Transforming a Firm’s Business Model
for Performance Optimization
Yield
Time
Dr. Elijah Ezendu
FIMC, FCCM, FIIAN, FBDI, FA...
“Business Model is the logic behind value
generation”
- Linder
“Business Model is a way of creating and capturing
value wi...
“In all enterprises, it’s the business
model that deserves detailed
attention and understanding”
- Mitch Thrower, The Atte...
Steps for Transforming a Firm’s Business Model
Elijah Ezendu, Business Model
Business Model Analysis
This is the critical identification and
evaluation of a business model for
purpose of ascertaining...
Business stream is a schema that shows the five
layers in business development framework,
from business intent to business...
Business Stream
Elijah Ezendu, Business Model
Business Intent
Business intent is the description and
accentuation of a structured focus, highlighting
vision, mission, g...
Business Strategy
Business strategy represents clearly identified
feasible route for steering activities onto
attainment o...
Three Levels of Business Strategy
• Corporate Level Strategy
• Business Unit Level Strategy
• Functional/Operational Level...
Corporate Level Strategy
This comprises overall strategy elements for the firm.
Resolving issues pertaining to mix of busi...
Business Unit Level Strategy
This involves translation of the corporate level strategy into
suitable strategies for indivi...
Functional/ Operational Level Strategy
This involves development of strategies for
functional catchments such as productio...
Business Model is a blueprint pinpointing the
flow of articulated value from a firm to its
customers, and the dimensions o...
• Business model is a bridge providing appropriate
linkage between business strategy and business
process.
• Without a wel...
Business Model Canvas
Key Partners
Key Activities
Key Resources
Value
Propositions
Channels
Customer
Relationships
Custome...
Business Model Template
Elijah Ezendu, Business Model
Alliance
Networks
Coherence
Key Resources
Value
Propositions
Target
...
Alliance
Alliance is an agreement between firms for
achievement of defined goals and building
mutual interdependence while...
Types of Alliance
Alliances can exist between a firm and its suppliers, distributors,
competitors and non-competitors.
Som...
The Place of Alliance
Alliance provides opportunities for leveraging
external capabilities so as to evolve value,
especial...
Key Activities
This represents the major work concentration
of a firm in order to produce well-defined
value proposition. ...
Coherence
Coherence is a cultural thrust that provides
effective connectivity for all the components
of business model, fu...
Key Resources
These are the resources required for producing
a particular value proposition.
The four types of resources a...
Value Propositions
Value propositions represent the whole sets of
values which a firm lays out to its customers,
in order ...
Customer Relationships
This deals with identification and inventory of
the diversity of relationships which a firm
should ...
Goals of Customer Relationships
• Customer Information Services
• Customer Acquisition
• Customer Retention
• Cross-Sellin...
Influence
This is the active strength that affects a person’s
opinion, thereby inducing action in a
particular direction.
...
Types of Influence
• Social Influence
• Brand Influence
• Consumer Influence
• Religious Influence
• Economic Influence
• ...
Channels
Channels are paths through which a firm moves
its value proposition to target customers, by
means of designated s...
Target Customers
These are the particular set of customers that a
firm intends to be offering the right value
proposition ...
Cost Structure
The cost structure of a business model highlights
profiles of incurable costs and the ratio of
fixed costs ...
Types of Cost Structures
• Cost Leadership
• Value Maximization
• Integrated Cost Leadership & Value
Maximization
Revenue Streams
These are applicable means of obtaining
revenue from customers as a measurable and
deserved return for val...
Testing a Business Model
Elijah Ezendu, Business Model
Dr Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise
in Interim Management, ...
Thank You
Upcoming SlideShare
Loading in …5
×

Transforming a Firm’s Business Model for Performance Optimization

7,049 views

Published on

How to transform a firm's business model for upping performance.

