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Business Value Networks<br />By: EamonnMcCormick<br />Of Dynamic Networks<br />emccormick@innovationdiscoverycenter.com<br...
B2B & B2C Customers feel beleagured …<br />BVN Business Model<br />B2B & B2C Customers feel they lack privacy in their com...
Customers feel beleagured …<br />BVN Business Model<br />Despite more information availability, B2B & B2C customers are st...
And, the power is shifting to the customer …<br />BVN Business Model<br />The electronic medium holds out the promise of s...
The BVN Defined<br />BVN Business Model<br />The BVN is a network of entities dedicated to serving the needs of customers ...
High Level Process Flow<br />BVN Concept Review<br />Customer<br />Market Manager<br />Brokers Solution<br />Provides<br /...
How does this happen?<br />BVN Business Model<br />The Network Manager integrates service providers into an efficient and ...
Promising Markets<br />Many Current Market Inefficiencies Are Eliminated by Business Value Networks<br />Cost of <br />Cus...
Example Infrastructure - Dynamic Communications Co<br />Customer<br />Comm<br />Networks<br />Sales <br />Networks<br />Te...
Example Infrastructure - New Energy Co<br />Customer<br />Energy<br />Networks<br />Sales <br />Networks<br />Electricity ...
Example Infrastructure - Financial Networks Co<br />Customer<br /><ul><li>Supplier
Networks
Sales
Networks
Mortgage Cos.
Online Sales</li></ul>Dynamic<br />Financial<br />Networks<br />(FISP)<br /><ul><li>Insurance Cos.
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Business Value Networks V1

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The BVN is a network of entities dedicated to serving the needs of customers and made up of:
Market Managers are customer advocates that broker solutions on behalf of customers, and proactively manage customer lifecycles within and across industries.
Network Managers will create the enabling electronic infrastructure and will assemble webs of service providers by industry.

From the network managers’ network, marketing managers configure their own sub-networks of service providers, within specific industries, to the needs of their customer base and brand.

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Transcript of "Business Value Networks V1"

  1. 1. Business Value Networks<br />By: EamonnMcCormick<br />Of Dynamic Networks<br />emccormick@innovationdiscoverycenter.com<br />310-382-0453<br />
  2. 2. B2B & B2C Customers feel beleagured …<br />BVN Business Model<br />B2B & B2C Customers feel they lack privacy in their commercial dealings and object to the sale of information, (82% in recent GVU survey).<br />B2B & B2C Customers are bombarded with information every day - the average consumer receives 3,000 marketing messages daily.<br />Marketers are antagonizing B2B & B2C customers with unsolicited marketing (e.g., AOL members complain about sold phone lists).<br />
  3. 3. Customers feel beleagured …<br />BVN Business Model<br />Despite more information availability, B2B & B2C customers are still vulnerable to consumer rip-off due to assymetric information, especially in more complicated sales.<br />Despite the internet, it takes too much effort to find the best deal “needle in a haystack”, (search engines are archaic).<br />Despite the best efforts of the marketers,B2B & B2C customers consider even established brands as commodities and do not believe the brands have the best interests of the customer at heart.<br />
  4. 4. And, the power is shifting to the customer …<br />BVN Business Model<br />The electronic medium holds out the promise of shifting power to the B2B & B2C consumer and those who are the trusted consumer advocates.<br />The Business Value Network (BVN)makes that promise a reality.<br />But what is a BVN?<br />
  5. 5. The BVN Defined<br />BVN Business Model<br />The BVN is a network of entities dedicated to serving the needs of customers and made up of:<br />Market Managers are customer advocates that broker solutions on behalf of customers, and proactively manage customer lifecycles within and across industries. <br />Network Managers will create the enabling electronic infrastructure and will assemble webs of service providers by industry. <br />From the network managers’ network, marketing managers configure their own sub-networks of service providers, within specific industries, to the needs of their customer base and brand.<br />
