1. 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

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

3. 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
An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

4. 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
An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

5. 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
An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

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

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

8. 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
An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

9. 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).
An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

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

11. 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
An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

12. 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
An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

13. 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
Which business model ontology is best suited for modelling decentralised energy business ecosystem

14. 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
An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

15. 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
Which business model ontology is best suited for modelling decentralised energy business ecosystem

16. Result: rating of the ontologies
An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

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

18. Company A

19. 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
An Assessment Framework for Business Model Ontologies to Ensure the Viability of Business Models

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

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