A business model is a company's core strategy for profitably doing business. Models generally include information like products or services the business plans to sell, target markets, and any anticipated expenses. The two levers of a business model are pricing and costs.
1) The document provides data on production rates, setup costs, machine times, and failure probabilities for multiple production problems. It asks the reader to calculate economic order quantities, production rates, total costs, and other metrics.
2) Specific calculations include determining EOQ, production rates given changes in efficiency or capacity, optimal production setup based on costs, and expected annual maintenance costs given failure probabilities.
3) Multiple choice questions are included at the end for practice.
Wholesalers are intermediary firms that purchase goods in bulk from manufacturers and sell them in smaller quantities to retailers. There are three main types of wholesalers: merchant wholesalers, who take ownership of goods and store them; brokers and agents, who facilitate sales but do not take ownership; and manufacturers' sales branches, which distribute their own products. Wholesalers provide benefits like expanding markets, cash flow for manufacturers, and moderating supply and demand fluctuations. New technologies, global competition, and retail consolidation are forcing wholesalers to modify their practices to remain competitive in the changing market.
1) The document discusses information systems and supply chain management in the retail industry. It focuses on how retailers and vendors collaborate through information sharing and strategic partnerships to ensure the right inventory is available for customers.
2) Key aspects covered include benefits of supply chain collaboration like improved product availability and higher returns on investment. Technologies like RFID and EDI are transforming information flows to create more efficient push and pull supply chain models.
3) Advanced approaches like CPFR involve sharing proprietary strategic data to optimize forecasting, replenishment and inventory levels across the retail supply chain. When implemented successfully, these systems and partnerships can provide retailers with a significant competitive advantage.
The document lists various tools and techniques used in business process reengineering (BPR), including purpose analysis, competitive comparison, process quality management, strategic capacity analysis, critical success factors analysis, change management techniques, process mapping, waste analysis, ownership analysis, benchmarking, product lifecycle analysis, Pareto analysis, segmentation, input/process/output diagrams, control systems design, measures of performance design, culture development, postponement analysis, impact/ease analysis, risk analysis, simulation, and several other techniques. Many of these techniques are taught in detail in training courses on BPR and related topics. However, innovative lateral thinking is also needed to achieve breakthrough improvements rather than just making current processes more efficient.
This presentation explains about the Operations Management concept Reorder point, different cases with examples, fixed order interval model, single period model etc.
Growth strategies in Strategic ManagementZeba Rukhsar
This document discusses various growth strategies that organizations can pursue, as presented by Zeba Rukhsar of Utkal University. It describes internal growth strategies that rely on using existing resources to increase production, employees, sales and develop new products. It also discusses concentration strategies that focus on a specific technology, product or market. The document outlines different types of diversification strategies, such as conglomerate diversification into unrelated businesses. It provides examples of vertical integration strategies like backward integration through acquiring suppliers, and forward integration by acquiring distributors. The benefits of vertical integration strategies are also highlighted.
1) The document provides data on production rates, setup costs, machine times, and failure probabilities for multiple production problems. It asks the reader to calculate economic order quantities, production rates, total costs, and other metrics.
2) Specific calculations include determining EOQ, production rates given changes in efficiency or capacity, optimal production setup based on costs, and expected annual maintenance costs given failure probabilities.
3) Multiple choice questions are included at the end for practice.
Wholesalers are intermediary firms that purchase goods in bulk from manufacturers and sell them in smaller quantities to retailers. There are three main types of wholesalers: merchant wholesalers, who take ownership of goods and store them; brokers and agents, who facilitate sales but do not take ownership; and manufacturers' sales branches, which distribute their own products. Wholesalers provide benefits like expanding markets, cash flow for manufacturers, and moderating supply and demand fluctuations. New technologies, global competition, and retail consolidation are forcing wholesalers to modify their practices to remain competitive in the changing market.
1) The document discusses information systems and supply chain management in the retail industry. It focuses on how retailers and vendors collaborate through information sharing and strategic partnerships to ensure the right inventory is available for customers.
2) Key aspects covered include benefits of supply chain collaboration like improved product availability and higher returns on investment. Technologies like RFID and EDI are transforming information flows to create more efficient push and pull supply chain models.
3) Advanced approaches like CPFR involve sharing proprietary strategic data to optimize forecasting, replenishment and inventory levels across the retail supply chain. When implemented successfully, these systems and partnerships can provide retailers with a significant competitive advantage.
The document lists various tools and techniques used in business process reengineering (BPR), including purpose analysis, competitive comparison, process quality management, strategic capacity analysis, critical success factors analysis, change management techniques, process mapping, waste analysis, ownership analysis, benchmarking, product lifecycle analysis, Pareto analysis, segmentation, input/process/output diagrams, control systems design, measures of performance design, culture development, postponement analysis, impact/ease analysis, risk analysis, simulation, and several other techniques. Many of these techniques are taught in detail in training courses on BPR and related topics. However, innovative lateral thinking is also needed to achieve breakthrough improvements rather than just making current processes more efficient.
This presentation explains about the Operations Management concept Reorder point, different cases with examples, fixed order interval model, single period model etc.
Growth strategies in Strategic ManagementZeba Rukhsar
This document discusses various growth strategies that organizations can pursue, as presented by Zeba Rukhsar of Utkal University. It describes internal growth strategies that rely on using existing resources to increase production, employees, sales and develop new products. It also discusses concentration strategies that focus on a specific technology, product or market. The document outlines different types of diversification strategies, such as conglomerate diversification into unrelated businesses. It provides examples of vertical integration strategies like backward integration through acquiring suppliers, and forward integration by acquiring distributors. The benefits of vertical integration strategies are also highlighted.
