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FUTURE INTERNET PUBLIC PRIVATE PARTNERSHIP CONCORD DELIVERABLE
D3.3 SMART SERVICE BUSINESS MODELS
Author: Herman Rucic
Date of Delivery: March 31, 2012
Version: v. 1.0
Contract nro.: 285266
DOCUMENT REFERENCE
Project Acronym CONCORD
ICT Project Number 285266
Project URL http://www.fi-ppp.eu/projects/concord/
EU Project Officer Mr Giorgios Tselentis
Coordinator Petra Turkama, Aalto University
Email: [email protected]; tel. +358 40 3538369
Deliverable Name Smart Service Business Models
Deliverable No. 3.3
Nature Report (Public)
Author(s) Herman Rucic
Abstract
Deliverable D3.3 “Smart Service Business Models” documents the efforts conducted under task T3.3
“Exploitation Plan and Business Models” of Work Package 3 “FI-PPP Stakeholder Engagement” of the Future
Internet (FI) Public Private Partnership (PPP) Programme coordination and support action (CSA) CONCORD.
Task force leader is IBBT and supporting CONCORD partners are all other CONCORD consortia partners.
This task extracts insights from the various FI-PPP exploitation plans and business models to support the
dissemination and validation with the broader future Internet community, and is facilitated through the
Exploitation and Business Modelling (EBM) Working Group (WG) set-up by CONCORD. The evidence for
Deliverable D3.3 consists at this stage out of the description of the EBM WG and is complemented with the
next actions taken and/or planned.
Keywords Business Modelling; Exploitation
Date of Delivery March 31st, 2012
Version See below.
Proof Reader for Quality Assurance Mikko Riepula, Jukka Mattila
REVISION HISTORY
Version No. Date Description of Changes Author(s)
0.1 2012-03-21 Initial version Herman Rucic (IBBT)
0.2 2012-03-31 Updated to reflect FI-PPP use case
meeting 26 March 2012
Herman Rucic (IBBT)
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CONCORD DELIVERABLE 3.3
ABOUT DELIVERABLE D3.3
Deliverable D3.3 “Smart Service Business Models” documents the efforts conducted under task T3.3 “Exploitation
Plan and Business Models” of Work Package 3 “FI-PPP Stakeholder Engagement” of the Future Internet (FI)
Public Private Partnership (PPP) Programme coordination and support action (CSA) CONCORD. Task force
leader is IBBT and supporting CONCORD partners are all other CONCORD consortia partners. This task extracts
insights from the various FI-PPP exploitation plans and business models to support the dissemination and
validation with the broader future Internet community, and is facilitated through the Exploitation and Business
Modelling (EBM) Working Group (WG) set-up by CONCORD.
DESCRIPTION OF THE DELIVERABLE 3.3
The evidence for Deliverable D3.3 consists at this stage out of the description of the EBM WG and is
complemented with the next actions taken and/or planned.
EVIDENCE FOR THE DELIVERABLE D3.3
The Exploitation & Business Modelling Working Group
Current State of Play
CONCORD prepared a draft proposal for the Exploitation and Business Modelling (EBM) Working Group (WG) –
see Annex I – which was submitted to the Steering Board (SB) members on Wednesday the 8th
of February 2012,
in light of the SB of Wednesday the 22nd
of February 2012. The SB accepted the formation of the EBM WG based
on the submitted proposal, but request CONCORD to ensure that the WG would:
1) refine its objectives during its first meeting(s); and,
2) move the suggested ‘FI Exploitation and Business Modelling Toolbox’ to an annex.
In order to facilitate the formalisation of the EBM WG CONCORD requested all FI-PPP project coordinators to
nominate a representative to the WG. In order to facilitate the WG coordination and communication CONCORD
has set-up a dedicated mailinglist for the WG ([email protected]).
On Monday the 19th
of March 2012 CONCORD sent out the invitations for the 1st quarterly conference call,
scheduled for April 2012 (2nd
quarter)1, and the invitation for its 1
st bi-annual face-to-face meeting, scheduled for
May 2012 possibly in conjunction with the Future Internet Assembly in Aalborg, Denmark or with another relevant
Future Internet event.
CONCORD has gathered initial input of FI-WARE for the EBM WG during a bi-lateral FI-WARE – CONDORD
meeting on Wednesday the 21st of March 2012. This meeting focused, amongst others, on FI-WARE’s value
1 See Doodle, at http://doodle.com/3d66frnxikuisb4i.
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proposition. This exercise has been complemented with the input of the FI-PPP projects during the FI-PPP use
case meeting of Monday the 26th and Tuesday the 27
th of March 2012. In this meeting the various FI-PPP
projects presented, amongst others, their initial views on exploitation, business scenario’s and models.
