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12 – 15 June 2011




COLLABORATIVE BUSINESS MODELLING
How it can be used to jointly explore sustainability innovations

Lars Konnertz, René Rohrbeck, Sebastian Knab




                             pRÆSEN
                              TATION
Collaborative Business Modelling    XXII ISPIM Conference
                                                        René Rohrbeck          12 – 15 June 2011
                                                     Associate Professor                Hamburg




Relevance
› Sustainability innovation have a systemic nature and often
  requies multiple actors to work together (De Laat, 1999)
› Multiple companies working together to pool complementary
  assets are particular important for sustainability innovation
  (Chesbrough et al., 2006; McDowall & Eames, 2006)
› Major sustainability goals require radical innovation to
  explore and develop new business fields (Hellström, 2007)

                                                                                              2
Collaborative Business Modelling    XXII ISPIM Conference
                                    René Rohrbeck          12 – 15 June 2011
                                 Associate Professor                Hamburg




HOW TO EXPLORE NEW
BUSINESS FIELDS THAT HAVE A
SYSTEMIC NATURE?



                                                                          3
Collaborative Business Modelling    XXII ISPIM Conference
                                                                                 René Rohrbeck          12 – 15 June 2011
                                                                              Associate Professor                Hamburg




Approaches to explore new business fields
have already been used collaborativley
 Scenario technique                  Roadmapping                              Business Modelling

•  useful to enable strategic   •  strengths in planning and              •  Integration of customer‘s
   discussions                     decision making                           perspective with the
•  less suited for planning     •  Identifies interdepen-                    provider‘s perspective
                                   dencies between market                 •  strengths in planning and
                                   and technology                            enabling discussion

Suited to create common         Usage with external part-ners             Further developed to
ground in a collaborative       allows integration of open                collaborative business
innovation setting              innovation processes                      modelling and tested in our
(Cairns et al., 2006)           (Lichtenthaler, 2008)                     project
                                                                                                                       4
Collaborative Business Modelling    XXII ISPIM Conference
                                         René Rohrbeck          12 – 15 June 2011
                                      Associate Professor                Hamburg




Using Osterwalds business model
ontology as a basis.
                               Osterwalders
                               business
                               model
                               ontology ...



                                                                               5
Collaborative Business Modelling    XXII ISPIM Conference
                                         René Rohrbeck          12 – 15 June 2011
                                      Associate Professor                Hamburg




Using Osterwalds business model
ontology as a basis.
                               ... and its
                               visualisation
                               as a canvas



                                                                               6
Collaborative Business Modelling    XXII ISPIM Conference
                                 René Rohrbeck          12 – 15 June 2011
                              Associate Professor                Hamburg




WHAT WE DID IN OUR
COLLABORATIVE INNOVATION
PROJECT



                                                                       7
Collaborative Business Modelling    XXII ISPIM Conference
                                                                  René Rohrbeck          12 – 15 June 2011
                                                               Associate Professor                Hamburg




Context and project facts
› German energy sector
 ›  Changing heaviliy due to liberalization, sustainability requirements,
    new legislation and emerging technologies

› 8 participating companies
 ›  6 energy utilities of different size, offer and geographical reach
 ›  1 telecommunications provider
 ›  1 telecommunications research institution

› Spans over 6 months with 3 workshops conducted
                                                                                                        8
Collaborative Business Modelling    XXII ISPIM Conference
                                                                           René Rohrbeck          12 – 15 June 2011
                                                                        Associate Professor                Hamburg




Idea generation as the
first step of the CBM process
           Create a multitude of business models for
Goal




           the developing smart energy market.

           •  Building trust among participants
Approach




           •  Brainstorming building blocks
           •  Creating business models
           •  Supporting creativity and allowing „crazy“ ideas
Result




           21 drafts of smart energy business models


                                                                                                                 9
Collaborative Business Modelling    XXII ISPIM Conference
                                                                      René Rohrbeck          12 – 15 June 2011
                                                                   Associate Professor                Hamburg




Priorisation forces participants to make
decisions about the business models
           Create a common understanding of the future energy market and
Goal




           use it as a basis for priorisation of the business models.

