A Design Perspective on Networked Business Models: A Study of Distributed Generation in the Power Industry Sector

Value chain deconstruction and reconfiguration into new value constellations is a phenomenon impacting many industry sectors. An important strategic issue therefore is the creation and analysis of new networked business models that cut across a variety of enterprise and market actors. In this paper we take up this issue from a design perspective, and consider the construction of networked business models for the emerging case of distributed power generation in the utility industry. We elucidate the role of regulation here: feasibility of new business models in this industry sector appears to be critically dependent on the nature of future regulations even in a so-called ‘deregulated’ open competitive market. We discuss how our value network modeling approach provides benefits already in a non-quantitative analysis in that (1) it offers a capability to map out new business ideas graphically in a clear and communicable fashion, (2) it clarifies the position of the individual stakeholders in innovative value constellations, and (3) it gives some qualitative directions where critical points and possible opportunities for new business models are to be expected.