Business Model Canvas and Technology Roadmap Integration Methodology

This report presents a methodology for integrating the Business Model Canvas (BMC) and Technology Roadmap (TRM) to align business models with current and future business needs. It reviews previous integration efforts, defines the BMC and TRM frameworks, and details a practical approach for building an integrated business strategy. The methodology aims to provide managers, policymakers, and practitioners with a structured way to create robust business models by leveraging the strengths of both the BMC and TRM tools while minimizing their individual weaknesses. A case study illustrates the application of this integrated approach, highlighting the benefits of considering both current and future business perspectives in the strategic planning process. The integration process enables the construction of a robust business strategy proposal in a structured mode taking into account the benefits of each tool and reducing the disadvantages.

Methodology for the of building process integration of Business Model
Canvas and Technological Roadmap
Miguel Angel Toro-Jarrín, Idalia Estefania Ponce-Jaramillo, David Güemes-Castorena⁎
Center for Quality and Manufacturing, Tecnologico de Monterrey, Campus Monterrey, Monterrey, NL, Mexico
a b s t r a c ta r t i c l e i n f o
Article history:
Received 24 May 2015
Received in revised form 13 January 2016
Accepted 14 January 2016
Available online 1 February 2016
The importance of linking efficiently the outputs of R&D processes with the business world has become evid
Researchers and practitioners have developed tools to help build business from a starting point (business id
product concept) to the description of elements that make the business possible. The Business Model Canva
identifies the essential parts of a business; it's applicability and simplicity has given it greater acceptance a
semination. Furthermore, the Technology Roadmap is presented as a valuable tool to visualize the relations
over time of the market, technology and product strategies; TRMs allow decision makers to identify gaps be
tween the current and the future business strategy.
BMC and TRMs have been used independently of each other. This work has the objective to present a metho
ogy of the building process integration of these two tools, to provide a business model and a technology roa
for the business idea or new product concept that are aligned to the current and future business needs. The
explained and described in a practical manner by a case of study. One of the bene fits of using this methodo
that a business constructs a BMC and TRM with two different approaches giving the process the perspective
future analysis and also visualizing elements for the current business. It was found that the building integra
process allows constructing a robust business strategy proposal in a structured mode taking into account th
efits of each tool and reducing the disadvantages.
© 2016 Elsevier Inc. All rights reserved.
Keywords:
Methodology
Integration
Business Model Canvas
Technology Roadmap
1. Introduction
In a world where the changes occur so fast, a look into the future is
not only an additional tool for strategic planning but an essential exer-
cise for every company. Rohrbeck and Schwarz (2013) appointed that
the early acknowledge and visionary anticipation of the technological
potential play a key role in a globalized world which is characterized
by the improvement of competitiveness. They also observed that ignor-
ing changes in business environment often results in losing opportuni-
ties or failing in responding threats. For Makridakis (Godet, 2010) the
role of visioning the future is to provide managers and government pol-
icy maker's different ways to comprehend the future and help them
have a total understanding of possible implications of social and techno-
logical changes.
The technology developmentand market demands accelerate
changes in the world. In literature is found frequently that technology
innovation is a key successful factor for performance improvement
and survival of the enterprise, besides it is a determinant factor for sus-
tainable economic development of nations and quality life improve-
ment of their people (Keupp, Palmié, & Gassmann, 2012). According
to Rohrbeck and Schwarz (2013), firms suffer blindness caused by fo-
cusing mostly on the inside of the company and reinforcing practices
that made the company successful in the past thus, it becomes evident
that firms need to dedicate efforts to look outside the company and to
be aware of the coming changes.
For this purpose, academics and practitioners have presented differ-
ent alternatives to explore the future systematically. For example, Phaa
Farrukh and Probert (2004b) states that in order that technology man-
agement benefits a business it is required effective process and system
that guarantee that the existing and potential technological resources
are aligned with its needs now and in the future.
On the other hand, if a firm has hints of trends that could drive future
customer's behavior, and also technology development, the next stage
is to envisioning the business that adapts better to those trends by
using new technologies advantages. However, it is not easy to structure
a business for the present scenario and it is more complicated to con-
struct for a future scenario.
The objective of this study is to facilitate to managers, policy makers
and practitioners the creation of a business model for both current and
future scenario. In order to achieve this objective Technology Roadmap
(TRM) and Business Model Canvas (BMC) are developed in a structured
manner at the same time to construct a robust business strategy propos
al taking into account the pros and reducing the cons of each strategic
tool.
Technological Forecasting & Social Change 110 (2016) 213–225
⁎ Corresponding author.
E-mail addresses: [e-mail], [e-mail], [e-mail]
(D. Güemes-Castorena).
http://dx.doi.org/10.1016/j.techfore.2016.01.009
0040-1625/© 2016 Elsevier Inc. All rights reserved.
Contents lists available at ScienceDirect
Technological Forecasting & Social Change

