Understanding Business Models And Designing a New Model
Transcript of Understanding Business Models And Designing a New Model
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Gavin Henderson, MBA, PMP
PSM, PSPO
Understanding Business Models And Designing a New Model
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Agenda
• Business Model Elements
• Review Your Business Model
• The Basis of Competition
• Defining a New Model
• Business Model Levers
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• Market • Competence
• Profit Formula
• Unique Selling Points
Customer Value
Proposition
Revenue Model
Cost Model
Target Market
Key Processes & Resources
Business Model Elements
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• Market • Competence
• Profit Formula
• Unique Selling Points
Customer Value
Proposition
Revenue Model
Cost Model
Target Market
Key Processes & Resources
Rules Norms Metrics
Business Model Elements
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Agenda
• Business Model Elements
• Review Your Business Model
• The Basis of Competition
• Defining a New Model
• Business Model Levers
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Customer Value Proposition
• Entry 1
• Entry 2
• ...
Analyse
Business
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Profit Formula
Revenue Model:
• Entry 1
• ...
Cost Model:
• Entry 1
• ...
Analyse
Business
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Core Competences
• Entry 1
• Entry 2
• ...
Analyse
Business
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Markets
• Entry 1
• Entry 2
• ...
Analyse
Business
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Agenda
• Business Model Elements
• Review Your Business Model
• The Basis of Competition
• Defining a New Model
• Business Model Levers
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Shifts in the Basis of Competition
Product Differentiation
Features & Performance
Quality & Reliability
Convenience
Cost (now a commodity)
Innovation
Product Innovation
Process Innovation
Business Model P
rod
uct
Matu
rity
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Agenda
• Business Model Elements
• Review Your Business Model
• The Basis of Competition
• Defining a New Model
• Business Model Levers
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Problem Solving Continuum
‘When knowledge is low, people make do with unstructured attempts to solve a problem.
As they gain more knowledge, they begin to recognize patterns and eventually to devise reliable rules to guide their problem-solving efforts. ’ [1]
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Defining a New Model
An Iterative Process:
• Discover Jobs to be Done
• Understand the problem space
– “What are you trying to get done”
– Not “What do you need?”
• Remember
– Functional Elements
– Social & Emotional Aspects
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Agenda
• Business Model Elements
• Review Your Business Model
• The Basis of Competition
• Defining a New Model
• Business Model Levers
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Business Elements
• Offering – Jobs to be Done
• Access – How to Acquire Offering
• Payment – What, When and How
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Sample Product Offering Levers
Type
Product
Service
Features
Specific
General
Custom
General
Custom
Breadth
Single
Bundle
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Sample Product Access Levers
Supply
Direct
Indirect
Support
Light
Heavy
Value
Instant
Delay
Purchase
Often
Rarely
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Sample Product Payment Levers
Form
Cash
Finance
Price
Fixed
Variable
Payer
Single
Multiple
Pay Per
Unit
Value
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Agenda
• Business Model Elements
• Review Your Business Model
• The Basis of Competition
• Defining a New Model
• Business Model Levers
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Summary: Business Model Design
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Summary: Business Model Design
Understand Business Models
Understand Problem Space
Assess Different Model Levers
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Questions
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References • [1] Johnson, M. W. (2010). Seizing the White Space. Harvard
Business Press.
• Henderson, Gavin (2011). Seizing the White Space Notes; http://mbastrategy.weebly.com/
• Wikipedia.org; http://en.wikipedia.org/wiki/Main_Page
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Back up Slides
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Sample Revenue Models 1
Affinity Club – Partner with Membership Associations
Bundling – Package Offerings
Cell Phone –Service Plans with Levels of Use
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Sample Revenue Models 2
Fractionalization – Partial Ownership with Full Benefits
Leasing – Making High Cost Products Accessible
Pay as you Go – Charge Metered According to Usage
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Sample Revenue Models 3
Printers – Low Cost Product High Margin Components
Product Service – Sell Service Performed not Product
Subscription – Fee for Access to Product or Service