Business Model Innovation supported by f V l M d luse of Value Models

Arne J. Berre SINTEF, Norway, Arne.J.Berre@sintef.noHenk de Man Cordys Netherlands hdman@cordys comHenk de Man, Cordys, Netherlands, hdman@cordys.comPeter Lindgren, AAU, Denmark, pel@production.aau.dkBjørn Morten Ursin-Holm, Induct, Norway, bmuh@inductsoftware.comAndrew Hinchley IC Focus UK ahinchley@yahoo co ukAndrew Hinchley, IC Focus, UK, ahinchley@yahoo.co.uk

FInES Cluster meeting, Brussels, October 12th, 2012FInES Cluster meeting, Brussels, October 12th, 2012

Arne.J.Berre@sintef.no

Telecom and Informatics 1

AbstractAbstract A business model describes the rationale of how an organization creates g

delivers, and captures value. Business innovation for digital enterprises can thus be described and supported through an active use of value models. The NEFFICS project (www.neffics.eu) has developed both a framework for Business value models and a modeling language for the representation of value models. The modeling language is currently going through a standardisation process in OMG under the label VDML, Value Delivery Modeling Language. This language can provide an underlying representation of various business model innovation frameworks, which can be used to support business innovation for digital enterprises. It will be shown how a multi l l b i l f k b t d th h VDML hlevel business value framework can be supported through VDML, how business innovation can be supported through a cloud based platform, and also how VDML can relate to other innovation areas like product, process and service innovationservice innovation. .

Telecom and Informatics 2

Foundations from NEFFICS, www.neffics.eu

“BMI Cube”Osterwalder: “A business model describes the rationale of

“BMI Cube” how an organization creates, delivers, and captures value”.

Telecom and Informatics 3

Value conceptsValue concepts

VALUE FLOWValueSender

ValueRecipient

Value capture

Value distribution

Value creation Valueconsumption

Telecom and Informatics 4

Value Analysis BaselineValue Analysis Baseline

WorldsEntitiesValueMerged

Value Creation (input)

VirtualRealThingsPeopleWorldsEntitiesValue

Activity

Value Capture (flow)

(input)

Value Consumption(output)

Value Distribution(flow)

Volatility & Risk

TechnologyRegulationsStructures (intra- & inter- )

Culture & Social Norms

Drivers

Knowledge

Risk( )Social Norms

Time

Telecom and Informatics 5

The main scope and focus of NEFFICS analysis of value

Business Value definition areasBusiness Value definition areas

Telecom and Informatics 6

Cloud shared Business Model canvas

Telecom and Informatics 7

VDML (Value Delivery Modeling Language)(in progress as OMG standard

Porter Value

(in progress as OMG standard for 2013)

Organization Model Value Stream

Porter Value Chain

Model

Capability Model Value NetworkVDML

Business REA-ResourceModel

Innovation

REA-Resource Event Agent

Shared Services

Telecom and Informatics

Services

VDML in contextVDML in context

Telecom and Informatics 9

VDML MetamodelVDML Metamodel

Telecom and Informatics 10

VDML – Value Network

VDML – Business activity network

Telecom and Informatics 11

Role of VDML in Business Model Innovation

Telecom and Informatics 12

Future areasFuture areas

Additional user communities for Business Model Additional user communities for Business ModelInnovation and deployment, i.e. Finance, Services, …

Business model analysis Business model simulation (Monte Carlo System Business model simulation (Monte Carlo, System

Dynamics, Discrete event simulation, …..) Business collaboration infrastructure/execution Business collaboration infrastructure/execution

Arne.J.Berre@sintef.no

Telecom and Informatics 13

@