Innovating Business Model of System Integrators- In Motion Weighing

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System Integrators need to think beyond supplying and installing their systems. They can substantially improve business results of their clients.

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Innovating Business Model of System Integrators- In Motion Weighing

  1. 1. Copyrights©2014CVMark.AllRightsReserved. Innovating Business Model In Motion Weighing Industry
  2. 2. Copyrights©2014CVMark.AllRightsReserved. Market Aggregate Material Production and Processing • Mining • Fertilizer • Coal • Stone Crusher • Cement • Farming • Ports • Municipality waste Material Processing Companies 1. Have a need to account weight of material as they are produced, processed, stored and moved at various places. 2. Since materials are moved on conveyors, there is a requirement to measure weight of material while in motion. 22-04-2014 2
  3. 3. Copyrights©2014CVMark.AllRightsReserved. In Motion Weighing, IMW Uses Load cells placed underneath conveyor and integrated with electronics to collect, transmit and report weight of material moving in conveyor 22-04-2014 3
  4. 4. Copyrights©2014CVMark.AllRightsReserved. Fierce Competition in IMW Industry • Since penetration of IMW solution has spread into more industries, the sophistication of technology has increased. • Most of the sophisticated solutions are owned by companies outside India. • In India, several of these technologies are available through their local agents or system integrators. No doubt, the industry is becoming fiercely competitive! 22-04-2014 4
  5. 5. Copyrights©2014CVMark.AllRightsReserved. Value Proposition Channels In Motion Weighing - Business Model (Old) Customer Segment 1 2 3 Like others, Satpal is an IMW system Integrator for a German Technology Company He offers IMW Solution to material producing companies He promotes his service through web, participates in tenders and once he wins a tender sends his engineers to install equipments 22-04-2014 5
  6. 6. Copyrights©2014CVMark.AllRightsReserved. Value Proposition Channels Revenue In Motion Weighing - Business Model (Old) Customer Segment 1 2 3 4 Satpal is paid for the equipment installed at the site of customers and he also receives recurring AMC fee for maintaining the equipment. 22-04-2014 6
  7. 7. Copyrights©2014CVMark.AllRightsReserved. Value Proposition Channels Revenue In Motion Weighing - Business Model (Old) Customer Segment 1 2 3 4 To deliver the Value Proposition, Satpal has a team of engineers and he has technology license from the German Tech Company Key Partners Key Resources Key Activities 5 6 7 22-04-2014 7
  8. 8. Copyrights©2014CVMark.AllRightsReserved. Value Proposition Channels Revenue In Motion Weighing - Business Model (Old) Customer Segment 1 2 3 4 Key Partners Key Resources Key Activities 5 6 7 Key Costs 8 Customer Relationship 9 22-04-2014 8Based on BM Canvas, Alex Osterwalder, ‘The Business Model Generation’
  9. 9. Copyrights©2014CVMark.AllRightsReserved. Value Proposition Channels Revenue In Motion Weighing - Business Model (Old) Customer Segment 1 2 3 4 Key Partners Key Resources Key Activities 5 6 7 Key Costs 8 Customer Relationship 9 22-04-2014 9
  10. 10. Copyrights©2014CVMark.AllRightsReserved. Value Proposition Channels Revenue In Motion Weighing - Business Model (Old) Customer Segment 1 2 3 4 Key Partners Key Resources Key Activities 5 6 7 Key Costs 8 Customer Relationship 9 Since almost every system integrator has the same business model and competition is ever more fierce, Satpal’s business is under severe threat. In fact, during last 3 years he lost significant market share. 22-04-2014 10
  11. 11. Copyrights©2014CVMark.AllRightsReserved. Patel- Another IMW System Integrator • A year back, else where in the western part of the country, Patel, a system integrator for a Canadian Company was in a similar situation. Competition has grown dramatically . Now almost all sorts of technologies are competing with each other. Supplying and installing IMW system has become a commodity service business. The situation of current economy is not helping either since the IMW system is expensive! But he thought differently!!! 22-04-2014 11