This document provides an introduction to operations management. It defines key terms like production, productivity, and efficiency. It outlines common operation management responsibilities like quality management, process design, and supply chain management. It also discusses different production systems like job shop production, batch production, mass production, and continuous production. The document aims to introduce readers to the basic concepts and functions of operations management.
The document discusses various components of strategy implementation including organization structure, changing structures and processes, corporate culture, and strategy evaluation. It provides an overview of different organization structures that can be used for strategy implementation such as entrepreneurial, functional, divisional, SBU, matrix, network, cellular, and modular structures. It also discusses Mintzberg's 5Ps of strategy including plan, ploy, pattern, position, and perspective. The McKinsey 7S framework is introduced as a tool to analyze how well an organization is positioned to achieve its objectives.
The document discusses key concepts in operations management (OM) such as managing production of goods and services, the difference between OM and production management, the need for OM, major functions of OM, and examples of OM in companies like PepsiCo, Toyota, and others. It explains that OM aims to conduct all organizational operations efficiently and effectively through functions like procurement, quality management, inventory control, and more. Toyota is highlighted for its use of just-in-time production and flexible operations techniques to minimize costs and adapt to changing demand through efficient OM.
This presentation provides an overview of strategic management. It defines strategy and discusses the different levels of strategy - corporate, business, and functional. It then defines strategic management as the set of management decisions and actions that determine long-term performance, including environmental scanning, strategy formulation, implementation, and evaluation. The presentation outlines the four main steps in strategic management: 1) developing a strategic intent through vision, mission, and objectives, 2) analyzing external and internal environments to formulate strategy, 3) implementing strategies opertationally and changing organizational structure and systems, and 4) evaluating strategy and taking corrective actions.
Trends & Challenges of Operation Management by Asikur Rahman (Operation manag...Asikur Rahman
Operation management transforms inputs into goods and services that add value for customers. Several trends impact operation management, including increasing productivity through more efficient processes. Continuous improvement aims to constantly evaluate and improve products, services, and processes. To be competitive globally, operations must be strategically aligned to serve customers through low costs, high quality, fast delivery, flexibility, and rapid new product introduction. Technological changes can increase efficiency and output without increasing inputs, helping operations reduce costs, improve delivery, standardize quality, and customize to add value for customers. Managers must also consider environmental, ethical, and diversity issues in their decisions and address pollution, waste, social responsibility, and business ethics beyond profit.
Operations management involves planning, organizing, and controlling the processes that produce and deliver a company's goods and services. It includes activities like managing resources, designing production processes, and ensuring quality. Operations management aims to reduce costs, increase revenue through customer satisfaction, optimize resource usage, and drive innovation. It transforms various inputs like materials, money, and labor into outputs in the form of goods and services.
This document provides an overview of basic concepts in retail management, covering pricing strategies, store layouts, retail location, customer service, merchandise planning, branding, and advertising/sales promotion. It discusses various pricing strategies a retailer can use including market skimming, price bundling, leader pricing, and everyday low pricing. It describes common store layouts like grid, loop, and freeform. Key factors in retail location selection are also outlined. The roles of branding and various brand types are summarized. Lastly, it gives examples of advertising methods and sales promotion tools.
The document discusses retail brand management and private label branding strategies. It begins with definitions of branding and retail branding. It then covers the growth of own/private labels and various typologies of retail brands including generics, counterbrands, copycat brands, and house brands. The document also discusses brand development strategies, the retail value chain, managing brand equity, developing brand loyalty, and key issues regarding lookalike brands.
Strategies that strongly position the company against competitor and give the company strongest possible strategic advantage.
Competitive Strategies helps in:
Building profitable customer relationships
Gaining competitive advantage
Analyzing their competitors
What is product development and its process?ONE BCG
Product Development is the total process that takes a service or a product from conception to market. It includes a series of steps like Conceptualization, design, development, etc.
This document provides an introduction to family owned businesses. It discusses that family owned businesses face unique challenges due to the overlap between the family and business systems. The top three challenges for family businesses are succession planning, separating the roles of owner and manager, and a lack of formal structures and processes. The document emphasizes that as family businesses grow, implementing more structures and processes is important for long-term success and smooth leadership transitions between generations.
The document discusses various strategic planning concepts including strategic intent, vision, mission, business definition, goals, objectives, and critical success factors. Strategic intent refers to the long-term purpose of an organization. Vision describes what the organization would ultimately like to become. Mission answers questions about the organization's purpose and reason for existence. Business definition outlines the customer groups, functions, and technologies that define a company. Goals and objectives help operationalize the vision and mission, with objectives being more specific and measurable. Critical success factors are the key elements necessary for success in a given industry.
The document discusses aggregate planning, which involves translating demand forecasts into production levels over a fixed horizon. It seeks to balance conflicting objectives like reacting quickly to demand changes versus maintaining workforce stability. Different aggregate units and planning approaches are considered, along with associated costs like inventory holding, hiring/firing, and production levels. Two example strategies - chasing demand or keeping workforce constant - are evaluated based on their total costs. Mixed strategies combining these approaches are also proposed to further optimize the planning process.
The document discusses different types of entrepreneurial ventures and the entrepreneurs suited for each. It categorizes ventures as revolutionary, niche, propagators of new technology, hustle/speculative deals ventures. For each type it provides the characteristics, examples, competencies and skills required of entrepreneurs pursuing each type of venture. It also provides sample exam questions related to understanding different types of entrepreneurs and competencies needed.
The document provides guidance on key elements of an effective executive summary for a business plan. An executive summary should be 1-2 pages and excite the reader about the market opportunity and unique features of the business to address that opportunity. It should demonstrate the business has researched a growing market of at least 10% annually that is substantial relative to the proposed investment. The business strategy, management team, financial projections, and overall chance of success should also be realistically evaluated.
