business model types for digital business ecosystems
DESCRIPTION
The process of business negotiations of complex products or services is an essential binding element in today's dynamic global markets. The Digital Business Ecosystem (DBE) paradigm provides a concept for understanding such dynamic global businesses. However, an analysis form a business model perspective is still missing. This paper presents the case study of an envisioned Open Source decentralized negotiation platform which is currently under development. In contrast to existing negotiation platforms such as Ebay in the B2C market or Ariba in the B2B market, the negotiation platform is based on a decentralized philosophy both on technical and organiza-tional level following the DBE paradigm. The analysis is structure along seven major components according to the MCM Business Model Framework: features of the specific product or service, features for the specific medium (technolo-gy), potential customers, value chain, financial flow, flow of goods and services, societal environment. As a result, we cate-gorize the characteristics and challenges in the different busi-ness model components providing the foundation to analyze further business ecosystems from a business model per-spective.TRANSCRIPT
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Business Models for Digital Business Ecosystems:
The Case of the Open Negotiation Environment (ONE)
Platform
Volker Hoyer1 2 and Katarina Stanoveska-Slabeva1
1 Institute for Media and Communications Management, University of St. Gallen, Switzerland
2 SAP Research St. Gallen, Switzerland
Presenter: Volker Hoyer
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Volker Hoyer
Executive Summary
Decentral organized business networks
Enabled by open and standardized information technology
Explaination concept
MCM Business Model Framework
Seven components: Features of the product, features of
the medium, customers, value chain, financial flow, flow of
goods and services, societal environment
EU-funded Project
Business Negotiations are a binding element in DBEs
Analysis of the envisioned plaform
Bu
sin
ess M
od
els
fo
r D
igit
al
Bu
sin
ess E
co
syste
ms
Digital Business
Ecosystems
(DBE)
Business Model
Case Study:
ONE Project
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Volker Hoyer
Agenda
Motivation
MCM Business Model Framework
Case Study: ONE Project
Conclusion
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Volker Hoyer
Motivation
Trend towards loosely coupled business networks
Organization Level: Decentral organized business networks
Technology Level: Open and standardized information technologies are
enabler
Digital Business Ecosystem represents an explaination
concept
“ … an economic community supported by foundation of interacting
organizations and individuals - the organisms of the business world“
Roots in biological ecosystem (analogy for understanding business networks)
Key phenomena observed in nature such as competition, specialization, co-
operation, exploitation, learning and growth are also central to capitalist
economy.
Research Gap
Missing discussion of the DBE concept regarding from a business model
perspective
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Volker Hoyer
ONE Project – Business Negotiations
Business Negotiation is a process during which two or more entities try to
reach a mutual acceptable agreement on one or several issues through
some kind of communication.
ONE Project
Open Negotiation Environment (http://www.one-project.eu)
ONE Ecosystem
Design Time RunTime
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Volker Hoyer
Agenda
Motivation
MCM Business Model Framework
Case Study: ONE Project
Conclusion
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Volker Hoyer
Business Model
Business Model Concept
Business Model Type
Business Model Type
Business Model of ONE
Business Model of Ariba
Business Model of Ebay
ONE Ariba Ebay C
on
cep
tual
Level
Insta
nce L
evel
Real world company
Modelled instances
Instances (view of a company)
Taxonomy of types
Definition What is a business model?
What components belong into a business model?
1
2
3
MCM Business Model Framework
Definition Business Model: “An architecture for the products, services and information flows, including a description of various business actors and their roles, a description of the potential benefits for the various business actors, and a description of the sources of revenues.” (Timmers, 1998)
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Volker Hoyer
MCM Business Model Framework
Feature of the specific Product
Feature of the specific Medium
Potential Customer
Value Chain
Societal Environment
Financial Flow
Flow of Goods & Services
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Volker Hoyer
Agenda
Motivation
MCM Business Model Framework
Case Study: ONE Project
Conclusion
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Volker Hoyer
Features of the Specific Product
Feature of the specific Product
Feature of the specific Medium
Potential Customer
Value Chain
Societal Environment
Financial Flow
Flow of Goods & Services
Business Negotiation Modeling Environment (ONE Modeling Editor)
Business Negotiation Engine (ONE Portal)
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Volker Hoyer
Features of the Specific Technology
Feature of the specific Product
Feature of the specific Medium
Potential Customer
Value Chain
Societal Environment
Financial Flow
Flow of Goods & Services
Open Source
Model-Driven Approach
Decentralized Architecture and Distributed Information Flow
Decentralized Repository
Negotiation Models
Knowledge Database
Intelligent System
Identification/ Authentification
Authorization
Negotiation Engine
Participant C
Participant B
Enterprise A
(Owner)
Repository
Negotiation Engine
Document Exchange
Legend
Synchronization
Synchronization
Message Exchange
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Potential Customers
Feature of the specific Product
Feature of the specific Medium
Potential Customer
Value Chain
Societal Environment
Financial Flow
Flow of Goods & Services
Characteristics of Business Users
Complex negotiation models
Integration in existing technical and organizational structures
Negotiation issues (prices, qualitity of services, delivery terms, etc.)
Small and Medium Sized Enterprise (SMEs)
Limited Technical Know-How
Limited Resources
Covering the “Long Tail“ of Business Negotiations
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Potential Customers – Long Tail
The Long Tail Potential of Business Negotiations
Internationalization/ Globalization
Individual Workspace
Individual Negotiation Models
Standard Individual Negotiation Models
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Value Chain
Feature of the specific Product
Feature of the specific Medium
Potential Customer
Value Chain
Societal Environment
Financial Flow
Flow of Goods & Services
Neutral Intermediary
ONE platform brings buyer and seller together
B2B market functions of private and public negotiations
Aggregation
Matching
Buyer Seller
IntermediaryService Consumer Service Provider
ONE
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Financial Flow
Feature of the specific Product
Feature of the specific Medium
Potential Customer
Value Chain
Societal Environment
Financial Flow
Flow of Goods & Services
Web 2.0 Revenue Models
Providing additional premium services
Support and services like integration, product support, tutorials or user documentation
Banner advertisement (i.e. promoting public negotiations)
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Flow of Goods & Services
Feature of the specific Product
Feature of the specific Medium
Potential Customer
Value Chain
Societal Environment
Financial Flow
Flow of Goods & Services
Decentralized Information Flow
User-generated Content (Source Code & Negotiation Models)
Neutral Intermediary in the Wisdom of the Crowds
Perpetual Beta
Service is always improving
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Volker Hoyer
Agenda
Motivation
MCM Business Model Framework
Case Study: ONE Project
Conclusion
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Conclusion
Business Model Characteristics for Digital Business
Ecosystems
Neutral Intermediary in the value chain
Covering the Long Tail of customer and customer needs
Flexible products and services (not prefined or static)
Programmable Web as the technical enabler (Cloud Computing)
Decentral organized
Process and content is driven by the user
ONE Platform
Visit our project at http://www.one-project.eu
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Volker Hoyer
Agenda
Thank you for your attention
Questions?
Be part of the ONE Ecosystem. Model your individual
business negotiation!
The ONE Conline Contest in June http://sites.google.com/site/oneonlinecontest/
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ONE Online Contest