business model types for digital business ecosystems

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© =mcminstitute Business Models for Digital Business Ecosystems: The Case of the Open Negotiation Environment (ONE) Platform Volker Hoyer 1 2 and Katarina Stanoveska-Slabeva 1 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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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.

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Page 1: Business model types for digital business ecosystems

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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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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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Agenda

Motivation

MCM Business Model Framework

Case Study: ONE Project

Conclusion

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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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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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Agenda

Motivation

MCM Business Model Framework

Case Study: ONE Project

Conclusion

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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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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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Agenda

Motivation

MCM Business Model Framework

Case Study: ONE Project

Conclusion

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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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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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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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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