Published in: Education, Business, Technology

Transforming a Firm’s Business Model for Performance Optimization

  1. 1. Transforming a Firm’s Business Model for Performance Optimization Yield Time Dr. Elijah Ezendu FIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM, PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr
  2. 2. “Business Model is the logic behind value generation” - Linder “Business Model is a way of creating and capturing value within a market network of producers, suppliers and consumers” - Bill Vorley and Mark Lundy “Business Model is nothing else than a representation of how an organisation makes or intend to make money” - Alex Osterwalder
  3. 3. “In all enterprises, it’s the business model that deserves detailed attention and understanding” - Mitch Thrower, The Attention Deficit Workplace: Winning Strategies for Success in Today’s Fast-Paced Business Environment.
  4. 4. Steps for Transforming a Firm’s Business Model Elijah Ezendu, Business Model
  5. 5. Business Model Analysis This is the critical identification and evaluation of a business model for purpose of ascertaining its internal alignments to operational effectiveness and external alignments to efficiency of the total business stream.
  6. 6. Business stream is a schema that shows the five layers in business development framework, from business intent to business performance.
  7. 7. Business Stream Elijah Ezendu, Business Model
  8. 8. Business Intent Business intent is the description and accentuation of a structured focus, highlighting vision, mission, goals and objectives, while symbolizing direction and destiny.
  9. 9. Business Strategy Business strategy represents clearly identified feasible route for steering activities onto attainment of goals and objectives. There are three levels of business strategy.
  10. 10. Three Levels of Business Strategy • Corporate Level Strategy • Business Unit Level Strategy • Functional/Operational Level Strategy
  11. 11. Corporate Level Strategy This comprises overall strategy elements for the firm. Resolving issues pertaining to mix of businesses and means for coordination and integration of individual unit strategies. It’s concerned with the following:  Managing Activities and Business Interrelationships.  Corporate Responsibilities.  Management Practices.  Competitive Contact.
  12. 12. Business Unit Level Strategy This involves translation of the corporate level strategy into suitable strategies for individual business divisions or portfolios, required to develop and sustain competitive advantage for products or services of the firm. This is concerned with the following:  Influencing the layout of competition by means of action such as vertical integration.  Positioning the firm’s business against competitors.  Modifying actions to cope with changes in demand, supply, regulations and technology.  Developing useful partnerships with customers and other business units.
  13. 13. Functional/ Operational Level Strategy This involves development of strategies for functional catchments such as production, finance, human resource, research, logistics, business development and materials management. It’s concerned with implementation of the strategic plans established at corporate and business unit levels in order to ensure functional silos partnership in organisational leadership.
  14. 14. Business Model is a blueprint pinpointing the flow of articulated value from a firm to its customers, and the dimensions of returns to the firm.
  15. 15. • Business model is a bridge providing appropriate linkage between business strategy and business process. • Without a well-structured business model in place, there would be a disconnect between business strategy and business process. • Business Model is the drawing board for designing Business Performance. • Business Model is the heart of Business Success. Characteristics of Business Model
  16. 16. Business Model Canvas Key Partners Key Activities Key Resources Value Propositions Channels Customer Relationships Customer Segments Cost Structure Revenue Streams Alexander Osterwalder & Yves Pigneur, Business Model Generation
  17. 17. Business Model Template Elijah Ezendu, Business Model Alliance Networks Coherence Key Resources Value Propositions Target Customers Cost Structure Revenue Streams Key Activities Influence Channels Customer Relationships
  18. 18. Alliance Alliance is an agreement between firms for achievement of defined goals and building mutual interdependence while remaining separate entities. The two alliance structures are as follows: • Transient Alliance • Strategic Alliance
  19. 19. Types of Alliance Alliances can exist between a firm and its suppliers, distributors, competitors and non-competitors. Some types of alliances are as stated below: • Preferred Suppliers • Co-Marketing • Licensing • Joint Production • Coopetition • Minority Investments • Multi-Partner Consortia • Joint Research and Development • Outsourcing • Equity Joint Venture
  20. 20. The Place of Alliance Alliance provides opportunities for leveraging external capabilities so as to evolve value, especially where outright acquisition may be unnecessary or premature.