  6. 6. High Level Process Flow<br />BVN Concept Review<br />Customer<br />Market Manager<br />Brokers Solution<br />Provides<br />Needs<br />Solution<br />Buys a package<br />of services<br />Service <br />Provider<br />Determine products<br />and service to meet <br />customer need,<br />uses trading<br />to fulfill the needs<br />& coordinates<br />solution<br />delivery<br />Network<br />Service <br />Provider<br />Service <br />Provider<br />Configure providers to <br />fulfill customer solution<br />
  7. 7. How does this happen?<br />BVN Business Model<br />The Network Manager integrates service providers into an efficient and effective customer solution network.<br />The Marketing Manager act as customer relationship manager and Solution Broker by providing an environment in which they can dynamically configure products and services for market manager customers, therefore providing optimal customer solutions.<br />It provides greater flexibility and service to customers at a lower cost.<br />
  8. 8. Promising Markets<br />Many Current Market Inefficiencies Are Eliminated by Business Value Networks<br />Cost of <br />Customized<br />Solutions<br />(Customer)<br />Cost of finding solutions<br />customized to the customers<br />needs.<br />High Customer<br />Acquisition Costs<br />(Service Provider)<br />Cost of finding customers<br />as well the cost of delivering <br />information about products<br />Varying Customer<br />Profitability (Customer)<br />Where customer profitability<br />varies widely, some customers<br />inevitably subsidize others.<br />Customer<br />Solution<br />High Search<br />Costs (Customer)<br />Time and cost of finding<br /> service providers and<br /> comparing prices<br />Administration<br />Costs (Service Provider)<br />Supply chain administration<br />costs are high due to <br />inefficient service<br />provider billing, A/R, A/P<br />and cash management.<br />Management<br />Configuration<br />Solution<br />Trading<br /> CUSTOMER <br />Settlement<br />Solution<br />Solution<br />Delivery<br />Assembly<br />Pricing<br />Distortions (Customer)<br />Difficult to find market<br />price for a specific product<br />or service due to poor or<br />costly information.<br />Coordination<br />Costs (Service Provider)<br />Product and solution<br />delivery costs are high due <br />to poor or inefficient<br />coordination.<br />Evaluation<br />Costs (Customer)<br />Difficult to evaluate <br />alternatives because products<br />defined based on physical<br />characteristics instead of<br />specifications.<br />Delivery<br />Costs (Service Provider)<br />Digitally delivered products<br />and services don’t require<br />delivery costs physical<br />products do.<br />
  9. 9. Example Infrastructure - Dynamic Communications Co<br />Customer<br />Comm<br />Networks<br />Sales <br />Networks<br />Telcos<br />Online Sales<br />Dynamic <br />Comm Co<br />(FISP)<br />Cable Cos.<br />Stores<br />Internet Co.<br />Financial Institutions<br />Alternative Eomms<br />Affinity Groups<br />Other Util Provider<br />(Elec & Gas)<br />Maintenance Providers<br />Merchandise Provider<br />Related Services Networks<br />
  10. 10. Example Infrastructure - New Energy Co<br />Customer<br />Energy<br />Networks<br />Sales <br />Networks<br />Electricity Generation<br />Online Sales<br />New <br />Energy Co<br />(FISP)<br />Oil and Gas<br />Stores<br />Power Exchange<br />Financial Institutions<br />Alternative Energy<br />Affinity Groups<br />Other Util Provider<br />(Telecom & Cable)<br />Maintenance Providers<br />Merchandise Provider<br />Related Services Networks<br />
  11. 11. Example Infrastructure - Financial Networks Co<br />Customer<br /><ul><li>Supplier
  12. 12. Networks
  13. 13. Sales
  14. 14. Networks
  15. 15. Mortgage Cos.
  16. 16. Online Sales</li></ul>Dynamic<br />Financial<br />Networks<br />(FISP)<br /><ul><li>Insurance Cos.
  17. 17. Stores
  18. 18. Banks
  19. 19. Financial Institutions
  20. 20. Financial Svc Cos.
