| MARKET INNOVATION AND SECTOR TRANSITIONS |
Market Innovation and Sector Transistion
MIST applies a range of tools for business model analysis, value network analysis, market opportunity and impact assessment in the future Internet, media and Digital arts.
MIST’s business modelling approach deals with specifying the business and industry architecture to bring successful services and systems to market. The business model framework links insights from strategic management, evolutionary economics and political economy. The approach typically involves three steps:
• The first step deals with business level requirements and field description. This includes a detailed description of existing and future potential value chains of all stakeholders involved in the development and roll out of a proposed technology.
• The second step refers to business model scenario construction, where each business scenario will typically identify four business modelling design aspects as a mode of analysis: (1) the value network describes how the different involved actors relate to each other, (2) the functional architecture examines technical elements that are relevant to the business relationships, (3) the financial model identifies revenue flows between different stakeholders and (4) the value proposition explores the type of services that can be offered to the end user, under each scenario.
• The third step entails business model evaluation and validation through revenue sharing models, assessing the strategic fit between stakeholders, and the evaluation of two-sided platform logic.
Business model innovation is a process that an organisation or a group of organisations can execute through a so-called funnel, in which outputs become more and more concrete in three phases:
• In a brainstorming phase, the business proposition is considered in a very general way. The output is a general view of the building blocks of the business model and of the stakeholders that will participate in it.
• In a consensus phase the different stakeholders are brought together to discuss the way in which they see their part in the future business proposition. The output of the consensus phase is a set of formalized business models, based on the implementation scenarios that resulted from the brainstorm phase.
• The simulation phase uses the formal business model to assess the implications of the different business models. This provides the stakeholders with the data that is necessary for making a choice in the model to be adopted.
Within MIST, we are further developing tool support for the different phases of business model innovation. We especially concentrate on Simbu – an interactive computer based method developed to support the consensus and simulation phase of the funnel.
MIST is also engaged in impact assessment. It develops guidelines for assessment of economic, social and environmental impacts of new Internet and media technologies and their business models. Currently we are involved in projects assessing (1) impact of future Internet technologies on energy efficiency; (2) impact of future media business models on cultural diversity; and (3) impact of new ICTs and business models on innovation and long-term revenue generation.
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