Building the Business Model

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Building the Business Model

  1. 1. “Building th B i “B ildi the Business Model” M d l” i.e. – How to make $$$$ Dr Peter Beven Peter.Beven@qut.edu.au CRICOS No. 00213JQueensland University of Technology
  2. 2. Lets set the scene.. Ra university for the real world CRICOS No. 00213J
  3. 3. Capturing Opportunity – the K.I.S.S. Principle A novel Business Model to deliver your value proposition p Achieve Disruption ORyou WILL be replaced by someone smarter, quicker and better funded than you! R a university for the real world CRICOS No. 00213J
  4. 4. Value Proposition??Quality PriceMulti Dimensional Multi Dimensional Core Value Attributes (the non negotiable ‘must haves’) Peripheral Value Attributes (the ‘nice to haves’) Tangible (e.g product design)/ Intangible (e.g Brand) R a university for the real world CRICOS No. 00213J
  5. 5. The Value Curve Quality Attributes Price Attributes Ra university for the real world CRICOS No. 00213J
  6. 6. ING..example ING example Ra university for the real world CRICOS No. 00213J
  7. 7. Ra university for the real world CRICOS No. 00213J
  8. 8. Four Actions Framework Value Innovation: ADD new attributes that are wanted INCREASE attributes that are highly valued ELIMINATE attributes that are not wanted REDUCE Ra university for the real world CRICOS No. 00213J
  9. 9. The Value Chain - internal Ra university for the real world CRICOS No. 00213J
  10. 10. Dell s Dell’s Value ChainStrong reliance No t N stores, j t assembly plants just bl l ton partners.State of the artproductsI2 SCM. Suppliersnearby Strong focus on Online diagnostics, government, education, 24/7 customer Small batch, and business service, on-site help No inventory. build-to-order Paid before making R a university for the real world CRICOS No. 00213J
  11. 11. Apple s Apple’s value ChainState-of-the-St t f thart products;ease-of-use, Apple stores seamless integration In-house development and Community- manufacturing building. building Itunes R a university for the real world CRICOS No. 00213J
  12. 12. THE ‘K.I.S.S.’ FUNDAMENTALS Is it  sustainable? How is to be  cashed? h d? Internal  Competitive  advantage? Is there  differentiation? Reflected by the Is there  value? ‘Business Model’ Ra university for the real world CRICOS No. 00213J
  13. 13. Book Sellers Business ModelsProducts Books, Music, DVD’s, Books, music, DVD’s Electronics etc.Customers Consumers ConsumersDelivery Post / courier Customer walks inDifferentiation Broadest range, website Quality range, friendly & recommendations/ knowledgeable service ordering systemProfits High volume Higher prices R a university for the real world CRICOS No. 00213J
  14. 14. Borders More Recently Traditional Superstores WebsiteProducts Books, music, Books, music, Books, music, DVD’s DVD’s DVD’sCustomers Consumers Consumers ConsumersDeliveryD li Customer walks i C t lk in Customer walks i C t lk in Mail d M il order or i in- store pick-upDifferentiation Quality range, ?? ?? friendly & knowledgeable serviceProfits Higher prices ?? ?? R a university for the real world CRICOS No. 00213J
  15. 15. BUT....Didn’t Disrupt with the ‘new’ BM .. The result... R a university for the real world CRICOS No. 00213J
  16. 16. The Business Model EFFICIENCY VALUE Ra university for the real world CRICOS No. 00213J
  17. 17. Ra university for the real world CRICOS No. 00213J
  18. 18. Disruption V SustainingDisruptive iDi ti innovations are new ( b tit t ) ti (substitute)technologies– Delivery of music; Computer memory capacitySustaining innovations are improvements in thesame basic technology– Fuel economy; Computer memory capacity DISRUPTION ALWAYS WINS R a university for the real world CRICOS No. 00213J
  19. 19. Disruptive InnovationWho/what i diWh / h t is disrupted? t d?– Rivals, mainly (hopefully)– Consumption Cons mption process– Production process– Management processAttach the disruption to a customer problem R a university for the real world CRICOS No. 00213J
  20. 20. The Key Dynamics of Disruptive InnovationThe Tyranny of Success - Performance Oversupply • Existing technologies become “good enough” for most customers’ needs. • Different drivers emerge: > lower-order needs. > new needs. • Existing technology cannot satisfy the new drivers drivers. • New ‘disruptive’ technology emerges - “inferior” by traditional measures, but satisfies new drivers. R a university for the real world CRICOS No. 00213J
  21. 21. So is Apple a disruption model ??? YOU BET YA!!!! R a university for the real world CRICOS No. 00213J

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