Business labs value modelling

TCBL HANDBOOKS

BUSINESS LABS VALUE MODELLING Michele Osella, Elisa Pautasso, Alberto Buzio Istituto Superiore Mario Boella

TCBL 646133 – HANDBOOK RELEASED AS ANNEX 1 TO D6.7 (TASK 6.4)

29th September 2017

Business Labs Value Modelling

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TABLE OF CONTENTS 1

INTRODUCTION ................................................................................................................. 3

2

METHODOLOGICAL UNDERPINNINGS .......................................................................... 5

3

TCBL VALUE MAPPING TOOL......................................................................................... 9

4

MULTI-FACETED VALUE ANALYSIS............................................................................. 13

5

CONCLUDING REMARKS ............................................................................................... 17

APPENDIX – VALUE ANALYSIS VISUALS ............................................................................ 18

INDEX OF FIGURES Figure 1. EY Total Value (source: EY) ........................................................................................ 7 Figure 2. Cambridge Value Mapping Tool (source: University of Cambridge) ........................... 8 Figure 3. Reference methodologies for TCBL value mapping (source: ISMB) ........................... 8 Figure 4. TCBL Value Mapping Tool – Pictorial representation (source: ISMB, adapted from University of Cambridge) ........................................................................................................... 10 Figure 5. TCBL Value Mapping Tool – Workshop template (source: ISMB) ............................ 11 Figure 6. Visual value analysis for ‘Natural Cotton’ Business Case ......................................... 18 Figure 7. Visual value analysis for ‘Short Runs’ Business Case .............................................. 19 Figure 8. Visual value analysis for ‘Eco-Friendly Production’ Business Case .......................... 20 Figure 9. Visual value analysis for ‘Bio Shades’ Business Case .............................................. 21 Figure 10. Visual value analysis for ‘Digital Heritage’ Business Case ...................................... 22 Figure 11. Visual value analysis for ‘Independents’ Business Case......................................... 23

INDEX OF TABLES Table 1. Stakeholders considered in the TCBL Value Mapping Tool ......................................... 9 Table 2. Triggering questions for TCBL Value Mapping Tool ................................................... 12 Table 3. Synoptic table of TCBL Business Cases .................................................................... 14

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1 INTRODUCTION TCBL – as EU-funded project and global movement with responsible innovation in its DNA – is ultimately meant to unleash transformative forces in the European T&C sector, which is experiencing a post-crisis stagnation that goes hand-in-hand with an ingrained price-based competition often resulting into delocalization practices and ‘race to the bottom’ problems.

To actualize the TCBL vision, the project has been working since its inception on the establishment of an integrated business ecosystem that brings together an unprecedented community of innovators and market operators firmly committed to make the industry more sustainable, fair and competitive.

To accelerate impact materialization in this direction, during the second year of the project the Consortium decided to zoom in on promising and on-the-ground cases whose Associate companies are considered in the guise of TCBL ‘early adopters’. Such opportunities – known in the project jargon with the moniker of ‘Business Cases’ – are aimed to generate immediate evidence of the tangible effects that TCBL project can determine on T&C business ventures.

The starting roster of TCBL Business Cases encompasses six pilot experimentations.

Three of them are built in a demand-driven manner (‘pull’) on the expressed needs and concerns of the more articulate Associate enterprises: • • •

‘Natural Cotton’ reshapes the value chain for natural cotton, from cultivation to retail.

‘Short Runs’ establishes partnerships and digital services to support the sustainable downscaling of industrial production cycles.

‘Eco-Friendly Production’ rolls-out concerted actions to reduce chemical usage in textile production, including testing and certification.

On the flip side, three pilot experimentations are built on the potential of specific projects developed by Business Labs (‘push’), resulting into an innovation proposition offered to forwardlooking participating enterprises: • • •

‘Bio Shades’ experiments with use of bacteria-based dyes as an industrial option to traditional, harmful chemical dyes.

‘Digital Heritage’ turns the untapped knowledge contained in historical T&C archives into source of inspiration for the design of contemporary collections.

‘Independents’ focuses on empowering and networking independent designers and producers working on low volumes.

