Critical Analysis On OpenSC Business Model
Task: Written essay addressing safety requirements for older patients with degenerative conditions.
In 2017, World Wildlife Fund Australia carried out a scope test case featuring fish from fisheries in the Pacific Sea for World Wildlife Fund's Panda Labs project (Benton, 2018). OpenSC utilized information and experience from the venture, and World Wildlife Fund Australia teamed up with BCG Advanced Endeavors on the block chain stage.The stage intended to confirm feasible creation claims and track food through its supply chain, which formally propelled on 2019. OpenSC came to learn that the food was served at the organization's dispatch occasion in Sydney and later at a gathering of the World Financial Discussion in Switzerland (Benton, 2018). Initially, the stage followed certain things, for example, different items of fish, yet the organization intended to add different products to its foundation later on.
II. OpenSC business model
The OpenSC business modelutilizes innovation and continuous information to confirm that a specific item was created morally or in a practical way, and at that point,the company tracks the food and different items with their whole supply chain (opensc.org, 2020).Even though the organization began adopted for fish and meat products, it has extended discernibility to things like palm oil and dairy as well. OpenSC commonly centerson improving the straightforwardness of wares considering the realization of ecological and human rights dangers inside their supply chains, and the following information is intended to help organizations and purchasers guarantee that items are morally and reasonably sourced (opensc.org, 2020).Buyers can check the QR code (commonly on café menus or on the item itself) to gain access to the information about the item's history that is placed on the open block chain (opensc.org, 2020).
A. Building blocks
The entire OpenSC business modelhas been attached in Appendix 1.
1. Customer segments
This block of OpenSC business model illustrates that this joint venture and digital platform offer permission to the consumers to data regarding where products come from, their production process and their journey, so that consumers could ensure purchasing decisions with their values.
Figure 1: Consumer effectiveness of this platform
2. Key partners
In the case of OpenSC business model, the key partners are businesses and consumers around the world. Apart from the business partnership between WWF and BCG Digital Ventures, it includes Austral Fisheries, includes in Maruha Nichiro Seafood Group (Benton, 2018). It has helped apply OpenSC tools in their Antarctic Toothfish process and through their international supply chain around Europe, Africa, Americans and Asia.
3. Value proposition
While huge advancement has been made, affirmed capable creation is yet proportional past twenty per cent of the worldwide market in any core item gathering, too delayed to even think about avoiding the most noticeably awful ecological and social effects (opensc.org, 2020).
- To verify claims regarding sustainable as well as ethical production applying information science and machine learning
- To trace items during supply chains applying blockchain and IoT
- To share data with customers for promoting the buying of more responsible items (opensc.org, 2020)
4. Key activities
The stage permits consumers to confirm how an item was created, see the item's excursion from root to consumers and find item stories as consumers' buy (opensc.org, 2020).
Figure 2: Example of how OpenSc worked for Austral Fisheries
The OpenSC platform applies IoT, data science, blockchain as well as digital communication channels; as online channels for making effective chances to develop the level and influence of conservation and human rights operations in new processes (Azzi, Chamoun & Sokhn, 2019).
6. Revenue streams
The Supply chain transparency platform has been developed by total funding of $4million. Below are the financial performance and revenue generation growth are attached (opensc.org, 2020).
Figure 3: Revenue stream and financial performance
7. Cost structure
The stock costs could be counted as around 45% of the sales costs. The operation distribution, as well as selling expenses, are around 35% of the total revenue while, it could be calculated that expenses for governance are around 25% (opensc.org, 2020).
8. Key resources
As described in the above building blocks of OpenSC business model, this platform, applies technologies and real-time information; technological resources could be counted as one of the core business resources of the company. On the other hand, it has partnerships with consumers and different businesses around the world, so they are also counted as non-technical resources for OpenSC (opensc.org, 2020). The financial resources of the company are included in its revenue and total assets.
9. Customer relationships
This company applies direct communication with its consumer base, which could be proved as consumers could see all the information and procedures, they use for themselves on the platform. Customers could also see the journey mapping on their separate devices (Plant, 2017). OpenSC equips every product with an innovative digital ID, which consumers could scan to learn more.
The OpenSC business model includes both businesses and consumers with an innovative technological platform for information sharing is foundational and effective for developing the business growth in future (Roth et al., 2016). The value proposition measures with key activities and key partners are also good examples for the business acknowledging efforts of individual entities and providing business transparency and freedom to the partners for contributing to the business growth. On the other hand, connecting the revenue stream and cost structure of the company is also another example of how OpenSC is using the cost-effective measures for minimizing and use of the“was/now” pricing tools (Roth et al., 2016).
C. What are the critical success factors identified in the OpenSC business model?
One of the core internal critical factors for the business is constant procedure improvement and the use of capital speculations, which will permit OpenSC to improve the speed of satisfaction at a lower cost and with fewer mistakes (Gupta et al., 2019). On the other hand, this business uses Check claims regarding supportable and moral creation utilizing information science and AI. This is also an effective critical factor corresponding and collaborating individual consumers’ efforts in the business operations. Additionally, the sharing data platform with global customers for marketing and measuring buying of more sustainable products is also another effective instance of business’s corporate social responsibility that adds effectiveness in business outcomes (Gupta et al., 2019).