The discussion in the use case meeting highlighted that 1) business, 2) regulatory and 3) standardisation aspects
are highly intertwined within the FI-PPP projects. Next tot his, the following 5 major topics where identified during
the discussion.
1) Common basic terminology/ontology
A common basic terminology or ontology currently lacks between the FI-PPP projects. In order to facilitate
future discussions and efforts within the EBM WG such common language is necessary.
2) Value Networks
Further work needs to be done regarding the basic value networks for the different business scenarios put
forward, in order to identify the incentives for the different actors and potential bottlenecks. There’s also a
clear need to map business roles to different identified functionalities.
3) Actor benefits and associated revenue models
The FI-PPP projects identified the benefits they envisage for different actors in their business scenarios,
but at the time being these value propositions are not associated with potential revenue models.
4) FI-PPP market analysis
The FI-PPP projects would welcome input for their own efforts regarding the (potential) economic impact of
the FI-PPP programme
5) FI-PPP architecture and business implications
The FI-WARE project needs to target its immediate customers, namely the other FI-PPP projects, and the
interaction between the use cases themselves and between the use cases and the FI platform need to be
assessed.
CONCORD proposed during the FI-PPP use case meeting, following an internal meeting on Wednesday the 21st
of March 2012, as next steps for the EBM WG to take the input of the meeting as the basis to draft a first
discussion paper – to be produced by CONCORD. This discussion paper would then attempt to:
1) Derive an initial set of high-level insights of the FI-PPP projects’ initial views on exploitation, business
scenario’s and models;
2) Draw parallels between the FI-PPP projects; and,
3) Pinpoint topics for discussion and derive valuable insights on these topics from other future Internet
projects.
Next steps
CONCORD has planned, in order to support the dissemination and validation of the EBM WG’s insights, as next
actions:
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1) Facilitation and development of a 1st discussion paper on exploitation, business scenario’s and models
(see above);
2) Participation and dissemination in the Hungarian EUREKA Chairmanship Conference ‘Food for Future –
Future of Food’ on the 2nd
and 3rd
of April 2012.2 This conference tackles, amongst others, aspects
regarding business models and financing of innovation; and,
3) Participation and dissemination in the Future Internet Enterprise Systems Clusters (FInES) Digital
Entrepreneurship Conference on the 7th
of June 2012 (tentative).
2 See
http://www.eurekanetwork.org/showevent?p_r_p_564233524_articleId=1422361&p_r_p_564233524_groupId=10
137.
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ANNEX I
The Exploitation & Business Modelling Working Group Description
Here below is the Exploitation and Business Modelling (EBM) Working Group (WG) description as distributed to
the EBM WG members, adapted to the comments from the Steering Board of Wednesday the 22nd
of February
2012.
EXPLOITATION & BUSINESS MODELLING
CONCORD Work Group Description Form
1 OBJECTIVES AND INTRODUCTION
The main objective of the Exploitation and Business Modelling Working Group (EBM WG) is to
maximise the impact and exploitation potential of the FI-PPP Programme and the individual FI-PPP
projects.
The specific goals of the WG are to:
provide internal and external insights into Future Internet exploitation plans and business
models; and,
support the FI-PPP projects’ individual exploitation and business modelling efforts.
This requires the participation and contribution of the individual FI-PPP projects, especially of FI-
WARE, to these programme-level efforts conducted within the WG, in addition to their own project-
specific exploitation and business modelling efforts.
2 ACTIONS & METHODS (INCLUDING EVENTS / WORKSHOPS)
ACTIONS
The WG actions are oriented towards 1) the horizontal and 2) the vertical FI-PPP Programme level. To
realise these efforts the WG draws upon a maximal effort from CONCORD and a minimal effort from
the individual FI-PPP projects.
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HORIZONTAL PROGRAMME LEVEL
Exploitation and Business Modelling Insights
The horizontal FI-PPP Programme level efforts analyse, abstract and generalise exploitation and
business modelling insights from an 1) internal and 2) external perspective.
Internal perspective
The WG derives internal insights from exploitation plans and business models of the individual FI-PPP
projects. This effort allows the WG to draw parallels between the FI-PPP projects and is facilitated
through virtual and face-to-face meetings.
