This paper outlines the increasing challenges of Business Model Innovation in the Digital and New Media Economy. It describes drivers of change, impacts on the innovation and business landscape, consequences for business modeling and the innovation process, as well as the implications for organizational adaptation. It presents in-depth observations from empirical research on 12 business cases in the Digital and Media Economy in Germany.

1. The challenge of business modelling in a new innovation era TII Annual Conference:Innovation 3.0: Challenges, Needs and Skills for the new innovation era Düsseldorf, 28 to 30 April 2010 Markus Schroll & Joachim Hafkesbrink R&D Project AchtInno Contract number 01FH09003 funded by:

2. The Emergence of Innovation 3.0 Web 4.0 Cross-linking intelligent applications Web 3.0 Cross-linking knowledge Intelligent Semantic Agents Innovation 4.0 ? Ubiquitous Outernet Semantic enterprise ConvergenceTurn ? Embedded Innovation Knowledge Embedding Semantic Knowledge Networks Semantic Knowledge Management Know-howTurn Open Collaborative Learning knowledge inclusion and technological enhancement Open Innovation Web 2.0 Cross-linking users Web 1.0 Cross-linking information CollaborativeTurn Decentral Social Communities Closed Innovation Organi-zational Change NDA IPR Anthropocentric communities Corporate Individualism social inclusion and participation

3. Innovation System of the Digital Economy Demographic Change Globalisation Convergence of Markets Competition regulation Technology Knowledge Sources Standards Market for Contents Patent-laws Multi-agent system of Innovation Actors Telecommunication Basic services Value-Services Distri-bution Add. Services Market for Content Packaging & Applications Media-Technologies Market Demand Melting Kernel Technology Transfer Content Generation Pack- aging Distri- bution Enduser Devices Market for Transmission Carriers IT-/Electronics Parts Software Platforms Distri-bution Add. Services Market for Hardware (end-user devices etc.) Semantic Techn. Media Law eCommerce-Law ... ... ... ... Market for ... Digital Signature Act Institutional Framework(Governance) Internationalisation

4. Multi-Agent-System – Embedding into Communities - Community ofAffinity OuterKnowledge Space Mutuallearning Virtual organizationalboundary Pro-sumers Real organizationalboundary InnerKnowledge Space Community learningcycle Conventionalorganizationalboundary Feed-backs Innova-tors Organizatio-nalKernel Ex-perts Community of Interest Community of Practice Cross-Innovation: ideasfrom outside thecity wall Researchers Gravitational Embedding Force Technology Transfer ScientificCommunity

5. The Business Model Canvas Value Propositions Customer Relationships Customer Segments Key Partners Key Activities What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How costly are they? How are they integrated with the rest of our business model? What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? What value do we deliver to the customer? Which one of our customer´s problems are we helping to solve? Which customer needs are we satisfying? What bundles of products and services are we offering to each Customer Segment? Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do Partners perform? For whom are we creating value? Who are our most important customers? Channels Key Resources Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? Revenue Streams Cost Structure For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? Source: Osterwalder/Pigneur (2009): Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers

6. Business Model Cases in the Digital Economy

8. B2B customers (restaurants, shops, cultural institutions etc.) and consumers have to deliver content and have to pay for the products/services

9. initiating of a premium user community

10. setting up of a decisive incentive system

11. clear IPR regulations

12. cross lateral exploitation (e.g. combine revenue streams from pay per transaction and adverts)1 LocalMobile.NRW is a mobile application for local personalized and context-sensitive content. Pro-sumers C2C Communities of Affinity B2B B2C What value do we deliver to the customer? Which one of our customer´s problems are we helping to solve? Which customer needs are we satisfying? What bundles of products and services are we offering to each Customer Segment? What type of relationship does each of our Customer Segments expect us to establish and maintain with them? For whom are we creating value? Who are our most important customers? Do we understand the relationships between our customers? How should we support conversation in the market and between customers? Do we need to address prosumers different from consumers? Who is creating value for our business model? What are the dynamics of value creation in our customers community? How can we combine our products / services with user generated value? Does user generated value support our value proposition? Revenue Streams For what value are our customers really willing to pay? For what do they currently pay? Is it possible to exploit user generated value commercially?

14. setting up of a decisive incentive system

15. setting up of learning arenas

16. trendscouting in the communities

17. development and managing of organizational readiness, collaborative capabilities, absorptive capacities

18. integrating new enabling technologies

19. collaborative design and development

20. transaction costs of community engineering1 LocalMobile.NRW is a mobile application for local personalized and context-sensitive content. Ex-perts Community of Practice What Key Activities do our Value Propositions require? What key activities are required to sustain our communities of knowledge? What value do we deliver to the customer? Which one of our customer´s problems are we helping to solve? Which customer needs are we satisfying? What bundles of products and services are we offering to each Customer Segment? Who are our Key Partners? Who are our key suppliers? Innova-tors Community of Interest Key Resources How can we ensure mutual learning within communities and knowledge transfer to our business model? What Key Resources do our Value Propositions require? How can we combine our products / services with user generated value? Can we provide added value with complementary services our partners or communities? What key ressources and organizational antecedents are required to embed successfully in our communities? Researchers ScientificCommunity Cost Structure What are the most important costs inherent in our business model? What are the cost impacts of Community involvement into our business model?

21. A new important player: Prosumers Key Partners Customer Segments Pro-sumers Communities of Affinity Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do Partners perform? For whom are we creating value? Who are our most important customers? Are selected prosumers expected to evolve being key suppliers? e.g. business travellers, mobile nerds How do we need to support key-prosumer’s interaction with our business model architecture? e.g. setting up of common communication/learning arenas How do we mash-up contributions from key-prosumers within our business model? e.g. clear IPR regulations and incentives(establishing of win-win situations)

22. Communities and the innovation process Co-production Co-ideation Co-design Co-development Ex-perts Innova-tors Key Resources Pro-sumers What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? Researchers

24. open collaborative learning processes in surrounding communities, networks and stakeholder groupsIntegrating the firm into communities to ensure knowledge absorption and to exploit this knowledge for commercial ends. Business modelling for innovation 3.0? A never ending story!

25. Thank you for your interest. Contact: Markus Schrollms@innowise.euDr. Joachim Hafkesbrinkjh@innowise.eu Bürgerstr. 1547057 DuisburgGermany Tel. +49-203-393764-0 www.innowise.eu