Task 7 3 RRING network Business Model Methodology
Task 7. 3: RRING network Business Model
Methodology Selection of a set of Network Governance Models from those identified in 7. 1 - Mandated network - Self-governed network - Voluntary network - Virtual network Use of Business Model Canvas for describing the main characteristics and understanding the adaptability to the RRING network model Use of SWOT analysis for identifying advantages and disadvantages of each model
The Business Model Canvas as proposed by Strategyzer https: //strategyzer. com/canvas/business-model-canvas
The Business Model Canvas The key questions COMPONENT Stakeholder Groups Stakeholders’ Needs Value Proposition Key Activities Key Partners Key Resources Costs Promotion Channels Revenue Streams KEY QUESTIONS For whom is the RRING networks? Is there adequate policy support for the network model adopted and their intended outcomes? What does each stakeholder group expect to find in the RRING network? Is there sufficient buy-in to the expected vision among members? Are there existing trusting collaborative relationships? Is there adequate time for new trusting relationships to develop? How does the RRING networks satisfy the stakeholders’ value? Can collective value be identified and nurtured? What are the most important issues to be guaranteed so that the RRING network satisfy their intended outcomes? Is there an understanding of current leadership and management capacity and potential? Can sufficient time and support be provided to establish internal legitimacy among members? What needs to be in place so that mandated networks satisfy their intended outcomes? Is there a willingness to embrace unexpected costs? Has the level of tolerance for systemic costs risk been assessed? What is the best way to make sure that stakeholders will be involved in the networks (consultation strategy definition)? Are incentives available to create aligned agendas? Are there sufficient resources to leverage goodwill?
Contribution from partners �We will ask the partners to answer the previous questions taking into account the documents produced by tasks 7. 1 and 7. 2. �We will ask also the partners the name of key persons that can be involved in network creation. It is important to maintain a gender balance. �The partners have also specify activities and resources they can activate during and after the end of the RRING project. The identificaton of responsability in network creation activities must pay attention to gender balance.
Contribution from partners
The SWOT Analysis The SWOT analysis facilitates a realistic, fact-based, data-driven look at the strengths, weaknesses, opportunities and threats of an organization and its initiatives. ADVANTAGES (helpful) DISADVANTAGES (harmful) INTERNAL Strengths EXTERNAL Opportunities Weaknesses Threats
The four Network Governance Models Mandated Network A mandated network is supported by one or few organizations that regulate the network formation to tackle complex issues of public interest. The legal, procedural, and political constraints determine the structuring and functioning of the network and also its sustainability. Self-Governed Network The self-governed network model is a collaborative governance model in which authority and power are distributed across the network. Voluntary Network A voluntary network is composed of people with common interests and objectives that voluntarily meet in a network to know others with similar interests. It is voluntarily established by network members. Networks emerge over time through their routine activities where the activities of those networks take place. Virtual Network A Virtual network is a network of individuals who communicate and interact through specific media at global level in order to share mutual interests or goals. .
The Mandated Network Stakeholder Groups The range of the stakeholders that can benefit from the RRING network is wide: Civil Society Organisations Non-governmental organisations Multi-stakeholders’ networks with a shared interest on a specific hot topic or resources according to the RRING topics Entrepreneurs and members of the industry SMEs that wish to make their technology known. Boards of private companies Technicians and qualified workers Students Science communicators Educators Researchers Innovators Project teams Policy makers and implementers Regulators
The Mandated Network Stakeholder Groups Strengths, Weaknesses, Opportunities, and Threats of mandated network ADVANTAGES (helpful) DISADVANTAGES (harmful) INTERNAL ØThe Mandate network is highly formalised since the first steps of its life: one or more organizations operate as main funders of the network and establish clear objectives, values and a financial plan. ØThe effect of the mandate makes the commitment and financial contribution of other members and involved parties only additional and complementary for the network development plan. ØThe values of the Mandate network must correspond to the values of the members and the other parts to be involved. This coincidence of values and interests is very important for the success of the network, but it is not always easy to obtain. Ø The procedural constraints established by funders for acquiring the institutional objectives can affect the functioning of the networks, the trust of the members and their true collaboration. ØMechanisms based on a shared understanding among the actors, while necessary, are not sufficient to move stakeholders from a formal to true collaboration. EXTERNAL ØSince the Mandate Network is based on funders and a clear financial plan from the beginning, some planned activities can be aimed at creating interest in the network among the potential stakeholders ØThe fact that a mandate network uses a top down approach could determine a mismatch with the priorities of the potential stakeholders. ØAn obligatory mandate requires, to be generally accepted, that it comes from an authoritative source or that it coincides with or reinforces some previous motivations of the potential stakeholders.
