INTRODUCTION BUSINESS MODEL Product Customer Infrastructure BUSINESS/IT ALIGNMENT Alignment Enterprise model Applications & platform BUILDING ONTOLOGY CONCLUSION Interop > CAISE-EMOI’05 > June 2005 e-business model ontology for improving business/IT alignment BFSH Lausanne - Switzerland - Tel Université de Lausanne Ecole des Hautes Etudes Commerciales (HEC) Table of content

homehome | agenda | finUniversité de Lausanne 2 © 2005 Pigneur Agenda BUSINESS MODEL – Product – Customer – Infrastructure BUSINESS/IT ALIGNMENT – Alignment – Enterprise model – Applications & platform BUILDING ONTOLOGY –Logic –Protégé (& PAL) –Protégé OWL/DL (Description Logic) BUSINESS MODEL | BUSINESS/IT ALIGNMENT | BUILDING ONTOLOGY

homehome | agenda | finUniversité de Lausanne 3 © 2005 Pigneur Business model > evolution Occurrences of the term « business model » in business and academic journals (in Business Source Premier) compared to the NASDAQ BUZZWORD or MEANINGFUL ARTIFACT?

homehome | agenda | finUniversité de Lausanne 4 © 2005 Pigneur Business model: buzzword or meaningful artifact? 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 or … An artifact aggregating … –the value a company offers to one or several segments of customers, and –the architecture of the firm and its network of partners –for creating, marketing and delivering this value and relationship capital, –in order to generate profitable and sustainable revenue streams. [Linder, 2000]

homehome | agenda | finUniversité de Lausanne 5 © 2005 Pigneur A company that defines it’s business model can... Understand –The process of modeling social systems or ontologies– such as an e-business model – helps identifying and understanding the relevant elements in a domain and the relationships between them Share knowledge –The use of formalized e-business models helps managers communicate and share their understanding of a business among other stakeholders React to rapid change –Mapping and using e-business models facilitates change. Business model designers can easily modify certain elements of an existing e-business model Formal Document

homehome | agenda | finUniversité de Lausanne 6 © 2005 Pigneur A company that defines it’s business model can… (continued) Measure –A formalized e-business model can help identifying the relevant measures to follow in a business, similarly to the Balanced Scorecard Approach Simulate & learn –e-business models can help managers simulate businesses and learn about them. This is a way of doing risk free experiments, without endangering an organization System thinking BSC

homehome | agenda | finUniversité de Lausanne 7 © 2005 Pigneur Why a business model approach to e-strategy? Business Processes Business Model Strategy Planning level Architectural level Implementation level Information & Communication Technology (ICT) pressure e-Business opportunities & change e-Business processes e-Business Technology layer Conceptual architecture of a business strategy

homehome | agenda | finUniversité de Lausanne 8 © 2005 Pigneur Evolution of research in business model define & classify business models list business model components describe business model elements model business model elements apply business model concept Rappa 2001 Timmers 1998 Tapscott, 2000 Linder & Cantrell 2000 Magretta 2002 Afuah & Tucci 2001 Hamel 2000 Weill & Vitale 2001 Gordijn 2002 Osterwalder & Pigneur 2002 Geerts and McCarthy, 2002 definitions & taxonomies "shopping list" of components components as building blocks reference models & ONTOLOGY applications & conceptual tools activity outcomes authors Modelling Rigour (towards a business model ontology) TOVE

homehome | agenda | finUniversité de Lausanne 9 © 2005 Pigneur BUSINESS MODEL Core capability Value configuration Partnership Customer group Relationship Distribution channel VALUE proposition Revenue Cost HOW? WHAT? HOW MUCH? What do we offer to our customers? How do we operate and deliver? How do we collaborate? What are our key competencies? What are our revenues? Our pricing? What are our costs? Who are our customers? How do we reach them? How do we get and keep them? WHO?  Trust BUSINESS MODEL | BUSINESS/IT ALIGNMENT | BUILDING ONTOLOGY

homehome | agenda | finUniversité de Lausanne 10 © 2005 Pigneur Product innovation Core capability Value configuration Partnership Customer group Relationship Distribution channel VALUE PROPOSITION Revenue Cost HOW? WHAT? HOW MUCH? How do we operate and deliver? How do we collaborate? What are our key competencies? What are our revenues? Our pricing? What are our costs? Who are our customers? How do we reach them? How do we get and keep them? WHO? What do we offer to our customers? Product Innovation Product Innovation

