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The CEFE Canvas: Looking at CEFE's Business Model

The CEFE Canvas: Looking at CEFE's Business Model

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Published by Eduardo Canela
Indonesian developed the CEFE Business Model. A MUST read for all CEFEiestas worldwide. Congratulations Pak Yanto!
Indonesian developed the CEFE Business Model. A MUST read for all CEFEiestas worldwide. Congratulations Pak Yanto!

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Published by: Eduardo Canela on Jul 20, 2012
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08/12/2013

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ENTREPRENEURSHIP MODEL ONTOLOGYYanto Sidik Pratiknyo
Founding Member of International CEFE Association for EntrepreneurshipFrankfurt, Germany.PPM-Manajemen, Jakarta, Indonesiayantosp@yahoo.com 
Tyasti Noeryoeswati
Small Enterprise, Jakarta, Indonesiatyastyyoeswaty@yahoo.co.id Maria NainggolanPPM-Manajemen, Jakarta Indonesiamar@ppm-manajemen.ac.id Jakarta, Indonesia, July 2012
ABSTRACT
Timmers (1998), Weill and Vitale (2001) define a business model as a description of the roles
and relationships among a firm‟s consumers, customers, allies and suppliers
and it identifies themajor flows of product, information, and money, as well as the major benefits to participants.The term ontology has its origin in philosophy and denotes the philosophical discipline that dealswith the nature and the organization of reality (Guarino and Giaretta 1995). Gruber's (1993)define ontology as an explicit specification of a conceptualization. To create an understanding of entrepreneur and the ways the entrepreneur starting the business or developing business for theexisting entrepreneur, Rainer Kolshorn and Jim Tomecko(1998) from GTZ (DeutscheGeeseschaft fuer Technische Zusamenarbeit) Germany develop the model called by Competencybased Economies through Formation of Entrepreneur (CEFE). This model is consisting tenfactors between society (macro, mezzo and micro) with actor as the entrepreneur (capability,motivation and resources). To match between both factors, Kolshorn and Tomecko appliedstrategeering into three actions namely: reshaping situation, complementing with other andadapting actor to be success as entrepreneur. On the other side, Osterwalder and Yves Pigneur(2004) from the Université de Lausanne, Germany proposed business model ontology tounderstand the way the actor does the business in transferring the value to the customer.Osterwalder and Pigneur (2004) describe that business model ontology consist of ninecomponents that are: Customer Segments, Value Proposition, Communication and DistributionChannels, Customer Relationships, Revenue Streams, Key Resources, Key Activities, PartnerNetwork, and Cost Structure. Based on the literature study and reality of the entrepreneurespecially for SME (Small and Medium Enterprise), we made the Entrepreneurship ModelOntology by combining the Osterwalder and Pigneur (2004) from the Université de Lausannemodel with the Kolshorn and Tomecko (1998) from GTZ Germany model in this research paper,that we call as Entrepreneurship Model Ontology. We hope that the Entrepreneurship ModelOntology will have huge contribution in the world for developing entrepreneurship.Key word: Entrepreneurship Model Canvas, Ontology, Small and Medium Enterprise.
 
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INTRODUCTION
The word "entrepreneur" is a loanword from French. Baumol et all (1985) said that theentrepreneurship term is a loanword from French and was first defined by the Irish economistRichard Cantillon (1730). In French the verb "entreprendre" means "to undertake," with "entre"
coming from the Latin word meaning "between," and "prendre” means "to take." In French a
person who performs a verb, has the ending of the verb changed to "eur," comparable to the "er"ending in English.Sullivan and Scheffrin (2003) state, that an entrepreneur is a person who has possession of anenterprise, or venture, and assumes significant accountability for the inherent risks and theoutcome. It is an ambitious leader who combines land, labor, and capital to create and marketnew goods or services. Entrepreneur in English is a term applied to the type of personality who iswilling to take upon herself or himself a new venture or enterprise and accepts full responsibilityfor the outcome. Jean-Baptiste Say (1800), a French economist, believed to be coined the wordEntrepreneur first in about at 1800. He said an entrepreneur is "one who undertakes anenterprise, especially a contractor, acting as intermediatory between capital and labor".Osterwalder (2004) proposed business model ontology to understand the way the actor does thebusiness in transferring the value to the customer. On the other side, Kolshorn and Tomecko(1998) develop the model called by Competency based Economies through Formation of Entrepreneur (CEFE).The research question is, can the entrepreneurship model be deployed to the model ontology,similar to the business model?
RESEARCH METHOD
The Business Model Ontology is a proposition in a design science approach. March and Smith (1995)define that design science is an attempt to create things that serve human purposes, as opposed to naturaland social sciences, which try to understand reality (Au 2001). March and Smith outline a design scienceframework with two category first research outputs cover constructs, models, methods and instantiationsand second research activities comprise building, evaluating, theorizing on and justifying artifacts. Thisrefers to the construction of theories that explain how or why something happens. Such research appliesnatural science methods to artifacts (
theorize
). Then, given a generalization or theory we must
 justify
thatexplanation. Evidence has to be gathered to test the theory in question. Justification for artifacts generallyfollows the natural science methodologies governing data collection and analysis.
 The term ontology has its origin in philosophy and denotes the philosophical discipline that dealswith the nature and the organization of reality (Guarino and Giaretta 1995). Gruber's (1993)define ontology as an explicit specification of a conceptualization.
 A model is a set of propositions or statements expressing relationships among constructs. In designactivities, models represent situations as problem and solution statements. A method is a set of steps (analgorithm or guideline) used to perform a task. Methods are based on a set of underlying constructs(language) and a representation (model) of the solution space. An instantiation is the realization of anartifact in its environment. Instantiations operationalize constructs, models and methods.
 
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Summarized, constructs, models, methods and artifacts are
built 
to perform a specific task. These outputsthen become the object of study, which must be evaluated scientifically. They have to be
evaluated 
inorder to conclude if any progress has been made.
Timmers (1998) states a business model as the architecture for the product, service andinformation flows, including a description of the various business actors and their roles and adescription of the potential benefits for the various business actors and a description of thesources of revenues. Weill and Vitale (Weill and Vitale 2001) define a business model as a
description of the roles and relationships among a firm‟s consumers, customers, allies a
ndsuppliers and it identifies the major flows of product, information, and money, as well as themajor benefits to participants.
 
Linder and Cantrell (2000) define the business model is an
organization‟s
core logic for creating value. Similarly, Petrovic, Kittl et al. (2001) perceivebusiness models as the logic of a business system for creating value. They specify that this is inopposition to a description of a complex social system itself with all its actors, relations andprocesses. Gordijn, Akkermans et al. (2000) mentions that in research as well as in industrypractice, often business models
 
are wrongly understood as business process models. A businessmodel is not about processes but about value exchanged between actors. In their opinion thefailure to make this separation leads to poor business decision-making and inadequate businessrequirements. Business models are created in order to make clear who the business actors are in abusiness case and to make their relations explicit. The relations are formulated in terms of valuesexchanged between the actors. So the scientific design of ontology can be understood.Osterwalder (2004), Osterwalder and Pigneur (2005) describe that business model ontologyconsist of nine components that are: Customer Segments, Value Proposition, Communicationand Distribution Channels, Customer Relationships, Revenue Streams, Key Resources, KeyActivities, Partner Network, and Cost Structure. The diagram of the business model ontology canbe seen in the figure 1.Figure 1: Business Model OntologyFrom diagram of business model ontology Osterwalder designs the Business Model Canvas forapplication as in the figure 2.

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