The Mandated Network Stakeholders’ Needs The range of the stakeholders’ needs are:
The Mandated Network Stakeholders’ Needs Strengths, Weaknesses, Opportunities, and Threats of mandated network ADVANTAGES (helpful) DISADVANTAGES (harmful) INTERNAL ØStakeholders’ feedback on RRI topics and needs allow to better identify the goals of the mandated network. The financial resources of a mandated network can finance this analysis in the initial phase. ØThe procedures and the values established by funders can affect the sustainability and effectiveness of the network over time if they are not really accepted in the practices by the members of the network. Over time new needs could emerge that require a rapid adaptation of the procedures and values. EXTERNAL ØThe needs of external stakeholders expressing their feedback on RRI topics should be included in the process loop. ØExternal stakeholders don’t have a role in the RRI decision making process.
The Mandated Network Value Proposition The value proposition is identified by the funders also through tools for involving the potential network members in order to identify needs and values. It is important for the network's success that network members recognize themselves in the needs and value proposition identified by the funders. For this reason, incentives or added value services can facilitate an active engagement of members.
The Mandated Network Value Proposition Strengths, Weaknesses Opportunities, and Threats of mandated network ADVANTAGES (helpful) DISADVANTAGES (harmful) INTERNAL ØThe Value proposition can be identified by funders in the initial phase of network creation by means an analysis of objectives and needs of potential members identified. Financial resources of the funders can be dedicated to this analysis. ØAt any time during the network's life cycle, the Value proposition can be adapted by the funders when necessary. ØThe process for identifying the Value proposition is managed by the funders, the contribution of members, if foreseen, is indirect by means modalities decided by the funders ØMembers have to recognise the value proposition defined by funders, and this not obvious. EXTERNAL ØAt any time during the network's life cycle, the Value proposition can be adapted by the funders for including objectives and needs of external stakeholders. ØThe society expresses needs that the analysis conducted by the funders fails to capture so the value proposition identified by the funders does not correspond to the network's value proposition.
The Mandated Network Key Activities Mandated networks, are networks where the key activities are identified by the funders. They decide the purposes and key activities for the network, the timing of the network’s creation, the required structure and composition and the mechanism for the network to access resources.
The Mandated Network Key Activities Strengths, Weaknesses, Opportunities, and Threats of mandated network ADVANTAGES (helpful) DISADVANTAGES (harmful) INTERNAL ØA centralized control over the key activities facilitates a coordinated involvement of network members. ØA centralized control over the key activities facilitates their planning and coherence respect to the network objectives. . ØThe strategy respect to the key activities can be rapidly changed and adapted. In fact the decisions are centralized and taken by few organizations. ØCentralized control of key activities could reduce the proactive participation of members in carrying out activities. ØActivities that members wish may not exactly match those established by the funders. EXTERNAL ØEngagement of external stakeholder could be decided and planned by the funders using available financial resources. ØThe involvement of external stakeholders could require more effort because they don’t have an active role in the definition of the key activities and the activities they wish may not exactly match those established by the funders.
The Mandated Network Key Partners In the mandated network the funders have a centralized management of key partners. Some key partners can also involved using part of the financial resource. The involvement of the key partners is possible if funds are adequate to the objectives of the network.
The Mandated Network Key Partners Strengths, Weaknesses, Opportunities, and Threats of mandated network ADVANTAGES (helpful) DISADVANTAGES (harmful) INTERNAL ØA centralized control over the key partnership facilitates their planning and coherence respect to the network objective. The collaboration of key partners follows the rules established by the funders and are finalized for acquiring the network objectives. ØThe strategy respect to the key partners can be rapidly changed and adapted. In fact the decisions are taken by few organizations. ØThe centralized control of the key partnership could reduce the proactive approach of the partnership EXTERNAL ØA centralized control over the key partnership facilitates to decide and establish alliances and relevant collaborations respect to the network objective. ØCentralized control could reduce the possibility of finding spontaneous collaborations and alliances for network development
The Mandated Network Key Resources Mandated networks can bring additional physical, intellectual, human and financial resources that, if sufficient, can provide an incentive to work together and contribute to early success. In particular: Physical resources include tangible resources like equipment, buildings and distribution networks that enable the mandated network to carried out their activities. In a mandated network the physical resources could be provided by the funder or could be delegated by the funder to few members. Intellectual resources include intangible resources like partnerships, member’s lists, member’s knowledge. In a mandated network the funders could establish strict rules of membership and participation to the network. Membership and participation rules could also include expected contributions to the development to the intellectual resources. Human resources that include the people and stakeholders engaged that will contribute to maintain the mandated Network. In mandated network the funders could establish incentives for members activities as well as fees for the use of specific services. Financial resources: the financial resources are mainly provided by one or more funders and the resources must be adequate to the objectives, for this reason the funders have to provide sufficient supports and resources for network success for the operative period. The reduction in resources at any time is likely to create some instability, and the network must be sufficiently resilient to withstand the shock if it is to survive. In general, the extent of available resources is seen as a factor contributing to ongoing network effectiveness.