This document discusses aggregate production planning. It defines aggregate production planning as a planning exercise done at an aggregate level to translate demand forecasts into production and capacity levels over a fixed horizon. The document provides an example plan from a garment manufacturer. It discusses why production planning is necessary to address demand and capacity fluctuations. Different planning strategies like level, chase, and mixed strategies are described. The document also covers production scheduling, its objectives and functions in allocating resources and meeting delivery dates.
The Concept of Corporate Entrepreneurship - IntrapreneurshipGaurav Singh Bisen
Presentation on Corporate Entrepreneurship, its strategies. Intrapreneurship & Leaders of such culture in market. Case Study of Google and its successful products and innovations.
Strategy implementation involves mobilizing employees and managers to execute organizational strategies through various activities. These include developing strategic objectives and policies, allocating resources, managing conflicts that may arise, restructuring organizational structures as needed, and developing incentive systems to align employee performance with strategic goals. Effective strategy implementation requires coordination across different levels of the organization and managing resistance to change.
The document discusses business models and their key components. It introduces the 9 building blocks of a business model: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. Each block is described in 1-2 paragraphs. Customer segments refer to the different groups an organization aims to reach. Value propositions are the products and services that create value for each customer segment. Channels are how the value propositions are delivered to customers. Customer relationships are the types of relationships established with each segment.
A 2 minute overview of the Business Model Canvas, a tool for visionaries, game changers, and challengers. This method from the bestselling management book Business Model Generation is applied in leading organizations and start-ups worldwide.
This document provides an introduction to operations management. It defines key terms like production, productivity, and efficiency. It outlines common operation management responsibilities like quality management, process design, and supply chain management. It also discusses different production systems like job shop production, batch production, mass production, and continuous production. The document aims to introduce readers to the basic concepts and functions of operations management.
The document discusses various components of strategy implementation including organization structure, changing structures and processes, corporate culture, and strategy evaluation. It provides an overview of different organization structures that can be used for strategy implementation such as entrepreneurial, functional, divisional, SBU, matrix, network, cellular, and modular structures. It also discusses Mintzberg's 5Ps of strategy including plan, ploy, pattern, position, and perspective. The McKinsey 7S framework is introduced as a tool to analyze how well an organization is positioned to achieve its objectives.
The document discusses key concepts in operations management (OM) such as managing production of goods and services, the difference between OM and production management, the need for OM, major functions of OM, and examples of OM in companies like PepsiCo, Toyota, and others. It explains that OM aims to conduct all organizational operations efficiently and effectively through functions like procurement, quality management, inventory control, and more. Toyota is highlighted for its use of just-in-time production and flexible operations techniques to minimize costs and adapt to changing demand through efficient OM.
This presentation provides an overview of strategic management. It defines strategy and discusses the different levels of strategy - corporate, business, and functional. It then defines strategic management as the set of management decisions and actions that determine long-term performance, including environmental scanning, strategy formulation, implementation, and evaluation. The presentation outlines the four main steps in strategic management: 1) developing a strategic intent through vision, mission, and objectives, 2) analyzing external and internal environments to formulate strategy, 3) implementing strategies opertationally and changing organizational structure and systems, and 4) evaluating strategy and taking corrective actions.
Trends & Challenges of Operation Management by Asikur Rahman (Operation manag...Asikur Rahman
Operation management transforms inputs into goods and services that add value for customers. Several trends impact operation management, including increasing productivity through more efficient processes. Continuous improvement aims to constantly evaluate and improve products, services, and processes. To be competitive globally, operations must be strategically aligned to serve customers through low costs, high quality, fast delivery, flexibility, and rapid new product introduction. Technological changes can increase efficiency and output without increasing inputs, helping operations reduce costs, improve delivery, standardize quality, and customize to add value for customers. Managers must also consider environmental, ethical, and diversity issues in their decisions and address pollution, waste, social responsibility, and business ethics beyond profit.
Operations management involves planning, organizing, and controlling the processes that produce and deliver a company's goods and services. It includes activities like managing resources, designing production processes, and ensuring quality. Operations management aims to reduce costs, increase revenue through customer satisfaction, optimize resource usage, and drive innovation. It transforms various inputs like materials, money, and labor into outputs in the form of goods and services.
This document provides an overview of basic concepts in retail management, covering pricing strategies, store layouts, retail location, customer service, merchandise planning, branding, and advertising/sales promotion. It discusses various pricing strategies a retailer can use including market skimming, price bundling, leader pricing, and everyday low pricing. It describes common store layouts like grid, loop, and freeform. Key factors in retail location selection are also outlined. The roles of branding and various brand types are summarized. Lastly, it gives examples of advertising methods and sales promotion tools.
The document discusses retail brand management and private label branding strategies. It begins with definitions of branding and retail branding. It then covers the growth of own/private labels and various typologies of retail brands including generics, counterbrands, copycat brands, and house brands. The document also discusses brand development strategies, the retail value chain, managing brand equity, developing brand loyalty, and key issues regarding lookalike brands.
Strategies that strongly position the company against competitor and give the company strongest possible strategic advantage.
Competitive Strategies helps in:
Building profitable customer relationships
Gaining competitive advantage
Analyzing their competitors
What is product development and its process?ONE BCG
Product Development is the total process that takes a service or a product from conception to market. It includes a series of steps like Conceptualization, design, development, etc.
This document provides an introduction to family owned businesses. It discusses that family owned businesses face unique challenges due to the overlap between the family and business systems. The top three challenges for family businesses are succession planning, separating the roles of owner and manager, and a lack of formal structures and processes. The document emphasizes that as family businesses grow, implementing more structures and processes is important for long-term success and smooth leadership transitions between generations.
