New sustainable business models and socio-eco -nomic mechanisms based on collective and public benefit are starting to clearly emerge.
how to encourage simultaneously both business model innovation and societal innovation. This means enabling business model innovation in real world settings (such as Living Labs, maker spaces or so called
Smart Cities) and orchestrating the process with all innovation stakeholders. Mobilising civil society organi -sations, and innovators that are central to the way DSI happens and scale
how to encourage simultaneously both business model innovation and societal innovation. This means enabling business model innovation in real world settings (such as Living Labs, maker spaces or so called
Smart Cities) and orchestrating the process with all innovation stakeholders. Mobilising civil society organi -sations, and innovators that are central to the way DSI happens and scale
At a socioeconomic level the study will assess new business models and socioeconomic mechanisms †be
•Finally, advanced ICT, collective knowledge and innovative business models in open networked plat -forms can reduce the technological, bureaucratic,
the early idea stages to refine their business models and grow their venture. To address this, a number of
sustainable business models and socioeconomic mechanisms based on collective and public benefit are starting to clearly emerge.
to the product†s low cost and open source business model. The Arduino designers freely share the specifications for anyone to use, and third-par
conventional proprietary business models, they sell it themselves for a small profit †while allowing anyone else to do the same
Currently, business models for the period after the project are being developed What are the main barriers
The business model is based on the association†s independence, and the budget depends on the membership fees of the members.
moment, its business model is mainly only to maintain the lab and its community. The small incomes from the fee charged to use the space are
†social codingâ€, Github has managed to craft a successful business model based around code review and code management for open source and
culture of Github translates into their business model in one particu -larly obvious way: programmers or companies can use the collaborative
Funding and business model: Github†s †Freemium business models†(a term which relates predominantly to the fact that organisations will pay
There are also many applicable business models for implementing some open-source hardware even in traditional firms. For example, to ac
thus ensuring Opencorporates has a sustainable business model and giving an incentive to release information back to the community
-porates grow their business model and receive expert support from open data peers How does it achieve better
business model reinvention by enlightened professionals. Except for a few success stories such as Airbnb and Blablacar, many collaborative con
part of the organisation†s finance and business model. Users and sup -porters are encouraged to help support
Both a part of Patientlikeme†s business model as well as its mission to create better treatments for its members, Pa
around a business model and be able to meet the standards of medicine It†s an almost impossible set of barriers that are very hard to navigate
-ble business model, trust in the platform and developing the right team and diverse skill sets to run
Getting the business model and team right: Daan explains how â€oewhat we do is new, we can therefore not resort to existing business mod
-fore spent on exploring new business models. †Peerby†s goal is to be a self-sustaining company,
and business model sets big challenges for the skills of him and his team †We need to be flexible,
who might in the more proprietary business models of the past have been †competitorsâ€) demonstrates a deep commitment to bringing about
traditional business model, the licensing model of the Raspberry Pi tech -nology might be deemed a disadvantage:
have adapted their business model to offer new opportunities for collab -oration through information-sharing †offering technology customisa
business model Smartgrids: †Enabling†technologies •Active distribution networks revealing characteristics of today†s transmission grids
2 Revisit your business model...12 3 Eco-innovate production processes...18 3. 1 Waste and emissions...
-consider business models, develop new products technologies or services, or improve production processes The aim is to summarise key business issues
business model and value proposition†¢process eco-innovation†¢product eco-innovation†¢getting eco-innovations on the marketâ€
-ating business models that are both competitive and respect the environment by reducing resource intensity of products and services
Resilient business models Companies can revisit their business models and value propositions by reconsidering novel ways of delivering their services.