The Mandated Network Stakeholder Groups Strengths, Weaknesses Opportunities, and Threats of mandated network ADVANTAGES (helpful) DISADVANTAGES (harmful) INTERNAL ØA centralized control over resources facilitates their planning and coherence respect to the network objective. The acquisition of rules follows the rules established by the funders. Ø Ø ØThe strategy respect to the resources can be rapidly changed and adapted. In fact the decisions are taken by few organizations. Ø ØThe funders could decide to finance key activities with their funds. ØA centralized control over resources could be not enough flexible and could create barriers to the activities of members. EXTERNAL ØA centralized control over resources facilitates the acquisition of resources by choosing the best opportunities and the best competences respect to the network objective. ØA centralized control over resources could be not enough flexible and could create barriers for the acquisition of potential resources. ØAcquiring external resources or services during the time, integrating them in the network can require a formal process or opening calls for interests for external members.
The Mandated Network Costs Funders sustain the cost of the network on its own; Its role is to facilitate the smooth transition of each of identified goals into the operation phase and remove the costs barriers that hinder the adoption of the planned strategies. Furthermore, a comparative analysis of the costs of implementation and benefits accrued on implementation of each of the goals and strategies needs to be undertaken in a regular manner to update on the efficiency of each of the strategies as newer conditions unfold and emerge.
The Mandated Network Costs Strengths, Weaknesses Opportunities, and Threats of mandated network ADVANTAGES (helpful) DISADVANTAGES (harmful) INTERNAL ØIn mandated networks, usually, the funders establish objectives, values and a clear financial plan and, if necessary, a business plan. For this reason the sustainability and effectiveness of the network is assured from the beginning by the funders. This reduces the uncertainty about the financial sustainability and the risk capital is provided by the funders. ØNo-collaborative process for costs support implies that a centralised financial effort is required to the funding organizations. This means that the sustainability could be conditioned to the achievement of the objectives proposed by the funders. EXTERNAL ØIn mandated networks, usually, all the financial effort is sustained by the mandate organisations. ØThe stakeholders are not motivated to directly finance the development of the network. Therefore the success of the network is mainly linked to the interest and the sharing of the objectives and values of the network. This implies that sustainability could be reduced and based only on the funds provided by funders, eventually obtained by a business plan.
The Mandated Network Promotion To create mandated networks there are formal and informal channels. Formal channels are created at organization level, for instance by means press office. These may attract a wide variety of stakeholders that want to participate to the networks. Informal channels, such as lobbying by interested actors both within and outside the organizations, are often made possible by the existence of relationships among stakeholders.
The Mandated Network Promotion Strengths, Weaknesses, Opportunities, and Threats of mandated network ADVANTAGES (helpful) DISADVANTAGES (harmful) INTERNAL ØA centralized control over promotional channels for stakeholders involvement facilitate the elaboration of coherent communication addressed to the network members and the staff of participating organizations. ØThe promotion could appear a bureaucratic process. EXTERNAL ØA centralized control over promotional channels for external stakeholders involvement facilitates the use of formal channels and their planning already in the first phases of the creation of the network. ØA centralized control over promotional channels make more difficult the use of informal channels ØFor the involvement of external stakeholders.
The Mandated Network Revenue Streams In mandate networks funders realize any ongoing revenues streams
The Mandated Network Revenue Streams Strengths, Weaknesses, Opportunities, and Threats of mandated network ADVANTAGES (helpful) DISADVANTAGES (harmful) INTERNAL EXTERNAL ØIn mandate networks, funders can decide whether to achieve revenue streams to repay investments. ØRevenue flows can be also used to finance new activities for the network.
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