External perspective
The WG derives external insights from exploitation plans and business models of relevant future
Internet Framework Programme 7 (FP7) research projects and Competitiveness and Innovation
Framework Programme (CIP) ICT-Policy Support Programme (ICT-PSP) smart city projects. For
example, the European Platform for Intelligent Cities (EPIC)3 ICT-PSP project, which intends to create
a scalable and flexible pan-European platform for innovative user-driven public service delivery. The
WG assesses the transferability of insights gained from these projects to the FI-PPP Programme.
External validation
The WG recognises the need for its exploitation and business modelling efforts to be subject to
validation by the broader Future Internet community in order for the FI-PPP Programme to have a
significant impact. Liaising with the broader community enables the FI-PPP Programme to influence
the outside developments around Future Internet exploitation and business modelling.
VERTICAL PROGRAMME LEVEL
At the vertical programme level CONCORD proposes to provide the WG members with an FI
exploitation and Business modelling toolbox, see Annex I. This proposal is subject to approval of the
WG and will be refined based on input from the WG’s members.
METHODS
The methods used shall be left to the WG to decide upon.
3 See http://www.epic-cities.eu/.
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Business Modelling
The WG assess the different (potential) actors and roles in the value network in the different stages,
from service development, delivery, to consumption, of the business models analysed. These efforts are
complemented, when possible, with visualisations of the revenue streams that could be envisaged. To do
so, the WG starts from various business roles identified in relation to the FI-WARE core platform, namely:
FI-WARE instance providers;
FI-WARE generic enabler (GE) providers; and,
FI-WARE application/service providers.
The WG discusses and analyses the different exploitation plans and business models. One of the proposed
approaches is based on Ballon’s4 business model design framework (see Figure 1). This framework is
instigated by its flexibility to capture the different value- and control-related issues around business models
and their interrelationship in the innovation process. This control- and value related approach is also
extended to the platform level.5
Figure 1: Business model design parameters6
In addition to assessing the different (potential) actors and roles in the value network the WG also supports
the FI-PPP projects in mapping the common elements and actors across the FI-PPP projects and scenarios.
This effort supports cross-project sharing of best practices, and provides at the same time new approaches
to the project specific exploitation plans, business models and value networks. This effort has been
4 See Ballon, P. (2007). Business Modelling Revisited: The Configuration of Control and Value. info, (9)5, 6-19. Retrieved
at, http://dx.doi.org/10.1108/14636690710816417. 5 See Ballon, P. (2009). The Platformisation of the European Mobile Industry. Communications & Strategies, 75(3), 15-
33. Retrieved at, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1559101, and Gonçalves, V., & Ballon, P. (2011).
Adding Value to the Network: Mobile Operators’ Experiments with Software-as-a-Service and Platform-as-a-Service
Models. Telematics and Informatics, 28(1), 12-21. Retrieved at, http://dx.doi.org/10.1016/j.tele.2010.05.005. 6 See Ballon, P. (2007). Ibid. p. 10
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initiated at the FI-PPP use case meeting in Brussels on the 26th and 27th of January 2012, and will be
followed-up on in the next FI-PPP use case meeting on the 26th and 27th of March 2012, as well as within
the EBM WG.
Internal & External Validation
The WG organises workshops to ensure internal and external validation of its efforts. Therefore, the
workshops have both an open (external) and closed (internal) session. To facilitate this the workshops will
be organised in conjunction with the Future Internet Assemblies (FIAs), in order to 1) minimise the travel
burden for the participants and to 2) allow the broader FI community to partly join these workshops.
Next to the workshops the WG also seeks external validation of its efforts through the publication of
discussion papers – intended for both an internal and external audience. These papers are prepared in light
of workshops to provide some food for thought upfront or are the result of a workshop to keep discussions
ongoing afterwards.
The 12 ‘business choices’ put forward in Ballon’s business model design framework (see above) could for
example guide the different workshops and discussion papers. These workshops and discussion papers
evolve into whitepapers and (academic) publications that allow for broader external validation.
Broader external validation is also being sought through participation in relevant communities (see below)
and through the participation in and/or organisation of conferences and panels.
RESOURCES
The WG realises the objectives and goals set-out with a core team of CONCORD partners, complemented
with one representative (i.e. the exploitation manager) of each FI-PPP project, and if deemed relevant
invited external experts. The exploitation managers are preferably those individuals leading the relevant
work package(s) or task(s) within their project.
