A Business Model for FIspace

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This is my introduction into FIspace that was used for the presentation of Jaap van der Pol, a student from the Free University of Amsterdam that did his MSc thesis research on a Business Model for FIspace, the B2B collaboration platform for Agri-Food, Transport & Losgistics. I included the main concluding slides from him in this presentation.

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  • Suggest to include an emphasis on end user feedback and involvement in all stages of initiation and involvement of development (end users in this case: farmers - individuals, regional and nationally focused entities).
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  • Platform components:
    IoT
    Big Data
    Cloud hosting
    Service management
    Service mesh-up
    Security
  • These sectors together have a huge potential impact on the European economy and society.
    EU turnover: 1,500 billion €
    Efficiency: 148-220 billion € savings
    Sustainability: 26.5% of CO2 emissions

    Here you see a picture of the business network we are dealing with (farmers, carriers, retail, customs, etc.)
    They are challenged by all kind of ICT-related developments, such as:
    High-quality customer applications, end2end visibility, M2M communication, etc.
    But there are currently still quite some bottlenecks to be solved, such as:
    Interoperability between current inter-enterprise information systems (still use of paper, fax, phone, etc.)
    Tracking and tracing possibilities are still limited (especially e.g. if you want to know what happened to your food between production and consumption)
    Especially for SMEs, software is relatively expensive, while the need for flexible, customized solutions has increased
    These bottlenecks are the reason for current limited and rather fixed business collaboration networks, hampering innovation in general

    Through conceptual prototypes in phase 1 we have made it plausible that FI will significantly contribute to overcoming these bottlenecks by facilitating:
    ...seamless cross-organizational collaboration
    …unprecedented transparency, visibility and control of processes
    …rapid, easy, low cost development and deployment of customized solutions
    …agile formation of business networks and ecosystems

  • Both sides need to participate for the market to exist.
    Once it’s going, it’s easy to get going (like a snowball rolling down hill). Virtuous cycle.

    How to get started? And who is paying for this?
    For platforms, apps, and users
  • Supply driven
  • A Business Model for FIspace

    1. 1. Future Internet Business Collaboration Networks in Agri-Food, Transport & Logistics Short introduction Wageningen, 28 May 2014 Sjaak Wolfert Project Coordinator LEI Wageningen UR
    2. 2. Outline • Future Internet Public Private Partnership (FI-PPP) • FIspace – B2B platform with App store & B2B collaboration core
    3. 3. FI-WARE serving usage areas 3
    4. 4. FI-PPP Programme Architecture 90 M€ 80 M€ 130 M€ FInish SmartAgriFood2
    5. 5. Location-based services Internet of Tings Wireless Sensor Networks Consultants Forwarder Production Plants Carriers Ports Customs Banks Insurances Authorities Consumers Future Internet Features Social Media Motivation and Impact Agri-Food, Transport and Logistics: • EU turnover: 1,500 billion € • Efficiency: 148-220 billion € savings • Sustainability: 26.5% of CO2 emissions FIspace will facilitate: ■ … seamless cross-organizational collaboration (information exchange, communication, coordination of activities) ■ …unprecedented transparency, visibility and control of processes (using Internet-connected sensors and IoT devices) ■ …rapid, easy, low cost development and deployment of customized solutions (apps and services) ■ …agile formation of business networks and ecosystems (social networks and app/service markets) Privacy & Security Internet of Services Cloud Computing Linked Open Data, Big Data
    6. 6. FIspace platform High Level Architecture I2ND IoT IoC IoS S&T GENERIC ENABLERS Base Technologies Validation 1. Crop Protection Information Sharing 2. Greenhouse Management & Control 3. Fish Distribution & (Re-)Planning 4. Fresh Fruit and Vegetables QA 5. Flowers & Plants SC Chain Monitoring 6. Meat Information Provenance 7. Import & Export of Consumer Goods 8. Tailored Information for Consumers Trials: T270: Security, Privacy, Trust Framework: SPT (KOC) T250: System & Data Integration (ATOS) T240: B2B Collaboration Core (IBM) T230: App Store (IBM) T220: User Front-End (ATOS) T260:OperatingEnvironment (IBM) T280:SoftwareDevelopmentToolkit: SDK(ATOS) FIspace = the Facebook for B2B
    7. 7. FIspace approach: Software Mass Customisation FIspace App Store My FIspace (BCM) Develop Apps Pre-configure User Systems Customize & Use Systems FIspace Platform Single App Configuration App developer Business Architect User (farmer, transporter, ...)
    8. 8. Example: Spraying Scenario Scenario: get expert advice for spraying to handle disease on tomatoes State AuthorityFranz Farmer Ed Expert Spraying (follow advice) Create Advice Approval Request Advice CollaborativeBusinessProcessBack-EndSystems Farm / GH Management Systems Sensor Network in the Greenhouse Agronomist Expert System Regulations & Approval System 1 2 3 FIspace App ‘Weather Information’ FIspace App ‘Spraying Expert Advice’ FIspace App ‘Spraying Certification’ product type, etc. sensor data (access details) suggested chemical advice details certification details 8
    9. 9. T270: Security, Privacy, Trust Framework: SPT (KOC) T250: System & Data Integration (ATOS) T240: B2B Collaboration Core (IBM) T230: App Store (IBM) T220: User Front-End (ATOS) T260:OperatingEnvironment (IBM) T280:SoftwareDevelopmentToolkit: SDK(ATOS) FIspace ecosystem development Industries (converging) Farming & Manufacturing Transport & Logistics (Producers, Farmers, Manufacturers, Suppliers, ..) Wholesale & Retail Health Sector (Forwarder, Carriers, 3PL / 4PL, Ports, …) (Warehouses, Supermarkets, Stores, …) (Banks, Insurances, Authorities, ..´) ICT Industry (going to the Cloud) Cloud Operators & Infrastructure Providers Business Configurators I2ND IoT IoC IoS S&T (+ follow up) GENERIC ENABLERS DEVELOPMENT TOOLKIT Base Technologies Validation App & Service Providers
    10. 10. Platforms How to get started? Who will pay? Q1: Platforms Q2: Third party applications Q3: Users
    11. 11. Towards a business model! sjaak.wolfert@wur.nl www.FIspace.eu
    12. 12. Concluding slides Jaap van der Pol • The next slides contain the main conclusions of the thesis research of Jaap van der Pol, a MSc student from the Free University of Amsterdam
    13. 13. What is a viable business model for the electronic business platform FIspace? Jaap van der Pol VU Amsterdam
    14. 14. Business model criteria •Efficiency •Uniqueness •Appropriateness •Profit boosters • FIspace aims to make businesses collaborate more efficient • More than half of the interviewees see FIspace as unique. • Consensus about some business model building blocks. • First mover advantage, reputational effects • Proof of added value is lacking. • A few stakeholders do not see why FIspace is unique. • Lack of consensus for other business model building blocks • Threat of other platforms + -
    15. 15. Platform challenges •User acquisition •Scaling up •Balancing interests • FIspace has a lot of stakeholders. Phase 3 brings even more. • Stakeholders are willing to spread the platform via their networks. Marquee users. • Stakeholders at all sides of the market are involved • Some stakeholders are not convinced of FIspace’s added value. There is no commercial drive behind it. • Stakeholders that are not convinced will not spread the platform • There has to be a viable business model for every individual stakeholder at all sides of the market + -
    16. 16. • Make FIspace more tangible – Calculate added value for apps and trials – Finish first version – Proof of principle – Decide on revenue streams – Find evangelists to take it beyond the development phase My advice for FIspace

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