Generic Business Model Types for Enterprise Mashup Intermediaries

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1 Generic Business Model Types for Enterprise Mashup Intermediaries SYSTEMATIC THOUGHT LEADERSHIP FOR INNOVATIVE BUSINESS Volker Hoyer 1 2 and Katarina Stanoevska-Slabeva 2 1 SAP Research Center St. Gallen, Switzerland 2 University of St. Gallen, =mcminstitute, Switzerland

Generice Business Model Types Executive Summary Problem Statement

community is limited on technical aspects Business models for these new

external Web-based resources based on open standards New upcoming tools

skills Design: Interaction Phase Model Interaction Phase Model for

marketplace) Contribution to Knowledge Base Scientific: Interaction Phase

2 Generice Business Model Types Executive Summary Problem Statement Business Needs Technology Trends Current discussion in the scientific community is limited on technical aspects Business models for these new kinds of grassroots platforms Growing numbers of company internal and external Web-based resources based on open standards New upcoming tools to create adhoc enterprise-class applications without any programming skills Design: Interaction Phase Model Interaction Phase Model for Enterprise Mashup Environments Organization similar to communities and electronic markets. Identification of three business model types (Discovery, broker, marketplace) Contribution to Knowledge Base Scientific: Interaction Phase Model as an artefact Practice: Guideline for designing Enterprise Mashup platforms SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 2

Design: Interaction Phase Model for Enterprise Mashup Intermediaries 5.

3 Agenda 1. Motivation and Problem Scope 2. Research Approach: Design Science applied 3. Related Work and Objectives of the Solution 4. Design: Interaction Phase Model for Enterprise Mashup Intermediaries 5. Demonstration: Multi-Case Studies 6. Conclusion and Outlook SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 3

4 Motivation Yes, we can! - From Automation to Peer Production Productivity Automating Transactions Enabling collaboration and participation Adoption of Corporate Technology Adoption of ERP, CRM, SCM User assigned by management Users must comply with rules Often complex technolgy investment Enterprise Mashups Adoption of Web 2.0 tools User groups can form unexpectedly User engage in high degree of participation Technology investment often a lighweight overly to existing infrastructure 1990s 2009 Time An Enterprise Mashup is a Web-based resource that combines existing resources, be it content, data or application functionality, from more than one resource by empowering the actual end users to create individual information centric and situational applications SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 4

demand? What generic business model types exist?

5 Motivation Research Question Which features have to be provided by Enterprise Mashup Intermediaries in order to match supply and demand? What generic business model types exist? SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 5

6 Agenda 1. Motivation and Problem Scope 2. Research Approach: Design Science applied 3. Related Work and Objectives of the Solution 4. Design: Interaction Phase Model for Enterprise Mashup Intermediaries 5. Demonstration: Multi-Case Studies 6. Conclusion and Outlook SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 6

7 Research Approach Design Science applied Identification of the Problem Preliminary study on the practical need Research Methods Literature Analysis Objectives of the Solution Enterprise Mashups Analysis of Interaction Model Business Model Literature Analysis Artefact Design Interaction Phase Model for Enterprise Mashup Intermediaries (Knowledge, Intentions, Contract/Design, Settlement) Generic Business Model Types (Directory, Broker, Marketplace) Literature Analysis Reference Modeling (Electronic Markets) Artefact Demonstration Application of Interaction Phase (StrikeIron, Seekda, ProgrammableWeb.com, igoogle, IBM Mashup Center) Multi-case (embedded) Studies * Peffers, K., Tuunanen, T., Rothenberger, M., Chatterjee, S. (2008). A Design Science Research Methodology for Information Systems Research. Journal of Management Information Systems, 24,3, SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 7

8 Agenda 1. Motivation and Problem Scope 2. Research Approach: Design Science applied 3. Related Work and Objectives of the Solution 4. Design: Interaction Phase Model for Enterprise Mashup Intermediaries 5. Demonstration: Multi-Case Studies 6. Conclusion and Outlook SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 8

Enterprise Mashups Enterprise Mashup Stack and User Roles* User Roles Enterprise Mashup Stack Mashup Widget Resource Compostion of Widgets (Wiring) to enterprise-class applications User-friendly

functionality Encapsulated via well-defined interfaces (APIs) Product List OK Cancel End users run Mashups Consume Mashup Personalize Mashup (e.g.

9 Enterprise Mashups Enterprise Mashup Stack and User Roles* User Roles Enterprise Mashup Stack Mashup Widget Resource Compostion of Widgets (Wiring) to enterprise-class applications User-friendly Building Blocks Provide graphical and simple user interaction mechanism Abstracting from the complexity of the underlying resources Core Building Blocks Respresent actual content, data or application functionality Encapsulated via well-defined interfaces (APIs) Product List OK Cancel End users run Mashups Consume Mashup Personalize Mashup (e.g., change background color) Key users create Mashups Add pre-build widgets (from the catalogue) Connecting widgets by wiring their in-/out- ports Consultants create Widgets Binding generic User Interfaces to resources Transforming and aggregating data (piping) Developers implement the services Create and deploy services Make resources available (e.g., RSS Feeds, SAP Enterprise Services) * Hoyer, V., Stanoevska-Slabeva, K., Janner, T., Schroth, C. (2008). Enterprise Mashups: Design Principiles towards the Long Tail of User Needs. In Proceedings of the 2008 IEEE International Conference on Service Computing (SCC 2008). SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 9