homehome | agenda | finUniversité de Lausanne 11 © 2005 Pigneur Value proposition What do we offer to our customers? refined by Reasoning (use, risk, effort) Life cycle (creation, appropriation, use, renewal, transfer) Value level (me-too, innovation/imitation, innovation) Price level (free, economy, market, high-end) Category (barter, sale, market, buy) Value proposition Customer groupCore capabilities requirestargets 1 To characterize product innovation, the value proposition defines –the actual product or service, and –the value or benefits perceived by customers of the products and services offered by the firm

homehome | agenda | finUniversité de Lausanne 12 © 2005 Pigneur Value proposition > price/value PRICE VALUE Value frontier Underperformer s Me-too Imitative innovation excellenceinnovation High-end market economy free EasyJet Exec jet High-end Quality, comfort … Low cost (frequent flight, on-time schedule, service) Major airlines [Kambill, 1997]

homehome | agenda | finUniversité de Lausanne 13 © 2005 Pigneur Value proposition > Montreux Jazz Festival MJF concerts MJF off MJF frequentation MJF recordings MJF brand & franchise MJF sponsoring Festival visitors Shops Sponsors Record, TV, artists Franchisees CUSTOMERS

homehome | agenda | finUniversité de Lausanne 14 © 2005 Pigneur Value proposition > Montreux Jazz Festival

homehome | agenda | finUniversité de Lausanne 15 © 2005 Pigneur Customer relationship Core capability Value configuration Partnership Customer group Value proposition Revenue Cost HOW? WHAT? HOW MUCH? How do we operate and deliver? How do we collaborate? What are our key competencies? What are our revenues? Our pricing? What are our costs? WHO? What do we offer to our customers? Who are our customers? How do we reach them? How do we get and keep them? Customer relationship Customer relationship Distribution channel Relationship mechanisms

homehome | agenda | finUniversité de Lausanne 16 © 2005 Pigneur Customer group Who are our customers? refined by Customer group Value proposition Reasoning (segment, community, …) CRITERION Category targeted by 2 Categorizations of the population into social class or psychologically defined groups Area where a firm can specialize and gain competitive advantage –By having lower costs or customer-satisfying differentiation

homehome | agenda | finUniversité de Lausanne 17 © 2005 Pigneur Customer group > Montreux Jazz Festival MJF concerts MJF off MJF frequentation MJF recordings MJF brand & franchise MJF sponsoring Festival visitors Shops Sponsors Record, TV, artists Franchisees VALUE PROPOSITION

homehome | agenda | finUniversité de Lausanne 18 © 2005 Pigneur How do we reach our customers? precedes Distribution link Distribution channel Customer groupValue proposition by deliversserves Actor refined byis a Customer buying cycle (awareness, evaluation, purchase, after sale) Category (network, internet, call center, …) 3 Distribution channel A channel can be defined as a set of links or a network via which a firm “goes to market” and delivers its value proposition.

homehome | agenda | finUniversité de Lausanne 19 © 2005 Pigneur Distribution Channel > Montreux Jazz Festival AFTER SALES EVALUATIONPURCHASE AWARENESS     [Moriarty, 1990] [Muther et al., 2000] [Ives et al., 2000]

homehome | agenda | finUniversité de Lausanne 20 © 2005 Pigneur Distribution Channel > Montreux Jazz Festival

homehome | agenda | finUniversité de Lausanne 21 © 2005 Pigneur Relationship mechanism How do we get and keep our customers? refined by Relationship mechanism Reasoning (acquisition, retention, add-on selling, …) Category (trust, personalization, brand…) Customer group Value proposition concerns Distribution link 4

homehome | agenda | finUniversité de Lausanne 22 © 2005 Pigneur Relationship mechanism Customer equity –Customer Acquisition How do we get customers? Growing market share –Customer Retention How do we keep customers? Nurturing customer loyalty –Add-on selling How do we get customers to buy more? Enhancing Average Revenue Per User (ARPU) Relationship mechanisms –Trust –Customization (One-to-one) –Recommendation … [Blattberg, 2001] Certification Verification et authorization Escrow Notary, payments Expertise Guarantee of quality Rating Reputation of actors Insurance Risk management

