Keynote Address

1
Business Models for Digital Platforms A Bridge
Too Far ?
Omar El Sawy Center for Telecom
Management Marshall School of Business University
of Southern California
Keynote Address 8th World Congress on the
Management of e-Business Toronto, Canada July 12,
2007
2
Outline
1. Game Changers for Digital Platforms
2. What is a Business Model ?
3. The VISOR Business Model Framework
4. Creating Researcher-Practitioner Dialogues
3
The Changing Role of IT
IT as Tool
IT
IT
IT
IT as Environment
Connection View (1970-95)
IT
IT as Fabric
Immersion View (1991-2011)
Fusion View (2004- ?)
El Sawy, CAIS, 2003
4
The Changing Role of the Consumer Prosumer
Centricity drives Innovation in Enterprise
Digital Platforms
The more Technology Empowers the Customer, the
More the Customer becomes the Producer, not just
its Consumer.
5
Evolving Digital Platforms Web 2.0
Underlying Web 2.0 Technologies Platforms
Wiki Technologies
Mash-ups
RSS
Web Services
New Search Technologies (tagging, 3D,)
and much more.
6
Evolving Digital Platforms The Mobile Web
Worldwide Mobile Data Video Traffic is starting
the Hockey Stick
Source Orange, 2007
7
Evolving Digital Platforms Web 3D
3D Virtual worlds attracting more residents
increasing broadband hours online,
Second Life has 6 million residents, and Cyworld
attracts 50 of the entire population of Korea
8
Ubiquitous Fusion of IT
Consumers Driving Enterprise Innovation
Multiplicity of Digital Platforms
Multiplicity of New Products Services
offered Through Digital Platforms
We Need Better Understanding of Business Models
9
Outline
1. Game Changers for Digital Platforms
2. What is a Business Model ?
3. The VISOR Business Model Framework
4. Creating Researcher-Practitioner Dialogues
10
What is a Business Model ?
Pick the right one and you can make a fortune!
?
?
?
11
What is a Business Model ?
12
What is a Business Model ?
13
What is a Business Model ?
Advertising Model !
Pay Per View !
Monthly Subscription for Premium Services !
14
New Marketspaces through the Networked Digital
Industry
15
This is not your fathers digital marketspace .
New Ways of Doing Business !
New Players !
New Products Services !
New Ecosystems !
Disruptive Technologies !
New Cultures !
New Partners !
16
This is not your fathers marketspace .
How can we Accelerate the Process by which
EcoPartners Come Together to Unlock the Hidden
Value in the Digital Marketspace through Better
Business Models?
17
We needed .

• A common language and framework by which we
  could discuss together business models
• An understanding of the multiple elements that
  in balance have to work together in viable
  configurations for successful business models
• A framework that takes into account a partnering
  ecosystem helps identify new business models
• A simple framework that we can use to assess the
  viability of new business propositions

18
Outline
1. Game Changers for Digital Platforms
2. What is a Business Model ?
3. The VISOR Business Model Framework
4. Creating Researcher-Practitioner Dialogues
19
CTMs VISOR Business Model Framework
Omar El Sawy Professor Director of Research
20
CTM VISOR Business Model Framework
GJ
Value Proposition for Targeted Customer Segment

Revenue/Cost Model Calculations for All Partners
The VISOR Framework for NDI Business Models
Wow Interface Experience
Organizing Model for Processes Relationships
Service Platforms to Enable Delivery
21
PROTECTS YOU AGAINST EXCESSIVE GLARE IMBALANCE
GJ
Value Proposition for Targeted Customer Segment

Revenue/Cost Model Calculations for All Partners

Wow Interface Experience
Organizing Model for Processes Relationships
Service Platforms to Enable Delivery
22
Think about Success of the iPod ..
GJ
Value Proposition for Targeted Customer Segment

Revenue/Cost Model Calculations for All Partners
Wow Interface Experience
Organizing Model for Processes Relationships
Service Platforms to Enable Delivery
23
Think about the RIM BlackBerry ..
GJ
Value Proposition for Targeted Customer Segment

Revenue/Cost Model Calculations for All Partners
Wow Interface Experience
Organizing Model for Processes Relationships
Service Platforms to Enable Delivery
24
Think about the Future of IPTV ..
GJ
Value Proposition for Targeted Customer Segment

Revenue/Cost Model Calculations for All Partners
Wow Interface Experience
Organizing Model for Processes Relationships
Service Platforms to Enable Delivery
25
Think about the Future of IPTV ..
GJ
Value Proposition for Targeted Customer Segment

Revenue/Cost Model Calculations for All Partners
Wow Interface Experience
Organizing Model for Processes Relationships
Service Platforms to Enable Delivery
26
Think about the Future of the iPhone..
GJ
Value Proposition for Targeted Customer Segment

Revenue/Cost Model Calculations for All Partners
Wow Interface Experience
Organizing Model for Processes Relationships
Service Platforms to Enable Delivery
27
Think about mobile payments
GJ
Value Proposition for Targeted Customer Segment

Revenue/Cost Model Calculations for All Partners
Wow Interface Experience
Organizing Model for Processes Relationships
Service Platforms to Enable Delivery
28
Think about e-health at home
GJ
Value Proposition for Targeted Customer Segment

Revenue/Cost Model Calculations for All Partners
Wow Interface Experience
Organizing Model for Processes Relationships
Service Platforms to Enable Delivery
29
Caution !!
A Business Model is Connected to --- but not
the Same as Strategy !!

Business Model is an Operational Model
Competitive Strategy
Partnering Advantage
Environmental Turbulence !!
Positional Advantage
Dynamic Movement Advantage
Capability Advantage
30
Keeping a User Perspective on the VISOR Model
Works Best !
GJ
Value Proposition for Targeted Customer Segment

Revenue/Cost Model Calculations for All Partners
Wow Interface Experience

Organizing Model for Processes Relationships
Service Platforms to Enable Delivery
31
Analyzing Influences Flows in VISOR Framework
Interface
Value Proposition
Customer
Partners
Service Platform
Organizing Model
Revenue/Cost Sharing
32
Outline
1. Game Changers for Digital Platforms
2. What is a Business Model ?
3. The VISOR Business Model Framework
4. Creating Researcher-Practitioner Dialogues
33
Shift the Design Focus in both Theory Practice!
Information Systems Design
Business Process Work Systems Design
Business Model Design for Digital Platforms
34
Shift the Focus from Artifacts to Services !
How are Services Designed ?
Why are their Design Labs for Products But Very
Very Few for Services ?
How are Services delivered through Digital
Platforms Different?
35
Acknowledge the Multi-dimensionality of Business
Models !
More Than Revenue Models !
Single Products/Services versus Portfolios
Partners going to Market Together
36
Thank You for Your Attention !