Alternative approaches to delivering services (e g. functional sales) can both reduce resource intensity, bring about new market opportunities and make busi
Resilient business models Creating business models focussed on delivering services and â€oeperformance†to customers New markets and customers
Higher revenues and profit Cost saving Eco-innovations resulting in improved resource productivity save money by reducing costs of
Revisit your business model 14 eco-innovation observatory Revisit your business model Key challenges for your business model
Rethink your value proposition and your offer: †¢customers do need not necessarily to own products;
services can meet their needs, per -haps even better. Consider concepts like leasing or sharing for your business
business model in a short-and long-term Prepare to take risks: changing a business †¢model is a continuous process.
and redesign their business model to reduce costs and improve customer experience. Many companies are driven also by environmental
Revisit your business model Key Questions What value do we deliver to customers? †¢Which customers†needs are we helping to â€
How much does our business model depend †¢on our companies†and our customers†access to and use of material and energy
Revisit your business model Good practice examples Turntoo efficient chemical management system Turntoo (NL) is an intermediary making pay for
2 See more about chemicals management business models in Green Paper by FORA on www. foranet. dk/media/27577/greenpaper fora
Business model Generation•offers a wide range of resources for entre -preneurs and companies on business model innovation
www. businessmodelgeneration. com/canvas OECD workshop •â€oethe Future of Eco-Innovation: The role of business
FORA€¢present a number of cases of green business models in its Green paper: â€oegreen business models in the Nordic Region.
A key to promote sustainable growth. †www. foranet. dk/media/27577/greenpaper fora 211010. pdf Revisit your business model
Eco-innovate! A guide to eco-innovation for SMES and business coaches 17 eco-innovation
Revisit your business model Measuring environmental performance Ecological rucksacks are the resource requirements of producing products
cooperation based business model for freight transport. The model is called â€oesmart bundling†Quick Wins Save costs from streamlining processes at all â€
¢new business models driven by environmen -tal considerations will require approaches outside of normal day-to-day R&d processes
our business model Which combination of customer needs are †¢the companies†products satisfying e g. new
for the diversity of commerce business models in the digital age Infrastructure and skills For e-commerce and omni-channel retail to flourish throughout the EU, improving mutual
and flexible enough to embrace the new business models that the e-commerce market requires Harmonisation and standardisation:
and business models of commerce; this means avoiding exclusive rights or obligations, and therefore a competitive (dis) advantage to one or the other retailer
business models and management teams (back to the skills gap Reinvigorating R&d The other major part of the innovation equation†for
rising profits from progress in the fields of cloud computing and new business models associated with data
specific technologies, business models and social identities 22 Source: Cave et al. 2009 23 Chapter 4. Education will have to address challenges posed
business people (in employment and/or recently made unemployed), focusing on new business models and approaches, combining elements of local skills and strengths,
effectiveness) into a third era of enterprise IT, where digitalization is transforming business models and determining who will win.
processes, business models, information technology and talent suffer from legacy inertia and â€oebad complexity. †Even IT planning horizons do not reflect the new era, with its potentially massive
business processes, business models and the business ecosystem Information and technology leadership Value leadership People leadership
research findings, transfer them into business models and develop new products and processes that leverage the potentials of nanotechnology while at the same time fit to the needs of
For example the difference in business models focusing on continued miniaturisation versus a diversification of new functionalities makes a comparison along
into business models and develop new products and processes that leverage the potentials of micro-and nanoelectronics while at the same time fit to the needs of customers in terms of
-Session II â€oeindustry Structure and Business models for Industrial Biotechnologyâ€, OECD Workshop on Outlook on Industrial Biotechnology, DSTI/STP/BIO (2009) 22
OECD (2009b), Industry Structure and Business models for Industrial Biotechnology, OECD workshop on â€oeoutlook on Industrial Biotechnologyâ€, DSTI/STP/BIO (2009) 22, Paris:
and business model thinking are linked tightly to each other. Finally, the buzz on open innovation has triggered many ï rms to
society's point of view, OI provides greater scope for jointly conï guring the best ideas and business models.
strives to come up with the best ideas and the most suitable business models for commercialisation 49,82.
