Business Value and Business Model Innovation in Decentralized Interoperability Scenarios: The NisB Case

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NisB—short for “The Network is the Business”—facilitates a network of heterogeneous information producers and consumers that share a common interest in harmonizing their knowledge assets. By trading knowledge assets, the network establishes and refines interoperability between its parties. The value of the accumulated interoperability knowledge in the network improves as more the network grows in parties and assets and that interoperability knowledge constitutes economic value in its own right.
The innovative idea is to maintain and refine knowledge, striving for overall consistency. Knowledge creation leverages crowd concepts and the multitude of relationships among individual information items in the same domain.
NisB introduces business model archetypes that base the sharing of interoperability assets on a sound economic model balancing investment with gain while stimulating usage. Based on the understanding that many small contributions generate a great value, incentive models and mechanisms will be developed by which realized value consumed by one will compensate the other underlying contributors

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Business Value and Business Model Innovation in Decentralized Interoperability Scenarios: The NisB Case

  1. 1. Workshop 3b, 17 October 2012 eChallenges e-2012 Copyright 2012 NisB ProjectBusiness Value and Business Model Innovation inDecentralized Interoperability Scenarios:The NisB CaseProf. Dr. Boris OttoUniversity of St. GallenSwitzerland
  2. 2. Workshop 3b, 17 October 2012 eChallenges e-2012 Copyright 2012 NisB ProjectAdoption of business networking conceptsSocietal, economic, and technological developments have led to a proliferation of businessnetworking strategies and approaches over the last decades. However, a number ofbusiness challenges prevent business networking from fully unlocking its potential.State of business networking■ Diversity and heterogeneity of interoperability standards■ Lack of semantic standardization■ Slow standardization processes■ Lack of business perspective in standardization■ Lack of semantic focus■ High interoperability effortsBusiness challenges
  3. 3. Workshop 3b, 17 October 2012 eChallenges e-2012 Copyright 2012 NisB ProjectThe problem with standards today«The nice thing about standards isthat you have so many to choosefrom» Andrew S. Tanenbaum
  4. 4. Workshop 3b, 17 October 2012 eChallenges e-2012 Copyright 2012 NisB ProjectThe NisB principles• Micro-mapping• Wisdom of the crowd• Emergent semantics• Interoperability as intangible asset
  5. 5. Workshop 3b, 17 October 2012 eChallenges e-2012 Copyright 2012 NisB ProjectA decentralizedmicro-mapping architectureSchema ASchema BNetwork of micro-mappingsLegend: decomposition; micro-mapping concept; schema-mapping
  6. 6. Workshop 3b, 17 October 2012 eChallenges e-2012 Copyright 2012 NisB ProjectA reference business model forinteroperability service utilitiesInformation SystemsLayerOrganization andProcesses LayerStrategy LayerCustomerComponentFinancialComponentValue ObjectComponentValueCreationComponentCreating, Sharing,Exchanging, UsingInteroperability Network ApplicationsInteroperability Network ServicesInteroperability Network TechnologyType of Good Type of OfferingRevenue Source PricingValue Proposition Target Group Customer RoleLegend: Business model components.Improving Administrating
  7. 7. Workshop 3b, 17 October 2012 eChallenges e-2012 Copyright 2012 NisB ProjectExisting business models for intangiblesAmazon Mechanical Turk Crowd SourcingApple iTunes Digital ContentFactual Data as a ServiceFlattr Social MicropaymentGithub Crowd SourcingInfochimps Data as a ServiceNapster Digital Content Exchange
  8. 8. Workshop 3b, 17 October 2012 eChallenges e-2012 Copyright 2012 NisB ProjectPotential business model instantiations
  9. 9. Workshop 3b, 17 October 2012 eChallenges e-2012 Copyright 2012 NisB ProjectThe value proposition “efficiency”for NisB usersCost [C]10% 70% 90% Participation Ratio[p/P]LaunchPhaseGrowthPhaseSaturationPhaseLegend: p - number of network participating in the network of interoperability information; P - overall number ofnetwork participants.
  10. 10. Workshop 3b, 17 October 2012 eChallenges e-2012 Copyright 2012 NisB ProjectRevenue source and pricing modelsin the case of InfoChimpsPricing model “Baboon” “Brass Monkey” “Silverback” “Golden Ape”Fee free 20 USD/month 250 USD/month 4,000 USD/monthAllowed API callsper month100,000 500,000 2,000,000 15,000,000Allowed calls perhour2,000 4,000 20,000 100,000
  11. 11. Workshop 3b, 17 October 2012 eChallenges e-2012 Copyright 2012 NisB ProjectConclusion and outlook• There will always be a variety of standards; “ivory tower”approaches will not be successful• Interoperability will be achieved using the wisdom of thecrowd and emergent semantics• Interoperability knowledge will become an intangible assetbased on which new business models will emerge
  12. 12. Workshop 3b, 17 October 2012 eChallenges e-2012 Copyright 2012 NisB ProjectThe NisB consortium
  13. 13. Workshop 3b, 17 October 2012 eChallenges e-2012 Copyright 2012 NisB ProjectSpeaker informationProf. Dr. Boris OttoAssistant ProfessorUniversity of St. Gallen, Institute of Information ManagementMüller-Friedberg-Strasse 8, CH-9000 St. Gallen+41-71-224-3220Boris.Otto@unisg.ch

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