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Intelligent Cargo in Efficient and SustainableGlobal Logistics Operations
Introduction to iCargo
ecosystem ---
iCargo Training Series-Zaragoza-23.10.2013
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Valentina BoschianBluegreen Strategy srl
Introduction to iCargo ecosystem
iCargo Training Session23rd October 2013, Zaragoza, Spain
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• Context• The iCargo project and ecosystem• The approach to reference Business Models
– Reference Business Models– iCargo Ecosystem evolution
• Business Models evolution in the ecosystem– Example
• Lesson learnt • Conclusions
Contents
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• Context• The iCargo project and ecosystem• The approach to reference Business Models
– Reference Business Models– iCargo Ecosystem evolution
• Business Models evolution in the ecosystem– Example
• Lesson learnt • Conclusions
Contents
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• A business ecosystem is an “intentional community of economic actors” having in common protocols, interfaces and an overall business goal.
• Business Ecosystem concept not new (Moore, 1996), but now prominent in new markets (Amazon, Apple, ...)
• Collaborative business models require to analyze the impact of the ecosystem dimension on the individual company Business Model.
Business Ecosystem
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• Traditional industries, including Logistics, call for collaborative business models to face new challenges and opportunities.
• Business models theory quite developed (and applied) but:
– Lack the collaborative dimensions (traditional Value Chain approach focused on the individual company).
– The Business Model is a taken for granted as strategy cornerstone, assumedly unaffected by external changes.
The Context
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• Context• The iCargo project and ecosystem• The approach to reference Business Models
– Reference Business Models– iCargo Ecosystem evolution
• Business Models evolution in the ecosystem– Example
• Lesson learnt • Conclusions
Contents
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Achieve the iCargo vision through an open freight management ecosystem.
In the case of iCargo this is the provision of door-to-door low-carbon logistic services, i.e., services that:
– cover an entire supply chain or a significant portion of it, – produce less CO2 than alternatives,– make use of the iCargo ecosystem to combine services
through different transport modes and providers.
The iCargo ecosystem
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Aim:• to support cooperation of logistic and financial services
concerning the iCargo ecosystem;• to be an ideal representation of the customer-supplier
relationships. The represented relationships are value-creation links: • the supplier must provide an adequate measure of value to
the customer for the relationship;• to be sustainable in market terms.
The iCargo Reference Value Chain
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There are three user roles in the iCargo value chain:1. Logistic Service Client (LSC): purchasing the door-to-door service
solution (e.g., manufacturing or distribution company). 2. Freight Service Integrator (FSI): providing the combined door-to-door
service to the LSC (typically a freight forwarder).3. Logistic Service Provider (LSP): providing transport and logistic services
contributing to the door-to-door solution (e.g., carriers for the various transport modes).
There are three supporting roles in the iCargo value chain:A. Information Services Integrator (ISI): providing the information
infrastructure of the iCargo ecosystem;B. Transportation Network Manager (TNM): in charge of managing of the
transportation infrastructure sustaining the door-to-door flow;C. Transport Regulator (TR): ensuring that all services are completed
according to existing rules and regulations.
The elements of the iCargo Reference Value Chain
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Players and value-chain
Logistic ServicesClient (LSC)
Low-carbon door-to door
service
Logistic resources and
capabilitiesFreight ServicesIntegrator (FSI)
Logistic ServicesProvider (LSP)
Needs goods delivered with
lower emissions, good performance and no extra cost
Needs to deliver door-to-door service by organizing logistic
resources and capabilities
Needs to make own resources and
capabilities accessibleand well utilised
Information ServicesIntegrator (ISI)
Informationservices
infrastructureTransportation Network
Manager(TNM)
Transportinfrastructure
RegulatoryCompliance
TransportRegulator (TR)
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• Context• The iCargo project and ecosystem• The approach to reference Business Models
– Reference Business Models– iCargo Ecosystem evolution
• Business Models evolution in the ecosystem– Example
• Lesson learnt • Conclusions
Contents
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Main elements to be considered:• starting point: Osterwalder Canvas to describe the
business models;• goal: evaluate the impact of the project on the
exploitation plans;• approach: systematic approach to be applied to the
different subjects involved in the exploitation strategy of the project.
Key elements
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iCargo approach – Business Model evolution
APPROACH:• collection of current business models of LSC, FSI, LSP and ISI
based on the common well-known Osterwalder Canvas;
• mapping current business models by the different involved actors and the business and technical innovations introduced by iCargo (so called “jobs-to-be-done”);
• creation of a template to examine and define reference business models;
• definition and analysis of the iCargo Ecosystem in terms of its components and evolution.