The document discusses various strategic planning concepts including strategic intent, vision, mission, business definition, goals, objectives, and critical success factors. Strategic intent refers to the long-term purpose of an organization. Vision describes what the organization would ultimately like to become. Mission answers questions about the organization's purpose and reason for existence. Business definition outlines the customer groups, functions, and technologies that define a company. Goals and objectives help operationalize the vision and mission, with objectives being more specific and measurable. Critical success factors are the key elements necessary for success in a given industry.
The document discusses aggregate planning, which involves translating demand forecasts into production levels over a fixed horizon. It seeks to balance conflicting objectives like reacting quickly to demand changes versus maintaining workforce stability. Different aggregate units and planning approaches are considered, along with associated costs like inventory holding, hiring/firing, and production levels. Two example strategies - chasing demand or keeping workforce constant - are evaluated based on their total costs. Mixed strategies combining these approaches are also proposed to further optimize the planning process.
The document discusses different types of entrepreneurial ventures and the entrepreneurs suited for each. It categorizes ventures as revolutionary, niche, propagators of new technology, hustle/speculative deals ventures. For each type it provides the characteristics, examples, competencies and skills required of entrepreneurs pursuing each type of venture. It also provides sample exam questions related to understanding different types of entrepreneurs and competencies needed.
The document provides guidance on key elements of an effective executive summary for a business plan. An executive summary should be 1-2 pages and excite the reader about the market opportunity and unique features of the business to address that opportunity. It should demonstrate the business has researched a growing market of at least 10% annually that is substantial relative to the proposed investment. The business strategy, management team, financial projections, and overall chance of success should also be realistically evaluated.
This document discusses aggregate production planning. It defines aggregate production planning as a planning exercise done at an aggregate level to translate demand forecasts into production and capacity levels over a fixed horizon. The document provides an example plan from a garment manufacturer. It discusses why production planning is necessary to address demand and capacity fluctuations. Different planning strategies like level, chase, and mixed strategies are described. The document also covers production scheduling, its objectives and functions in allocating resources and meeting delivery dates.
The Concept of Corporate Entrepreneurship - IntrapreneurshipGaurav Singh Bisen
Presentation on Corporate Entrepreneurship, its strategies. Intrapreneurship & Leaders of such culture in market. Case Study of Google and its successful products and innovations.
Strategy implementation involves mobilizing employees and managers to execute organizational strategies through various activities. These include developing strategic objectives and policies, allocating resources, managing conflicts that may arise, restructuring organizational structures as needed, and developing incentive systems to align employee performance with strategic goals. Effective strategy implementation requires coordination across different levels of the organization and managing resistance to change.
The document discusses business models and their key components. It introduces the 9 building blocks of a business model: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. Each block is described in 1-2 paragraphs. Customer segments refer to the different groups an organization aims to reach. Value propositions are the products and services that create value for each customer segment. Channels are how the value propositions are delivered to customers. Customer relationships are the types of relationships established with each segment.
A 2 minute overview of the Business Model Canvas, a tool for visionaries, game changers, and challengers. This method from the bestselling management book Business Model Generation is applied in leading organizations and start-ups worldwide.
The formal description of the business becomes the basis of its activities. There are many
different business concepts. The following description is mainly based on the book
"Business Model Generation" in 2010.
Business Model Generation (Alex Osterwalder)Endrigo Ramos
Systematically understand, design & differentiate your business model.
Disruptive new business models are emblematic of our generation. Yet they remain poorly understood, even as they transform competitive landscapes across industries. Business Model Generation offers you powerful, simple, tested tools for understanding, designing, re-working, and implementing business models.
Written by Alex Osterwalder
Slides designed by Endrigo Ramos
http://businessmodelgeneration.com/book
Business model of Entreprenuers. The effective business modelRuhulamin Jafor
This document outlines the key components of an effective business model. It defines a business model as a firm's plan for how it competes and creates value. The document discusses Dell's business model as an example. It identifies the four main components of a business model as the core strategy, strategic resources, partnership network, and customer interface. Each component is described in detail. The importance of having a clearly articulated business model is emphasized.
Business Model Generation is a comprehensive guide to building innovative business models. From empathizing & connecting with customers to finding inspiration for products & learning from some of today’s most game-changing platforms, these blinks will help to kick-start the business thinking.
Overcome the challenges of business model design, generation, and reinvention by working through five critical stages:
1. Formulating your business model canvas. Consider how your organization will create, deliver, and capture value. Begin crafting a blueprint for how your strategy will be implemented that includes considerations for your customers, offers, infrastructures, and financial viability.
2. Understanding business model patterns. Look to other successful business models to find inspiration and deepen your understanding of the dynamics of your own approach.
3. Honing the design of your business model. Evaluate the tools and techniques of design that can help you envi¬sion possibilities, extend the boundaries of your thought, and create value for your customers.
4. Reinterpreting your strategy through the lens of your business model. Question the intricacies of established business models and how they function in terms of the context, drivers, and constraints of your business model environment.
5. Unifying the concept, tools, and techniques to make your model a success. Adapt your approach to business model design so you can overcome obstacles, achieve your critical success factors, and satisfy the needs of your organization
The document discusses different types of business models. It begins by defining key aspects of a business model, including customers, value proposition, operating model and revenue model. It then describes 16 specific business model types such as manufacturer, distributor, retailer, franchise, brick-and-mortar, ecommerce, subscription, and affiliate marketing. Each type is defined in 1-2 sentences. The document aims to provide an overview of common business model categories.
Business Model is the basis of en antrepreneurial success. With this training or consulting support, you will be able to visualize the key components of your business model ans build your strategy.