So far TCBL Business Cases have been described in a general manner (see Annexes to D3.2 and D4.2), characterized in terms of underlying business model rationale (see Annex to D4.2), and initially evaluated by means of longitudinal case studies (see Annex to D6.4). Whilst these analyses have proved to be clearly beneficial for setting an effective roadmap of implementation, an additional effort is undoubtedly needed on the way to Business Case maturity. In fact, the priority raised by Business Case leaders at this juncture has to do with getting the ‘big picture’ of value flows in the resulting Business Case constellation, thus bringing to the fore which initiatives are already generating concrete returns while eliciting failures and untapped potential awaiting action.

The alignment with industry (i.e., capacity to pragmatically answer needs exhibited by TCBL Associate companies situated in the relevant ecosystem) continues to represent the ‘north star’ of Business Case development. However, it can be severely compromised by the absence of 3

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an adequate comprehension of what value is generated to whom while factoring-in multiple value dimensions (e.g., immaterial value related to symbolic meanings as well as value transferred through non-monetary transactions resulting into trust, social capital and knowledge), taking into account various stakeholders (e.g., workers, local communities, natural environment and society each being given its own voice and stake) and looking at different time horizons (i.e., a chain of effects can determine short, intermediate and long-term outcomes characterized by increasingly large scale of impact).

This requires to systematically investigate value generation mechanisms as well as tangible and intangible value exchanges occurring among relevant stakeholders. A body of knowledge in this vein is the key to figure out concrete implications of the business model innovation actions under experimentation and to anticipate directions along which impact will unfold.

Acknowledging this, the present handbook – released as annex to D6.7 – capitalizes on the first twelve months of Business Case development in order to provide – in a concise manner – a ‘compass’ that orients Business Case leaders in restructuring activities, services and partnerships in the quest for impact materialization.

Even if the present handbook is focused on Business Cases, the tool and the underlying approach can be applied mutatis mutandis to every TCBL Lab. Findings of this handbook are presented in a company-friendly manner in the form of visual infographics in Annex 41 with the purpose to attract prospective participants in the industry and stimulate their interest in TCBL vision and pilot experimentations.

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http://www.ismb.it/sites/default/files/Documenti/Research_Docs/TCBL_ValueModeling_VisualSummary.p df

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2 METHODOLOGICAL UNDERPINNINGS The challenge of designing a robust yet flexible methodological toolkit to handle value modeling in the TCBL setting has been addressed by making reference to ISMB Value Modeling Practice, a comprehensive consulting package extensively used in EU-funded projects as well as in research contracts with private/public clientele.

Taking a helicopter view on its three building blocks composing the framework – namely, value design, value mapping, and value measurement – the need exhibited by Business Case leaders (i.e., critically examine the ‘big picture’ of value flows taking place in the Business Case milieu to shed light on achievements and deficiencies) called for value mapping. In fact, value mapping is seen as connecting link between value design – resulting into the value proposition of an initiative (e.g., company, project, product/service, policy) – and value measurement, which quantifies the impacts exerted by such an initiative implemented in the real world. Value mapping has thus a two-fold role: on the one hand, it acts as ‘litmus test’ for iteratively validating effects of the designed value proposition once immersed into the external context and, on the other hand, it anticipates – through a qualitative lens – impact areas, bringing to the fore affected stakeholders, nature of impacts and timing.

The same three-pronged overarching logic is reflected, not by chance, in TCBL scope of work: specific activities focus on value design (e.g., Labs service portfolio, value propositions offered

by Associate Service Providers, business model for TCBL ecosystem as a whole), some others introduce value mapping (i.e., the present study), and a specific task deals with the subsequent systematic appraisal of quantitative impacts (i.e., the wide-ranging strand of activities on process and impact evaluation).

Dealing with value mapping requires to explore a relatively understudied area that faces a dearth of contributions from academia and practitioners. All this is aided by the ambiguity of ‘value’ definition, which is coupled with the multiple nuances inherent in its notion (e.g., value in use vs. value in exchange, intrinsic value vs. instrumental value, good simpliciter vs. perspectivedependent good, value in response to individual vs. collective needs). Needless to say, this is reflected by the remarkable heterogeneity lying among approaches adopted by disciplines that already ventured into these waters such as – inter alia – philosophy through axiology, economics, social psychology, sociology, and business ethics.

