Abstract
There is a need to identify as wide a range as possible of sources of value arising from a given infrastructure development when creating infrastructure business models. The need for novel, more effective business models is being driven by the UK government’s very considerable programme of infrastructure investment, coupled with a reduction in the supply of public capital over recent years and a corresponding increase in the demand for private project finance. To support both public and private infrastructure investment, new business models are required that can internalise the positive externalities associated with public goods. Based on an exploration of the application of soft systems methodology to business model creation, this paper proposes a generic six-step methodology for identifying a wide range of potentially value-generating opportunities and proves its efficacy by applying it to a case study of Tyseley Energy Park in Birmingham, UK. The findings from the methodology, which treats a newly constructed, refurbished or upgraded infrastructure system as a ‘business’, can then be used to broker the necessary collaboration with all relevant stakeholders – those who have a stake in the business – to refine the business models and ensure that they are resilient in the face of contextual change.
Highlights
This paper focuses on research into the development of a generic methodology for identifying as wide a range as possible of potential value-generating opportunities for a given infrastructure development as an essential step in the process of creating novel, more effective infrastructure business models
Its efficacy is demonstrated by way of a case study based on Tyseley Energy Park (TEP) in Birmingham, UK – an ambitious new development of colocated energy and other cognate businesses – yet the methodology can be applied in principle to any substantial intervention in the infrastructure systems that support society: the creation of a single new infrastructure artefact, refurbishment or upgrading of an infrastructure artefact or a fundamental change to an infrastructure operating system
Published with permission by the ICE under the CC-BY license created by an infrastructure development – in this case TEP, which is referred to as an energy centre – and goes through a structured search of Internet-based literature to identify potential value opportunities that can be used in the development of its business model
Summary
This paper focuses on research into the development of a generic methodology for identifying as wide a range as possible of potential value-generating opportunities for a given infrastructure development as an essential step in the process of creating novel, more effective infrastructure business models. The paper focuses on research into the development of a generic methodology for identifying as wide a range as possible of potentially value-generating opportunities for a given infrastructure development, which could be internalised within a new business model to support both public and private investment. One is the initiation in 2012 by the Birmingham City Council (BCC) of the Tyseley Environmental Enterprise District (BCC, 2012), within which TEP is situated, which aims to leverage the city’s existing expertise in renewable energy and energy from waste as well as further its plans to develop an integrated (green) transport infrastructure Another is the contribution that BCC and the region’s universities are making in the fields of bioenergy, hydrogen and other future power systems. ■ the new West Midlands Combined Authority, which has the responsibility for transport and housing, both of which have a strong energy interface (GBSLEP, 2013)
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