Developing feasible business models: the simulation lab at the Fraunhofer MOEZ

Who are our customers? How do we want our customers and partners to benefit? How do we generate income? What resources do we need? Business models define the cohesive logic of a company with regard to these fundamental questions.  

Effective and feasible business models are vital for business success. As success drivers, they are often more important that the products offered by a company, or the technology used. Most companies nevertheless still invest considerably less resources in the development of innovative business models.

The standard business model development methods also usually only highlight one particular point in time. Important information that is vital for business success is therefore not taken into account.

  • How do cash flows develop over time?
  • Which resources may potentially prevent growth?
  • When do we need to change our business model?

This calls for a dynamic and comprehensive examination of business models.

Method: Analyzing, modeling and simulating business models

The Fraunhofer MOEZ uses a simulation software to develop and optimize business models. The aim of this method is to review existing business models with respect to their future feasibility. The simulation lab allows companies to compare different business model alternatives.

First of all, the initial situation is analyzed and graphically visualized in cooperation with the client. The Fraunhofer MOEZ experts then develop various business models and check their feasibility. The best alternatives are then modelled in a software as quantitative models. This process is based on the company data available, the industry sector and also comparable business models. Scenarios are developed, and the business model of the company examined is then simulated for these scenarios.

In a final workshop, the Fraunhofer researchers first present the dynamic simulation models and the insights gained. Afterwards, representatives from the company simulated are then able to carry out further simulation experiments that contribute to the optimization of the business model.

Contact us to put your business model to the test in the Fraunhofer MOEZ simulation lab. We will be happy to tell you more about the method and the feasibility of applying it to your company, no obligation!