When it comes to methodologies and tools, value mapping calls for a shift from the instruments that practitioners active worldwide in the realm of new business development are accustomed to use on a daily basis. Formalisms such as Value Proposition Canvas 2, Business Model Canvas3, and a bewildering array of other ones supporting the Lean Startup4 implementation continue to remain an integral part of the TCBL toolbox in the value design phase. However, they are complemented by another breed of tools meant to provide a systematic picture of value

2

Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2015). Value Proposition Design: How to Create Products and Services Customers Want. Hoboken: John Wiley & Sons.

3

Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation. Hoboken: John Wiley & Sons.

4

Ries, E. (2011). The Lean Startup: How today's entrepreneurs use continuous innovation to create radically successful businesses. New York: Crown Books.

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flows and related effects. These tools can be clustered under the umbrella of ‘public value’5, theorized as the value that an organization contributes to society in the form of ‘value for the public’. Reasoning by analogy, public value can be seen as the equivalent of shareholder value in public management, when stakeholders replace shareholders.

Coming to the TCBL universe, the value mapping methodological approach crafted by ISMB analysts in view of all above-mentioned considerations is grounded on a combination of seminal contributions gleaned from the existing literature. In more detail, the chosen approach integrates three specific methodologies: • • •

Stakeholder analysis EY Total Value Cambridge Value Mapping Tool

Stakeholder analysis6 is a process-based methodology meant to systematically gather and analyze qualitative information to determine whose interests should be taken into account when developing and implementing a policy or a program. This is done by means of the ‘stakeholder’ notion introduced in the ‘stakeholder theory’7: stakeholders are seen as actors – either persons or organizations – with a vested interest in the initiative being promoted. Stakeholder identification and classification is geared towards understanding of – and possibly identifying opportunities for influencing – how decisions are taken into a given context 8.

EY Total Value9 is a comprehensive methodology supporting the investigation and the communication concerning the way in which companies’ economic activities affect the communities and societies in which they occur and the extent to which those impacts reflect back on involved businesses. Acknowledging that different forms of capital – from intellectual capital and human capital to natural capital and social capital – regularly interact with each other in every business endeavor, EY Total Value proposes a framework (Figure 1) that goes beyond the mere value creation for shareholders, along the lines set by the ‘shared value’ tenet 10. The resulting framework distinguishes three embedded layers of value (i.e., intrinsic value, shared values, and externalities) that regularly interact with each other and involve an increasingly broad range of stakeholders.

5

Moore, M. H. (1995). Creating Public Value: Strategic Management in Government. Cambridge: Harvard University Press.

6

http://www1.worldbank.org/publicsector/anticorrupt/PoliticalEconomy/PDFVersion.pdf

7

Freeman, R. E. (1994). The Politics of Stakeholder Theory: Some Future Directions. Business Ethics Quarterly, 4(4), 409-421.

8

Brugha, R., & Varvasovszky, Z. (2000). Stakeholder Analysis: A Review. Health Policy and Planning, 15(3), 239-246.

9

http://www.ey.com/Publication/vwLUAssets/EY-total-value/$FILE/EY-total-value.pdf

10

Kramer, M. R., & Porter, M. (2011). Creating Shared Value. Harvard Business Review, 89(1/2), 62-77.

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Figure 1. EY Total Value (source: EY)

Cambridge Value Mapping Tool11 provides practitioners with a structured approach to gain a deeper understanding of value and create new economic, social, and environmental benefits for their businesses. In the quest for long-term success of any company, Cambridge Value Mapping Tool allows to recognize – in a visual way – where value is being successfully captured and where it is not (Figure 2). As a matter of fact, it figures out ‘value uncaptured’ in the form of failed value exchanges (e.g., value missed, destroyed, surplus, and absence) as well value opportunities to be reaped once barriers and stakeholder conflicts are overcome. It goes handin-hand with a portfolio of plug-ins12 supporting the whole cycle for implementing sustainable change in businesses.

