Presentation on theme: "UNIVERSITY OF CATANIA SCHOOL OF ECONOMICS AND BUSINESS Nanotech Business Models: A multiple case study approach Flavia Li Calzi 28 November 2012."— Presentation transcript:
1 UNIVERSITY OF CATANIA SCHOOL OF ECONOMICS AND BUSINESS Nanotech Business Models: A multiple case study approach Flavia Li Calzi 28 November 2012
2 Research StructureWhat are nanotech business models and how do they work?Chapter 1:To give a basic understanding of Nanotechnology, by describing its main features and implicationsChapter 2:To provide a framework to study the business modelsby detecting the concept via a thorough literature review1. What is nanotechnology?2. What is a business model?Chapter 3:To explain the methodology adopted to study the nanotech business models3. What is the methodology adopted and the data collection process?Chapter 5:To study the nanotech business models from an empirical viewpoint by analysing sevenin-depth case studiesChapter 4:To study the nanotech business models from atheoretical perspectiveby providing a taxonomy5. What kind(s) of nanotech business models do we knowand which ones have recently emerged?4. What is a nanotech business model?
3 1. What is nanotechnology? The understanding and control of matter at dimensionsof roughly 1 to 100 nanometersA nanometer (nm) is one billionth, or 10−9, of a meterAn emerging technology:from 1980’sThe key technologyof the 21st centuryDifferent from MicrotechnologyFrom early 2000s nanotech commercial applicationsA vaste range ofnanotech applicationsIn 2008, over 800 nanotech products are publicly availablePositive and negative implications
4 2. What is a business model? A statement (Stewart and Zhao, 2000);A description (Applegate, 2000; Weil and Vitale, 2001);A representation (Morris, Schindehutte and Allen, 2005; Shafer, Smith and Linder, 2005);An architecture (Dubosson-Torbay, Osterwarder and Pigneur, 2002; Timmers, 1998);A conceptual tool or model (Osterwarder, 2004; Osterwarder, Pigneur and Tucci 2005; Teece, 2010);A structural template (Amit and Zott, 2001);A method (Afuah and Tucci, 2001);A framework (Afuah, 2004);A pattern (Brousseau & Penard, 2006);A set (Seelos & Mair, 2007).
5 Source: Osterwalder (2004) Business Model Layer“A business model describes the rationale of how an organization creates, delivers and captures value”, Osterwalder (2010)Source: Osterwalder (2004)
6 Source: Osterwalder (2005) The relationship between Business Model, Business Strategy, Business Organization and ICTSource: Osterwalder (2005)
7 Source: Osterwalder (2010) Business Model CanvasSource: Osterwalder (2010)
8 The nine building blocks aggregated in four pillars Source: Author’s elaboration from Osterwalder (2010)
11 Vantaggi del Business Model di Groupon: Un esempio …Sconti massicci, in un determinato giorno, in una determinata città, sbloccati al raggiungimento di un numero minimo di utenti coinvoltiVantaggi del Business Model di Groupon:1. alle aziende viene garantito un numero minimo di nuovi clienti e una buona dose di pubblicità, senza aprire il portafogli;2. agli utenti vengono proposte incredibili offerte (fino all'80-90 %), senza spostarsi dalle proprie città;3. a Groupon spetta il 50% di servizio/prodotto in offerta acquistato dagli utenti.
13 3. What is the methodology adopted…? The Multiple Case Method ApproachSource: Author’s own work adapted from Pauwels and Matthyssens (2004)
14 …and the data collection process? February - March 2011Secondary source: literature review, web browsing, library research, corporate materials, analyst reports, business journals;April 2011“Winter School on Emerging Nanotechnologies”, from 28th March to 1s April 2011 organized by the Grenoble Ecole de Management (GEM) in Pinsot (France).Research period at Grenoble (France), from 2nd to 16th April 2011twenty interviews have been performed in person, in one-to-one sessions with key managers and CEOs belonging to the Grenoble nanotech cluster;May - July 2011Interviews with STMicroelectronics managers in Catania (Italy);Integration and analysis of the data collected in light of the triangulation;Application of the multiple case method by reporting the seven case studies
16 Nanotech Firms by Target Applications (by Number of Firms) Source: SEMI (2007)
17 Semiconductor firms’ activities Source: GSA – Global Semiconductor Alliance
18 technology solutions” “Design and manufacturing work in unison” 4. What kind(s) of nanotech business models do we know and which ones have recently emerged?High IntegrationTRADITIONAL MODEL“one size fits alltechnology solutions”BEFORE AND LATER 1980’sIDMHYBRIDFABLESSNEW MODELS“Design and manufacturing work in unison”FROM MID 1980’sFOUNDRYIP HOUSETEST HOUSEDESIGN HOUSEASSEMBLY HOUSEPACKAGING HOUSELow Integration
19 Source: Author’s own work The time arrow for business model changes in the semiconductor industry: IDM vs Fabless vs Foundry business modelSource: Author’s own work
20 Semiconductor firms’ business models and their relationships Source: Author’s own work
21 “The fabless model is an attractive and popular option for many semiconductor companies. By adopting a fabless businessstrategy, a company can focus time and resources on the design of innovative integrated circuits, while avoiding the high cost of building, operating, and upgrading a manufacturing facility”.“Pure-play semiconductor foundry is a company that does not offer a significant amount of IC products of its own design, but instead operates semiconductor fabrication plants focused on producing ICs for other companies. Companies create their own designs and pay the foundry to manufacture the chips.”
26 5. What are the nanotech business models? IDMEND USER2. Nanotech Business ModelHYBRID/FABLITEFOUNDRYOEM3. Nanotech Business ModelFABLESSFOUNDRY4. Nanotech Business ModelFABLESSTESTHOUSEASSEMBLYHOUSEPACKAGINGHOUSEFOUNDRY
27 IDM IDM1 IDM2 IDM5 IDM3 IDM6 IDM4 5. Nanotech Business ModelIDM1FABLESSFOUNDRYEND USER6. Nanotech Business ModelIDM1IDM21OEMFABLESSFOUNDRYIDM5IDM3IDM6IDM4
28 The Seven Business Case Studies IDMFABLESSDESIGN HOUSETEST HOUSEFOUNDRYSTMicroelectronicsST-EricssonDolphin IntegrationPresto EngineeringTronics MicrosystemsMoveaPyxalis
29 STMicroelectronics’ business model Source: Based on author’s interviews with Christophe Bernard and Andre Judge (ST Grenoble Site), Maurizio Cairone, Manlio La Duca and Daria Puccia (St Catania Site)
30 Source: Interview with Philippe Rommeveaux – Grenoble, 12/04/2011 Pyxalis’ business modelSource: Interview with Philippe Rommeveaux – Grenoble, 12/04/2011
31 Disintegration of the Semiconductor’s Value Chain ConclusionsAdvent of NanotechnologyMiniaturization ProcessMore complexityIncreased CostsDisintegration of the Semiconductor’s Value ChainFrom one high integrated nanotech business modelto many high disintegrated nanotech business modelsFrom large to small nanotech firms