whom are we creating value? Who are our most important customers?<br />Are selected prosumers expected to evolve being key suppliers?<br />e.g. business travellers, mobile nerds<br />How do we need to support key-prosumer’s interaction with our business model architecture?<br />e.g. setting up of common communication/learning arenas<br />How do we mash-up contributions from key-prosumers within our business model? <br />e.g. clear IPR regulations and incentives(establishing of win-win situations)<br />
  22. 22. Communities and the innovation process<br />Co-production<br />Co-ideation<br />Co-design<br />Co-development<br />Ex-perts<br />Innova-tors<br />Key Resources<br />Pro-sumers<br />What Key Resources do our Value Propositions require? <br />Our Distribution Channels? Customer Relationships?<br />Revenue Streams?<br />Researchers<br />
  23. 23. Innovation 3.0 – what does this mean?<br />More than a new buzzword!<br /><ul><li>synchronization of organizational structures, processes and cultures of the firm with
  24. 24. open collaborative learning processes in surrounding communities, networks and stakeholder groups</li></ul>Integrating the firm into communities to ensure knowledge absorption and to exploit this knowledge for commercial ends.<br />Business modelling for innovation 3.0?<br />A never ending story!<br />
  25. 25. Thank you for your interest.<br />Contact: <br />Markus Schrollms@innowise.euDr. Joachim Hafkesbrinkjh@innowise.eu<br />Bürgerstr. 1547057 DuisburgGermany<br />Tel. +49-203-393764-0<br />www.innowise.eu<br />
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