IBA-Business Model Canvas for Small Scale StartupsNakhoudah
This document discusses the key elements of a business model canvas, which is a tool used to describe and design business models. It outlines the 9 building blocks that make up the business model canvas: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. Each block represents an important aspect of how a business operates and is defined in 1-2 paragraphs. The canvas provides a structured way to visualize and discuss business models by mapping out these different elements.
This document contains a presentation by the team "Feasible Five" on developing an effective business model. The presentation covers defining business models and their importance, identifying potential flaws, discussing the value chain concept, and identifying the four major components of a business model: core strategy, strategic resources, partnership network, and customer interface. Examples are provided for each component. The conclusion emphasizes that a good business model acts as the backbone of a company and must continue evolving over time.
The document discusses key concepts related to developing a business model for a startup home-based business. It defines terms like business model, value proposition, startup costs, and marketing strategy. It explains that a business model identifies how a company will make a profit by selling products/services to target customers. The business model covers costs, marketing, competition and financial projections. Successful business models fulfill customer needs at a competitive price and sustainable cost.
- The document discusses frameworks for developing business models, including the business model canvas and value proposition canvas. It covers components of business models like customer segments, value propositions, and revenue streams.
- Key aspects of business models that are addressed include defining customers vs users, estimating market size, identifying key buying factors, and analyzing sources of barriers to entry for competitors.
- Strategic thinking tools like Blue Ocean Strategy's strategy canvas and different types of value propositions are also summarized.
Understanding the different elements by angela ihunweze(mrs)Angela Ihunweze
This document discusses the key elements of a business model canvas, which is a tool used to document and develop business models. It outlines 9 main elements that make up a business model canvas: key activities, key resources, partner network, value propositions, customer segments, channels, customer relationships, cost structure, and revenue streams. Each of these elements is described in detail to explain what should be considered when evaluating a company's business model.
The document discusses the importance of business planning and outlines various components that should be included in a business plan. Key points include that a business plan describes the business, its objectives, strategies, market, and financial forecasts. It explains that business planning helps identify potential issues, structure finances, focus development efforts, and measure success. The document also provides details on common sections in a business plan like executive summary, products/services, marketing, operations, management, and financial plan.
developing a business model. business model innovation. types of business model. How Business Models Emerge. Components of a Business Model. core strategy, strategic resources
This document provides an overview of opportunity recognition and developing a business model. It discusses identifying market opportunities by recognizing consumer needs or wants that a new business could potentially meet. Sources of opportunities include problems, changes, new discoveries, existing products/services, and unique knowledge. The document then covers what a business model is and common types like manufacturer, distributor, retailer, franchise, brick-and-mortar, and e-commerce. Finally, it discusses market opportunity analysis and identifying target customers through creating customer profiles and sales projections based on research.
The document discusses different types of e-business models that companies can adopt when incorporating e-commerce strategies. It identifies several models including the advertising model, e-retailing model, channel model, affiliate model, franchise model, and subscription model. It also discusses frameworks for categorizing e-business models based on factors like the user role, interaction patterns, offerings, and value integration. No single model is considered best - the most appropriate model depends on a company's specific business and goals.
The document discusses the Business Model Canvas, a tool developed by Alexander Osterwalder to help categorize the key components of a business model. The Business Model Canvas consists of 9 categories: value propositions, customer segments, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. These categories represent the four main aspects of a business: customers, offer, infrastructure, and financial viability. The Business Model Canvas provides a simple and flexible way for businesses to visualize and iterate their strategy by mapping these key components.
The document discusses the Business Model Canvas, a tool developed by Alexander Osterwalder to help categorize the key components of a business model. The Business Model Canvas consists of 9 categories: value propositions, customer segments, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. These categories represent the four main aspects of a business: customers, offer, infrastructure, and financial viability. The Business Model Canvas provides a simple and flexible way to visualize a business model, evaluate different strategic options, and communicate the model to others. It has helped many companies, like Apple, develop successful business strategies.
The document provides an overview of business models. It defines a business model as a company's plan for how it creates and delivers value to customers in order to earn a profit. The document outlines several common elements of business models, including who the customer segment is, what products/services are provided, how revenue is generated, and how the company differentiates itself. It also discusses various types of business models such as multi-component systems, advertising models, and time models. Overall, the document aims to explain the key components of business models and how they can be used by companies to compete in the marketplace.
Similar to Business Models in Strategic Management.PPTX (20)
The H1N1 flu, sometimes called swine flu, is a type of influenza A virus.
During the 2009-10 flu season, a new H1N1 virus began causing illness in humans. It was often called swine flu and was a new combination of influenza viruses that infect pigs, birds and humans.
The World Health Organization (WHO) declared the H1N1 flu to be a pandemic in 2009. That year the virus caused an estimated 284,400 deaths worldwide. In August 2010, WHO declared the pandemic over. But the H1N1 flu strain from the pandemic became one of the strains that cause seasonal flu.
This document provides an overview of cardiovascular disorders and ischemic heart disease (IHD). It defines IHD as heart weakening caused by reduced blood flow to the heart, typically due to coronary artery disease where the coronary arteries narrow. It discusses the anatomy of the heart including the four chambers, great vessels, valves, and cardiac muscle cells. It also covers ECGs, cardiac conduction, circulatory system functions, common cardiovascular diseases like IHD, strokes, peripheral artery disease, aortic disease, and high blood pressure, as well as types of angina.
Diabetes is a chronic condition where blood sugar levels are too high due to the pancreas not producing enough insulin or the body not properly responding to insulin. There are different types of diabetes including type 1 caused by an autoimmune reaction, type 2 often related to lifestyle factors, and gestational diabetes during pregnancy. Symptoms include increased thirst and urination. Complications arise if blood sugar levels remain high over time and can affect the heart, nerves, eyes, and other organs. Diabetes is managed through lifestyle changes like diet and exercise, blood sugar monitoring, oral medications or insulin, and preventing and treating complications.