homehome | agenda | finUniversité de Lausanne 23 © 2005 Pigneur Relationship mechanism > Montreux Jazz Festival Relationship 1 with Sponsors & VIPs. –The MJF carefully pays attention to its relationships with sponsors and VIPs that it embraces the same way. During the Festival it makes wants them to live a unique experience. Therefore, they installed a special host and protocol service. Guests of the MJF (i.e. sponsors and VIPs) and guests of the sponsors are escorted through the venue, have access to the VIP zones and bars and even visit the backstage. … {customer equity: retention} Relationship 2 with the Festival's visitors. –The MJF maintains an address book of over 60'000 occurrences worldwide which it uses to annually distribute the MJF program. Furthermore, visitors of the MJF website can subscribe to a newsletter that allows them to keep up-to-date and get the Festival program the instance it becomes official. {customer equity: acquisition/retention} Relationship 3 with all customer segments. –Whereas the beginnings of the MJF in the 70s and 80s were characterized by focusing on acquisition and attracting new festival visitors it has today reached its capacity limits and directs all its efforts to brand building during and after the event. It aims at reinforcing its image of a superior festival and exports this image through franchising. {customer equity: retention}{function: brand}

homehome | agenda | finUniversité de Lausanne 24 © 2005 Pigneur Infrastructure management Value configuration Customer relationship Distribution channel Value proposition Revenue Cost HOW? WHAT? HOW MUCH? How do we operate and deliver? How do we collaborate? What are our key competencies? What are our revenues? Our pricing? What are our costs? WHO? Who are our customers? How do we reach them? How do we get and keep them? Customer goup What do we offer to our customers? Infrastructure management Infrastructure management Partnership agreement Capability

homehome | agenda | finUniversité de Lausanne 25 © 2005 Pigneur Core capabilities and resources What are our key competencies? 5 refined by ResourceValue proposition Actor by Category (generative, transformative, …) required by Core capability is a Resource (ASSETS) –available & useful in detecting and responding to market opportunities or threats Capability (KNOW-HOW) –Aptitude to exploit and coordinate resources to create, produce, and/or offer products and services to a market

homehome | agenda | finUniversité de Lausanne 26 © 2005 Pigneur Capability > Montreux Jazz Festival Attractive MJF Venue Mobilize volunteer staff Atmosphere & experience Contract stars Attract people MJF concerts MJF off MJF frequentation MJF recordings MJF brand & franchise MJF sponsoring Festival visitors Shops Sponsors Record, TV, artists Franchisees VALUE PROPOSITION CUSTOMER

homehome | agenda | finUniversité de Lausanne 27 © 2005 Pigneur Value configuration How do we operate and deliver? 6 Value activity Value configuration Actor by Category {Value chain, Value shop, Value network …} activity level activity nature needs (in) implements ResourceValue proposition refined byis a Category {principal, support …} creates (out)

homehome | agenda | finUniversité de Lausanne 28 © 2005 Pigneur Value configuration > category Value chain Value shop Value network [Stabell et al., 1998] [Porter, 1985]

homehome | agenda | finUniversité de Lausanne 29 © 2005 Pigneur Value configuration > Montreux Jazz Festival

homehome | agenda | finUniversité de Lausanne 30 © 2005 Pigneur Value configuration > Montreux Jazz Festival

homehome | agenda | finUniversité de Lausanne 31 © 2005 Pigneur Partnership agreement How do we collaborate? refined by Partnership agreement Actor with Category {chain, market, network …} strategic importance degree of integration degree of competition substitutability concerns Core capability Distribution channel Value configuration 7

homehome | agenda | finUniversité de Lausanne 32 © 2005 Pigneur Partner agreement > category Author Distributor Shipping Affiliate Customer Bank Supply chain Market Network, alliance, …

homehome | agenda | finUniversité de Lausanne 33 © 2005 Pigneur Partnership agreement > Montreux Jazz Festival

homehome | agenda | finUniversité de Lausanne 34 © 2005 Pigneur Value configuration and partnership > e 3 value [Gordijn, 2002]

homehome | agenda | finUniversité de Lausanne 35 © 2005 Pigneur Financial aspects Core capability Value configuration Partnership agreement Customer relationship Distribution channel Value proposition REVENUE Cost HOW? WHAT? HOW MUCH? How do we operate and deliver? How do we collaborate? What are our key competencies? What are our revenues? Our pricing? What are our costs? WHO? Who are our customers? How do we reach them? How do we get and keep them? Customer group What do we offer to our customers?