The WG coordinates through quarterly conference calls, bi-annual face-to-face meetings, and on-line
collaboration. Participation in the WG and its activities happens on a voluntary – non-binding – basis,
although emphasising that the FI-PPP projects have committed themselves to spend 10% of their financial
resource for an effective and efficient implementation and operation of the Programme’s governance
structure and to make the necessary provisions to appoint people into the WGs.
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3 DELIVERABLES, SERVICES, AND PLATFORMS
The WGs efforts are reflected in CONCORD’s public deliverable D3.3 Smart Service Business Models. The
WG is committed, but not limited, to provide the following deliverables, services, and platforms:
Horizontal Programme Level
o An internal and external validation platform for FI exploitation plans and business models
Workshops;
Discussion papers;
White papers;
Academic publications; and,
Participation in relevant communities and events.
Vertical Programme Level
o An FI exploitation and business modelling toolbox
The abovementioned list is indicative and open for further refinement.
4 WG MEMBERS
The WG members are formally designated by their project managers and are empowered to take decisions
related to exploitation and business modelling in the context of the WG’s activities.
Project Partner Name Surname E-mail
CONCORD IBBT Pieter Ballon [email protected]
CONCORD IBBT Herman Rucic [email protected]
CONCORD Aalto Jukka Mattila [email protected]
CONCORD Aalto Mikko Riepula [email protected]
CONCORD Aalto Petra Turkama [email protected]
CONCORD DOCOMO Hendrik Berndt [email protected]
CONCORD EIIR Anna Sadowska [email protected]
CONCORD EIIR Takis Damaskopoulos [email protected]
CONCORD ENoLL Ana Garcia [email protected]
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CONCORD ENoLL Anna Kivilehto [email protected]
CONCORD ERRIN Ryan Titley [email protected]
ENVIROFI Atos Research Antonio Oliván Huerva [email protected]
FI-CONTENT TBD TBD TBD TBD
FINEST Arcelik Haluk Gökmen [email protected]
FINSENY Telefónica I+D Javier Lucio Ruiz-
Andino [email protected]
FI-WARE Atos Research Juan Bareño [email protected]
INFINITY TBD TBD TBD TBD
INSTANT MOBILITY
ERTICO – ITS Europe
Paul Kompfner [email protected]
OUTSMART Worldsensing Ignasi Vilajosana [email protected]
SAFECITY Everis Mario Carabaño [email protected]
SMARTAGRIFOOD CAMPDEN Andras Sebok [email protected]
Additionally, the WG envisages the possibility to invite external contributors due to their special expertise
and willingness to contribute.
Institution Name Surname E-mail
The composition of the WG is visualised in Figure 2 below.
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Figure 2: FI-PPP EBM WG composition
5 ROLES, INCLUDING INTERACTION AND COMMUNICATION WITH
OTHER WORK GROUPS, BOARDS, FIA, COMMISSION, ETC.
CONCORD
The CONCORD project nominates a WG leader responsible for the internal WG coordination and external
WG representation.
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OTHER WGS AND OTHER FI-PPP PROGRAMME LEVEL EFFORTS
The WG operates in close collaboration with other FI-PPP WGs impacting the exploitation and business
modelling aspects of the Programme, amongst them are the Standardisation and Institutional Agenda
Design (IAD) WG. Collaboration with, for example, the IAD WG provides insights to assess the impact of the
policy and regulatory environment on the considered exploitation plans and business models. Furthermore,
the WG supports the FI-PPP Programme level SME oriented efforts, as the WG also tackles exploitation and
business modelling aspects for Future Internet SMEs.
PROGRAMME STEERING COMMITTEE
The WG submits an annual status Report to the Programme Steering Committee detailing the activities
undertaken, the achieved results and the contributions of the individual FI-PPP projects. This Report builds
on the meeting minutes and deliverables.
FI-PPP PROJECTS
First, all individual FI-PPP projects nominate a WG representative, who is empowered to take empowered
to take decisions related to exploitation and business modelling in the context of the WG’s activities and
facilitates the communication between the represented project and the WG.
Second, the pivotal role of FI-WARE’s core platform should be emphasised, seeing that the platform
configuration is the main determinant for the possible value networks and potential business models.
Therefore, close collaboration with the FI-WARE project is considered a critical success factor for the WG.