11

https://www.ifm.eng.cam.ac.uk/news/the-cambridge-value-mapping-tool/

12

http://www.ifm.eng.cam.ac.uk/research/industrial-sustainability/industrial-sustainability/tools/

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Figure 2. Cambridge Value Mapping Tool (source: University of Cambridge)

The value mapping approach crated by ISMB analysts situates the three methodologies described above according to a process-view illustrated in Figure 3. Stakeholder analysis is leveraged initially to take a census of actors affected and/or affecting the initiative, that is to say a TCBL Business Case in the present handbook. Then EY Total Value is called upon to group these stakeholders according to their position is the impact pathway. Finally, Cambridge Value Mapping Tool is chosen for modeling value generation mechanisms – including value failures – through the lens of each stakeholder that is part of the business network.

Figure 3. Reference methodologies for TCBL value mapping (source: ISMB)

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3 TCBL VALUE MAPPING TOOL The methodological approach previously expounded resulted into the TCBL Value Mapping Tool, a handy toolkit conceived by ISMB analysts to systematically analyze value generated by whatever TCBL Lab – inside or outside Business Case experimentations – according to: • • •

Various stakeholders involved Different time horizons Multiple value dimensions

Going back to the process-view visualized in Figure 3, the first stage in the construction of the TCBL Value Mapping Tool singled out a number of stakeholders that are seen as a common thread running through all business endeavors powered by TCBL Labs. Given that such business endeavors are designed by thinking at business model innovations with a long-term footing able to unleash significant changes into the T&C industry, it becomes of paramount importance to factor-in the entire panoply of stakeholders, spanning the gamut from individuals at the helm of the initiative to the citizenry experiencing externalities – either positive or negative – as unrelated third parties. To capture this spectrum of stakeholders, EY Total Value has been considered as reference: stakeholders relevant for TCBL initiatives have been positioned along the impact pathway defined by three impact levels – namely, ‘micro, ‘meso’, and ‘macro’ – derived from impact assessment best practices (Table 1).

Table 1. Stakeholders considered in the TCBL Value Mapping Tool

Impact level

Micro

Meso

Macro

Impact area

Lab as an organization

Stakeholder

Description

Employees

People working on a regular salary basis as well as part-time or full-time contractors active in Lab operations

Investors and supporting organizations

Organization(s) behind the Lab existence, including both backers and facility providers

Associate enterprises

T&C companies – approved by the TCBL Consortium – which are interested in Lab services for experimenting with new digital technologies, groundbreaking business models, and rediscovery of artisan know-how

Local community

Constellations of organizations (e.g., universities, public bodies) and individuals (e.g., students, want-to-be T&C professionals) involved in persistent interaction with the Lab

Environment

Ecological communities

People

Citizenry intended in broad sense, including especially buyers and workers

Local ecosystem

Society at large

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Then, the framework reported in Table 1 has been used as springboard for rethinking Cambridge Value Mapping Tool, which has been adapted to incorporate TCBL specificities. The tweaked version (Figure 4) – named ‘TCBL Value Mapping Tool’ differs from the original one in various ways. First of all, stakeholders associated to each area of the circle are the ones defined for the TCBL setting (Table 1). In addition, they have been grouped by impact area with the purpose to guide multi-level thinking. Coming to concentric rings, they have been slightly restructured to emphasize the three-pronged logic of value captured, value uncaptured, and value opportunities. Along these lines, value captured is the value delivered that generates returns (i.e., benefits) for stakeholders. Value uncaptured coalesces value failures such as value surplus (i.e., value that exist, but it is not required), value absence (i.e., value that is required, but does not exist), value missed (i.e., value that exist and is required, but is not exploited), and value destroyed (i.e., value with negative consequences). Finally, value opportunities have to do with avenues for capturing new value.

Figure 4. TCBL Value Mapping Tool – Pictorial representation (source: ISMB, adapted from University of Cambridge)

Building on the pictorial representation of Figure 4, ISMB analysists have turned such a schema into a tabular template (Figure 5) with the purpose to facilitate its usage in workshops and cocreation sessions, as per the request of Business Lab leaders.

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Figure 5. TCBL Value Mapping Tool – Workshop template (source: ISMB)

The workshop template of the TCBL Value Mapping Tool is equipped with some specific features that make it more suitable for sessions involving several participants: • • • •

The tabular format maximizes sheet utilization.

Specific space (i.e., ‘key stakeholders’ row) allows to elicit from time to time real people and organizations falling under the identified stakeholder categories.