homehome | agenda | finUniversité de Lausanne 36 © 2005 Pigneur Revenue stream What are our revenues? Our pricing? refined by Revenue stream Category{subscription, sale, advertisement …} concerns Customer group Value proposition Distribution link 8

homehome | agenda | finUniversité de Lausanne 37 © 2005 Pigneur Revenue stream > categories REVENUE one time recurrent sale registry subscription advertisement use Income of the subscription fees to become a member Paid by the buyer and/or the vendor transaction commission Income, percentage of a transaction made by the settlement (affiliate program) Income of online sales paid by the buyer Income of the ad banners posted on the shopfront Paid by the vendor Phone registry subscription Usage Time Services combination Mobile: PRE-PAID card

homehome | agenda | finUniversité de Lausanne 38 © 2005 Pigneur Profit and cost account What are our costs? refined by Cost account Category concerns Core capability Partnership Value configuration 9

homehome | agenda | finUniversité de Lausanne 39 © 2005 Pigneur Profit model Revenues Total net revenue Cost of goods sold Total Costs of goods sold Gross margin Total Costs of goods sold Operating expenses research and development sales and marketing general and administration Total operating expenses Operating income (loss) Income (loss) before tax Net income (loss) PROFIT = (P – V C ).Q – F C Pthe unit price of a product V C the variable cost of a unit Qthe number of products sold F C fixed costs

homehome | agenda | finUniversité de Lausanne 40 © 2005 Pigneur Profitability evaluation > e 3 value

homehome | agenda | finUniversité de Lausanne 41 © 2005 Pigneur Business model (Bird’s eye view)

homehome | agenda | finUniversité de Lausanne 42 © 2005 Pigneur BUSINESS/IT ALIGNMENT BUSINESS strategy IT strategy Function integration Strategic fit BUSINESSIT strategy infrastructure IS infrastructure ORGANIZATION infrastructure Architecture Processes Skills Technology scope System competencies IT governance Administrative structure Business processes Skills Business scope Distinctive competencies IT governance [Henderson and Venkatraman, 1993] BUSINESS MODEL | BUSINESS/IT ALIGNMENT | BUILDING ONTOLOGY

homehome | agenda | finUniversité de Lausanne 43 © 2005 Pigneur Business/IT alignment: enterprise modeling, applications, ontology … ORGANIZATION infrastructure IS infrastructure BUSINESS strategy IT strategy BUSINESSIT strategy infrastructure VALUE proposition Value configuration Customer (relationship) BUSINESS MODEL Organization OBJECT Business PROCESS Team (coordination) ENTERPRISE MODEL Information OBJECT Business TASK User (interface) ARCHITECTURE & PLATFORM Strategic fit Function integration ONTOLOGY

homehome | agenda | finUniversité de Lausanne 44 © 2005 Pigneur Business IT/IS Alignment - IS PLANNING ORGANIZATION infrastructure IS infrastructure BUSINESS strategy IT strategy BUSINESSIT strategy infrastructure VALUE proposition Value configuration Customer (relationship) BUSINESS MODEL Strategic fit Information OBJECT Business TASK User (interface) ARCHITECTURE & PLATFORM application portfolio IT infrastructure services measures Function integration

homehome | agenda | finUniversité de Lausanne 45 © 2005 Pigneur Application portfolio Impact of existing IS STRATEGICPOTENTIAL OPERATIONALSUPPORT [Ward, 2002] future Illustration

homehome | agenda | finUniversité de Lausanne 46 © 2005 Pigneur IT infrastructure Application infrastructure Communication Data management IT management Security Architecture & standards IT research & development IT education Illustration

homehome | agenda | finUniversité de Lausanne 47 © 2005 Pigneur Measure > Balanced ScoreCard (BSC) INNOVATION CUSTOMERS INFRASTRUCTURE FINANCE CUSTOMER INNOVATION FINANCE PROCESSES Illustration