  21. 21. Affinity Groups
  22. 22. Leasing Cos.
  23. 23. On-line Transaction Co.
  24. 24. Merchandise Provider
  25. 25. Related Services Networks</li></li></ul><li>Business Value Network Application Architecture<br />External Environment - Customers<br />Customer<br />Customer<br />Customer<br />Customer<br />Customer<br />Customer<br />Customer<br />Customer<br />Customer<br />Customer<br />Web Browser Application<br />Telephony Communications Application<br />Functional ISP External Interfaces - Customers<br />Customer Web Application<br />Telephony Interface Application<br />External Message Bus<br />BVN (Vitria)<br />Functional<br />ISP Msg Bus <br />Internal Message Bus<br />Business Application Environment <br />Solution<br />Trader<br />Solution / Event<br />Solution Settler<br />Network Party<br />Billing<br />General Ledger<br />Accounts Payable /<br />Customer<br />Quality /<br />Super Marketing<br />Data Warehouse<br />Message<br />User Logon /<br />Configurator<br />Coordinator<br />Manager<br />Accounts<br />Manager<br />Dispute Manager<br />Network Customer<br />Logging<br />Logoff Agent<br />Receivable<br />Manager<br />Functional ISP External Interfaces - Internal Network Participants<br />BVN (Vitria)<br />Non Standard Interface Layer<br />Int. Network Participant Web Application<br />Functional<br />ISP Msg Bus<br />External Env - Int. Network Participants<br />Web Browser Application<br />External App (Non Standard Interface)<br />External App using Standard<br />Interface<br />Super<br />Customer<br />Super<br />Customer<br />Super<br />Customer<br />Marketing<br />Referral<br />Marketing<br />Referral<br />Marketing<br />Referral<br />Service<br />Service<br />Service<br />Network<br />Provider<br />Network<br />Provider<br />Network<br />Provider<br />Marketing<br />Marketing<br />Marketing<br />Provider<br />Provider<br />Provider<br />Solution<br />Solution<br />Solution<br />Network<br />Network<br />Network<br />Network<br />Network<br />Network<br />Broker<br />Broker<br />Broker<br />Model:<br />Manager<br />Manager<br />Manager<br />Vision Technology Architecture<br />Generic Diagram<br />BVN Application Architecture<br />Last Updated: 9/1/99 03:23<br />
  26. 26. Selling to market managers...<br />Marketing managers will be able to sell product they don’t own<br />The marketing manager retains the customer for all products, and is in a position to “own” the customer across multiple industries.<br />The marketing manager concept extends their brand and protects their business from dis-intermediation and commoditization - and, likely increase in share valuations<br />Their site becomes e-commerce with little cost<br />Increases their customer contact<br />
  27. 27. Attracting Service Providers<br />BVN Business Model<br />Service providers will have access to a huge market of customers at low cost, providing them with a steady flow of potential customers.<br />Service providers will lower their cost of customer acquisition.<br />Service providers will contact customers efficiently and effectively through the targeted marketing services offered by the BVN.<br />The network manager will provide feedback to the service providers that will help them meet customer needs more effectively.<br />Thus the BVN will create advantages for all the players in the network.<br />
  28. 28. BVN - Both Evolution & Revolution<br />BVN Business Model<br />Implementation currently does not exist; no true customer B2B or B2C advocates; auction models have not matured into solutions, fulfillment and customer management.<br />Technology only now maturing.<br />Natural evolution for Portals, auction houses and leading edge institutions (must become market manager that broker solutions, network manager that provides infrastructure or risk commoditization!).<br />Revolution from traditional practitioners.<br />Evolution for internet savvy.<br />
  29. 29. Concluding Thoughts...<br />The internet is under-hyped<br />Scale based competition <br />BVNs will fundamentally change how the economy functions<br />Three roles - where do you want/have to play?<br />Customer relationship/owner (market manager)<br />Infrastructure (network manager)<br />Service provider<br />Control the wave or be controlled?<br />
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