Room for new stakeholder categories at micro, meso and macro level ensures the customization to any TCBL operational settings.

The matrix notation combines into a unique picture the three dimensions of analysis, namely stakeholders (i.e., columns), time horizons of impact materialization (i.e., rows13), and value types (i.e., cells).

The usage of the toolkit in a workshop can be supported by a set of triggering questions that progressively guide participants in the exploration of the working space (Table 2).

At this stage of Business Case development, from the row standpoint it is possible to decipher ‘outputs’ (e.g., practical solutions implemented and delivered) and ‘outcomes’ (i.e., short-term benefits resulting from solutions being implemented), which are visible in the ‘value captured’ row. By the same token, foreseen ‘impacts’ (i.e., long-term, widespread change) can be found in the ‘value opportunities’ row.

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Table 2. Triggering questions for TCBL Value Mapping Tool

Phase

Setting the scene

Value mapping

Triggering question

Rationale

What is the unit of analysis?

Set the contours of the initiative (e.g., entire Lab, specific business line, Business Case)

What is the purpose?

Make the mission of the initiative explicit to all participants

Who are the key stakeholders involved?

Single out, contextualize and prioritize actors relevant for the initiative

What is the current value captured?

Highlight unquestionable achievements of the initiative

What is the value yet uncaptured?

Stimulate the reflection on value failures

What are the new value opportunities?

Elicit untapped opportunities within the grasp

So far, the TCBL Value Mapping Tool has been distributed to Lab leaders in digital and paper format, and it was also tested in a half-a-day workshop on value modelling held in Amsterdam in September 2017. On such an occasion, a number of key informants (e.g., Business Case leaders, some Labs representatives, and a delegation of new TCBL partners) were invited to join a co-creation session aimed at depicting and critically analyzing value dynamics in the six Business Cases in place.

After an initial training session given by ISMB analysts, participants were subdivided into three groups working in parallel. In the first session the three groups focused on Lab-driven Business Cases (i.e., Bio Shades, Digital Heritage, and Independents) while a second session was devoted to demand-driven Business Cases (i.e., Natural Cotton, Short Runs, and Eco-Friendly Production). All this was organized to ensure a sufficient degree of diversity intra-group, deemed a necessary condition for stimulating internal cross-fertilization: each group, in fact, was made up of a Business Case leader, an internal facilitator and a couple of other participants posing questions and bringing a fresh perspective into the brainstorming. At the completion of teamwork activities, Business Case leaders shared the outcomes of the workshop through a plenary pitch based on the canvas previously filled-in.

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4 MULTI-FACETED VALUE ANALYSIS Outcomes of the workshop held in Amsterdam played an important role for the conduction of the multi-faceted value analysis on TCBL Business Cases. Raw inputs gathered on that occasion, in fact, have been revised, reconciled and expanded by ISMB analysts. Resulting outputs have been subsequently shared with Business Case leaders and discussed by means of one-to-one remote sessions (when needed).

Business Cases examined are succinctly described in Table 3. It integrates key findings (for instance ‘Alignment with TCBL innovation dimensions’ and ‘Alignment with TCBL Business Model Innovation patterns’) contained in the primer on business model dynamics enabled by TCBL – released as annex to D4.214 – with some of the outcomes stemming from the present analysis.

Visuals of the comprehensive value analysis are reported in the Appendix, to which the reader is referred for all details.

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http://www.ismb.it/sites/default/files/Documenti/Research_Docs/WP4_Primer.pdf

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T a bl e 3. S y n o ptic ta ble of T C B L B u si n e s s C a s e s

Business Case group

Business Case

Purpose

S u s t a i n a b i lit y -

‘A b s ol ut e

T & C c o m p a n i e s d e a li n g with

driv e n

gre e n’

High

M e diu m

M e diu m

Low

High

Low

C o m p a ni e s sit u at e d al o n g

o n a pr o xi m it y- b a si s i n l o c a l

th e u s e of n at ur al of less res o urc es, and the

t e x til e d i s t ri c t s

Social orientation

e s p e c i all y t h e o n e s o p e r a ti n g

s u p p l y c h a i n t o p ri vil e g e m a t e ri al s, t h e c o n s u m p ti o n