Conversely, in an OI era, knowledge transfer is driven primarily by ï rms'desire to advance current business models, nurture
foster and support institutions channelling human and ï nancial resources towards promising technologies and business models
iii) highlight the reworking of good ideas through suitable business models and highly-efï cient markets for technology and
37 H. Chesbrough, K. Schwartz, Innovation business models with co-development partnerships, Res. Technol. Manage. 50 (1)( 2007) 55†59
49 H. Chesbrough, Open Business models: How to Thrive in the New Innovation Landscape, Harvard Business school Press, Boston, Mass, 2006
101 H. Chesbrough, Business model innovation: it's not just about technology anymore, Strategy Leadersh. 35 (6)( 2007) 12†17
extending his research on open innovation and open business models by performing joint research with various universities around the globe
companies, while also opening up new business models at the heart of these firms These changes are already apparent to nearly all of us as
transformation and driving business model innovation †and they show a set of six unique traits (see text box
has used digital technology to create a whole new business model for its Nespresso range of coffee capsules,
operations and new business models. Gartner2 agrees: its 2013 CIO Agenda Report notes that, while CIOS have spent the past decade
1. Using digital to enhance traditional business models, such as moving from selling products to providing services †Streetcar
2. Transforming existing business models to offer new digital services †such as 100flowers selling via Facebook
3. Inventing wholly new types of business models †from virtual currencies in online games, to others selling its digital data
business model-related innovation. These are the two elements that The DNA of the CIO identified as the most helpful for CIOS trying to
vision for the company that is directly linked to its business model, †says Nykredit CIO Lars Mathiesen.
understanding of their companies†underlying business models, and products and services. EY€ s Dave Ryerkerk notes that, in the past
a business model level and in terms of new products and services †something picked out by 81%of digital-ready CIOS, well ahead of
data to transform their business model, or the medical device CIO who articulates the impact of information technology on their
business models, which may be more profitable than actually building the physical products, †says Golz. â€oeso it†s a true business
new business model opportunities For CIOS, all this brings new demands and pressures to which they will have to react.
business model level Don†t let operational IT overwhelm you Tasks at a strategic level Co
more complex business models. Increasingly, multinational companies seek to maintain competitive advantage by out-sourcing, moving selected business processes to more economic
 The emergence of the networked value chain, a distributed business model where different value adding activities are carried out where they can be done most
applications and business models The emergence of †Cloud computing†is a key enabler †whereby computing resources and
growing dominance of the internet experience reflected in radically altered business models The games industry in particular is showing very healthy and rapid growth globally.
However, it is a business model that is continuing to grow as the range of activities and functions being centralised expands
An Evolving Business model and Considerations for Ireland When BPO emerged as a sector originally in the 80s, the primary driver for companies to
services was identified first as a new business model for large corporations with a global footprint. Since the mid 90s the SSC functions undertaken in Ireland have been significantly
innovation in business process, business models technologies etc. productivity enhancements, re-skilling and up-skilling  EI is proactively working with firms to identify
changing business models of customers (driven by new technologies, the Cloud, data processing capacity, social media etc. and â€oemega-trends†such as ageing
Changes in business models, the convergence of formerly discrete sectors and increased mergers & acquisition (M&a) activity call for a work-force with
more complex business models. Increasingly, multinational companies seek to maintain competitive advantage by out-sourcing, moving selected business processes to more economic
The emergence of the networked value chain, a distributed business model where different value adding activities are carried out where they can be done most
applications and business models These trends are reflected through the phenomenon of †cloud computing††a now widely used
Business models are being transformed whereby open innovation (across companies) is becoming a reality; smaller technology intensive companies have a range of options for targeting their end customers
DSO  †business model Infrastructure is owned by the DSO 2 important demonstrators 1) Milan, Pisa, Rome
DSO  †business model Infrastructure is owned by the DSO DISTRIBUTION 50 ï¿ï 51 LV:
technical solutions for grid operation, new business models and electronic market places Table 34 R&d Framework, Programmes & Policy documents in Germany
funding and sustainable new business models This research has identified the goals of policy, the policy tools and funding instruments
While massive commercial investment and business models fuelled the web†s incredible growth, the use of platforms like Facebook to serve social good has
-rent business models, with new players evolving, shaping and structuring whole new markets and societal institutions that
often need support in the early idea stages to refine their business models and grow their venture.
