Valentina Boschian Design: Valentina Boschian Images: Valentina Boschian This presentation is part of the iCargo project. The author is responsible for its content.

1. www.i-cargo.eu
Intelligent Cargo in Efficient and Sustainable
Global Logistics Operations
Business Models
in iCargo
iCargo Training Series
Webinar
18.02.2015

2. www.i-cargo.eu
Intelligent Cargo in Efficient and Sustainable
Global Logistics Operations
iCargo is a large-scale integrating project co-funded by the European Commission within the FP7
Information and Communication Technologies Work Programme. iCargo involves representatives of
the main stakeholders in the areas of research and technological development, logistics companies,
shippers and public authorities. The 29 partners coming from 13 countries are coordinated by the
Research and Innovation Hub of ATOS Spain.
iCargo will design and implement a decentralized ICT infrastructure allowing real world objects, new
planning services including CO2 calculation capabilities and existing systems to co-exist and
efficiently co-operate at an affordable cost for logistics stakeholders.
The iCargo project aims at supporting new logistics services that:
₋ Synchronize vehicle movements and logistics operations across various modes and actors to
lower CO2 emissions
₋ Adapt to changing conditions through dynamic planning methods involving intelligent cargo,
vehicle and infrastructure systems and
₋ Combine services, resources and information from different stakeholders, taking part in an open
freight management ecosystem.

3. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Business Models in iCargo
-iCargo Training Course C1.3-
Valentina Boschian – Bluegreen Strategy srl
3
iCargo Training - 18 February 2015

4. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
• Key concept: Business Model
– what is a business model?
– why is it useful?
– Business Model Canvas
• What have we already achieved in iCargo?
– iCargo Ecosystem and Roles
– Reference Business Models
• iCargo Approach
– iCargo product/service ideas: value proposition
and business model definition
Agenda

5. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
• Key concept: Business Model
– what is a business model?
– why is it useful?
– Business Model Canvas
• What have we already achieved in iCargo?
– iCargo Ecosystem and Roles
– Reference Business Models
• iCargo Approach
– iCargo product/service ideas: value proposition
and business model definition
Agenda

6. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Why defining a Business Model?
• Real competitive advantage comes from a
combination of technology innovation and
business model definition
– product/technology innovation alone is not
sufficient
• Not copy from the competitors, but with a
strategy driven approach move ahead to a
new business model

7. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
What is a BUSINESS MODEL?

8. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Business Model Canvas (*)
• Speak the same language to understand each
other
• Structured approach to go into the details of
the fundamental components of the business
model
– business model components = 9 dimensions
• To describe, challenge, design and invent
business models more systematically.
(*) Business Model Canvas proposed by A. Osterwalder

9. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Business Model Canvas

10. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Customer
SegmentFor whom are we creating value?
Who are our most important
customers?
Business Model Canvas

11. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Value
Proposition
Customer
Segment
Business Model Canvas
What value do we deliver to the
customer?
Which one of our customer’s problems
are we helping to solve?
Which customer needs are we satisfying?

12. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Value
Proposition
Customer
Segment
Channels
Business Model Canvas
Through which Channels do our
Customer Segments want to be
reached?
How are we reaching them now?

13. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Value
Proposition
Customer
Segment
Channels
Customer
Relationships
Business Model Canvas
What type of relationship does each of our
Customer Segments expect us to establish and
maintain with them?
Which ones have we established?

14. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Value
Proposition
Customer
Segment
Channels
Customer
Relationships
Revenue Streams
Business Model Canvas
For what value are our customers
really willing to pay?
For what do they currently pay?
How are they currently paying?

15. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Value
Proposition
Key
Resources
Customer
Segment
Channels
Customer
Relationships
Revenue Streams
Business Model Canvas
What Key Resources do our Value
Propositions require?

16. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Value
Proposition
Key
Activities
Key
Resources
Customer
Segment
Channels
Customer
Relationships
Revenue Streams
Business Model Canvas
What Key
Activities do
our Value
Propositions
require?

17. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Value
Proposition
Key
Activities
Key
Resources
Key
Partners
Customer
Segment
Channels
Customer
Relationships
Revenue Streams
Business Model Canvas
Who are our Key Partners?
Who are our key suppliers?

18. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Value
Proposition
Key
Activities
Key
Resources
Key
Partners
Customer
Segment
Channels
Customer
Relationships
Revenue StreamsCost Structure
Business Model Canvas
What are the most important costs inherent
in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?

19. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Business Model Canvas
Value
Proposition
Key
Activities
Key
Resources
Key
Partners
Customer
Segment
Channels
Customer
Relationships
Revenue StreamsCost Structure
Which value is created?
For who?
How the value
is created?

20. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Skype Business Model Example

21. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
What is a Business Model?
Answer
• A business model is a conceptual tool that contains a
set of elements and their relationships and allows
expressing the business logic of a specific firm.
• It is a description of the value a company offers to
one or several segments of customers and of the
architecture of the firm and its network of partners
for creating, marketing, and delivering this value and
relationship capital, to generate profitable and
sustainable revenue streams.

22. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
• Key concept: Business Model
– what is a business model?
– why is it useful?
– Business Model Canvas
• What have we already achieved in iCargo?
– iCargo Ecosystem and Roles
– Reference Business Models
• iCargo Approach
– iCargo product/service ideas: value proposition
and business model definition
Agenda

23. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
• Roles on the iCargo Ecosystem
• Reference Business Model at the current status for:
– LSC, Logistics Service Client
– FSI, Freight Service Integrator
– LSP, Logistics Service Provider
– ISI, Information Service Integrator.
• Approach to systematically analyse the evolution of the
reference business model
• New Reference Business Models
iCargo results

24. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
iCargo Ecosystem – composition and
evolution
Logis c Services Clients
(LSCs)
Freight Services
Integrators (FSI)
Logis c Services
Providers (LSPs)
Transport
Regulators
Informa on Services Integrators (ISI)
Transport
Network
Managers
Monitor.
Pla orm
Provider
Func on.
as a
Service
Connect.
Infrastruct.
Provider
System
Integrator
Authority
Security
data service
provider
Network
administr.
Virtual
Integrator
Traffic
data service
provider
Basic
Infrastruct.
Provider
= Provide
= Evolve / spin-off
So ware/
Hardware
Vendor
Environm.
focused
retailer
e-Comm.
Retailer
Enhanced
retailer
Value-add.
provider
Enhanced
LSP
Asset-
bound
FSI
Environm.
focused
provider
Environm.
focused
Manufact.
Enhanced
Manufact.
Network-
bound
FSI
= Existing = New = Disrupted
Facilitators
&
Supporters

25. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
APPROACH:
1. collection of current business models of LSC, FSI, LSP and ISI
based on the common well-known Osterwalder Canvas;
2. mapping current business models by the different involved
actors and the business and technical innovations introduced by
iCargo (so called “jobs-to-be-done”);
3. creation of a template to examine and define reference business
models;
4. definition and analysis of the iCargo Ecosystem in terms of its
components and evolution.
Structured Approach to study the Business
Model evolution

26. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Value
Proposi on
Key
Ac vi es
Key
Resources
Partner
Network
Customer
Segments
Channels Customer
Rela onships
Cost
Structure
Revenue
Streams
Example: LSC
Current BM
Job 1a
Job 2a
Job 3a
Elements of the Osterwalder Canvas
iCargobusinessandtechnical
innovaons
Opportunity
Opportunity Opportunity
Opportunity
Change
Opportunity OpportunityChange
Change Change
Change
Change
Change Change
Change
Change
Change
No Change
No Change
No Change
No Change
No Change
No Change No Change
No Change
No Change No Change
General example of the mapping

27. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Template features
• This template is defined in different versions, one for
each category of actors.
• The columns represent the nine elements of the Canvas
and the rows are the jobs that have a deeper impact for
the considered category of actors.
• The combination of the different effects of the iCargo
jobs on the current business models leads to the
definition of new business models.

28. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Value
Proposi on
Key
Ac vi es
Key
Resources
Partner
Network
Customer
Segments
Channels Customer
Rela onships
Cost
Structure
Revenue
Streams
Example: LSC
Current BM
Job 1a
Job 2a
Job 3a
Elements of the Osterwalder Canvas
iCargobusinessandtechnical
innovaons
Opportunity
Opportunity Opportunity
Opportunity
Change
Opportunity OpportunityChange
Change Change
Change
Change
Change Change
Change
Change
Change
No Change
No Change
No Change
No Change
No Change
No Change No Change
No Change
No Change No Change
BM3 BM2
BM1
Example of template utilization

29. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
LSC – Reference Business Models
LSC
Retailers Manufacturers
Enhanced
retailer
e-commerce
focused
retailer
Environmental
focused
retailer
Enhanced
manufacturer
Environmental
focused
manufacturer

30. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
FSI – Reference Business Models
FSI
Virtual IntegratorAsset-bound FSI
Network-bound
FSI

31. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
LSP – Reference Business Models
LSP
Environment
focused provider
Enhanced LSP
Value added
services provider

32. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
ISI – Reference Business Models
ISI
Basic Infrastructure
Providers
System Integrators
Software/Hardware
Vendors
Monitoring
Infrastructure
Provider
Connectivity
Infrastructure
Provider
Functionality
as a service
Virtual
Integrator
System Integrators

33. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Connectivity Provider Evolution as
Monitoring Infrastructure Provider
Value
Proposition
Key
Activities
Key
Resources
Key
Partners
Customer
Segment
Channels
Customer
Relationships
Revenue StreamsCost Structure
- Collection and
monitoring of data
gathered from
peripheral devices;
- to support
administrative
transactions;
- to faclitate short
term relationships.
- monitoring devices and
data collection;
- to publish and manage
logistic information
services;
- to offer marketing and
customer support.
- to install and monitor
devices and sensors;
- access to all the logistic
operators of the port
and inland terminal area.
- Complementary
infrastructure
providers.
- Hardware and
software vendors.
- Large companies.
- SMEs.
- Direct (large
accounts).
- Resellers network.
- On-line.
Fixed costs for
infrastructure
management,
monitoring and
customer support.
- Fixed subscription
fee.
- Variable fees, e.g., by
unit of cargo
monitored.
- Mostly standardized
procedures.

34. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
• Key concept: Business Model
– what is a business model?
– why is it useful?
– Business Model Canvas
• What have we already achieved in iCargo?
– iCargo Ecosystem and Roles
– Reference Business Models
• iCargo Approach
– iCargo product/service ideas: value proposition
and business model definition
Agenda

35. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
• Success of new products is not the result of a
combination of casual factors, but it comes
from a structured strategy-driven approach.
• Main focus on:
– value created for the customers / users
– competitors' positioning
since the early stages of the product
conception.
Why applying this approach?

36. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
• Idea is the starting ingredient
– the same idea in most cases is already on the
market on different forms.
• Idea shaping: definition of the idea in terms of
combination of technology, service and
business model
– clearly define the motivations for a user to select
the product over competition offerings.
Idea definition

37. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
New tool support the transformation of ideas into
successful products
Shaping Ideas for Growth
Visit http://www.valuemapp.com/
• Free book: description of a structured strategy-driven process
• Free App: elaboration of product ides and innovation
strategies
To validate new ideas and
assess your business implementation
going beyond the pure design a business model.

38. Intelligent Cargo in Efficient and Sustainable Global Logistics Operationswww.i-cargo.eu Valentina Boschian
Valentina Boschian
Bluegreen Strategy srl
Thank You
38
iCargo Training - 18 November 2014

39. www.i-cargo.eu
Intelligent Cargo in Efficient and Sustainable
Global Logistics Operations
Credits:
Presented by: Valentina Boschian
Bluegreen Strategy srl
valentina.boschian@bluegreenstrategy.com
Material: Valentina Boschian