Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models Austin D’Souza * * co-authors: Nick van beest, George Huitema, Hans Wortmann, and Hugo Velthuijsen

Overview Introduction Case study Assessing business model ontologies Result/Conclusion 22-4-2014 An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

Introduction PhD research within FlexiGrid Project FlexiGrid is part of the EDGaR program Focusses on embedding decentralized energy supply in an combined energy infrastructure for electricity, gas, and heat Domain for new business models 29-4-2019 An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

Introduction – Goal Which business model ontology is best suited for the design and evaluation of viable energy business models? Designing viable business models is vital to the survival of business ecosystems It is absolutely essential to use the right business model ontology to design viable business models Literature does not provide any direction on which business model ontology to use for designing and evaluating viable business ecosystems 29-4-2019 An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

Introduction What is a business model ontology? Business model ontology (Gordijn, Osterwalder, & Pigneur, 2005). Theory of what exists when referred to a business model Helps to conceptualise and represent business models 29-4-2019 An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

Introduction What is a business model ontology? Language Express Business models 29-4-2019 An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

Introduction Example of a business model ontology (Osterwalder & Pigneur 2010, p. 44) 29-4-2019 An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

Introduction What is a business model? A business model describes how business is carried out Value is created and exchanged among stakeholders How value creation activities and value exchanges are configured 29-4-2019 An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

Introduction What is viability? A business models also needs to be technologically viable (Kraussl 2011) A business model is viable when all the stakeholders participating in the business model are able to capture value such that they are committed to the business model (Chesbrough, Vanhaverbeke, & West, 2006). 29-4-2019 An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

Introduction What is viability? Value Exchange value (economic value) Use value (e.g. CO2 reduction) 29-4-2019 Which business model ontology is best suited for modelling decentralised energy business ecosystem

Case study The solar farm case Invest Invest Customers living around an open area to invest in a community driven solar farm Customer segment is concerned with sustainability, self-sufficiency, jumpstarting local economy, creating local jobs 29-4-2019 An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

Case study The solar farm case Invest Sell power Setup & operate Energy retailer Co- operative There are several stakeholders involved in this business ecosystems (municipality) The stakeholders are not only interested in economic values but also broader societal values So which business model ontology can we use design a viable business ecosystem? Customer Help form Interested in solar farms Company A Supply energy 29-4-2019 An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

Assessing business model ontologies e3-value VNA Value network analysis BMC Business model canvas VSM Value stream mapping REA Resource event agent EBMS e-business modelling schematics Assessment framework Design & evaluation of viable business models 29-4-2019 Which business model ontology is best suited for modelling decentralised energy business ecosystem

Assessing business model ontologies List of criteria Model value creation by each stakeholder Model multiple commodities Value creation activities Model multiple stakeholders/roles Resources Ability to design business models at organisational level Model value captured by each stakeholder Ability to design business models at business network level Model captured value in terms of use value Evaluate use value captured by the stakeholders Model captured value in terms of exchange value Evaluate exchange value captured by the stakeholders Use value at organisational level Exchange value at organisational level Visualise the ICT services Use value at business network level Embodies business rules Exchange value at business network level Model BMOs at low level of granularity Represent the business architecture Ability to manipulate business models Model underlying ICT services 29-4-2019 An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

Assessing business model ontologies Methodology Assessment framework Use CMAF to structure literature review from the viability perspective List of criteria (24) Multi-criteria decision analysis conditions (8) Final list of criteria (22) applied Assess six business model ontologies 29-4-2019 Which business model ontology is best suited for modelling decentralised energy business ecosystem

Result: rating of the ontologies 29-4-2019 An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

Result: matching of criteria e3-Value (17/22) VSM (12/22) REA (12/22) BMC (10/22) VNA (7/22) EBMS (7/22) 29-4-2019 An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

Company A 29-4-2019

Scope for enhancing e3-Value ontology Conclusion Scope for enhancing e3-Value ontology Model use value Evaluate use value captured by stakeholders Model underlying ICT services Visualise ICT services Model business architecture 29-4-2019 An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

Questions/Remarks? Thank you! Contact: a.d.souza@pl.hanze.nl 29-4-2019 An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

MCDA conditions Back Value relevance Understandable Measurability Non-redundancy Judgemental independence Balancing completeness and conciseness Operational Simplicity versus complexity Back 29-4-2019 Which business model ontology is best suited for modelling decentralised energy business ecosystem