           •  Discussion of future market
Approach




              & business models
           •  Prioritisation according to
              „attractiveness“ and „effort“

           21 prioritised business
Result




           models, 6 of high and 8 of
           medium interest

                                                                                                           10
Collaborative Business Modelling                           XXII ISPIM Conference
                                                                                                             René Rohrbeck                                 12 – 15 June 2011
                                                                                                          Associate Professor                                       Hamburg




Validation of business models as the last
step to support implementation
           Validate the highest-
Goal




           ranked business models     Key Partners                Key Activities            Value Propositions        Customer
                                                                                                                      Relationships
                                                                                                                                                Customer
                                                                                                                                                Segments

                                           Building                  Building
                                           Block A                   Block C                      Building                 Building                 Building
                                                                                                  Block N                  Block O                  Block D

           •  Desk research
Approach




                                                                                                                                 Building
                                            Building Block B                                                                     Block P


           •  Group discussion on      Building Block E


                                        Building Block F
                                                                  Key Resources

                                                                  Building Block
                                                                         L
                                                                                                                      Channels

                                                                                                                            Building
                                                                                                                                                  Bilding
                                                                                                                                                  Block R


              business models &                                               Building                                      Block Q
                                                                              Block M
                                          Building                                                                       Building Block
                                                                      Building
              next steps
                                                                                                                                V
                                          Block G
                                                                      Block U
                                      Cost Structure                                                    Revenue Streams

                                           Building            Building Block K             Building                                                   Building
                                           Block H                                          Block J              Building Block S
Result




                                                                                                                                                       Block T

           7 validated smart energy     green          Available/realistic         yellow    Uncertain/to be developed           red        Not available/show stopper

           business models

                                                                                                                                                                         11
Collaborative Business Modelling    XXII ISPIM Conference
                              René Rohrbeck          12 – 15 June 2011
                           Associate Professor                Hamburg




CONCLUSION


                                                                   12
Collaborative Business Modelling    XXII ISPIM Conference
                                                                       René Rohrbeck          12 – 15 June 2011
                                                                    Associate Professor                Hamburg




The collaborative business modelling
approach to explore new business fields
                         Unlocking barriers of innovation
     Goal




                Enhancing                                  Preparing
                                  Forcing Decisions
                 Creativity                              Implementation


                                      Creating
   Group




              Forming a group /                                 Next Steps /
   level




                                      common
                building trust                                   follow-up
                                    understanding
   Practica
    l level




              Idea generation         Priorisation                Validation
                                                                                                            13
Collaborative Business Modelling    XXII ISPIM Conference
                                                           René Rohrbeck          12 – 15 June 2011
                                                        Associate Professor                Hamburg




Conclusion
› CBM can support joint development of business models,
  particularly for sustainability innovations, where pooling of
  complementary skills, technologies and assets is needed.
› CBM between actors along the value chain can contribute to
  create a common understanding of drivers and barriers and
  define common goals
› Integration of different frameworks can help to explore new
  business fields, especially in situations of high uncertainty
                                                                                                14

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Collaborative business modeling to explore new business fields

