Business models for mobile service bundles

Document Sample
Business models for mobile service bundles Powered By Docstoc
					 Business models for
mobile service bundles
     Edward Faber
                                             Dynamic
                                             social networks
     FRUX vision


Service
infrastructure




Models for dynamic
service bundeling

          We-centric services

                   Experience, behaviour
                   and context measurement
FRUX business model research


  •   Extending the Freeband Business Blueprint
      Method with new ingredients:


          Service bundling




          Healthcare design issues
   Research on business models

  •    Defining business models (e.g. Timmers, 1998 )
  •    Components and classifications (e.g. Afuah & Tucci, 2001)
  •    Descriptive frameworks (e.g. Osterwalder & Pigneur, 2002)



           High                                          Process              Causal
                                                       frameworks          frameworks

                                                        Evaluation
                                                       frameworks

                                                Descriptive
                                                frameworks
   Required
   Integration
                              Classifications                                      Design of
                                                                                   Business models??
                        Components                      Today’s position


                    Definitions
            Low

                  Low                                 Added value of further        High
                                                          investigation
Adapted from Pateli & Giaglis, 2003
The truth about designing business
models!


There is no recipe for developing
successful business models!!
• Entrepreneurship
• What is success?
• User behaviour



It is possible, however, to identify critical
design and success factors

These factors should be taken into account if it
is to be successful at all
    FRUX approach
    S

T       F   • Elaborate descriptive framework with
    O
              concepts describing service bundles

            • Extend case base with cases of critical
        +     design issues in business models for mobile
              service bundles

            • Elaborate design method with service
              bundling and healthcare

            • Empirically validate causal framework and
              design method
                                                                                S


     STOF Business model framework                                         T          F

                                                                                O
                           MARKET DEVELOPMENTS




                                                      BUSINESS MODEL
                                    SERVICE
                                     DOMAIN
                                 Value proposition                       NETWORK VALUE
                                 Market segment
                                                                           e.g. Revenues,
                                                                           access to critical
                                                                           resources
                TECHNOLOGY                             FINANCIAL
TECHNOLOGICAL      DOMAIN                               DOMAIN
 DEVELOPMENTS    Functionality                        Cost structure
                   required                           Profit potential
                                                                         CUSTOMER VALUE
                                                                            e.g. Ease of use,
                                                                            costs, experience
                                 ORGANIZATION
                                     DOMAIN
                                 Structure of value
                                      network




                             CHANGES IN LEGISLATION
                                                       S


  Designing business models                    T               F


  is a balancing act                                   O




                             CUSTOMER VALUE
      NETWORK VALUE          Design requirements
       Strategic interests
                                                   S

                                          T                F


                                                O


                                For instance:
                                Ease of use vs. security
                                Added value vs. costs
                                Customer reach vs. added value

For instance:
Branding
Customer ownership
Revenues
Methodology explorative
case studies


• Objective
   •   Identification of critical design issues in
       business model for mobile service bundles


• Case selection
   •   Service bundles
   •   Rich variety in application domains
   •   Multi-actor service offering
Case base FRUX

• Portal oriented
   •   I-mode, Live!, Orange world


• Community oriented
   •   Botfighter, Blah, MSN


• Interaction oriented
   •   Onstar, Predoc


• Content oriented
   •   P-info, CNN news services, Timespots
Critical design issues
in service domain

Critical design      Description               Balancing
issue
Targeting            How to define the         Customer reach vs.
                     target group of a         added value
                     mobile service?
Value elements       How to create value for   Technological
                     end users?                possibilities vs. user
                                               needs and wishes
Branding             How to promote/ brand     Operator vs. content
                     the service?              brand

Trust                How to enhance end        Security vs. ease of
                     users’ trust in the       use; Privacy vs. added
                     service?                  value
Customer retention   How to stimulate          Customer lock-in vs.
                     recurrent usage of the    customer annoyance
                     service
Critical design issues
in service domain (bundling)

Critical design   Description                Balancing
issue
Bundle focus      How to choose a clear      Customer reach vs.
                  bundle focus?              added value
Branding          How to promote/ brand      Brand umbrella vs.
                  the service?               individual branding

Pricing           How to price the service   Differential vs. group
                  bundle?                    pricing
Bundle            How to compose a           Serve yourself vs. pre-
composition       attractive bundle?         selection
Bundle strategy   What is an effective       Offering products
                  bundle strategy?           separately vs. offering
                                             products in a bundle
Critical design issues
in technology domain
 Critical design      Description               Balancing
 issue
 Security             How to arrange secure     Ease of use vs. abuse
                      access and                and privacy.
                      communication?
 Quality of Service   How to provide for the    Quality of service vs.
                      desired level of          costs
                      quality?
 System integration   How to integrate new      Flexibility/ compatibility
                      services with existing    vs. costs
                      systems?
 Accessibility        How to realize            Open vs. closed
                      technical accessibility   system
                      to the service for the
                      target group?
 User profile         How to manage and         User involvement vs.
 management           maintain user profiles?   automatic generation
                                                Privacy vs. ease of
                                                use
  Critical design issues
  in technology domain (bundling)

Critical design       Description               Balancing
issue
User profile          How to manage and         User involvement vs.
management            maintain user profiles?   automatic generation
                                                Privacy vs. ease of use
Service integration   To what extent should     Ease of use/ effort vs.
                      services be integrated?   costs of bundling
                                                Competitive advantage
                                                vs. antitrust regulation
Tentative causal framework for
bundling and customer value
           Critical design issues                          Critical success factors
                Influences
Accessibility


                Influences                  Results in a     Clarity of target
Bundle focus                 Targeting
                                                                   group


   Trust
                    Influences

  Bundle                       Value         Enable a        Compelling value
composition                  elements                          proposition

  Bundle
  strategy                                   Co-
                                 Pricing     determines                                  (+)
   Service
 integration                                                                       Expected
                                                                                 Customer value
                                             Co-
                                 Branding    determines                                  (+)

  Security
                    Enable
                                             Should
 Quality of                  Service         realise        Acceptable quality
  service                    delivery                       of service delivery

   System
 Integration

                                             Should
User profile    Supports     Customer        realise          Non obtrusive
management                   retention                      Customer retention
Design method

                            New business idea

                                                        S
STEP 1
              Basic            Quick Scan       T               F
         Information (BI)
                                                        O
                              Rough sketch
                             Business Model

                                                        S
                              Comparison
STEP 2   Critical Success                       T               F
                               with CSF’s
          Factors (CSF)
                                                        O
                                          Yes
                                   Ok

                                     No
                                                            S

STEP 3   Critical Design       Balancing            T               F
         Factors (CDF)
                                                            O


                               Elaborated
                             Business model
THANKS FOR LISTENING!
   ANY QUESTIONS?

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:2
posted:7/29/2012
language:
pages:17