Environmental orientation

t h e c ott o n v al u e c h ai n,

R e s tr u ct ur e t h e c ott o n

C o tt o n

Alignment with TCBL BMI patterns

Target companies •

N a t ur al

Alignment with TCBL innovation dimensions

•

o t h e r m a t e ri al s ( e. g., w o ol,

f air r e m u n e r a ti o n t o all

s il k , h e m p ) w h i c h a r e w i lli n g

c o m p a nie s

t o r e pli c a t e t h e s c h e m e i n t h eir r e s p e c tiv e v al u e c h ai n s

• D e m anddriv e n S h o rt R u n s

T e x til e/ g a r m e n t

E x p e ri m e n t wit h

m a n uf a ct ur er s e x p erie n ci n g

s u st ai n a bl e d o w n s c ali n g

i nt er m itt e nt or str u ct ur al

m e c h a n i s m s all o wi n g f o r

o v e r c a p a c iti e s ( s u p p l y - si d e )

O p enness-

C o u t u ri er s a n d f a s hi o n

driv e n

loc al s o ur cin g a n d

•

p r o d u cti o n cl o s e r t o

h o u s e s w o rki n g o n lo w

m a rk et n e e d s

v olu m e s or b e s p o k e ord ers

‘E xt e n d e d w ork sh o p’

(d e m a n d - sid e) E s t a b li s h a l o c al c o n s o rti u m t h at E c o- Frie n dl y P r o d u cti o n

s y s t e m a ti c all y a p pli e s s u s t a i n a b i lit y p ri n c i pl e s t o t h e e ntir e T & C s u p pl y

•

T & C c o m p a ni e s b el o n gi n g to

S u s t a i n a b i lit y -

‘A b s ol ut e

a l o c a l d i s t ri ct

driv e n

gre e n’

c h a i n, fr o m fi b e r t o c usto m er

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Business Case group

Business Case

Purpose

E x p l o r e t h e p o s s i b ilit y t o

Target companies •

Alignment with TCBL BMI patterns

S u s t a i n a b i lit y -

‘A b s ol ut e

driv e n

gre e n’

Environmental orientation

Social orientation

High

M e diu m

Low

High

M e diu m

High

N e w g u a r d of b u si n e s s e s ( e. g ., d y e i n g a n d fi ni s hi n g

s e r v e t h e i n d u s tr y’ s c ol o r Bio Shad es

Alignment with TCBL innovation dimensions

c o m p a n i e s , t e x til e

d e m a n d t hr o u g h n at ur al

pr o d u c ers) th at c o m bin e

d y e s pr o d u c e d b y b a ct e ri a

c ar e a b o ut th e e n viro n m e nt

i n li e u o f tr a d i ti o n a l ,

with a k e e n p e n c h a nt for

h ar m f ul c h e m i c al d y e s

c r e a ti v e e x p e ri m e n t a ti o n

E s t a b li s h a di git al w o r k fl o w that turns th e u nt a p p e d Labdriv e n

D i git al H e rit a g e

k n o wl e d g e c o nt ai n e d in hi st ori c al T & C a r c hi v e s i nt o s o u r c e of i n s pir ati o n

• • •

T e x til e b u si n e s s e s F a s hio n d e sig n ers

D a t a - d ri v e n

‘ Di git al m a k e o v e r’

D i git al a rti st s

for c o nt e m p o r ar y c o ll e cti o n s C r e a t e a n et w o r k of s m all w o rk s h o p s th at st a n d o ut Inde p e n d e nts

fr o m t h e m ai n str e a m fas hi o n s yst e m w hi c h s u p p o rt e a c h ot h er s

•

In d e p e n d e n t s m all w o r k s h o p s (r a n gi n g fr o m 1 t o 2 0 p e o ple)

thr o u g h P 2 P arr a n g e m e nt s

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‘E xt e n d e d O p ennessdriv e n

w ork sh o p’

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While visuals reported in the Appendix are self-explanatory and capable of providing a vivid illustration of where each Business Case is and where it is heading to, it is worth adding some comments apropos of the recourse to value modeling within TCBL Consortium.

Drawing on outcomes of fieldwork activities documented in the present handbook, it comes to light a two-fold usage of the tool, which depends on the needs of Business Case leaders (or Lab managers) and the stage of Business Case development: TCBL Value Mapping Tool, in fact, can work both as planning tool and communication tool.