EXTERNAL COMMUNITIES & OTHER RESEARCH PROJECT
The WG engages with and contributes to relevant external communities, amongst which the FInES cluster
‘Business Values, Business Scenario and Business Models (re-visited)’ task force7 and the Future Internet
Socio Economics (FISE) community.8 Next to this, the WG exchanges views with other FP7 and CIP ICT-PSP
research projects. Furthermore, the WG’s bi-annual face-to-face meetings are organised in conjunction
with Future Internet Assemblies (FIAs), in order to 1) minimise the travel burden for the participants and to
7 See http://www.fines-cluster.eu/fines/jm/FInES-Task-Forces/business-values-business-scenarios-and-business-
models-re-visited-task-force.html 8 See http://fisa.future-internet.eu/index.php/Future_Internet_Socio_Economics
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2) allow the broader FI community to partly join the workshops. On top of this, the WG also envisages to
build-on the work being conducted to contribute to relevant publications, such as the FIA book.
6 RESOURCES
The WG draws on resources from all participants. The WG draws upon a maximal effort from CONCORD
and a minimal effort from the individual FI-PPP projects, except for the FI-WARE project. This combination
of assets enables the WG, and therefore the Programme, to create an important impact on the Future
Internet community. The total annual efforts for the WG can be estimated as follows:
Project Efforts Actions
CONCORD 06 PM WG start-up and coordination
Other actions
FI-WARE 02 PM Participation in WG activities
Other actions
Other projects 0,5 PM 8 = 4 PM Participation in WG activities
Other actions
[Please note that these number of PMs are indicative and subject to change]
7 SHORT-TERM SCHEDULE
[Please note that schedule is indicative and subject to change]
H1 – 2012
Q1
Month Action – Responsible Actor(s)
February, 2012 Submit WG proposal to Steering Board – CONCORD
Mid-February, 2012 Steering Board decision on WG proposal – Steering Board
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Q2
Month Action – Responsible Actor(s)
Mid-April, 2012 1st virtual WG meeting – FI-PPP Programme
April – May, 2012 Prepare 1st face-to-face WG meeting – CONCORD
May, 2012 1st face-to-face WG meeting (FIA, Aalborg) – FI-PPP Programme
June, 2012 FInES Digital Entrepreneurship Conference – FI-PPP Programme
June, 2012 2nd virtual WG meeting – FI-PPP Programme
H2 – 2012
Q3
Month Action – Responsible Actor(s)
September, 2012 3rd virtual WG meeting – FI-PPP Programme
Q4
Month Action – Responsible Actor(s)
October, 2012 Prepare 2nd face-to-face WG meeting – CONCORD
November, 2012 2nd face-to-face WG meeting (FIA, Cyprus) – FI-PPP Programme
November, 2012 – January, 2013
Prepare FIA Book 2013 contribution – FI-PPP Programme
December, 2012 4th virtual WG meeting – FI-PPP Programme
8 ROADMAP 2012-2016
The WG’s long-term Roadmap will be defined and refined in collaboration with the WG participants over
the course of 2012 during the WG’s quarterly virtual meetings and bi-annual face-to-face meetings.
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ANNEX I
FI Exploitation & Business Modelling Toolbox
The WG could offer exploitation mangers an FI exploitation and business modelling toolbox in
support of their individual efforts. This toolbox would be compiled departing from a ‘customer-
centric’ approach, which implies that 1) WG members would be consulted on their needs and 2) that
based on these needs potential components of the toolbox would be presented to the WG.
This optional toolbox could offer, amongst others, different ontological starting points into business
modelling, such as Osterwalder’s9 nine business model parameters, or adaptations, and Gordijn and
Akkermans’ e3-value ontology.10
This toolbox could also present, for example, the SimBu method (see Figure 3), an interactive
computer based method which allows to evaluate and validate revenue sharing models, assess the
strategic fit between stakeholders and evaluate two-sided platform logics through business model
simulation.
Figure 3: SimBu method11
9 See Osterwalder, A. (2004). The Business Model Ontology: A Proposition in a Design Science Approach.
PhD, HEC Lausanne, Lausanne. 10
See Gordijn, J., & Akkermans, J.M. (2001). e3-value: Design and Evaluation of e-Business Models. IEEE
Intelligent Systems, July-August 2001, 11–17. Retrieved at,
http://doi.ieeecomputersociety.org/10.1109/5254.941353. 11
See Coenen, T., De Waele, L., & Ballon, P. (2009). Proceedings of the 2nd ISPIM Innovation Symposium: The
SIMBU Method - Supporting Creativity in Business Modelling for Open Innovation. ISPIM.