2. Framework
The business strategy involves all the plans needed to create and de-
liver value to the customer. It defines: what segments the firm will at-
tend; the means to deliver value to the segments identified;the
manufacturing strategy; R&D strategy and the way the firm is presented
to the public (Chungyalpa & Bora, 2015).
There are a number of tools to help organizations to manage resources
more effectively in order to create value and explore the future, for exam-
ple Pillkahn (2008) uses these tools for strategy development. According
to Ringland (2010), these tools are valuable not only for the outputs gen-
erated at the end of the process but for the interaction between the team
members because they improve organizational knowledge.
In this section, first previous integration works will be described, and
secondly concepts that help forming the methodology of building the
integration process will be defined.
2.1. Previous BM–TRM integration works
The use of BM and TRM certainly has many advantages, but a strate-
gic business link is missing if it is used independently. Strategic manage-
ment practitioners and researchers have combined BM and TRM to
achieve a more robust strategy, the combination of these tools generates
a new and more powerful tool for exploring the current and the future
business and their parts (Pillkahn, 2008). Following, three studies that
combined these tools will be analyzed.
1. Five Porter's forces: Many authors (Osterwalder & Pigneur, 2010;
Abe, Ashiki, Suzuki, Jinno, & Sakuma, 2009; Abe, Shinokura, Suzuki,
Kubo, & Sakuma, 2006) have used the five Porter's forces in order
to integrate BM and TRM. According to Porter (2008), “understand-
ing the competitive forces, and their underlying causes, reveals the
roots of an industry's current profitability while providing a frame-
work for anticipating and influencing competition (and profitability)
over time”. For helping construct the firm political strategy, studies
based on the Porter's forces have been developed (Vining, Shapiro,
& Borges,2005),and for helping to apply the five forces analysis,
Dobbs (2014) presents five templates to quantified the threats levels.
2. Abe, Shinokura, Suzuki, Kubo, and Sakuma (2006) found common
parts in the generation of BM and TRM in a study named “Smart-In-
novation Planning Method”. The main purpose of the study was to
use the output of BM as input for strategic roadmapping (SRM).
The integrated these two tools by introducing further steps at the be-
ginning and in the end of the process to generate BM and TRM in one
single procedure. The methodology consists in 5 steps: 1) combina-
tion of business ideas and database, 2a) analysis of value chain, mac-
roscopic environment, PEST and business environment, 2b) scenario
forecasting, 3a) scenario planning, 3b) do explorative roadmapping
using the reference scenarios,4a) integration of result of step 3b
and SRM, 4b) confirmation of target customer, product, supply meth-
od and profit model; and 5) decision making based on the valuation
of factors.
3. Abe, Ashiki, Suzuki, Jinno and Sakuma (2009) reported a new busi-
ness strategic planning method for the integration of BM and strate-
gic roadmapping (SRM) named “Innovation Support Technology”.
The methodology is applied using three stages:
a) Product concept and business idea based on R&D outputs are de-
scribed. Market and customers are pictured and determined based
on this product concept and this business idea.The aim of this
stage is to generate the technological scenario.
b) Planning of the business scenario with two objectives: To design and
to obtain the business target of the company in the future,and
roadmapping the product function and the enabling technology to
achieve the business target in the future.
c) Contents of company technology roadmapping and discoveries
through these roadmapping workshops are reflected to the business
model. Target customers, value propositions, supply method, and
profit model according to scenarios are confirmed. This stage bene-
fits to discover bottle necks through milestone gaps between layers
discover, also investment timing are investigated and verified and,
business strategy is evaluated.
Abe, Ashiki, Suzuki, Jinno and Sakuma (2009) analyzed BM and SRM
and summarized pros and cons (see Table 1).
4. de Reuver, Bouwman and Haaker (2013) developed a study on core
concepts from business model and technology roadmapping. They
concluded that business model roadmap obtains how operational
actions and business model impacts are consistent, it means that if
an organization has to choose between different business models,
business model roadmapping helps to identify overlapping routes,
route dependencies and points of return.
2.2. Business Model Canvas (BMC)
Zott and Amit (2010) define a business model as “the content, struc-
ture, and governance of transactions designed so as to create value
through the exploitation of business opportunities”.Chesbrough
(2010) mentions that some of business model functions are: to identify
market segment, to specify revenue generation mechanism, to define
the structure of the value chain,to describe firm's positions within
value network and to formulate a competitive strategy that gain and
hold advantage over competitors.
According to Osterwalder and Pigneur (2009) a business model is
representation of how an organization creates, delivers and captures
value from a product or service. BMC is a graphical approach that de-
scribes nine elements needed to define a business model (see Fig. 1).
An abridged description ofeach element ofthe business modelis
shown in Table 2.
2.3. Technology Roadmap (TRM)
Phaal et al. (2004a) define technology roadmap as a flexible tech-
nique used to support strategic and log-term planning, providing a
structured relationships between evolving and developing markets,
products and technology over the time. The TRM process addresses
the identification, selection, acquisition, development, exploitation
and protection of technologies (product, process and infrastructural)
needed to achieve, maintain and grow a market position and busi-
ness performance in accordance with the company's objectives.
The TRM aims to support the start-up of company-specific TRM pro-
cesses as: 1) to establish key linkages between technology resources
and business drivers; 2) to identify important gaps in market, product
and technology intelligence;3) to develop a first-cut technology
roadmap; 4) to support technology strategy and 5) to plan initiatives in
the firm to support communication between technical and commercial
functions.
Phaal, Farrukh,and Probert (2004b) appoint that it is important
that the technology strategy should not be developed independently
from the business strategy, instead technological resources should
be considered as an integral part of business plan. A successful TRM
helps to establish a balance between market pull and technology
push (see Fig. 2).
According to Phaal et al. (2004a), the following factors contribute to
a successfully and sustainable roadmapping initiative:
- Clear business need,tangible benefits and appropriate timing for
each activity.
- Good architecture that reflects the structure of the organization and
the issue at hand.
- Strong commitment and ownership from senior management and a
supporter in order to drive the process forward, perhaps supported
by external independent facilitation.
214 M.A. Toro-Jarrín et al. / Technological Forecasting & Social Change 110 (2016) 213–225

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