D. Downside risks
It could be said that one of the main and pertinent downside risks for this business could be data loss and fraud. It could be said that in next five years, risks of data theft and cybercrimes could be increased and as this platform uses blockchain and IoT technologies; this type of risk would be always there (Fosso Wamba, Queiroz & Trinchera, 2020). Effective use of data protection measures should be upgraded by this company for minimizing this type of risk. On the other hand, rising competitions in the same market for sustainable transparency programs and sustainable business idea for product transparency could be another possible risk for the company.
E. OpenSC business modelchanges
I would like to move forward for an effective understanding of consumer purchasing behaviours that include a shift from the propensity to causality. I will search to notice consumers' needs and try to understand what operation requires to be applied, which will offer an increase in the use of OpenSC platform. Considering the OpenSC business model, it could be said that OpenSC’s consecutive success might in part be included in the disruptive innovation model of competing against the less global warming impact and sustainability. Perhaps, consumers did not purchase products without noticing their information. Technology-based and real-time data use in consumers should be developed through an educative perspective and need to realize they understood better the processes and its benefits.
All the preceding evaluation of business capability and performance are based on public information. From the above discussion, it could be said that OpenSC business modelhas effectively used the latest IoT and Blockchain technologies for tracking changes and minimizing global warming effects on the earth. The human rights concern while purchasing a product is an innovative business stance that includes consumers and businesses in a unique partnership. It could be said that though using online processes and technologies is not devoid of future risks, OpenSC still now doing a sustainable and responsible business through supply chain transparency program and providing product mapping facilities to consumers.
From the OpenSC business modeldeveloped in this report, it is recommended that flexible chain developers, along with the organizations with which the OpenSC stage workmusthold onto the snapshot regarding the critical changes to the plan alongside execute new flexible chain for the upgraded executives' models.Access to the upgraded and progressive information will take into account the more powerful dynamism that could strengthenthe cost reserve funds along withsanction obtainment in order to oversee the money in an effective and systematic manner (LeBaron, Lister & Dauvergne, 2017).Legitimate prerequisites and partner requirements for the hazard screening and tirelessness are expanding, and thus, the acquisition pioneers must use instruments that are more modern, which would assist them to locate data and information from a variety of sources, and get rid ofthe dangers in more profound pieces of the graceful chain.
OpenSC business model
· Businesses and consumers
· WWF and BCG Digital Ventures
· Austral Fisheries
· Supply chain transparency program
· To verify claims regarding sustainable as well as ethical production applying information science and machine learning
· To trace items during supply chains applying blockchain and IoT
· To share data with customers for promoting the buying of more responsible items
· Global consumers (age 18-60)
· Financial resources
· Businesses and consumers
· IoT, data science, blockchain as well as digital communication channels
Stock costs: 45%
Expenses for governance:25%
Total funding of $4million
(Source: Created by the Learner)
(Source: opensc.org, 2020)
OpenSC operational process
(Source: opensc.org, 2020)
Financial matrix of OpenSC
(Source: opensc.org, 2020)
OpenSC | Supply Chain Transparency. Opensc.org. (2020). Retrieved 10 August 2020, from https://opensc.org/.
OpenSC for Businesses and Planet. Opensc.org. (2020). OpenSC business modelRetrieved 10 August 2020, from https://opensc.org/business.html.
Benton, D. (2018). WWF partners with BCG Digital Ventures to launch OpenSC supply chain visibility platform | Technology | Supply Chain Digital. Supplychaindigital.com. Retrieved 10 August 2020, from https://www.supplychaindigital.com/technology/wwf-partners-bcg-digital-ventures-launch-opensc-supply-chain-visibility-platform.
Gupta, S., Drave, V. A., Bag, S., & Luo, Z. (2019). Leveraging smart supply chain and information system agility for supply chain flexibility. Information Systems Frontiers : A Journal of Research and Innovation, 21(3), 547–564. https://doi.org/10.1007/s10796-019-09901-5
Azzi, R., Chamoun, R. K., & Sokhn, M. (2019). The power of a blockchain-based supply chain. Computers & Industrial Engineering, 135, 582–592. https://doi.org/10.1016/j.cie.2019.06.042
Plant, L. (2017). Implications of open source blockchain for increasing efficiency and transparency of the digital content supply chain in the australian telecommunications and media industry. Australian Journal of Telecommunications and the Digital Economy, 5(3), 15–29.
Roth, A., Singhal, J., Singhal, K., & Tang, C. S. (2016). Knowledge creation and dissemination in operations and supply chain management. Production and Operations Management, 25(9), 1473–1488. https://doi.org/10.1111/poms.12590
LeBaron, G., Lister, J., & Dauvergne, P. (2017). Governing global supply chain sustainability through the ethical audit regime. Globalizations, 14(6), 958–975. https://doi.org/10.1080/14747731.2017.1304008
Fosso Wamba, S., Queiroz, M. M., & Trinchera, L. (2020). Dynamics between blockchain adoption determinants and supply chain performance: an empirical investigation. OpenSC business modelInternational Journal of Production Economics, 229. https://doi.org/10.1016/j.ijpe.2020.107791 OpenSC. Opensc.org. (2020). Retrieved 10 August 2020, from https://opensc.org/product-example.