Improving Computer-Support for Collaborative Business Model Design and Exploration Marin Zec sebis Workshop, September 25, 2014

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1 Improving Computer-Support for Collaborative Business Model Design and Exploration Marin Zec sebis Workshop, September 25, 2014 Engineering for Business Information Systems (sebis) Department of Informatics Technische Universität München, Germany wwwmatthes.in.tum.de

2 We live in a complex world

3 More dynamicity, more interconnectedness, more uncertainty Policy Economics Social Technology Environment Legal Ethics Demographics

4 Anyway, we want to solve problems

5 Russel Ackoff, Redesigning the Future, 1974 Puzzles Clearly defined problem Problems Clearly defined problem Messes (Wicked Problems) Fuzzy problem statement Specific solution Various potential solutions

6 How do Information Systems help?

7 How can IT help to solve issues? Type Puzzle Problem Wicked Problem Example Data collection, Data transmission, Accounting, CRM, Business Model Design, Strategy development, Research IT support Sensors,Embedded Systems, Robotics, Databases, SAP R/3, Word processing, Spreadsheet software, Collaborative Information Systems Automation Collaboration Solution approach Reproductive Thinking (Heuristics, Algorithms etc.) Productive Thinking (Creativity etc.)

8 How can IT help to solve issues? Type Puzzle Problem Wicked Problem Example Data collection, Data transmission, Accounting, CRM, Business Model Design, Strategy development, Research IT support Sensors,Embedded Systems, Robotics, Databases, SAP R/3, Word processing, Spreadsheet software, Collaborative Information Systems Automation Collaboration Solution approach Reproductive Thinking (Heuristics, Algorithms etc.) Productive Thinking (Creativity etc.)

9 Business Model Design

10 Business Model Canvas (Osterwalder 2011) Infrastructure Offer Customer Financial Viability Simple terminology for the description generation of business models Widely adopted in practice 4 perspectives, 9 building blocks

11 Computer-Aided Design of Business Models BM DESIGN ER Business Model Fiddle Canvanizer Strategyzer Strengths - Ease of use - Sharing - Archiving Weaknesses - No process guidance (facilitation) - Little collaboration support - No consistency check - Merely descriptive model

12 Our approach Computer-Aided Design of 1 2 Business Models Computer-Aided Morphological Analysis 3 Computer-Aided Morphological Design of Business Models

13 Computer-Aided Morphological Analysis Computer-Aided General Morphological Analysis A generic method to structure and explore problem/solution spaces A) Problem Analysis 1. Determine model parameters 2. Determine value range for each parameter Customer Segment Value Proposition Channel a1 b1 c1 d1 a2 b2 c2 d2 a3 b3 d3 b1 b2 b3 c1 c2 d1 d2 d3 B) Cross Consistency Assessment 3. Specify consistency between value pairs a1 a2 a3 b1 b2 b3 c1 c2 d1 d2 d3 C) Synthesis 4. Exclude inconsistent configurations 5. Determine and evaluate consistent, plausible solution candidates Customer Segment Value Proposition Channel a1 b1 c1 d1 a1 b1 c2 d1 a2 b3 c1 d3 a2 b2 c1 d2

14 Computer-Aided Morphological Analysis A. Problem Analysis Determine model parameters Determine value range for each parameter Value Propositions Customer Segments Customer Relationships Channels Key Activities Key Resources Key Partners Cost Structure Revenue Streams Free Internet & Video Calling Web Users Globally Mass Customized Skype.com Developers Payment Providers Hardware Sales Cheap Calls to Phones People who want to call phones Headset Partnerships Distribution Partners Complaint Management Free Businesses Salesforce Telco Partners SkypeOut Prepaid or Subscription Morphological Field

15 Computer-Aided Morphological Analysis B. Cross Consistency Assessment Specify consistency between value pairs Value Propositions Customer Segments Channels Free Internet & Video Calling Cheap Calls to Phones Web Users Globally People who want to call phones Businesses Skype.com Headset Partnerships Salesforce Value Propositions Free Internet & Video Calling Cheap Calls to Phones Customer Segments Web Users Globally People who want to call phones Businesses Skype.com Channels Headset Partnerships Salesforce Morphological Field

16 Computer-Aided Morphological Analysis C. Synthesis (1/2) Exclude inconsistent configurations Determine and evaluate consistent, plausible solution candidates Value Propositions Customer Segments Customer Relationships Channels Key Activities Key Resources Key Partners Cost Structure Revenue Streams Free Internet & Video Calling Web Users Globally Mass Customized Skype.com Developers Payment Providers Free Cheap Calls to Phones People who want to call phones Mass Customized Skype.com Developers Distribution Partners Complaint Management SkypeOut Prepaid or Subscription Cheap Calls to Phones Businesses Customized Skype.com Developers Telco Partners Complaint Management SkypeOut Prepaid or Subscription Cheap Calls to Phones Businesses Customized Salesforce Developers Telco Partners Complaint Management SkypeOut Prepaid or Subscription Consistent configurations

17 Computer-Aided Morphological Analysis C. Synthesis (2/2) Value Propositions Customer Segments Customer Relationships Channels Key Activities Key Resources Key Partners Cost Structure Revenue Streams Free Internet & Video Calling Web Users Globally Mass Customized Skype.com Developers Payment Providers Free Cheap Calls to Phones People who want to call phones Mass Customized Skype.com Developers Distribution Partners SkypeOut Prepaid or Complaint Management Subscription Cheap Calls to Phones Businesses Customized Skype.com Developers Telco Partners SkypeOut Prepaid or Complaint Management Subscription Cheap Calls to Phones Businesses Customized Salesforce Developers Telco Partners SkypeOut Prepaid or Complaint Management Subscription Interactive what-if analysis MA/Carma Clustering of similar configurations Parmenides EIDOS

18 Computer-Aided Morphological Analysis Available Tools Parmenides Eidos MA/Carma Strengths Weaknesses - Systematic exploration of problem/solution space - Structured process - (Interactive) Visualization - Standalone desktop applications - Not collaborative - Not tailored to Business Modeling - Technical user interface

19 Overview Computer-Aided Design of 1 2 Business Models Computer-Aided Morphological Analysis 3 Computer-Aided Morphological Design of Business Models

20 Three Key Requirements for Future CAD of Business Models Distributed Collaboration Facilitation Simulation/ Inference Current CAD Tools based on BMC Only partly collaborative Generally no real-time collaboration support No facilitation support (e.g. creativity) No process guidance (business modeling) Descriptive, static model Future Tools Real-time collaboration support Conflict resolution Avoid negative effects in teamwork such as anchoring, priming or social loafing, Interactive Simulation/ Inference model/ Clustering Our Approach Computer-Aided Morphological Design of Business Models

21 Computer-Aided Morphological Design of Business Models Approach Re-use benefits of existing tools and methods Business Model Canvas Common terminology Visual representation Computer-Aided Morphological Analysis Basic problem solving process structure Interactive model of the problem/solution space Clustering of similar business models Multi-user support Group facilitation support Alternate between individual and collaborative phases è avoid social bias Alternate between convergent and divergent phases è promote creativity Alternate between anonymous and identified interactions è avoid social loafing, increase (constructive) social competition Work-in-progress: currently implementing prototype, designing process model

22 Screenshots of current prototype

23 Thank you for your attention! Marin Zec M.Sc. Technische Universität München Department of Informatics Chair of Engineering for Business Information Systems Boltzmannstraße Garching bei München Tel Fax zec@in.tum.de wwwmatthes.in.tum.de

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