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Business Models for Silent Processes
Prof. Hubert Österle
Trends in e-Commerce, Public Lecture in Business Informatics
Vienna, January 14th, 2008
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Business Model Innovation
www.geschaeftsmodelle.com
Trends in Business Models
Paradigm Shift
Trends in Business Models
Silent Processes
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Apple‘s iPod is Successful Because of the Business Model
Audio player iPod
Large number of songs offered thanks to contracts with producers and music labels
Prices per song
Worldwide
Copy protection / digital rights management
Multi-channel distribution for audio players
Silent consumer process
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Schiesser:Underware Specialist for Well-Known Labels
CZ
SK
BG
Lieferanten
Design Purchase Production Stock-
keeping Distribution
Logistics Procurement
Logistics
„One day, we want to make money with every single
piece of clothes sold in Europe - somewhere in the
value chain.”
Winfried Daltrop, CEO Schiesser AG
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Luenthai: From Clothes Manufacturer to an Integrator for the Value Chain
Company profile
Revenue: 0,8 bill. USD
Employees: 23.000
Products: Textiles for fashion brands (80% external brands)
Customers (Brands)
OtherSuppliersProduction
Design
Logistics
OutsourcedManufacturing
ProcurementProcurement
LogisticsLogistics
DesignDesign
“Luenthai is not a clothing manufacturer anymore, but
a clothing supply chain service provider.“
Chen Zulong, Vice President
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Endress+Hauser:From Measuring Instruments to Measuring Solutions
Configurationand Purchase
Operations
Disposal /Replacement
Installation
Customer
Specification
Maintenance
W@M
Endress+Hauser
AutomationSolutionsEndress+Hauser
Homepage
Applicator
eShop
eCatalog
Order Status
370,000 downloads / year
Download Area
Spare FinderTool
Installed Base
Analyst
2,5 mill.equipmentrecords
CommonEquipment Record
Field Care
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Business Models:From Products to Solutions
Product Value Customer Value
Amount of explosives „Broken rock“
Compressor Compressed air
Overall textile service package
Individualized portfolio of standard services
boco
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Business Model Innovation
www.geschaeftsmodelle.com
Paradigm Shift
Trends in Business Models
Silent Processes
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Last 30 Years: Optimization for Business
Enterprise Resource Planning (ERP)
Business Networking
Interfaces (EDI, …)
Portals (Suppliers, Customers, etc.)
Enterprise SOA
…
Enterprise Resource Planning (ERP)
Business Networking
Interfaces (EDI, …)
Portals (Suppliers, Customers, etc.)
Enterprise SOA
…
Business EngineeringBusiness Engineering
EDI … Electronic Data Interchange, SOA … Service Oriented ArchitectureEDI … Electronic Data Interchange, SOA … Service Oriented Architecture
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Future: Optimization for People ?
Silent Processes for Consumers
Silent Processes for Consumers
Sensors & Actuators
Mobility
Content & Community
Requirements Match
Sensors & Actuators
Mobility
Content & Community
Requirements Match
Wellbeing EngineeringWellbeing Engineering
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Business Model Innovation
www.geschaeftsmodelle.com
Paradigm Shift
Trends in Business Models
Silent Processes
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Computer Game
Customer-Centric Services Instead of Supplier-Centric ProductsExample of Independent Living
Sleep MonitorSleep Monitor
Wobble SensorWobble Sensor
Intelligent PillboxIntelligent Pillbox
GPS-ModuleGPS-Module
Medication Service
Get-home Service
Easy Communicator
Tumble Prevention
Intelligent Pillbox
Fitness Service
Wobble Sensor
GPS-Module
Easy Communicator Stay-Connected Service
Computer Game
Multiplayer Game Club
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The Ingredients of Silent Processes
One-Face-to-the-Customer
Anytime
Assistive
Segment-of-One
One-stop
Context Sensitive
Everything Everywhere
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The Process of Independent Living must be Silent
Intuitive usage
Machines serving people,rather than people serving machines.
Shift complexity from humans to machines
Assistance instead of control
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Solutions rather than products
Individualization
Globalization
Realtime
Multi-Channel Pricing Models
GranularityInnovation Frequency
ComplianceCollaboration
Bonacasa
Telemedicine in Pharmacies (Medgate)
Complexity must shift from Customers to the Ecosystem
Complexity
Medgate / Insurances / Pharmacies
Nintendo & Dr. Kawashima
Pay per use insurance
Price reduction for telecare services (e.g. Sanitas)
Individual service bundles
Adaptive home automation
Activating vs. assisting
Detailed health monitoring
Continuous (preventive) care
Health call centre in India
Assistance everywhere
Contact-less sleep monitoring
Mobile X-ray solutions
Telecare business models
Monitoring of vital signs
Emergency calls with escalation mechanisms
Phone, video, web-communities, etc.
Country-specific regulations
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Resumé
Business models move from products to individualized solutions.
We need a paradigm shift from business engineering to engineering of wellbeing.
Engineering of wellbeing means
– understanding the consumer process
– providing solutions instead of products
– a holistic assistance integrating all necessary services
– shift complexity from the consumer to the ecosystem
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Contact
Hubert ÖsterleInstitute of Information ManagementUniversity of St. Gallen
Mueller-Friedberg-Strasse 8CH-9000 St. GallenPhone +41 71 224 2420Fax +41 71 224 2777
e-mail: [email protected]: www.iwi.unisg.ch