This document provides guidance on interpreting arterial blood gas (ABG) results. It outlines a 6-step process for ABG interpretation focusing on pH, PaCO2, HCO3, and their relationships. Normal ranges for these values are provided. The document also discusses oxygenation measures like PaO2 and SaO2. Various acid-base imbalances are defined including respiratory vs. metabolic causes and compensation. Case examples are presented and answered to demonstrate the interpretation approach. Causes of high anion gap metabolic acidosis are also reviewed.
The document provides information about safety data sheets (SDS), including what they are, how to access and interpret them, and how to use them to protect against chemical hazards. An SDS contains 16 sections that provide essential safety information about hazardous chemicals, such as their properties, health effects, safe handling procedures, storage requirements, and emergency response measures. It is a critical resource for learning about the hazards of chemicals in the workplace and for taking necessary precautions for safety.
Reduce the Risk of Patient Harm Resulting from Falls.pptxAhmad Thanin
This document outlines goals and protocols to reduce patient harm from falls in a healthcare setting. It defines falls and near falls, identifies common causes like loss of consciousness or medication side effects. Fall risk is assessed upon admission and reassessed if conditions change. Patients are classified by injury level from none to death. Standard precautions are outlined for low, moderate, and high fall risk patients. Interventions include monitoring mobility, bladder training, reviewing medications, and maintaining a safe environment.
Respiratory Hygiene and Cough Etiquette.pptxAhmad Thanin
Respiratory Hygiene and Cough Etiquette is designed to contain respiratory secretions and prevent transmission of infection. It includes covering coughs and sneezes, using and disposing of tissues properly, and washing hands. Hospitals should implement these measures, post visual reminders, provide supplies to patients and visitors, and offer masks to those coughing or sneezing, especially during flu season or pandemics. Proper respiratory hygiene and cough etiquette are important for preventing the spread of respiratory illnesses in healthcare settings.
Cleaning and Decontamination in Hospitals.pptxAhmad Thanin
Cleaning and decontamination procedures in hospitals should be based on infection risk. This depends on likelihood of contamination, patient vulnerability, and surfaces' potential for exposure. There are three levels of decontamination: cleaning, disinfection, and sterilization. Cleaning removes organic matter but not necessarily pathogens. Disinfection reduces but may not kill all microorganisms. Different areas require different cleaning depending on activities. High-touch surfaces like bed rails require more frequent cleaning than low-touch surfaces.
The Safe Handling and Disposal of Sharps.pptxAhmad Thanin
Sharps include needles, blades, and broken glass that may cut or pierce skin. Sharps should be disposed of in puncture-resistant containers labeled for sharps disposal. When full, sharps containers should be sealed, labeled, and taken for proper disposal according to local guidelines. Safe sharps handling and disposal prevents injuries and protects waste workers and the community.
Hand hygiene involves cleaning hands with soap and water or an alcohol-based hand sanitizer. It is important for preventing the spread of infections from patient to patient or from patients to healthcare providers. There are two main methods - washing with soap and water when hands are visibly dirty, and using an alcohol-based hand sanitizer in most other clinical situations. Proper hand hygiene should be performed before and after contact with patients, after removing gloves, and before handling medical devices to reduce transmission of germs.
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2. Learning outcomes
• Recognize how to distinguish among, and make use
of, different types of business models
• Understand how to build a business model by using
a business model canvas tool
• Develop a business model canvas for professional
development and career growth.
3. Definition of
Business
Models
• The term ‘business model’ is
equally applicable to private and
public limited companies, but it is
possible to see how most of the
concepts associated with business
models are applicable to
organizations in the public and
third sectors
4. Interpretations of
the meaning and
function of
‘Business Models’
business models as attributes of
real firms having a direct real
impact on business operations
business models as
cognitive/linguistic schema
business models as conceptual
representations/descriptions of
how an organization functions.
5. Choose one statement from the below
that best describes a business model?
A business model shows how a company makes money.
A business model reflects how a company creates value
for its customers.
A business model shows how a company makes money
AND a business model reflects how a company creates
value for its customers.
6. Answer
A business model shows how a company makes
money AND a business model reflects how a
company creates value for its customers.
• Business models reflect how a company generates
revenues. They also indicate how the company creates
value for its customers.
7. Business Models as attributes of Real Firms
This first interpretation of the meaning of a business model is focused on explaining how
firms do business.
A short definition of a business model is:
• how a company makes money
Two more structured definitions maintain that:
• A business model [is a] set of activities, as well as the resources and capabilities to perform them—either within
the firm, or beyond it through cooperation with partners, suppliers or customers
• [It depicts] the content, structure, and governance of transactions designed to create value through the
exploitation of business opportunities.
8. Example 1:
Socremo
Socremo is a bank in Mozambique, in
south-east Africa.
Its business model helps to extend
banking services to the low-income
population by offering micro-credits.
These are designated for starting up
micro businesses such as counters and
kiosks for sales of home-grown fruit
and vegetables, and traditional art.
9. Business Models as
Cognitive/Linguistic
Schema
Business models are made up of
different cognitive schemata, or
interconnected concepts.
These schemata are concepts that
create a shared understanding of
how a firm creates value thanks to
its activity and its network of
partners
10. Example 2:
Deliveroo
The concept behind Deliveroo is that its app
connects restaurants, potential clients and
riders working as intermediaries.
In this business model, value is created
through the combined activities of the
restaurant and the rider who relate to the
client by the app platform.
The clients benefit from the standardized
interaction with the restaurant and so does
the restaurant, which receives an order
without having to deal with clients directly.
