STOF model and method Design and research

Transcription

1 STOF model and method Design and research Harry Bouwman Section ICT, Faculty Technology Policy and Management, Delft University of Technology, The Netherlands IAMSR, Abo Akademi, Turku, Finland User Model & Appl. Scenarios Ambient Awareness Personalization Adaptation Service Semantic Service Bundling Service Control Service Discovery Service Creation Environment Monitoring Service Deployment Conflict Resolution Generic Service Elements for all layers Application Support Layer Service Execution Layer Service Platform Service Support Layer Network Control & Management Layer IP Transport Layer Networks Terminals IP based Communication Subsystem Wired or wireless Networks Devices and Communication End Systems 2/17/2006 1

2 Business model

3 Service offering Influences SERVICE DESIGN Previous versions Previous experience Expected value (consumer) Has Influence Context Co-determines Influences Customers or end-users Influence Effort (ease of use) Perceived value (consumer) Has Are part of Financial arrangements Tariff Requires Market segment Revenue source Bundling Influences Technological functionalities Co-determine Delivered value (provider) Co-determine Value activities Delivers Influences Delivers Technical Architecture Puts requirements on Intended value (provider) Puts requirements on Value network Summarised in Value proposition

4 Critical design issues in service domain Critical Design issue Description Balancing requirements Targeting Creating value How to define the target group of a mobile service? How to create value for end users? Generic vs. Niche service B2C vs. B2B service Technological possibilities vs. user needs and wishes Branding How to promote/ brand the service? Operator vs. content brand Trust How to enhance end users trust in the service? Security vs. ease of use Privacy vs. added value Customer retention How to stimulate recurrent usage of the service Customer lock-in vs. customer annoyance

5 Technical Architecture Actors Is used in TECHNOLOGY DESIGN Applications Data Produce Devices Is used in Own and invest in Consists of Technological architecture Service Platforms Access Networks Billing platform Customer data platform Deliver Technical Functionality Services Put requirements on Backbone Infrastructure Generates Costs

6 Critical design issues in technology domain Critical Design issue Description Balancing requirements Security Quality of Service System integration Accesibility Management of user profiles How to arrange secure access and communication? How to provide for the desired level of quality? How to integrate new services with existing systems? How to realize technical accessibility to the service for the target group? How to manage and maintain user profiles? Ease of use vs. abuse and privacy. Quality vs. costs Flexibility vs. costs Open vs. closed system User involvement vs. automatic generation

7 Organisational arrangements Strategies & goals To participate in ORGANIZATION DESIGN Relations Have Consists of Value network Consists of May grow into Is a Resources & Capabilities Have Actors Negotiate/ enforce Perform Define Are used in Value activities Combine to Have Define Organisational arrangements Define Interactions Part-of Roles Financial Arrangements Puts requirements on Generate Influences Technological architecture Investment sources Costs Delivered value

8 Critical design issues in organisational domain Critical Design issue Partner selection Network openness Network governance Network complexity Description Who is offering access to critical resources and capability s in order to offer service? Degree to which new partners can join the network, and are allowed to offer services Dominant partners set and monitor rules over partnership, support partners. Customer ownership and control is key asset Degree of complexity of network, both organizational and technical Balancing requirements Limited number of partners versus quality of service and strategic interest Openness and customer reach versus control and exclusiveness Entry, compliance and exit conditions: individual versus network interest Need to reduce complexity versus need of access to critical resources & capability s

9 Financial arrangements FINANCE DESIGN Value activities Investment sources Provide Capital Technological architecture Is a Cost sources Generate Induce Costs Are divided over actors according to Monitored using Determine Performance indicators Monitored using Financial arrangements Tariffs Pricing Service Is a Revenue sources Co-determine Generate Revenues Threaten Are divided over actors according to Market segment Risk sources Generate Risks

10 Critical design issues in financial domain Critical Design issue Description Balancing requirements Pricing Price level Pricing seems to be aligned with maximizing profits versus creating market share Investments Division and valuation of costs and revenues between network actors Capital investment and risk assessment Assessment of valuation is based on access to resources, direct revenue and strategic benefits. Operational financial interest (ROI) versus intangible benefits (Options) Costs-benefits valuation on level of network versus cost benefits for individual partners

11 Conclusions on CDi s Design orientation Complex interdependencies between service definitions, technical architectures, organizational and financial arrangements in the development of services Critical Design issues, strongly interrelated Targeting, Creating value, Branding, Trust, Customer retention Partner selection, network openness and complexity, and network governance Security, Quality of Service System integration, Accesibility, Management of user profiles Pricing, investment (and risk assessment), division and valuation of costs Balancing of critical design issues is key

12 Designing business models is a balancing act CUSTOMER VALUE NETWORK VALUE Strategic interests of partners Revenues, intangible benefits Design requirements usefulness For instance: # of network partners Network openness Governance model Branding Customer ownership For instance: Pricing Ease of use vs. security Added value vs. precision of positioning technique

13 CDi versus CSF Design Critical Design Issues (CDI): variables with regard to which we can make decisions that may be critical for the viability and feasibility of the of the business model (Bouwman et al., 2004) Analytical, causal models Critical Success Factors (CSF): variables for which a high score indicates that a services creates customer and/or network value, thus making the business model viable in the long run (Bouwman et al., 2004)

14 Validating the relation between CDi and CSFs Sample: experts and service developers R 2 =.23 Organization design issues.48*** Acceptable role division.21*.40*** Acceptable risks R 2 =.32.49*** Financial design issues.68*** Acceptable profitability R 2 =

15 Design method New business idea STEP 1 Basic Information (BI) Quick Scan Rough sketch Business Model STEP 2 Critical Design Factors (CDi) Comparison with CDi s Ok Yes STEP 3 Critical Succes Factors (CSF) No Elaborating & Balancing Viable business model

16 Dynamic model Static versus dynamic, Phasing Regulation Market Regulation Market Regulation Service Technology ++ Techn ology Finance Org Network Market Technology Technology phases T 0 Technology R&D Implementation/Roll out Market (Bouwman) Technology Environmental issues Commercial, Maturity (MacInnes) Venture vision α version β version Market offering Market Adoption Diffusion Maturity T n