Modeling e-Business with eBML CIMRE’2001 Mahdia, October 2001 Sarra Ben Lagha Alexander Osterwalder Yves Pigneur HEC Lausanne (+41 21)

Université de Lausanne WEBWEB | AGENDA | FINAGENDA FIN © 2001 Osterwalder, HEC Lausanne e-business 2 Why Business Models? A buzzword with no precise definition –Executives, reporters and analysts who use the term don't have a clear idea of what it means. They use it to describe everything from how a company earns revenue to how it structures its organization [Linder, 2001] Dynamic business environment –Shorter product life cycles –Increased & global competition –New Information and Communication Technologies (ICT) Evolving dynamic business networks –Business Webs [Tapscott & al., 2000] –Co-opetition [Brandenburger & al., 1996] –Fluid organizations [Selz, 1999]

Université de Lausanne WEBWEB | AGENDA | FINAGENDA FIN © 2001 Osterwalder, HEC Lausanne e-business 3 Business Models: Opportunities A company that defines it’s business model can... …react to rapid change –Business architects/designers …share knowledge –Business decisions –buy in …simulate & learn –System dynamics –Scenarios XML System thinking Objects

Université de Lausanne WEBWEB | AGENDA | FINAGENDA FIN © 2001 Osterwalder, HEC Lausanne e-business 4 Business Models: Research objectives E-Business Model Ontology or Framework (eBMF) - concepts/models (components) - links between concepts/models E-Business Model Ontology or Framework (eBMF) - concepts/models (components) - links between concepts/models E-Business Model Handbook - navigate in concepts (www) - graphical representation - illustrative examples E-Business Model Handbook - navigate in concepts (www) - graphical representation - illustrative examples E-Business Model Language (eBML) - ontology representation (xml) - graphical representation - knowledge sharing E-Business Model Language (eBML) - ontology representation (xml) - graphical representation - knowledge sharing E-Business Model Design Tool - computer assisted design - evaluation - change management E-Business Model Design Tool - computer assisted design - evaluation - change management E-Business Model Simulation - scenarios (system dynamics) - learn about Business Models - be prepared E-Business Model Simulation - scenarios (system dynamics) - learn about Business Models - be prepared E-Business Model Games - play, learn & understand E-Business Model Games - play, learn & understand

Université de Lausanne WEBWEB | AGENDA | FINAGENDA FIN © 2001 Osterwalder, HEC Lausanne e-business 5 Business Models: State of the art Ontologies –Enterprise ontologies: TOVE (Toronto Virtual Enterprise), The Enterprise Ontology (html), Core Enterprise Ontology (CEO)html –e-Business Process ontologies (in XML): Transactions (xCBL, cXML), Ontology.org (html)html Business Models –Classification: Timmers (pdf), Rappa (htm), Tapscott.pdfhtm –Modeling (partial…): Hamel, Gordijn, Afuah, Linder (html).html Tools –MIT eBusiness Process Handbook (html)html –System Dynamics...

Université de Lausanne WEBWEB | AGENDA | FINAGENDA FIN © 2001 Osterwalder, HEC Lausanne e-business 6 What is a Business Model (I)? Business Processes Business Model Strategy Planning level Architectural level Implementation level

Université de Lausanne WEBWEB | AGENDA | FINAGENDA FIN © 2001 Osterwalder, HEC Lausanne e-business 7 What is a Business Model (II)? CUSTOMER RELATIONSHIP CUSTOMER RELATIONSHIP Information Feel & serve Trust & loyalty PRODUCT INNOVATION PRODUCT INNOVATION INFRASTRUCTURE MANAGEMENT INFRASTRUCTURE MANAGEMENT value for resources for Revenue  Value added + Costs profitprice Target Customer Value proposition Capabilities Resources/assets Activities/processes Partner network The e-Business Model Framework (eBMF)

Université de Lausanne WEBWEB | AGENDA | FINAGENDA FIN © 2001 Osterwalder, HEC Lausanne e-business 8 Case study: ColorMailer ColorMailer......is a brand of Colorplaza Ltd., an independent company based in Vevey/Switzerland, active in the field of digital imaging and in the development of multimedia Internet applications....offers products and services in the domain of digital imaging for private customers. …bets on the increasing number of owners of digital cameras and scanners (~ 30 million people).

Université de Lausanne WEBWEB | AGENDA | FINAGENDA FIN © 2001 Osterwalder, HEC Lausanne e-business 9 Case study: Infrastructure Management CUSTOMER RELATIONSHIP Information Feel & serve Trust & loyalty INFRASTRUCTURE MANAGEMENT INFRASTRUCTURE MANAGEMENT value for resources for Revenue  Value added + Costs profitprice Target Customer Value proposition Capabilities Resources/assets Activities/processes Partner network PRODUCT INNOVATION

Université de Lausanne WEBWEB | AGENDA | FINAGENDA FIN © 2001 Osterwalder, HEC Lausanne e-business 10 Case study: Infrastructure management element at ColorMailer ACTIVITY CONFIGURATION Need for Resources for RESOURCES/ASSETS in-house Resources for Need for PARTNER NETWORK out-house upload images Print of images Delivery of items Marketing of product services Printing infrastructure Packing staff ColorMailer Website

Université de Lausanne WEBWEB | AGENDA | FINAGENDA FIN © 2001 Osterwalder, HEC Lausanne e-business 11 … … … … … … … … Case study: Encoding a Business Model with eBML Describe Business Models with the “electronic Business Model Language” (eBML) eBML is based on XML Use tags to define the different elements of a Business Model.. –...with opening/closing tags –...and to describe links between the elements An eBML starts with the root An eBML end with the tag … … … … … …

Université de Lausanne WEBWEB | AGENDA | FINAGENDA FIN © 2001 Osterwalder, HEC Lausanne e-business 12 Case study: eBML document extract

Université de Lausanne WEBWEB | AGENDA | FINAGENDA FIN © 2001 Osterwalder, HEC Lausanne e-business 13 Why XML? XML (Extensible Markup Language) is a W3C Recommendation that defines a standard way to add markup to documents. A markup language is a mechanism to identify structures in a document containing structured information. eBML is a markup language for electronic Business Models (eBM) Encoding an eBM in XML (with eBML) helps generating structured documents describing eBM concepts –an eBML document is : standardized reusable human and application understandable

Université de Lausanne WEBWEB | AGENDA | FINAGENDA FIN © 2001 Osterwalder, HEC Lausanne e-business 14 Conclusion E-Business Model Framework (eBMF) –design, share and simulate Business Models in an evolving environment with a component based architecture e-business Model Language (eBML) –describe, store, reuse and share Business Models in heterogeneous environments with an XML-based markup language