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1. Reconfiguring Value Delivery Models-- Volvo
Presented by GROUP F
Nanaries Ahmed – Mohamed Morsy – Mahmoud Gafaar - Khaled
Fouad – Seif el din hussein

2. Automotive Value Chain Issue
• Many Automakers are B2B companies. They produce cars and sell
them to dealers.
• Dealers are costly and above all they own customer relationship.
• Volvo realized that they have network of 23,000 dealers in 100
countries, which dealers manage all sales and after sales service while
Volvo itself has low or no direct knowledge of end-consumer
• Also they realized that cars sold as single products became obsolete
however, they are sold as transportation solution packed with IT &
Communication technologies
 “Opportunity and Threat of rapid digital revolution”
• “How to develop more direct relationship with end
consumer without disrupting its dealers relationship?”

3. Reinvent business model
• Transformation of business model from B2B to B2B2C.
 Reconfiguring the value chain to deliver at a substantial efficiency advantage
against competitors
• Volvo Provided services directly to end consumer without
competing with dealers, in fact, services reinforced the
attraction to a Volvo cars.
 Moving from products to value-added services,
• To evolve this B2B2C Model they relied heavily on digital
technologies- Mobility, Social Media, Analytics and Smart
embedded devices.
 Creating new digital businesses or services, either to augment the current
business model or to replace it

4. Reinvent business model
• Adding “Push To Talk Button” to develop connected cars
concept.
• Adding “ Volvo On Call” roadside assistance service. Where
driver of new Volvo car can push button to talk directly to an
operator. Also they made it available on mobile apps to
serve customers owning an older car.
 Making the transition from multinational to truly global operations
• “On Call Service” included for several years after purchasing
a new Volvo then its renewable, for a fee
 Moving into brand-new markets.

5. 5 Archetypes Of Business
Model Invention
• 1st Reinventing industries, involves reshaping of an industry structure.
• 2nd Substituting products or services, when core product or service is
directly substitutable to a new digital format
• 3rd Creating new digital businesses, creation of new product or services
that generates revenue.
• 4th Reconfiguring value delivery model, means recombining products,
services and data to change the way a firm plays in the value chain
• 5th Rethinking Value Proposition, using new digital capabilities to target
unmet needs for existing or new customers