Standards will enable new business models for co-operation between multiple stake -holders such as companies, public authorities and citizens to develop meaningful tech
social and service innovation, new business models and practice-based innovation. All regions have a role to play in the knowledge economy,
business model innovation, which are today as important as the technology breakthrough innovation for SMES. It is relevant for the regional authorities to
and adapt their business models accordingly. European cultural and creative sectors are fragmented furthermore inherently along national and linguistic lines
,'Promoting entrepreneurship','Developing new business models for SMES','Improving the urban environment','Developing Business incubators,'Supporting the physical and economic
business models for CCI SMES, etc. Balance between hard structures/infrastructures: creative hubs and clusters, networks, incubators
radical eco-innovations and challenge existing firms and business models, or that deploy new environmental technologies
This needs new business models, industrial symbiosis, product service systems product design, full life cycle and cradle-to-cradle approaches.
SME business model innovation 11.00 14. Secure societies †Protecting freedom and security of Europe and its citizens
business models, service innovation and design. The potential of clusters, that represent favourable ecosystems for innovation, need to be exploited better in this respect
creation must come from innovation in products, services and business models. There is strong evidence that countries
business model innovation, social innovation community, ICT for learning and inclusion This societal challenge will continue to be supported under the
3. 1 Creating Inclusive Business models 3. 1. 1 Selling to Local Markets 3. 1. 2 Developing Local Partner Networks
Creating Inclusive Business models Involving the poor as employees, entrepreneurs, suppliers, distributors retailers, customers, and sources of innovation in financially viable ways
depending on their industries, their particular business models and relationships, and the contexts in which they operate.
These strategies are used often in combination with inclusive business models, to enhance both their commercial viability and their
Technological innovation, to say nothing of business model innovation, was slow The name of the game was rent-seeking;
or business model, often using the power of the state for that purpose The rate of technological innovation in ICT has accelerated dramatically,
of business model innovations †first prepaid cards, and then over-the-air recharging, which reduced costs
In the ICT sector, both technological and business model innovations have the potential to blow back.
Profitable business models are the most sustainable, scalable mechanisms for doing this, and ICT companies are experimenting with a
efforts are directly related to inclusive business models, but often they are motivated more philanthropically with business benefits expected to materialize only in the longer term.
Whereas inclusive business models draw primarily on operational levers to expand economic opportunity, developing human capital, building institutional capacity,
and development impact of inclusive business models, in addition to improving the economic opportunity environment more generally 3. 1 Creating Inclusive Business models
Inclusive business models in the ICT sector seem to take on one of two primary types: they can target local
individual, household, and SME markets for sales of technologies and services; they can also support the
of crosscutting considerations in the development of inclusive business models in the ICT sector are also highlighted
and/or adapt its business model to accommodate their needs In mobile telecommunications, for example, one could say it was a business model rediscovery that set the
wheels in motion for the developing world, in the form of Grameen Telecom†s shared-access Village Phone
paradigmatic inclusive business models in the ICT sector. ICT companies such as Reliance Communications Cisco, and Nortel in India are even offering services on a pay-peruse basis to SMES, in response to the
inclusive business models in many other sectors †financial services, agriculture, retail †anywhere companies seek to target low
to more than a million small retailers by adopting business models based on prepaid, rather than subscription -based, usage. 44 These airtime retailers,
Inclusive business models in the ICT sector often show a combination of several of the following
to consume†through innovation in technology, business models, content, and applications which increase the value proposition to the prospective purchaser.
Business model innovation. The role of business model innovation in creating the capacity to consume among low-income individuals and households, entrepreneurs,
and SMES is worth additional emphasis, especially in the ICT sector. It†s not all about the technologies.
the importance of business model innovation, finding that â€oeoutperformers††companies whose operating margin growth over five years exceeded the median †put twice as much emphasis on business model
innovation as â€oeunderperformers. †52 Collaboration. Collaboration helps ICT companies address two fundamental challenges to inclusive business
The second challenge is business model innovation and implementation. Internally, â€oetiger team†approaches combining executive, R&d, production, distribution, marketing,
technology, with little consideration of the business model; and a belief that â€oedoing good†could, and to some
training, found new business models that have succeeded. Second, the donor community found new, more effective models for supporting access to technology.
financial regulators will be key to enabling innovation and experimentation with business models that cross traditional industry lines (such as providing financial services via mobile phone, or storing health
But technologies demand business models that allow them to become part of the fabric of society. Among low-income individuals and SMES, business model innovations such as low-cost
distribution systems, value-added content and service partnerships, and appropriate financing options have all been critical in this regard.