11. Business Models as Conceptual
Representations of how an organization
functions
• This view considers business models as formal conceptual
representations.
• The word ‘formal’ differentiates this view from the view of
business models as cognitive/linguistic schema because
cognitive and linguistic schemas are not fully formalized.
• In contrast, in the view of business models as conceptual
representations, they can be represented in a formal way
(written and/or graphical).
12. Business Models as Conceptual Representations
of how an organization functions
A definition of business models in this view is:
• A business model is a conceptual tool containing a set of objects, concepts and their relationships
with the objective to express the business logic of a specific firm.
• Therefore, we must consider which concepts and relationships allow a simplified description and
representation of what value is provided to customers, how this is done and with which financial
consequences.
A similar definition puts forward the idea of business models made of different
components, or blocks:
• the concept refers to the description of the articulation between different [business model
components] or ‘building blocks’ to produce a proposition that can generate value for consumers
and thus for the organization
13. Business
Model
Canvas
is a tool for visualization of a business model
that helps to make sense of how an
organization creates value.
Designing a business model canvas is a
creative process that involves strategic
decision makers at various levels of an
organization.
In this process, the work of strategic teams
resembles that of an artist aiming to express
their thoughts and ideas on canvas; hence
the name business model canvas.
14. Test your
knowledge
• Select from the options below the
answer that most fully describes what a
business model is.
• Business models may be viewed as
attributes of real firms.
• Business models may be represented
as cognitive and linguistic schemata.
• A business model of an organization
may be viewed as representations of
how it functions.
• All of the above.
15. Answer:
All of the above.
• Business models may be interpreted in different ways.
• All the three statements are possible interpretations of what a
business model may be.
• Business models may be viewed as attributes of real firms.
• They may also be represented as cognitive and linguistic schemata.
• Finally, they may be viewed as representations of how an
organization functions.
16. Types of Business Models
The typology is
based on the way
value is created
and captured.
The process of
value creation and
capture can
involve
Two parties, in
this case the
business model is
called Dyadic.
Three parties, the
business model is
Triadic.
17.
18. NOTE
• It is important to note that although the whole idea
behind business models comes from for-profit
organizations, the same principles are applicable in
public and third sectors, since organizations are
required to be sustainable in the sense of balancing
costs and revenues.
19. The Product Business
Model
• This is probably the most common form of business model:
• selling products or services to clients, intended as final
customers but also other businesses.
• The rationale behind this business model is that
• the producer, or the seller, offers a product or service on the
market.
• The value chain requires just a limited interaction after the
purchase.
• The customer benefits of the value of the product are after its
purchase:
• for instance, a customer will use shampoo after they have
purchased it from the supermarket.
20. Business
Models of
this type
need to:
• Identify who customers are;
• Understand how to create demand for their
products/services;
• Decide how to capture value: this includes the
definition of the unit price and some discounts for
quantity.
• It could also include the introduction of more
articulated mechanisms such as freemium.
21.
22. An example of Freemium is
Skype.
• The software can be downloaded at no cost and its basic
service is free to use.
• For example,
• there is no charge for calling from a computer to
another computer.
• However, in addition to these basic services available
for free, Skype offers some premium services
customers need to pay for.
• These services include computer-to-computer calls
involving large numbers of users and computer-to-
phone calls.
23. The Solution Business Model
This business model is focused on the creation of a tailored solution for the customer.
In comparison to the product business model, the engagement with the customer is
much greater.
Simple examples are haircutting or make-up services, which are focused on clients’
unique needs.
Other examples are custom-made and designed furniture and kitchens.
Similarly, in B2B (business-to-business) markets, software customizers provide tailored
solutions to their clients.
24. An example is WIPRO
• a large Indian corporation offering digital,
technology and business solutions to other
businesses.
• For instance,
• it offers artificial intelligence (AI)
platforms for business clients, industry
platforms for manufacturers of
consumer goods and transport
platforms for cargo process
management of air cargos
25.
26. Solution Business Model
The boundary line between product and solution business models is not
clear-cut:
• there are some cases where the customization is remarkable although the product is still not
fully tailored to the needs of the customers.
For instance, mass customization combines the benefits of the product
model with the possibility of offering large numbers of possible
combinations.
• An example of mass customization is the possibility of buying a laptop of the same brand and
model with different Ram and hard drive sizes, or a car with different options
27. Business Models of this type are required to:
Identify potential customers
Create a trust relationship with the customer in order to understand customer needs
Tailor the product/service in order to satisfy the needs of the customer
Control the relationship with the customer to enhance its engagement, while other activities, component
products and services can be outsourced
Define a price based on the value perceived by the customer.
•This may differ significantly from the cost, as it happens for strategic consulting where client companies pay quite high prices for a
consultant’s day in comparison with the relatively lower daily cost of the person employed.
28. The
Matchmaking
Business
Model
This is the business model of a firm which controls a platform where sellers
and buyers of products or services can meet and trade.
Typical examples of this business model are Deliveroo and Just Eat, which
control platforms where restaurants sell their food to customers and both
these parties (restaurants and customers) pay a fee to the platform organizer.
Platforms do not only exist online, though:
• local markets are typically controlled by local authorities which rent spaces to sellers for
annual fees.
• The difference is that buyers at the local market just pay the seller for their purchase and do
not directly pay the platform organizer.
• The same applies with the online marketplace eBay, which does not charge the buyer for
purchasing items or using the platform.
Another interesting example of this type of business model is stock markets:
• initially they were physical places where stocks were traded in person, while now, almost all
exchanges are digitized.