From the planning perspective, TCBL Value Mapping Tool provides a snapshot of the status of Business Case development, future directions, and next steps within the grasp of TCBL team: • •

•

Value captured documents what is on track in the Business Case development, thus stocktaking tangible results already delivered to relevant stakeholders.

Value uncaptured sheds light on Business Case objectives that have not been achieved yet due to inhibiting factors, either endogenous (i.e., depending on limitations internal to the TCBL ecosystem) or exogenous (i.e., having an external origin).

Value opportunities uncovers avenues to be pursued in the near future by Business Cases for capturing new value by overcoming barriers (i.e., hurdles behind value uncaptured) or leveraging drivers (i.e., success factors underlying value successfully captured).

From this standpoint, TCBL Value Mapping Tool acts as support to set the Business Case agenda for months to come in the timeframe Y3-Y4.

Furthermore, TCBL Value Mapping Tool is proving to be an effective communication tool that takes advantage of visual thinking expressed in a concise format (i.e., one poster or one slide) to convey to ad-hoc stakeholders (e.g., policy makers, sectoral thought leaders, T&C entrepreneurs, technology transfer managers) the identity of a Business Case as well as the achievements on the way to mission accomplishment.

Finally, based on feedback collected from workshop participants, it appears clear that TCBL Value Mapping Tool can work as companion of the TCBL Service Design Tool 15 (described in Annex 2) in new service exploration exercises. TCBL Value Mapping Tool, in fact, assesses value generated by a service, anticipates impact implications and has what it takes to suggest service tweaks/pivot.

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http://www.ismb.it/sites/default/files/Documenti/Research_Docs/TCBL_ServiceConcepts_Annex.pdf

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5 CONCLUDING REMARKS The multi-faceted value analysis documented in the Appendix reinforces the idea that TCBL Business Cases epitomize the types of initiatives needed to pursue the strategic objectives of the project. Shining a spotlight on the actual unfolding of the Business Cases, such initiatives can be paired according to emerging innovation patterns.

Natural Cotton and Eco-Friendly Production operate value chain re-construction to introduce natural fibers and reduce chemical usage. This ‘re-connecting’ pattern – focused on the textile sector – contributes to the attainment of 20% footprint reduction, which seems achievable only through business model innovations crossing the entire value chain.

Short Runs and Independents are re-organizing the production process of small workshops and manufacturers in the quest for agility and rediscovery of local sourcing. This ‘re-structuring’ pattern – which concerns primarily the clothing sector – is instrumental to the 5% return of manufacturing capacity, which necessarily calls for a revitalization of the networked production ecosystem.

Bio Shades and Digital Heritage are working on reinventing the consumer experience by exploring new creative possibilities along the disruption/tradition mix. This ‘re-framing’ pattern – observed in the fashion sector – is geared towards customer-driven innovation (i.e., anticipating and shaping consumer expectations), which cannot occur when technological innovation is decoupled from radical new meanings.

Because of this alignment with project strategic objectives, not only the six Business Cases already instantiated will remain in the project hyper-focus, but also they will be considered as archetypes to channel innovation impulses coming from TCBL Labs and Associate enterprises towards high-impact directions.

Along these lines, follow-up of the present work may take the form of: • • • •

update of the value modeling analysis as Business Cases evolve, with potential recourse to value network analysis (T6.4); refined evaluation on the alignment with industry in view of new companies engaged and associated commitments (T6.4); documentation of business model dynamics in Business Cases taking the cue from reconnecting, re-structuring, and re-framing innovation patterns (T4.2); measurement of ongoing impacts exerted by Business Case endeavors (T6.3).

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APPENDIX – VALUE ANALYSIS VISUALS

Figure 6. Visual value analysis for ‘Natural Cotton’ Business Case

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Figure 7. Visual value analysis for ‘Short Runs’ Business Case

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Figure 8. Visual value analysis for ‘Eco-Friendly Production’ Business Case

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Figure 9. Visual value analysis for ‘Bio Shades’ Business Case

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Figure 10. Visual value analysis for ‘Digital Heritage’ Business Case

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Figure 11. Visual value analysis for ‘Independents’ Business Case

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