  21. 21. Key Activities This represents the major work concentration of a firm in order to produce well-defined value proposition. Ascertainment of key activities gives room for mapping aggregate work requirements and ancillary projections.
  22. 22. Coherence Coherence is a cultural thrust that provides effective connectivity for all the components of business model, fusing them together in characteristic intimacies, and facilitating uniform drive onto specified goals and objectives.
  23. 23. Key Resources These are the resources required for producing a particular value proposition. The four types of resources are as follows: • Material Resources • Physical Resources • Financial Resources • Intellectual Resources
  24. 24. Value Propositions Value propositions represent the whole sets of values which a firm lays out to its customers, in order for them to find consummate worth therein. Value Propositions stand as the pivot of business intent. Value Propositions give room for development of interdependencies between a firm and its customers.
  25. 25. Customer Relationships This deals with identification and inventory of the diversity of relationships which a firm should nurture with its customers. Where the customers are segmented, relationships may vary from one segment to another. If the customers are not segmented, then the ensuing relationships would be undifferentiated.
  26. 26. Goals of Customer Relationships • Customer Information Services • Customer Acquisition • Customer Retention • Cross-Selling • Up-Selling • Price Optimization • Continuous Value Propositions Realignment
  27. 27. Influence This is the active strength that affects a person’s opinion, thereby inducing action in a particular direction. It provides productive link to customers. It’s operability depends on pedestals of acceptance and belief.
  28. 28. Types of Influence • Social Influence • Brand Influence • Consumer Influence • Religious Influence • Economic Influence • Environmental Influence • Influence Predicated on National Pride
  29. 29. Channels Channels are paths through which a firm moves its value proposition to target customers, by means of designated sales points, distributors, and effective communication.
  30. 30. Target Customers These are the particular set of customers that a firm intends to be offering the right value proposition for their identified needs or wants. Customers can be segmented, aggregated or selected with specificity in the form of a niche.
  31. 31. Cost Structure The cost structure of a business model highlights profiles of incurable costs and the ratio of fixed costs to variable costs. It facilitates identification of cost-containment method that would be deployed. It allows for identification of cost management techniques to mitigate effects of identified cost drivers.
  32. 32. Types of Cost Structures • Cost Leadership • Value Maximization • Integrated Cost Leadership & Value Maximization
  33. 33. Revenue Streams These are applicable means of obtaining revenue from customers as a measurable and deserved return for values delivered.
  34. 34. Testing a Business Model Elijah Ezendu, Business Model
  35. 35. Dr Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise in Interim Management, Strategy, Competitive Intelligence, Transformation, Restructuring, Turnaround Management, Business Development, Marketing, Project & Cost Management, Leadership, HR, CSR, e- Business & Software Architecture. He had functioned as Founder, Initiative for Sustainable Business Equity; Chairman of Board, Charisma Broadcast Film Academy; Group Chief Operating Officer, Idova Group; CEO, Rubiini (UAE); Special Advisor, RTEAN; Director, MMNA Investments; Chair, Int’l Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting; Chairman (Certification & Training), Coordinator (Board of Fellows), Lead Assessor & Governing Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Lead Consultant/ Partner, JK Michaels; Turnaround Project Director, Consolidated Business Holdings Limited; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Executive Director (Various Roles), Fortuna, Gambia & Malta; Chief Advisor/ Partner, D & E; Vice Chairman of Board, Refined Shipping; Director of Programmes & Governing Council Member, Institute of Business Development, Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria; Country Manager (Nigeria) & Adjunct Faculty (MBA Programme), Regent Business School, South Africa; Adjunct Faculty (MBA Programme), Ladoke Akintola University of Technology; Editor-in-Chief, Cost Management Journal; Council Member, Institute of Internal Auditors of Nigeria; Member, Board of Directors (Several Organizations). He holds Doctoral Degree in Management, Master of Business Administration and Fellow of Professional Institutes in North America, UK & Nigeria. He is Innovator of Corporate Investment Structure Based on Financials and Intangibles, for valuation highlighting intangible contributions of host communities and ecological environment: A model celebrated globally as remedy for unmitigated depreciation of ecological capital and developmental deprivation of host communities. He had served as Examiner to Professional Institutes and Universities. He had been a member of Guild of Soundtrack Producers of Nigeria. He's an author and extensively featured speaker.
  36. 36. Thank You

×