homehome | agenda | finUniversité de Lausanne 48 © 2005 Pigneur Business IT/IS Alignment - Process and task modeling Process Viewpoint IS Viewpoint ORGANIZATION infrastructure IS infrastructure BUSINESS strategy IT strategy BUSINESSIT strategy infrastructure VALUE proposition Value configuration Customer (relationship) BUSINESS MODEL Organization OBJECT Business PROCESS Team (coordination) ENTERPRISE MODEL Strategic fit Function integration Information OBJECT Business TASK User (interface) ARCHITECTURE & PLATFORM

homehome | agenda | finUniversité de Lausanne 49 © 2005 Pigneur AMSTERDAM FUA Business/IT alignment > from business model to process model From business value to organization efficiency …

homehome | agenda | finUniversité de Lausanne 50 © 2005 Pigneur STOCKHOLM KTH Business/IT alignment > from business model to process model From business value to organization efficiency …

homehome | agenda | finUniversité de Lausanne 51 © 2005 Pigneur LUXEMBOURG Business/IT alignment > from business model to process model

homehome | agenda | finUniversité de Lausanne 52 © 2005 Pigneur Business/IT alignment > requirement engineering BUSINESS PROCESS BUSINESS TAKS Individual OBJECTS Business tasks User (interface) Organization OBJECTS Business processes Agent (conversation) BUSINESS MODEL GOAL-BASED MODEL?

homehome | agenda | finUniversité de Lausanne 53 © 2005 Pigneur Business/IT alignment > requirement engineering TORONTO goal-based dependency

homehome | agenda | finUniversité de Lausanne 54 © 2005 Pigneur Business IT/IS Alignment - Ontology Terminology Standard ORGANIZATION infrastructure IS infrastructure BUSINESS strategy IT strategy BUSINESSIT strategy infrastructure VALUE proposition Value configuration Customer (relationship) BUSINESS MODEL Organization OBJECT Business PROCESS Team (coordination) ENTERPRISE MODEL Strategic fit Function integration ONTOLOGY Information OBJECT Business TASK User (interface) ARCHITECTURE & PLATFORM

homehome | agenda | finUniversité de Lausanne 55 © 2005 Pigneur computer- assisted tool Computer Aided Business Design Business Model Design & Communication (i.e. the drawing board) Requirements Engineering Balanced Scorecard Knowledge Management & Visualization visualization Indicators/ measures requirementscommunication xyxy modelling & formalization layer application layer usage layer which model? which artefact? Has management improved?

homehome | agenda | finUniversité de Lausanne 56 © 2005 Pigneur Business model > Computer-Aided Business Design HTML Document SVG Document PDF Document Word Document e.g. a two page overview of a company’s business model e.g. a ten page report of a company’s business model e.g. a detailed n-page description of the company’s business model e.g. a graphical view of a business model issue such as the channel strategy XML-based document management

homehome | agenda | finUniversité de Lausanne 57 © 2005 Pigneur BUSINESS MODEL ONTOLOGY ChannelCustomerPropositionConfigurationCapability LinkActivity CostRevenue PartnershipRelationshipActor Needs requires Profit HOW? WHAT? HOW MUCH? WHO? Resource BUSINESS MODEL | BUSINESS/IT ALIGNMENT | BUILDING ONTOLOGY

homehome | agenda | finUniversité de Lausanne 58 © 2005 Pigneur Formal rules > definition A VALUE PROPOSITION is an overall view of a firm’s bundle of products and services that together represent a value for its customer. A CUSTOMER GROUP define the type of customers a company wants to address. A DISTRIBUTION CHANNEL describes how a company gets in touch with its customers. … ChannelCustomer GroupValue proposition delivers reaches targets

homehome | agenda | finUniversité de Lausanne 59 © 2005 Pigneur Formal rules > relationships Each VALUE PROPOSITION targets one or several CUSTOMER GROUPs targets (v, c) A DISTRIBUTION CHANNEL can deliver VALUE PROPOSITIONs and reach CUSTOMER GROUPs delivers (d,c) reaches (d,c) If a VALUE PROPOSITION targets a CUSTOMER GROUP, then the later is targeted by the former isTargetedBy (c, v) = targets (v, c) […] (1) (2) (3) (4)

homehome | agenda | finUniversité de Lausanne 60 © 2005 Pigneur Formal rules > axioms If a DISTRIBUTION CHANNEL delivers a VALUE PROPOSITION and reaches a CUSTOMER GROUP, then this VALUE PROPOSITION targets this CUSTOMER GROUP: delivers (d,c)  reaches (d,c)  target (v,c) If a VALUE PROPOSITION targets a CUSTOMER GROUP, then it exists a DISTRIBUTION CHANNEL which delivers this VALUE PROPOSITION and reaches this CUSTOMER GROUP: target (v,c)   d. delivers (d,c)  reaches (d,c) (7) (8)