Business model innovations have been critical in facilitating supply and distribution relationships with SMES as well. Examples include free product references, specialized training and financing
It is a critical part of standard-setting, business model innovation and implementation, and building the value proposition of technology through content, application, and service
already playing an increasingly key role in enabling the inclusive business models of other firms, partnering
Microsoft Innovation Centers (MICS) help extend the edges of an already inclusive business model by developing
business model. Similarly, while governments and other development-oriented organizations are currently keen to work with the private sector,
business models for the delivery of financial services in emerging markets, with a focus on prospects for sustainability and replicability.
-the-pyramid business models for companies in the technology and housing sectors at the World Resources Institute and Ashoka, both in
a reaction to the downturn phase in the 1980s, the business models changed: While in the past the enterprises in Prato had a high degree of productive self-sufficiency
technologies, human resources (notably e-skills) and new business models"."4 The i2010 policy, a follow-up to eeurope, also stresses the critical role of ICT for
business model, they compete indirectly with operators providing information to travellers and do marketing and promotion for their companies.
their particular needs and business models Sector associations Business intermediaries Competence centres Improving ICT skills and
and little incentive to change business models when returns are unclear. In a nutshell SMES€ ICT requirements are that they support their core business,
existing business models and strategies to change organisational structures As has been pointed out in Chapter 4, investments in training and skill-formation are at
platforms, are a prerequisite for the use and uptake of innovative business models and services that benefit the further development and growth of the European
to new business models (like network and web-based models; similarly, determining the role of ICT in different segments of the population,
business models Each scheme is tailored not only to the regional situation but is designed also in such a way as to be easy for
a sustainable business model. In other words, once the initial investment has been made, what steps need to be taken to ensure that the ongoing costs of
significant challenge is developing a sustainable business model. Long-term sustainability and financing appear to be the most challenging and, in most
four general categories of business models appear to emerge •Not-for-profit: the not-for-profit initiatives are driven by their charter
business models and how they are attempting to achieve long term sustainability Table 3. 2. Attitudes about payoffs according to main stakeholders
adopt a public utility business model: the telestroke programme is entirely developed and maintained with the assistance of national/local government
basis of a potentially sustainable business model The not-for-profit model It is the nature of ICT projects that
sustainable business model to keep the HIE in operation once the initial money has been spent To date, initial funding has generally come from national and state
In this case the business model is as good as patients†willingness to allow their data to be shared in ways that clinicians
business model also depends on incentives that adequately reward physicians for their participation in quality improvement activities which require data
e g. partnership innovations, business models marketing and sales innovations etc.;improving the ability to run innovation processes in new
2) See Business model Generation by Osterwalder & Pigneur (John Wiley & Sons, ISBN 978-0470-87641-1) for a description of the business model canvas 9 (14
new products and implementing new business models. Creating the conditions which encourage risk taking, entrepreneurship, investment and hard work is important to foster innovation in
and disruptions to existing business models brought by the internet. Nor could many have confidently foretold the extent of China†s spectacular recent growth and its soaring demand for
New business models are starting to rely on immediate transfer of international cargo to domestic transport hubs.
Austrade provide reliable information about markets, technology and business models to small and medium enterprises, accelerating industry growth and job creation.
new products and implementing new business models (Carlino & Kerr, 2014 and international research suggests that companies in which employees
An innovative business model requires no less than having good jazz scores (operating models and processes), played by good jazz musicians (employees), playing high quality instruments (technology
SME business model innovation 11.00 14. Secure societies †Protecting freedom and security of Europe and its citizens
business models, service innovation and design. The potential of clusters, that represent favourable ecosystems for innovation, need to be exploited better in this respect
and more efficient business models, thereby raising the international competitiveness of SMES â Encourage the smooth,
or lack of incentive to change business models unless returns are clear. But SMES also face generic barriers to
Figure 3. 4 Chemstation†s Business model...26 Figure 3. 5 Evolution of New Product-Service Development...