10 Enterprise Mashups Interaction Agent Model* Three Agent Roles well known from Electronic Markets and Service-Oriented Architectures (SOA) Provider implements and hosts a mashable component (Mashup, Widget, Resource) Intermediary mediates between providers and consumers (improving navigation, transparency and governance) Consumer is able to retrieve and compose Mashup components according to his individual needs * Hoyer, V., Stanoevska-Slabeva, K.: Towards a Reference Model for Grassroots Enterprise Mashup Environments, In: Proceedings of the 17th European Conference on Information Systems (ECIS), Verona, Italy, 2009 SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 10

11 Business Models Business Model Hierarchry* 1 Business Model Concept Definition What is a business model? 2 Business Model Concept Business Model Types Business Model Type A Business Model Type B Conceptual Level Framework What components belong into a business model? Taxonomy of business model types 3 Business Model Instances (view of a company) Company A Company A Company B Company C Company D Company B Company C Company D Instance Level Modelled instances Real world company * Osterwalder, A., Pigneur, Y., Tucci, C.L. (2005). Clarifying Business Models: Origins, Present, and Future of the Concept. Communications o fthe AIS, 15 SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 11

12 Business Models Business Model Hierarchry* 1 2 Business Model Concept Business Model Types Business Model Type A Business Model Concept Business Model Type B MCM Business Model Concept Societal Environment Value Chain Feature of Definition the specific Product What is a business model? Financial Flow Framework Potential Flow of Goods & What Services components Customer belong into a business model? Conceptual Level Feature of the specific Medium Interaction Phase Model Taxonomy of business model types 3 Business Model Company A Company A Company B Company C Company D Multi-Case Studies Instance Level Instances (view of a company) Case 1 Case 2 Case 3 Case 4 Case 5 Company B Company C Company D Modelled instances Real world company * Osterwalder, A., Pigneur, Y., Tucci, C.L. (2005). Clarifying Business Models: Origins, Present, and Future of the Concept. Communications o fthe AIS, 15 SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 12

13 Agenda 1. Motivation and Problem Scope 2. Research Approach: Design Science applied 3. Related Work and Objectives of the Solution 4. Design: Interaction Phase Model for Enterprise Mashup Intermediaries 5. Demonstration: Multi-Case Studies 6. Conclusion and Outlook SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 13

Interaction Phase Model Overview Characteristics Organization similar to communities and electronic markets Permament loops between the

14 Interaction Phase Model Overview Characteristics Organization similar to communities and electronic markets Permament loops between the converging design and runtime phases Real data sources SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 14

15 Interaction Phase Model Knowledge and Intentions Phase SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 15

16 Interaction Phase Model Contract (Design) and Settlement Phase SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 16

17 Agenda 1. Motivation and Problem Scope 2. Research Approach: Design Science applied 3. Related Work and Objectives of the Solution 4. Design: Interaction Phase Model for Enterprise Mashup Intermediaries 5. Demonstration: Multi-Case Studies 6. Conclusion and Outlook SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 17

18 Demonstration Multi-Case Studies Societal Environment Value Chain Case 1: StrikeIron Feature of the specific Product Case 2: Seekda Case 3: Programableweb.com Societal Environment Feature of the Financial Flow specific Product Case 4: igoogle Gadgets Societal Environment Potential Feature of the Customer Flow of Goods & Services Financial Flow specific Product Case 5: IBM Mashup Center Interaction Phase Potential Value Chain Societal Environment Feature of the Customer Flow of Goods & Services Financial Flow specific Product Feature of the Interaction Phase Potential Value Chain Societal Environment Feature of the specific Medium Customer Flow of Goods & Services Financial Flow specific Product Feature of the Interaction Phase Potential Value Chain specific Medium Customer Flow of Goods & Services Financial Flow Feature of the Interaction Phase Potential Value Chain specific Medium Customer Flow of Goods & Services Feature of the Interaction Phase specific Medium Feature of the specific Medium Multi-Case (embedded) Studies Unit of Analysis: Feature of the specific Product (Interaction Phase Model) SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 18

19 Demonstration Multi-Case Studies (Context) Intermediary StrikeIron Seekda Programmable Web.com General Information igoogle Gadgets IBM Mashup Center Owner StrikeIron University of Innsbruck John Musser Google IBM, Greenhouse Project Supported mashable components Resources Resources (Web Services) Resources (Web Services, REST, etc.) Widgets Resources, Widgets, Mashups # components (Mashups, Widgets, Resources) 40 Resources Resources 1171 Resources 3731 Mashups > Widgets 475 Resources, 47 Widgets 107 Mashups Active 2002 today 2006 today 2005 today 2006 today 2008 today Description Traditional intermediary (heavy weight Web Services) Web crawler, EU reserach project Mashup intermediary Consumer-oriented Mashup platform Commercial Enterprise Mashup platform SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 19

