Business model types for digital business ecosystems
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Business model types for digital business ecosystems

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The process of business negotiations of complex products or services is an essential binding element in today's dynamic global markets. The Digital Business Ecosystem (DBE) paradigm provides a concept ...

The process of business negotiations of complex products or services is an essential binding element in today's dynamic global markets. The Digital Business Ecosystem (DBE) paradigm provides a concept for understanding such dynamic global businesses. However, an analysis form a business model perspective is still missing. This paper presents the case study of an envisioned Open Source decentralized negotiation platform which is currently under development. In contrast to existing negotiation platforms such as Ebay in the B2C market or Ariba in the B2B market, the negotiation platform is based on a decentralized philosophy both on technical and organiza-tional level following the DBE paradigm. The analysis is structure along seven major components according to the MCM Business Model Framework: features of the specific product or service, features for the specific medium (technolo-gy), potential customers, value chain, financial flow, flow of goods and services, societal environment. As a result, we cate-gorize the characteristics and challenges in the different busi-ness model components providing the foundation to analyze further business ecosystems from a business model per-spective.

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Business model types for digital business ecosystems Business model types for digital business ecosystems Presentation Transcript

  • Business Models for Digital Business Ecosystems: The Case of the Open Negotiation Environment (ONE) PlatformVolker Hoyer1 2 and Katarina Stanoveska-Slabeva11 Institute for Media and Communications Management, University of St. Gallen, Switzerland2 SAP Research St. Gallen, SwitzerlandPresenter: Volker Hoyer © =mcminstitute
  • Executive SummaryBusiness Models for Digital Business Ecosystems Digital Business  Decentral organized business networks Ecosystems  Enabled by open and standardized information technology (DBE)  Explaination concept  MCM Business Model Framework Business Model  Seven components: Features of the product, features of the medium, customers, value chain, financial flow, flow of goods and services, societal environment  EU-funded Project Case Study:  Business Negotiations are a binding element in DBEs ONE Project  Analysis of the envisioned plaform © =mcminstitute Volker Hoyer
  • Agenda Motivation MCM Business Model Framework Case Study: ONE Project Conclusion © =mcminstitute Volker Hoyer
  • Motivation Trend towards loosely coupled business networks  Organization Level: Decentral organized business networks  Technology Level: Open and standardized information technologies are enabler Digital Business Ecosystem represents an explaination concept  “ … an economic community supported by foundation of interacting organizations and individuals - the organisms of the business world“  Roots in biological ecosystem (analogy for understanding business networks)  Key phenomena observed in nature such as competition, specialization, co- operation, exploitation, learning and growth are also central to capitalist economy. Research Gap  Missing discussion of the DBE concept regarding from a business model perspective © =mcminstitute Volker Hoyer
  • ONE Project – Business Negotiations Business Negotiation is a process during which two or more entities try to reach a mutual acceptable agreement on one or several issues through some kind of communication. ONE Project  Open Negotiation Environment (http://www.one-project.eu)  ONE Ecosystem Design Time RunTime © =mcminstitute Volker Hoyer
  • Agenda Motivation MCM Business Model Framework Case Study: ONE Project Conclusion © =mcminstitute Volker Hoyer
  • Business Model1 Business Model Definition Concept What is a business model? What components belong into Conceptual Level a business model? MCM Business Model Framework2 Taxonomy of types Business Model Business Model Type Type3 Instance LevelBusiness Model Business Model Business ModelBusinessInstances (view of a company) Definition Model: of ONE of Ariba of Ebay “An architecture for the products, services and Modelled instances information flows, including a description of various business actors and their roles, a description of the potential benefits for the various business actors, and a description of the ONE Ariba Ebay Real world company sources of revenues.” (Timmers, 1998) © =mcminstitute Volker Hoyer
  • MCM Business Model Framework Societal Environment Feature of the specific Product Financial Flow Potential Value Chain Customer Flow of Goods & Services Feature of the specific Medium © =mcminstitute Volker Hoyer
  • Agenda Motivation MCM Business Model Framework Case Study: ONE Project Conclusion © =mcminstitute Volker Hoyer
  • Features of the Specific Product Societal Environment Feature of the specific Product Financial Flow Potential Value Chain Customer Flow of Goods & Services Feature of the specific Medium Business Negotiation Modeling Environment (ONE Modeling Editor) Business Negotiation Engine (ONE Portal) © =mcminstitute Volker Hoyer
  • Features of the Specific Technology Societal Environment Feature of the specific Product Financial Flow Potential Value Chain Customer Flow of Goods & Services Feature of the specific Medium Legend Decentralized Repository  Negotiation Models Repository  Knowledge Database Open Source Negotiation Engine  Intelligent System  Identification/ Authentification Document Exchange  Authorization Model-Driven Approach Negotiation Engine Decentralized Architecture Message Exchange and Distributed Information Synchronization Flow Sy nc hro niz ati on Enterprise A Participant C (Owner) Participant B © =mcminstitute Volker Hoyer
  • Potential Customers Societal Environment Feature of the specific Product Financial Flow Potential Value Chain Customer Flow of Goods & Services Feature of the specific Medium Characteristics of Business Users  Complex negotiation models  Integration in existing technical and organizational structures  Negotiation issues (prices, qualitity of services, delivery terms, etc.) Small and Medium Sized Enterprise (SMEs)  Limited Technical Know-How  Limited Resources Covering the “Long Tail“ of Business Negotiations © =mcminstitute Volker Hoyer
  • Potential Customers – Long Tail Internationalization/ Globalization Individual Workspace Individual Negotiation Models The Long Tail Potential of Business Negotiations Standard Individual Negotiation Models © =mcminstitute Volker Hoyer
  • Value Chain Societal Environment Feature of the specific Product Financial Flow Potential Value Chain Customer Flow of Goods & Services Feature of the specific Medium Service Consumer Intermediary Service Provider Neutral Intermediary  ONE platform brings buyer and seller together  B2B market functions of private and public negotiations ONE  Aggregation  Matching Buyer Seller © =mcminstitute Volker Hoyer
  • Financial Flow Societal Environment Feature of the specific Product Financial Flow Potential Value Chain Customer Flow of Goods & Services Feature of the specific Medium Web 2.0 Revenue Models  Providing additional premium services  Support and services like integration, product support, tutorials or user documentation  Banner advertisement (i.e. promoting public negotiations) © =mcminstitute Volker Hoyer
  • Flow of Goods & Services Societal Environment Feature of the specific Product Financial Flow Potential Value Chain Customer Flow of Goods & Services Feature of the specific Medium Decentralized Information Flow  User-generated Content (Source Code & Negotiation Models)  Neutral Intermediary in the Wisdom of the Crowds Perpetual Beta  Service is always improving © =mcminstitute Volker Hoyer
  • Agenda Motivation MCM Business Model Framework Case Study: ONE Project Conclusion © =mcminstitute Volker Hoyer
  • Conclusion Business Model Characteristics for Digital Business Ecosystems  Neutral Intermediary in the value chain  Covering the Long Tail of customer and customer needs  Flexible products and services (not prefined or static)  Programmable Web as the technical enabler (Cloud Computing)  Decentral organized  Process and content is driven by the user ONE Platform  Visit our project at http://www.one-project.eu © =mcminstitute Volker Hoyer
  • Agenda Thank you for your attention Questions? Be part of the ONE Ecosystem. Model your individual business negotiation! The ONE Conline Contest in June http://sites.google.com/site/oneonlinecontest/ © =mcminstitute Volker Hoyer
  • ONE Online Contest © =mcminstitute Volker Hoyer