Thematic Meeting Opportunità di innovazione nel campo dell efficienza energetica Sistemi di controllo degli impianti di digestione anaerobica, per ottimizzarne le rese energetiche Creare business con l efficienza energetica Financial insights for ICT applications in the biomass sector Ikbel Tlili INVENT, Paris VERONA, BIOENERGY EXPO 5 FEBBRAIO 2010
Scope Which are the most commons and innovative BM for ICT solutions in the biomasse sector? How the ICT developers and entrepreneur could ensure the success for the financing and the commercialisation of their products/solutions, destinated to the biomasse sector? Thematic Meeting - Verona, BIOENERGY EXPO, ౫febbraio ౨౦౧౦
Business Approach Objectives Segment the potential customers that the product/solution targets and will look at whether any neighbouring categories should also be targeted; it will then prioritise those considered suitable; Define exact parameters of the product/solution into each category of customer; Define one or more business models to be adopted by analysing the product/solution potentialities and features Validate each business model through the test cycles and evaluating the feedback of companies testers Refine the business plan for convincing financial backers and business partners to provide support;
Value proposition Business Model identifies the key factors making the company competitive is mainly finalised to underline the critical factors of success and the company strengths and weaknesses provides a clear diagnosis of any details concerning Operations and the Organisation. It is important to communicate the value-proposition
Market segmentation Which type of customers are we addressing by our product/solution? Company size : Large, SMEs Economical sector: agriculture, industry, services, *which sub sector: transport, building, etc. Company category: private, public Our target segment could be a mix, example: industrial private company operating in the agro food sector, SME
Which business model for each category? Even if we have an innovative product/solution, this is not sufficient to ensure our project success Why? The business model is a critical factor that will ensure the sucess of the project. The business model depends definetily on the segment we are addressing by our product/solution A successful business model is always based on a win win strategy
Some elementary questions Is our solution/product destinated to be integrated to the customer solution/product? What is our solution/product profitable for the customer, and how out business model could maximize the profit of the customer? Dis the potential customer need to make several changes (material, OS, etc.) to uptake our solution/product? In the case of ICT4EE, interoperability is a solid argument to convince potential customers to buy our product/solution Are similar solutions exist on the market? If yes, how could we differentiate our product/solution through our business model?
Some Business Models examples In house: the service/product is sold to customers that install it at their premises and they take care of the system running ASP: the service/product is sold without installing the platform at the customer site Hybrid: some functionalities are installed, other not What could we bill to the customer: installation fees, maintenance costs, training costs, upgrading fees, etc... How: fixed price, monthly/annual fees, allowance fees, hybrid
Innovative business models Objective: make the difference, attract and convince customers about the efficiency of our product/solution to meet their requirements. Some examples: - If the customer is a reseller: percentage on the customer revenues, - A percentage on the customer savings for its energetical bill - Free version for large public, paid one for professionals
Validation tests: strategic issues for BM Objectives: test the product/service at real life conditions, Quatify the potential benefits for the product/service use Solid arguments to present to investors and customers, Validation of market segmentation, Precise definition of BM (pricing model)
Introduction to Business Planning From the idea to the definition of a credible BUSINESS PLAN Aims of the business plan: Key factors to the objectives achievements Strengths and Weaknesses analysis Check the financial resources Market analysis and partnership
The BP structure
7 useful question to identifies the opportunities Who will be the user (customer) of the product/service? How customer will take purchase decisions? How market segments can be reached? How much is the effort to get customers? How much is the cost to produce and deliver the product service? How much is to get customers loyal
Market analysis
The strategy formulation Strategy is basically the route I need to follow to achieve an objective: Setting up the overall objectives Indicating resources to achieve the objectives Making a schedule and fixing the deadlines for check
How to set a price Taking into account the company cost structure Price should cover the company cost plus ensure a mark-up to remunerate the entrepreneurs Taking into account the product innovation Price can be much higher when the product is highly innovative and unique in the market Taking into account the market competition Price should be aligned to competitors ones
BEP analysis The BEP (Break Even Point) provides the level of production when the company starts producing profits Revenues VC+FC
Funding life-cycle
Creare business con l efficienza energetica Financial insights for ICT applications in the biomass sector Thematic Meeting Opportunità di innovazione nel campo dell efficienza energetica Sistemi di controllo degli impianti di digestione anaerobica, per ottimizzarne le rese energetiche Grazie mille per l attenzione www.invent.fr i.tlili@invent.fr +33 6 24 13 08 13 VERONA, BIOENERGY EXPO 5 FEBBRAIO 2010