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iCargo approach – Business Model evolution (1)
APPROACH:• collection of the description of the current business models
applied by the role involved in the iCargo reference value chain:– high-level definition of current business models for:
• LSC, Logistic Service Client ,• FSI, Freight Service Integrator,• LSP, Logistic Service Provider ,• ISI, Information Service Integrator;
– utilization of the common well-known approach by Osterwalder;
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Osterwalder Canvas
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iCargo approach – Business Model evolution (2)
APPROACH:• collection of current business models of LSC, FSI, LSP and ISI
based on the common well-known Osterwalder Canvas;
• mapping current business models by the different involved actors and the business and technical innovations introduced by iCargo (so called “jobs-to-be-done”);
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General example of the mapping
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iCargo approach – Business Model evolution (3)
APPROACH:• collection of current business models of LSC, FSI, LSP and ISI
based on the common well-known Osterwalder Canvas;
• mapping current business models by the different involved actors and the business and technical innovations introduced by iCargo (so called “jobs-to-be-done”);
• creation of a template to examine and define reference business models;– the template allows to examine the new business models:– the template is used to systematically consider alternative approaches to
value creation in terms of reference business models.
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Example of template utilization
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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.
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iCargo approach – Business Model evolution (4)
APPROACH:• collection of current business models of LSC, FSI, LSP and ISI
based on the common well-known Osterwalder Canvas;
• mapping current business models by the different involved actors and the business and technical innovations introduced by iCargo (so called “jobs-to-be-done”);
• creation of a template to examine and define reference business models;
• definition and analysis of the iCargo Ecosystem in terms of its components and evolution:– common understanding of what is a business ecosystem,– evolution of the current market to the future iCargo ecosystem.
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iCargo Ecosystem – composition and evolution
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• Context• The iCargo project and ecosystem• The approach to reference Business Models
– Reference Business Models– iCargo Ecosystem evolution
• Business Models evolution in the ecosystem– Example
• Lesson learnt • Conclusions
Contents
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Example: Logistic Services Client (Retailer)Current B.M.:
Compete on price, position, service
iCargo “Jobs”:1a: Logistics plans with environm. criteria2a: Integrate logistics with production3a: Manage carbon footprint cross-chain
Evolved Business Models: BM1: Enhanced Retailer: exploits collaboration to improve efficiency and footprint.BM2: “Green” Retailer: exploits collaboration to sell low-CO2 products.BM3: e-Commerce Retailer: exploits collaboration to sell to new customers on-line.
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FSI – Reference Business Models
FSI
Virtual IntegratorAsset-bound FSI Network-bound FSI
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FSI evolution in the iCargo ecosystem
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• Context• The iCargo project and ecosystem• The approach to reference Business Models
– Reference Business Models– iCargo Ecosystem evolution
• Business Models evolution in the ecosystem– Example
• Lesson learnt • Conclusions
Contents
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What is the current Business Model?• Refer to the Osterwalder Framework, and:
– Produce a Business Model Canvas of the organization’s current business model.
Lesson learnt – how to use the proposed approach
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Example – ACME company
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How will the business model change?• Refer to the Osterwalder Framework, and:
– Produce a Business Model Canvas of the organization’s target business model, including:
• How each category is changed compared to the current business model.
INPUT for business model evolution
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Example – ACME company
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• Context• The iCargo project and ecosystem• The approach to reference Business Models
– Reference Business Models– iCargo Ecosystem evolution
• Business Models evolution in the ecosystem– Example
• Lesson learnt • Conclusions
Contents
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• The logistics industry sustainability, in both business and environmental terms, calls for collaborative Business Models.
• Business players will evolve jointly, not individually, through the creation of a business ecosystem where information is easily exchanged and chains of specialized actors outperform individual service providers.
• The dynamics of this transformation need to be investigated through experimentation, to be initiated in the iCargo project.
Conclusions and next steps
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Valentina BoschianBluegreen Strategy srl
Thank You
35
iCargo Training Seminar - ECITL 23 October, 2013 - Zaragoza
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www.i-cargo.eu
Intelligent Cargo in Efficient and SustainableGlobal Logistics Operations
Credits:
Presented by: Valentina BoschianBluegreen Strategy srlvalentina.boschian@bluegreenstrategy.comwww.bluegreenstrategy.com
Material: Valentina BoschianBluegreen Strategy srl