20 Demonstration Multi-Case Studies (Knowledge and Intentions Phase) Intermediary StrikeIron Seekda Programmable Web.com Knowledge Phase igoogle Gadgets IBM Mashup Center Component description Name, description, features, benefits, price conditions Name, provider, user ratings, tags, availability Name, provider, tags, ratings, data added, licensing Name, provider, widget preview, popularity, rating Name, provider, popularity, version, rating Aggregation of collegected information about compponent s quality Monitoring of performance and uptime Extensive analysis of the availability (i.e., response time) - - Popularity Browsing/ discovery of the catalogue Free text search, sort by categories Free text search, most used, recently found services, providers by country, tag cloud Free text search, sort by categories, newest, most popular, API scorecard, Mashup matrix, tag clould Free text search, sort by categories, hottest, most users, newest Free text search sort, by categories, top ratings, most popular, tag cloud Certification Intentions Phase Components Annotations - Tagging, ratting, reviewing Tagging, rating, reviewing Tagging, rating, reviewing, sharing (Google contacts) Tagging, rating, reviewing Publication of Mashup components - Online form to add resources (URL) for the crawling engine Online form and API to add a resource or Mashup Adding of new widgets/ feeds (URL) Please find the details in the paper. Promotion of components Provider is able to specify the permission of a component SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 20

21 Demonstration Multi-Case Studies (Contract and Settlement Phase) Intermediary StrikeIron Seekda Programmable Web.com Contract (Design) Phase igoogle Gadgets IBM Mashup Center Design and creation of an individual working environment/ application Sample application allows tesing of a component A Web Services invoker allows to test a Web Service,; a real design environment does not exist - Individual Mashup with several themes and so-called Google gadgets (widgets) can be added to the environment It allows to create an individual Mashup by adding widgets from the catalogue. Composition of mashable components Widgets can be wired, resources can be piped with each others. Composition matching Settlement Phase Monitoring the consumption of mashable components and consumer behavior - Long term database monitors the availability of the Web Services. The popularity of APIs is documented indirectly. Popularity based on the consumer consumption is documented Popularity based on the consumer consumption is documented. Billing usage of mashable components Management of the payment Commercial agreements and sales conditions Online subscription with credit card payment SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 21

22 Demonstration Generic Business Model Types 1 Business Model Concept Interaction Phase Model Definition What is a business model? 2 Business Model Types Directory Broker Marketplace Conceptual Level Framework What features are supported by an Mashup intermediary? Taxonomy of business model types 3 Business Model ProgrammableWeb Programmable Web.Com IBM Mashup Center IBM Mashup Center Seekda Seekda StrikeIron StrikeIron Instance Level Instances (view of an Mashup intermediary) Modelled instances Real world intermediaries SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 22

23 Agenda 1. Motivation and Problem Scope 2. Research Approach: Design Science applied 3. Related Work and Objectives of the Solution 4. Design: Interaction Phase Model for Enterprise Mashup Intermediaries 5. Demonstration: Multi-Case Studies 6. Conclusion and Outlook SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 23

Conclusion and Outlook Interaction Phase Model for classifying Business Model Types for Enterprise Mashup Intermediaries Three generic Business Model Types (Directory, Broker, Marketplace)

24 Conclusion and Outlook Interaction Phase Model for classifying Business Model Types for Enterprise Mashup Intermediaries Three generic Business Model Types (Directory, Broker, Marketplace) Contribution to the Knowledge Base according to the three cycles of design science research as proposed by Hevner Scientific: Interaction Phase Model as an artefact Practice: Guideline for designing Enterprise Mashups environments (Platform as a Service, PaaS) SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 24

25 Future Work Enterprise Mashup Platform as a Marketplace 1 Business Model Concept Interaction Phase Model Definition What is a business model? 2 Business Model Types Directory Broker Marketplace Conceptual Level Framework What features are supported by an Mashup intermediary? Taxonomy of business model types 3 Business Model ProgrammableWeb Programmable Web.Com IBM Mashup Center IBM Mashup Center Seekda Seekda RoofTop RoofTop Instance Level Instances (view of an Mashup intermediary) Modelled instances Real world intermediaries SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 25

26 Future Work SAP Research RoofTop Marketplace Prototype Knowledge Intentions Contract (Design) Settlement SAP 2009 / Generic Business Model Types for Enterprise Mashup Intermediaries / Page 26

ch, http://www.sap.com/research? Volker.

27 Thank you! Contact Volker Hoyer =mcminstitute, University of St. Gallen and SAP Research Center St. Gallen Blumenbergplatz St. Gallen Switzerland Volker.Hoyer@sap.com, Katarina.Stanoevska@unisg.ch SAP 2008 /Enterprise Mashups: Design Principles towards the Long Tail of User Needs / Page 27

Organizing and Managing Grassroots Enterprise Mashup Environments. Doctorial Thesis, 24 th June, Volker Hoyer

Organizing and Managing Grassroots Enterprise Mashup Environments Doctorial Thesis, 24 th June, 2010 Volker Hoyer Motivation and Research Questions Research Design Results Conclusion Motivation and Research