The Business Model Design practice supports the definition of a sustainable business model, collaboratively with all its stakeholders. To Technology Transfer Officers this practice proposes reference canvas and tools easily tailored to support most business strategic decision. To researchers, this practice is in essence a way to promote a sound business culture and a set of tools to facilitate the design of a business model. Its foundation from the design science make it practical and result oriented. www.FITT-for-Innovation.eu

1. Business Model Design
FITT
– Fostering Interregional Exchange in ICT Technology Transfer –
www.FITT-for-Innovation.eu
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2. What is Business Modelling at Tudor?

a process for designing a sustainable business model (BM)

a culture promoting business awareness to newbies

some tools and techniques to design a business model, by
structuring the approach, driving the process and allowing for
continuously improving.
2 | April 2011 Business Model Design

3. Why do we need such a process?

Our TT staff is junior

We work with researchers, having no (few) business practice (or
knowledge)

We need to convince stakeholders to join in unusual business
models, such as top management, external partners, policy makers,
internal research team.

We observed a lack of creativity in the envisaged business solutions

We struggle against a lack of information to ground business
decision
3 | April 2011 Business Model Design

4. Who has contributed
 Our staff
 External partners in innovation

Pigneur & Osterwalder (Lausanne)

Research in Strategy & Business Models, Consultancy in Strategic Innovation (for banks, music,
litterature and more)

Gordijn (Amsterdam)
 Research in Value Networks engineering, Consultancy in Service Design & Partnerships (for Power
supply, music, Policy management and more)

Yu (Toronto)
 Research in Early Requirements Engineering and Strategic Fit.

Philippe De Ridder (Antwerpen)
 Visualisation of value network and business model innovation.
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5. How does it work?

process: how to design a sustainable BM
 inspired from design: "design is thinking made visual" - Saul Bass (1921 – 1996)

Step 1: Mobilize: to prepare for a successful TT effort
 Involve and motivate the right people (varied, mixed, knowledgeable or representative)
5 | April 2011 Business Model Design

6. How does it work?

Step 2: Design: iteratively improve your current idea

visualize

brainstorm
6 | April 2011 Business Model Design

7. How does it work?

Step 3: Prototype
 several tools
 Business Model Ontology
 BM innovation guide
 value networks engineering
 business model prototyping
 tools under development
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8. How does it work?

Step 4: Assess
 several tools
 Business Model Ontology
 BM assessment guide & diagnostic
 cash flow sensitivity analysis in value network
 scenario based simulations, alternatives & evolutions
 Strategic impact simulation
 tools under development

Step 5: Select (Innovate): track decisions in a roadmap for further refining opportunities
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9. Pro’s & Cons
PRO’S

low learning curve

place for supporting creativity

support communication over different backgrounds

great for handling intangible assets
CON’S

lack of ICT tool integration

difficult customization to each TT project context

not a compensation for bad underlying information
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10. Impacts

(visual) understanding/sharing of main stakes

(ongoing) wide adoption by internal stakeholders

general interest in Business Modelling arose
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11. Outcomes

clearer business speech from TT staff

practical design process was appreciated
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12. Plans for the future

tools development

library of business models

user-oriented documentation

integration into work practices

integrate new interesting techniques & tools
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13. Lessons Learned

to do again:

guidelines for tools & techniques selection

to improve:

user-oriented documentation

more basic education from the start

we recommend:

contact us if you want to use any of these
tools: the toolbox still evolves, any
contribution is welcome
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14. Suggested Readings
• business model generation, Alexander Osterwalder & Yves Pigneur,
(book, October 2009), http://businessmodelgeneration.com/
• value networks engineering, Jaap Gordijn, (articles and tools, 1999-2009)
http://e3value.com/e3family/
• scenario based simulations, alternatives & evolutions, Ulf Pillkahn -
Using Trends and Scenarios as Tools for Strategy Development (book,
2008), http://books.google.be/books?id=NvTjBbI3jKoC - http://www.pillkahn.com/
• business model prototyping, Michael Schrage - Serious Play: How the
World's Best Companies Simulate to Innovate (book, 1999) -
http://www.amazon.com/exec/obidos/ASIN/0875848141/ - http://danbricklin.com/log/seriousplay.htm
• value networks visualisation, Philippe De Ridder & Nick De Mey, (tools
and posts, 2009-2011), http://www.boardofinnovation.com/
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