homehome | agenda | finUniversité de Lausanne 61 © 2005 Pigneur Protégé OBJECT

homehome | agenda | finUniversité de Lausanne 62 © 2005 Pigneur Protégé > PAL delivers(d,c)  reaches (d,c)  target (v,c) target (v,c)   d. delivers(d,c)  reaches (d,c)

homehome | agenda | finUniversité de Lausanne 63 © 2005 Pigneur Protégé/OWL DESCRIPTION LOGIC

homehome | agenda | finUniversité de Lausanne 64 © 2005 Pigneur Protégé/OWL > basic concepts A VALUE PROPOSITION targets CUSTOMER GROUPs and is delivered by DISTRIBUTION CHANNELs. In OWL abstract syntax

homehome | agenda | finUniversité de Lausanne 65 © 2005 Pigneur Protégé/OWL > basic concepts (cont’d) A DISTRIBUTION CHANNEL can deliver VALUE PROPOSITIONs and reach CUSTOMER GROUPs A CUSTOMER GROUP is targeted by VALUE PROPOSITIONs and Is reached by DISTRIBUTION CHANNELs

homehome | agenda | finUniversité de Lausanne 66 © 2005 Pigneur Protégé/OWL > desirable properties A VALUE PROPOSITION targets at least one CUSTOMER GROUP and should be delivered by at least one DISTRIBUTION CHANNEL We first defined the DesirableValueProposition subsuming the BMElement with the restriction defining the range of the targets property plus a minimal cardinality Then …

homehome | agenda | finUniversité de Lausanne 67 © 2005 Pigneur Protégé/OWL > desirable properties > reasoning The RACER classifier result was to suggest to move the DesirableValueProposition from the BMElement to the ValueProposition.

homehome | agenda | finUniversité de Lausanne 68 © 2005 Pigneur Protégé/OWL > desirable properties > final solution DesirableValueProposition subsumes ValueProposition and inherites its two properties restricting targets and isDeliveredBy with additional cardinality constraints …

homehome | agenda | finUniversité de Lausanne 69 © 2005 Pigneur Protégé/OWL > instances

homehome | agenda | finUniversité de Lausanne 70 © 2005 Pigneur Protégé/OWL > axiom 7 If a DISTRIBUTION CHANNEL delivers a VALUE PROPOSITION and reaches a CUSTOMER GROUP, then this VALUE PROPOSITION targets this CUSTOMER GROUP delivers(d,c)  reaches (d,c)  target (v,c) Rewritten as: For a given VALUE PROPOSITION, the CUSTOMER GROUPs reached by the DISTRIBUTION CHANNELs delivering this given VALUE PROPOSITION should be included in the CUSTOMER GROUPs targeted by this given VALUE PROPOSITION (7) ChannelCustomer GroupValue proposition delivers reaches targets

homehome | agenda | finUniversité de Lausanne 71 © 2005 Pigneur Protégé/OWL > axiom 7 > instanced object We introduce an “instanced” ValueProposition named “anyVP” Or …

homehome | agenda | finUniversité de Lausanne 72 © 2005 Pigneur Protégé/OWL > axiom 7 > alternative If a DISTRIBUTION CHANNEL delivers a VALUE PROPOSITION and reaches a CUSTOMER GROUP, then this VALUE PROPOSITION targets this CUSTOMER GROUP delivers(d,c)  reaches (d,c)  target (v,c) Rewritten as: for a given CUSTOMER GROUP, the VALUE PROPOSITIONs delivered by the DISTRIBUTION CHANNELs reaching this given CUSTOMER GROUP should be included in the VALUE PROPOSITIONs targeting this given CUSTOMER GROUP: (7)

homehome | agenda | finUniversité de Lausanne 73 © 2005 Pigneur Protégé/OWL > axiom 7 > comment The solution we found for modelling the axiom (7) is not fully satisfactory since the inclusion constraint is specified for an “instanced” concept; the reasoner won’t be able to work on all the instances we could have been added in the database. In this particular case, since there is an equivalence derived from the two rules (7) and (8), we could have solved this problem in DL by declaring the identity (same-as) between the direct property (targets) and the composition of the indirect properties (isDeliveredBy  reaches). However OWL does currently not allow the composition of properties [7].

