Business Strategy and Innovation Framework
At this point in the process , value propositions should be devised for all relevant stakeholders in the value creation network . When designing a network-centric joint business model , a good starting point can be to document value streams and analyze potential stakeholder roles . Figure 5-3 below illustrates a value-creation network centered on a product manufacturer .
Figure
5-3 : Value-creation network for an IIoT solution
As the business model matures , the business roles adopted by each stakeholder become more apparent . In the example above , the product manufacturer acts as the business owner ( the party coordinating the business model ). Partners such as the telco operator are participants in the value-network and are exposed to a higher degree of risk than suppliers who deliver products or services under contractually predefined conditions .
Depending on the value proposition devised for each stakeholder , different levels of engagement can be identified . This determines how active each stakeholder should be in the business modeling phase ( for example , partners should be involved at an early stage , suppliers later ). Each stakeholder has their own business model in mind and must be aware that relevant aspects need to be brought together with inputs from different stakeholders for the joint business model and business case . Data access and the potential for different network partners to share customer , usage and other information within the network is a key consideration .
Coordinating such value networks comes with high transaction costs and requires a cultural shift within organizations toward increased openness and collaboration . Nevertheless , business models with a well-balanced network of partners are likely to prove more robust in the long term . In the future , as cross-domain IIoT solutions emerge , partnering capabilities will play an even greater role in achieving business success .
IIC : PUB : B01 : V1.0 : PB : 20161115 - 29 -