  12. 12. Copyrights©2014CVMark.AllRightsReserved. Value Proposition In Motion Weighing - Business Model (New) Customer Segment 1 2 Patel had heard enough about the power of information and IT. Rightly presented, operational data dramatically improves decision making ability of an organization Instead of selling only installation of IMW system, he positioned his business as Business Solution Provider, with emphasis on using S/W to improve , productivity and operational efficiency of the clients22-04-2014 12
  13. 13. Copyrights©2014CVMark.AllRightsReserved. Value Proposition Channels In Motion Weighing - Business Model (New) Customer Segment 1 2 3 He began promoting his solution through trade magazine, he started doing direct (consultative) selling presenting analytics, dash board and reports of IMW system as the main pitch of his offer. Through his s/w solution he was able to excite his clients who found a way to identify their operational losses and inefficiency. 22-04-2014 13
  14. 14. Copyrights©2014CVMark.AllRightsReserved. Value Proposition Channels In Motion Weighing - Business Model (New) Customer Segment 1 2 3 He further changed the value proposition by offering the IMW system on Lease or discounts, adding an incentive to clients who were postponing their CAPEX due to the overall uncertain economic situation. Revenue 4 Now he was able to charge the customer not just on physical system but also on productivity based recurring fee plus the regular support provided in software service 22-04-2014 14
  15. 15. Copyrights©2014CVMark.AllRightsReserved. Value Proposition Channels In Motion Weighing - Business Model (New) Customer Segment 1 2 3 In order to implement his new value proposition he recruited business analysts and partnered with a S/W company to fulfill the ongoing needs of his clients business. Revenue 4 Key Partners Key Resources Key Activities 5 6 7 22-04-2014 15
  16. 16. Copyrights©2014CVMark.AllRightsReserved. Value Proposition Channels In Motion Weighing - Business Model (New) Customer Segment 1 2 3 Revenue 4 Key Partners Key Resources Key Activities 5 6 7 Key Costs 8 Customer Relationship 9 22-04-2014 16
  17. 17. Copyrights©2014CVMark.AllRightsReserved. Value Proposition Channels In Motion Weighing - Business Model (New) Customer Segment 1 2 3 Revenue 4 Key Partners Key Resources Key Activities 5 6 7 Key Costs 8 Customer Relationship 9 22-04-2014 17
  18. 18. Copyrights©2014CVMark.AllRightsReserved. Value Proposition Channels In Motion Weighing - Business Model (New) Customer Segment 1 2 3 Revenue 4 Key Partners Key Resources Key Activities 5 6 7 Key Costs 8 Customer Relationship 9 Thus Patel Transformed his business from the pure play system integrator to a business productivity solution provider for material processing industry. He is thsus, directly influencing his clients business results. Knowing the amount of benefit his clients get from his team’s knowledge of client’s business, getting orders and a good price is no more an issue. His is now the fastest IMW business in India despite all uncertainty of general economy!!! 22-04-2014 18
  19. 19. Copyrights©2014CVMark.AllRightsReserved. The Difference that Makes the Difference Business Model Satpal Patel Value Proposition IMW Solution Business Solution Customer Need Weighing Operational Efficiency Market Access Tenders Direct Consultative Selling Delivery Field Installation Installation plus Ongoing Operational Reports (Advice) Revenue Material + Service charge Software Application & Support+ Material Resources Engineers Biz Analyst Engineers + SW Developers Cost Man + Material +Travel S/W Dev + Man + Material + Travel Positioning System Integrator Business Partner 22-04-2014 19
  20. 20. Copyrights©2014CVMark.AllRightsReserved. CVMark The Biz Design Studio Email: lolla@cvmark.com Ph: +91 94480 70081 22-04-2014 20

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