homehome | agenda | finUniversité de Lausanne 74 © 2005 Pigneur Business model > Protégé/OWL > axiom 7 > SWRL Another way to deal with this kind of axioms could be to use SWRL (Semantic Web Rule Language), Using this language, the axiom (7) could be written in a identical way: delivers(?d, ?v) ∧ reaches(?d, ?c) ⇒ targets(?v, ?c) To the detriment of the loss of decidability

homehome | agenda | finUniversité de Lausanne 75 © 2005 Pigneur Questions … BUSINESS MODEL | BUSINESS/IT ALIGNMENT | BUILDING ONTOLOGY

homehome | agenda | finUniversité de Lausanne 76 © 2005 Pigneur “Clearing right” case study A case study about the clearance of music rights, including the special case of clearing music for Internet radio stations. –It focuses on one particular intellectual property right (IPR) in the music business, which is the right to make public. –This right needs to be obtained by everyone who plays music in public, which is outside a private environment. The case study includes three actors –Right users acquiring this right to make public include radio & television stations, restaurants, bars, barbers, in short every one who plays music in public. –Right owners possessing these rights are artists, producers, composers, and text writers. –Right societies, intermediaries positioned between the right users and right owners. These societies obtain a fee from right owners for clearing the right to make public. Furthermore, they collect and redistribute the fees owned to right owners by right users

homehome | agenda | finUniversité de Lausanne 77 © 2005 Pigneur “Clearing rights” using BMO Partnership for other national ownership rights PARTNERSHIP AGREEMENT VALUE CONFIGURATION RESOURCE & CAPABILITY VALUE PROPOSITION IT infrastructure COST ACCOUNT SENA's revenue streams cover its fixed and variable costs and allow it to make a decent profit. PROFIT/LOSS RELATIONSHIP MECHANISM SENA board DISTRIBUTION CHANNEL Transaction cut on broadcasters' making public rights REVENUE STREAM CUSTOMER SEGMENT Offer SENA business model Financial Aspects Infrastructure Management Customer Interface Umbrella organization of professional users Right owners Broadcast media Professional users Rights collection and redistribution Rights clearing artist acquisition department active artist acquisition for famous artists passive web sign-up for unknown artists standardized mailings Ability to collect and redistribute fees Ability to clear rights Ability to enforce rights Partnership for international making public rights connecting rights owners and rights users Transaction cut on professional users'' making public rights Personnel cost...

homehome | agenda | finUniversité de Lausanne 78 © 2005 Pigneur “Clearing rights” using e 3 value

homehome | agenda | finUniversité de Lausanne 79 © 2005 Pigneur Comparison of business model ontologies AreaBMOe 3 value Network constellation related concepts The notion of resources and core capabilities present in BMO and important to business management theory could contribute to e 3 value. Similarly, the reasoning behind partnership agreements in BMO could be integrated into e 3 value. The e 3 value ontology embraces all the actors of the value constellation of a business case and additionally assesses their interest to participate in a particular configuration. This complementary aspect could be merged with BMO's more company-centric view. Offer-related concepts The descriptive nature of BMO and the subsequent structured description of a company's value proposition could be integrated into e 3 value. Customer- related area The explicitly modelled distribution channels and relationship mechanisms in BMO are complementary to e 3 value and could be integrated. Value exchange related area The modelling of value exchanges in e 3 value is very detailed and complementary to BMO. Additionally they can serve as a basis to introduce profitability calculation to BMO, which is absent. Tool support & usages Business model navigation and its decomposition in different levels of detail are aspects where BMO is complementary to e 3 value. The e 3 value design tools are already quite advanced and could serve as a basis for a BMO design tool. Similarly, the e 3 value change methodology is complementary to BMO.

homehome | agenda | finUniversité de Lausanne 80 © 2005 Pigneur SKYPE Telcos Comparaison of business models Disruption innovation …

homehome | agenda | finUniversité de Lausanne 81 © 2005 Pigneur Comparaison of business models > value configuration SKYPE Telcos [Gordijn, 2002]

homehome | agenda | finUniversité de Lausanne 82 © 2005 Pigneur Comparaison of business models