  • 1. 12 – 15 June 2011 COLLABORATIVE BUSINESS MODELLING How it can be used to jointly explore sustainability innovations Lars Konnertz, René Rohrbeck, Sebastian Knab pRÆSEN TATION
  • 2. Collaborative Business Modelling XXII ISPIM Conference René Rohrbeck 12 – 15 June 2011 Associate Professor Hamburg Relevance › Sustainability innovation have a systemic nature and often requies multiple actors to work together (De Laat, 1999) › Multiple companies working together to pool complementary assets are particular important for sustainability innovation (Chesbrough et al., 2006; McDowall & Eames, 2006) › Major sustainability goals require radical innovation to explore and develop new business fields (Hellström, 2007) 2
  • 3. Collaborative Business Modelling XXII ISPIM Conference René Rohrbeck 12 – 15 June 2011 Associate Professor Hamburg HOW TO EXPLORE NEW BUSINESS FIELDS THAT HAVE A SYSTEMIC NATURE? 3
  • 4. Collaborative Business Modelling XXII ISPIM Conference René Rohrbeck 12 – 15 June 2011 Associate Professor Hamburg Approaches to explore new business fields have already been used collaborativley Scenario technique Roadmapping Business Modelling •  useful to enable strategic •  strengths in planning and •  Integration of customer‘s discussions decision making perspective with the •  less suited for planning •  Identifies interdepen- provider‘s perspective dencies between market •  strengths in planning and and technology enabling discussion Suited to create common Usage with external part-ners Further developed to ground in a collaborative allows integration of open collaborative business innovation setting innovation processes modelling and tested in our (Cairns et al., 2006) (Lichtenthaler, 2008) project 4
  • 5. Collaborative Business Modelling XXII ISPIM Conference René Rohrbeck 12 – 15 June 2011 Associate Professor Hamburg Using Osterwalds business model ontology as a basis. Osterwalders business model ontology ... 5
  • 6. Collaborative Business Modelling XXII ISPIM Conference René Rohrbeck 12 – 15 June 2011 Associate Professor Hamburg Using Osterwalds business model ontology as a basis. ... and its visualisation as a canvas 6
  • 7. Collaborative Business Modelling XXII ISPIM Conference René Rohrbeck 12 – 15 June 2011 Associate Professor Hamburg WHAT WE DID IN OUR COLLABORATIVE INNOVATION PROJECT 7
  • 8. Collaborative Business Modelling XXII ISPIM Conference René Rohrbeck 12 – 15 June 2011 Associate Professor Hamburg Context and project facts › German energy sector ›  Changing heaviliy due to liberalization, sustainability requirements, new legislation and emerging technologies › 8 participating companies ›  6 energy utilities of different size, offer and geographical reach ›  1 telecommunications provider ›  1 telecommunications research institution › Spans over 6 months with 3 workshops conducted 8
  • 9. Collaborative Business Modelling XXII ISPIM Conference René Rohrbeck 12 – 15 June 2011 Associate Professor Hamburg Idea generation as the first step of the CBM process Create a multitude of business models for Goal the developing smart energy market. •  Building trust among participants Approach •  Brainstorming building blocks •  Creating business models •  Supporting creativity and allowing „crazy“ ideas Result 21 drafts of smart energy business models 9
  • 10. Collaborative Business Modelling XXII ISPIM Conference René Rohrbeck 12 – 15 June 2011 Associate Professor Hamburg Priorisation forces participants to make decisions about the business models Create a common understanding of the future energy market and Goal use it as a basis for priorisation of the business models. •  Discussion of future market Approach & business models •  Prioritisation according to „attractiveness“ and „effort“ 21 prioritised business Result models, 6 of high and 8 of medium interest 10
  • 11. Collaborative Business Modelling XXII ISPIM Conference René Rohrbeck 12 – 15 June 2011 Associate Professor Hamburg Validation of business models as the last step to support implementation Validate the highest- Goal ranked business models Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Building Building Block A Block C Building Building Building Block N Block O Block D •  Desk research Approach Building Building Block B Block P •  Group discussion on Building Block E Building Block F Key Resources Building Block L Channels Building Bilding Block R business models & Building Block Q Block M Building Building Block Building next steps V Block G Block U Cost Structure Revenue Streams Building Building Block K Building Building Block H Block J Building Block S Result Block T 7 validated smart energy green Available/realistic yellow Uncertain/to be developed red Not available/show stopper business models 11
  • 12. Collaborative Business Modelling XXII ISPIM Conference René Rohrbeck 12 – 15 June 2011 Associate Professor Hamburg CONCLUSION 12
  • 13. Collaborative Business Modelling XXII ISPIM Conference René Rohrbeck 12 – 15 June 2011 Associate Professor Hamburg The collaborative business modelling approach to explore new business fields Unlocking barriers of innovation Goal Enhancing Preparing Forcing Decisions Creativity Implementation Creating Group Forming a group / Next Steps / level common building trust follow-up understanding Practica l level Idea generation Priorisation Validation 13
  • 14. Collaborative Business Modelling XXII ISPIM Conference René Rohrbeck 12 – 15 June 2011 Associate Professor Hamburg Conclusion › CBM can support joint development of business models, particularly for sustainability innovations, where pooling of complementary skills, technologies and assets is needed. › CBM between actors along the value chain can contribute to create a common understanding of drivers and barriers and define common goals › Integration of different frameworks can help to explore new business fields, especially in situations of high uncertainty 14