identified five mini-cases of SMES that developed compelling new business models that were accompanied by the creative use of information technology and proprietary databases to help
Business model innovation involves creation of a value proposition that offers to satisfy the same or different customer needs in new ways by performing a function,
Chesbrough and Rosenbloom (2002) indicate that business model innovation, besides a new value proposition and targeted customers,
We return to the topic of business model innovation in section 3 where it relates directly to adding new services that complement existing
He also suggests that business model innovation is useful after mainstream products have commoditized. SMES can offer customers
business model innovation is a very effective strategy in mature markets with products in late life
innovation skills and new innovative business models as outlined in our previous report (Warren and Susman, 2004.
its customers†actual needs, Greif converted its business model to being a â€oetrip leasing†company for specialty chemicals †the Fedexâ of problem chemicals
The business model also builds barriers against competitors Source: Warren and Susman, 2004 Additionally, services can help to establish â€oecustomer lock-inâ€.
the automotive industry looked for an innovative business model to change its competitive status. It started by participating in the engineering design of new car
The service business model improves customer relationships. As mentioned above, the company prides itself on reputation and reliability.
Fasteners, that IT was integrated an part of their service business model, and not used just as a set of tools to help them manage the operations of their business.
in outdated business models. It was, after all, Amazon and ebay that created on-line bookstores and auctions rather than Barnes & noble and Sotheby†s
Here are some categories for use of IT in business model innovations. They are illustrative and not intended to be a complete list
Netflix business model comes not only from the convenience but the ability to â€oemine the data†obtained by combining information from ALL customers nationwide.
business model is based on the principle of providing customers with reliable and customized services supported with proprietary information systems.
A business model based on information sharing can provide high barriers against competitors as the costs involved in integrating
A sound business model using data lock in will have multiple partners so that the dependence on one partner is reduced.
IT enabled innovative business models: Entirely new forms of business can be created by employing data acquisition
Chemstation has used a franchise business model to expand rapidly nationally without the need for the founding entrepreneur to raise any
elegant business model is depicted in Figure 3. 4 Figure 3. 4 Chemstation†s Business model 27 The franchisor†s headquarters,
which is based in Ohio, serves some local customers and uses its buying power to purchase cleaning chemicals at a lower price than
innovative business model that includes elements of franchising, data-mining of customer information, and customer lock in. Source:
In addition to using information technology (IT) to enable creative business models, SMES can of course, derive benefits from the use of IT in their operations.
•Base business model on quick response and customization •Shift downtime risk from customer to
•Base business model on low cost and convenience over product life •Extend customer relationship deep into
had moved from a pure product-centered business model to one where service components played an increasing role.
to their business model. These cultural attributes are explained in Table 5. 2 In addition to culture, the goals of a service-centered firm will also be different than those of a
Up to this point, the firm†s business model need not shift dramatically, but further steps will
The value proposition underlying the Phase II business model is to offer the customer equipment availability, operational uptime,
transformation in the business model. The firm now offers the customer total solutions to problems that relate to consumption or use of its products.
However, the transition to new service-centered business models does not come easy. The admittedly limited research on so-called â€oehybrid business models†indicates that the value
business models requires confronting the need for change management. As we have seen, SMES may have inbuilt cultures
They need support in initial analysis of their current and potential business models, development of a transition strategy for changes in operations and structures needed to succeed, and hand
3. Business Planning †organizational restructuring, change in business models 4. Funding †anything related to finance
Within this 7%(or 45 assignments) MEP had helped the SMES change their business model only in about 20 assignments, less than 3%of the total support activities
the MEP affiliated offices that address the issues of innovation, new business models, change management and revenue enhancement through service additions
and application to affect the sorts of change management and business model innovation that we are addressing here
the potential of changing their business model to include services and all that it entails; and even
considering changes in its business model •Techniques for judging the cultural attributes (see section 5) that can help determine how
and engages with a company seeking to change its business model, for example, the â€oechallenge†will be compiled in a standard format on the portal.
"The role of the business model in capturing value from innovation: Evidence from Xerox Corporation's technology spin-off companies
Discusses using a business model to successfully determine the value of technology 62 Christensen, C. M. and J. L. Bower (1996."
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