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Thinking Outside the Box: Agile Business Models for CNOs Leandro Loss, Servane Crave PRO-VE'09 - Thessaloniki, Greece. 7 - 9 October 2009

Agenda

1 Introduction 2 Objective 3 CNOs/Strategic Alliances 4 Current Approaches for Business Models 5 Fostering Agile Business Models 6 Final Considerations 7 Next Steps

PRO-VE'09 – Thinking Outside the Box: Agile Business Models for CNOs, October 09th, 2009.

Introduction Business Model

the way an organization is going to address the market

It is usually applied to organizations offering products and services to one or several segments of customers – Static (designed for a single organization) – Linear value chain (stable and predictable competitive landscape)

A multi perspective approach regarding BMs for CNOs

It is hard to capture the necessary shift in the new ways of working of CNOs' stakeholders, mainly regarding innovation aspects


Objective

To propose a ground on a new model of innovation which finds its roots in a context where resources are spread out worldwide

To provide to the customer a unique experience

These concepts are mobilized in order to create and foster an Agile Business Model for CNO's


CNOs / Strategic Alliances

Oliver (1990) reviewed the literature on inter-organizational relations and argues that the core idea is that organizations working together are stronger than when working only by themselves or isolated

Strategic alliances are also viewed as a form of Collaborative Networked Organization (CNOs)

Access to new/wider markets and novel knowledge, where risks and resources are shared and where skills and capacities can be complementary orchestrated (Camarinha-Matos and Afsarmanesh, 2006)


Current Approaches for Business Models

Business Model: Technical Inputs: (feasibility, performance)

Measured in technical domain

• Market segment • Value proposition • Value chain • Cost and profit • Value network • Competitive strategy

Economic Outputs: (value, price, profit) Measured in social domain

(Chesbrough and Rosenbloom, 2002)



Infrastructure Management

How?

Product and/or Service

Who?

Customer Interface

What?

How much? Financial Aspects

(Osterwalder, 2004)



CNO Partnerships Product and/or Service


CNO capabilities

CNO multi-value configuration

CNO multi-value proposition

CNO Cost structure

CNO stakeholders relationship

CNO distribution channel

CNO Revenue Model

Financial Aspects Legend: Adapted from Osterwalder (2004) proposition, and extended by Romero et al. (2006)


Customer Interface

CNO target stakeholders

Current Approaches for Business Models - Fields of innovation & value creation

- Value Proposition - Breakthrough Anticipation - Business Analysis - SWOT Analysis

- Ecosystem Analysis



CNO capabilities


- Value & network Chain


CNO Cost structure



CNO Revenue Model

Financial Aspects Legend:

Customer Interface


-Pre-segmentation and Segmentation - Competitive Analysis - Market Analysis

Adapted from Osterwalder (2004) proposition, and extended by Romero et al. (2006) Empirical support (complementary approach)



Nevertheless, the current approaches to develop business models appear to be on a different wavelength from the current market landscape: especially when looking at new market dynamics caused by globalization, rising up of services in all activity sectors as well as open innovation processes

It is argued that new dynamics for business models are required


Fostering Agile Business Models

Product Innovation Î 1995

Æ 2000

22

3

44

Value Chain

Organizational, societal & sustainable innovation

Few radical innovation, Customized offers

Technological & Industrial Innovation 1

Co-Creation, Customer experience 2001 Î ….

"Client in the center"

5

22

2

11

55

44

33

1 5

4

Value network 3

Digital ecosystem PRO-VE'09 – Thinking Outside the Box: Agile Business Models for CNOs, October 09th, 2009.

Fostering Agile Business Models • Key features of Current BMs and Agile BMs Current BMs (as is)

Agile BMs (to be)

Static

Dynamic

Finantial aspects

Finantial and social aspects

Profit

Profit / sustainability / effect of commodization

Linear value chain

Value network / Digital ecosystems

Value analysis and creation

Value creation and capture

Product

Increased development of services / services on top of products

Customer interfaces

Customer empowerment

One to many / one to one

Many to one



It was identified a set of levers and uncertainties for building agile business models in CNOs

The objective of this exercise is to find means to go beyond the concepts being used nowadays and to link them to a BM approach

Three perspectives: Organizational, Social, and Technological


Fostering Agile Business Models: organizational perspective Levers

Or

BPs in accordance with what is pointed out by the business model

al

ance d r o acc es n i s l de ess o c o M r ss P ness Busi th Busine wi

tion a z i gan

tion a v o In n ) Open dsourcing (crow

- Fields of innovation & value creation

- Value Proposition - Breakthrough Anticipation - Ecosystem Analysis - Business Analysis - SOWT Analysis




CNO capabilities




CNO Cost structure



CNO Revenue Model

Financial Aspects

Customer Interface

to be more agile and in a position to better react to new business opportunities



blend of internal and external innovation


Fostering Agile Business Models: organizational perspective Uncertainties

Or

Culture

al


tion a z i gan







CNO capabilities



Quality and maintenanc e


CNO Cost structure



CNO Revenue Model

Financial Aspects

Customer Interface




Fostering Agile Business Models: social perspective Knowledg e workers

Levers

Or

Colle Intell ctive igenc e

al


tion a z i gan





CNO capabilities




CNO Cost structure



CNO Revenue Model

Financial Aspects

l

User (kno empower wled ge w ment and value or co-cr kers eatio n)



Soci a

Customer Interface



“Coopetition” PRO-VE'09 – Thinking Outside the Box: Agile Business Models for CNOs, October 09th, 2009.

Fostering Agile Business Models: social perspective Uncertainties

Or

Trust Colle Intell ctive igenc e

al


tion a z i gan





CNO capabilities




CNO Cost structure



CNO Revenue Model

Financial Aspects

l




Soci a

Customer Interface


IPR


Lack of definition from a Value System PRO-VE'09 – Thinking Outside the Box: Agile Business Models for CNOs, October 09th, 2009.

Fostering Agile Business Models: technological perspective Levers

Or


al


tion a z i gan





CNO capabilities




CNO Cost structure

Financial Aspects

(distributed) Business Process



CNO Revenue Model

l ICT based User emp (knAnalytic owerModels ow

men ledge and w value orke t rs co-cr eatio n)



Soci a

Customer Interface



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Fostering Agile Business Models: technological perspective Uncertainties

Or


al


tion a z i gan





CNO capabilities




CNO Cost structure

Financial Aspects

ROI for SMEs



CNO Revenue Model

ial




Costs Soc

Customer Interface

Time






th,

2009.


Or


al


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CNO capabilities




CNO Cost structure



CNO Revenue Model

Financial Aspects

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Soci a

Customer Interface






th,

2009.

Final Considerations

It was verified that despite the current models propose a solid contribution to BMs, however they missed an agile perspective that may provide dynamicity for BMs in CNOs

Based on these observations, key features of current approaches for BMs and Agile BMs were introduced

The levers and uncertainties that can affect an Agile BM were also presented

The authors aim to give insights and inspiration to further investigate the fundamentals of future business models where complexity and adaptability will prevail PRO-VE'09 – Thinking Outside the Box: Agile Business Models for CNOs, October 09th, 2009.

Next Steps

Exhaustive investigation of the levers and uncertainties with a field research to further articulate and illustrate in a mock-up organization, social, and technological dimensions

This approach has been also put in practice in the domain called e-Leisure (internal research at Orange Labs)


thank you Leandro Loss [email protected] Servane Crave [email protected]
