Bankable business models for exploitation of sustainable solutions
for successfully delivered services
Whatever the objective – IMCG have a set of tools for the task.
Stanford Research Institute (SRI) developed the NABC model that is constructed from four processes: Need, Approach, Benefits and Competition. This is a great way to present status and development plans for a new, innovative solution. Inspired by this model and with experience gained by working in research and demonstration projects, IMCG has developed The Innovation Arrow – a process model that is more similar to a general business platform than the original NABC model.
The Arrow points out the need to focus not only on technology, but also on market factors such as value proposition and product/service factors such as test and adjustments. Therefore many things a city can learn from working with the arrow, since cities a lot of times act as enablers or provide testbeds for innovative solutions to be rolled out in the city.
The IMCG Innovation Arrow clearly shows that you have to work with several processes in parallel. The Innovation Arrow intends to show that there are several processes that you need to work with in parallel in order to reach the market. It is designed to open up the perspectives, develop a broader plan of activities and to foresee coming necessary activities for a successful business development. The model shows the advantages of working with several parallel processes; Communication, Market, Product/Service, Technologies, Resources, Organisation/Governance.
IRIS has adopted Support Service for Exploitation of Research Results’s (SSERR’s) method regarding the development and validation of Key Exploitable Results (KERs). This method puts focus on the problem, not merely the solution.
The value chain design (VCD) is tool for a workshop for all actors in the ecosystem to together design and understand the value chain to scale an integrated solution in the city region. The tool is based on the business model canvas but follow the revenues to answer: Who is your customer? And who is your key partner?
The result from a VCD describes what the value chain at the demonstration site looks. A value chain involves the collaboration between suppliers and buyers and their customers. The introduction of new technology not only builds on new suppliers, but the buyer must also develop internal expertise to be able to receive technology and in turn be able to deliver to their customers. The value chain is also affected by other conditions, such as laws and regulations and access to infrastructure. Here authorities and municipal companies have important roles. Actors and roles in the value chains related to demonstrations:
Solution Managers: the actors that purchase solutions demonstrated from suppliers and offer the solution service to their customers, or to the citizens if the manager is a city authority. An example of solution manager are a property developer or a property manager. The recommendation to solution managers is to reach out to solution managers in other cities with interest of implementing similar solutions. Establish a communication to exchange knowledge and experience.
Solution Providers: the private companies offering the solution demonstrated or suppliers of the technology necessary to set up a solution. The recommendation to solution providers is to evaluate the business potential for their offering in various cities. Are the necessary conditions for a solution to be implemented fulfilled? What does the competition look like? Their own research will give input to their business plans and their strategies to expand business.