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Business Model Innovation supported by
use of Value Models
     fV l M d l


Arne J. Berre SINTEF, Norway, Arne.J.Berre@sintef.no
Henk de Man Cordys Netherlands hdman@cordys com
         Man, Cordys, Netherlands, hdman@cordys.com
Peter Lindgren, AAU, Denmark, pel@production.aau.dk
Bjørn Morten Ursin-Holm, Induct, Norway, bmuh@inductsoftware.com
Andrew Hinchley IC Focus, UK, ahinchley@yahoo co uk
        Hinchley,   Focus UK ahinchley@yahoo.co.uk




FInES Cluster meeting, Brussels, October 12th, 2012
                 Arne.J.Berre@sintef.no

                                     Telecom and Informatics       1
Abstract
 A business model describes the rationale of how an organization creates
                                                           g
  delivers, and captures value. Business innovation for digital enterprises can
  thus be described and supported through an active use of value models. The
  NEFFICS project (www.neffics.eu) has developed both a framework for
  Business value models and a modeling language for the representation of
  value models. The modeling language is currently going through a
  standardisation process in OMG under the label VDML, Value Delivery
  Modeling Language. This language can provide an underlying representation
  of various business model innovation frameworks, which can be used to
  support business innovation for digital enterprises. It will be shown how a multi
  level b i
  l    l business value f
                    l framework can b supported th
                                k      be         t d through VDML h
                                                               h VDML, how
  business innovation can be supported through a cloud based platform, and
  also how VDML can relate to other innovation areas like product, process and
  service innovation .
           innovation.



          Foundations from NEFFICS, www.neffics.eu
                                              Telecom and Informatics                 2
Osterwalder: “A business
             model describes the rationale of
“BMI Cube”   how an organization creates,
             delivers, and captures value”.




                     Telecom and Informatics    3
Value concepts



    Value                 VALUE FLOW                           Value
   Sender                                                     Recipient




                      Value
                     capture
                                     Value
                                  distribution

                                                          Value
    Value creation
                                                       consumption




                                    Telecom and Informatics               4
Value Analysis Baseline
     Value                             Entities                          Worlds
     Activity                    People          Things         Real       Virtual       Merged
     Value Creation
     (input)

     Value Capture
     (flow)


     Value Distribution
     (flow)

     Value Consumption
     (output)


                                                Drivers
      Culture &            Structures          Regulations       Technology          Volatility &
     Social Norms         (
                          (intra- & inter- )                                            Risk

                                               Knowledge
                                                 Time
                The main scope and focus of NEFFICS analysis of value



                                                             Telecom and Informatics                5
Business Value definition areas




                    Telecom and Informatics   6
Cloud shared Business Model canvas




                   Telecom and Informatics   7
VDML (Value Delivery Modeling Language)
     (in progress as OMG standard
                for 2013)
                        Porter Value
                           Chain

         Organization
                                                     Value Stream
            Model




      Capability
       Model             VDML                             Value Network




           Business
                                                    REA-Resource
            Model
                                                     Event Agent
          Innovation
                         Shared
                         Services



                                       Telecom and Informatics
VDML in context




                  Telecom and Informatics   9
VDML Metamodel




                 Telecom and Informatics   10
VDML – Value Network




VDML – Business activity network




                    Telecom and Informatics   11
Role of VDML in Business Model
Innovation




                   Telecom and Informatics   12
Future areas

 Additional user communities for Business Model
  Innovation and deployment, i.e. Finance, Services, …

 Business model analysis
 Business model simulation (Monte Carlo, System
                                      Carlo
  Dynamics, Discrete event simulation, …..)
 Business collaboration infrastructure/execution




       Arne.J.Berre@sintef.no
                    @

                                Telecom and Informatics   13

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5 4-arne berre

  • 1. Business Model Innovation supported by use of Value Models fV l M d l Arne J. Berre SINTEF, Norway, Arne.J.Berre@sintef.no Henk de Man Cordys Netherlands hdman@cordys com Man, Cordys, Netherlands, hdman@cordys.com Peter Lindgren, AAU, Denmark, pel@production.aau.dk Bjørn Morten Ursin-Holm, Induct, Norway, bmuh@inductsoftware.com Andrew Hinchley IC Focus, UK, ahinchley@yahoo co uk Hinchley, Focus UK ahinchley@yahoo.co.uk FInES Cluster meeting, Brussels, October 12th, 2012 Arne.J.Berre@sintef.no Telecom and Informatics 1
  • 2. Abstract  A business model describes the rationale of how an organization creates g delivers, and captures value. Business innovation for digital enterprises can thus be described and supported through an active use of value models. The NEFFICS project (www.neffics.eu) has developed both a framework for Business value models and a modeling language for the representation of value models. The modeling language is currently going through a standardisation process in OMG under the label VDML, Value Delivery Modeling Language. This language can provide an underlying representation of various business model innovation frameworks, which can be used to support business innovation for digital enterprises. It will be shown how a multi level b i l l business value f l framework can b supported th k be t d through VDML h h VDML, how business innovation can be supported through a cloud based platform, and also how VDML can relate to other innovation areas like product, process and service innovation . innovation. Foundations from NEFFICS, www.neffics.eu Telecom and Informatics 2
  • 3. Osterwalder: “A business model describes the rationale of “BMI Cube” how an organization creates, delivers, and captures value”. Telecom and Informatics 3
  • 4. Value concepts Value VALUE FLOW Value Sender Recipient Value capture Value distribution Value Value creation consumption Telecom and Informatics 4
  • 5. Value Analysis Baseline Value Entities Worlds Activity People Things Real Virtual Merged Value Creation (input) Value Capture (flow) Value Distribution (flow) Value Consumption (output) Drivers Culture & Structures Regulations Technology Volatility & Social Norms ( (intra- & inter- ) Risk Knowledge Time The main scope and focus of NEFFICS analysis of value Telecom and Informatics 5
  • 6. Business Value definition areas Telecom and Informatics 6
  • 7. Cloud shared Business Model canvas Telecom and Informatics 7
  • 8. VDML (Value Delivery Modeling Language) (in progress as OMG standard for 2013) Porter Value Chain Organization Value Stream Model Capability Model VDML Value Network Business REA-Resource Model Event Agent Innovation Shared Services Telecom and Informatics
  • 9. VDML in context Telecom and Informatics 9
  • 10. VDML Metamodel Telecom and Informatics 10
  • 11. VDML – Value Network VDML – Business activity network Telecom and Informatics 11
  • 12. Role of VDML in Business Model Innovation Telecom and Informatics 12
  • 13. Future areas  Additional user communities for Business Model Innovation and deployment, i.e. Finance, Services, …  Business model analysis  Business model simulation (Monte Carlo, System Carlo Dynamics, Discrete event simulation, …..)  Business collaboration infrastructure/execution  Arne.J.Berre@sintef.no @ Telecom and Informatics 13