29. The Matchmaking Business
Model
• Digital technologies have opened vast possibilities and
allow more sellers and buyers to access the market:
• Think about how the availability of smartphones and
broadband mobile connection gave rise to services like
Uber and Lyft, which connect drivers and passengers
through online platforms, accessible from smartphone
apps.
30.
31. This type of Business Model is difficult and
requires fulfilment of several elements:
Identifying what buyers and sellers will trade, such as a service or goods
Facilitating buyers and sellers interacting on the platform, in a way that the
offer is available when buyers look for it:
• For instance, having enough drivers to satisfy transport demands without leaving many buyers
unsatisfied and in search of alternatives
Develop charging mechanisms to capture value from transactions:
• These are typically based on a fee to be paid when a transaction takes place
32. This type of
Business Model is
difficult and
requires fulfilment
of several
elements:
Creating a good level of trust between the buyers
and sellers:
• buyers want to be sure that they will receive what they were
promised in terms of quality and delivery time, sellers look for
secure payments.
• PayPal as a payment system is suggested by eBay, its parent
company, to assure buyers a quick solution for problems around
missed delivery or unsatisfactory quality of purchased items.
• This is because it offers a series of protections for sellers and
buyers such as the possibility of getting refunded if the product
does not match the description on the website
Drectly control the development of the marketplace
and engagement of customers on both sides of the
marketplace, without outsourcing these two critical
activities to third parties.
33. The Multisided Business Model
In this triadic business model,
• The firm is a platform organizer and provides different products or services to
different groups of customers.
• The feature of this model is that a group of customers get benefits from the use
of the product or service by the other group.
A first group of customers is called consumer beneficiary.
• They receive a product or service at a price that is below the cost because the
difference is paid by a second group of customers, named paying customers.
• This latter group gain benefit from creating value for the consumption of the first
group.
34. The Multisided
Business Model
In this triadic business model,
• The firm is a platform organizer and provides different
products or services to different groups of customers.
• The feature of this model is that a group of customers
get benefits from the use of the product or service by
the other group.
A first group of customers is called consumer
beneficiary.
• They receive a product or service at a price that is
below the cost because the difference is paid by a
second group of customers, named paying customers.
• This latter group gain benefit from creating value for
the consumption of the first group.
35. The Multisided
Business Model
Typical examples of this business model are free
newspapers, where the consumer beneficiary receives
the newspaper for free, paid by advertisers (paying
customers).
• The two customer groups create complementarities between each
other.
• Facebook also clearly embodies this business model, providing users
with free access to a social network and making revenues from
advertisers whose offers are targeted to specific groups of customers.
Another example is services provided to customers in
exchange for their data, which are of interest to a
second group of customers, who use the data to do
marketing analyses and research.
• This is the case for firms that collect credit data from their customers:
• that data is then used by other paying customers to offer loan services
to clients.
36.
37. NOTE
Managing this business model means controlling how the two groups
of customers receive benefit from the consumption of the other.
38. To be successful in this Business Model it is important to:
Identify
beneficiaries
• The diverse
groups of
people or
organizations
which in some
way may be
interested in an
offered product
or service
Identify
• Products and
services
beneficiaries
may be
interested in
Determine
• How the
consumption
takes place
Produce
• A benefit for
beneficiaries.
39. E-commerce Business
Models
• Due to the power of the internet and the rise of
the platform economy
• Where people and organizations use platforms
in their economic activity
• More and more business models are being
designed and developed specifically for the
online marketplace
40. Flexibility
• The flexibility of choice for customers and strategic
decision makers is critical to business model design
in the digital world.
• It allows for fast adaptation to the unique
preferences of customers.
• It also allows designing business models that
can be amended and easily substituted when
strategists need to change the way an
organization generates value.
41. Business Models of many firms rely on e-commerce activities.
• E-tailer
• Community provider
• Content Provider
• Portals
• Transaction Broker
• Market Creator
• Service Provider.
These activities define seven major business models:
42. E-tailer
Online retail shops come in different sizes, from the giants Amazon and
Alibaba, to small and specialized online shops selling specific products
such as parts for furniture, rare music discs, or handcrafted clothes.
The source of revenues is the sale of goods.
Strong entry barriers make success very difficult:
• Establishing a successful e-tailer requires building a strong brand and targeting a precise
customer that may enable the e-tailer to target the offer to specific needs.
• Other elements that need careful management are expenses and inventory: they should be
kept low to reduce the need for capital.
43. Community Provider
• Online platforms where individuals interact
for different reasons are not a new
phenomenon, but they certainly became
well-known with the diffusion of Facebook.
• Numerous other platforms also exist,
including LinkedIn, Twitter and Instagram.
• Individuals interact because they share
interests or friendships or want to buy and
sell goods or services.
44. The main source of revenue for the
provider is advertising on its online
platform.
In some cases, such as online dating,
there may be a subscription fee based
on a freemium model where some
features are enabled by the payment of
a monthly fee.
In other cases, such as comparison sites,
there could be revenues generated by
referrals when a purchase is made upon
the suggestions of some advice from
the community leading to the affiliate
website.
45. As advertising is fundamental to generating revenues, it is important to
keep the interest in the community high.
When the community is thematic (e.g. medical advice, technology
assistance), community members require frequent guidance, suggestions
and recent news.
Given these needs, the breadth and depth of knowledge of the
moderators, facilitators or experts of the community enable the possibility
of keeping the conversations alive and offering support to members.
Skilled personnel who run the community and viral marketing techniques
may enhance the possibilities of success.
46. Content
Provider
Content providers are distributors of online content,
such as news, music, videos, games and artwork,
and are important players in the online scene.
Digital media (video games, video-on-demand, E-
Publishing and digital music) is a growing market
Not all content providers ask for subscription fees:
• Some get money from advertising or from partner promotions on
websites and apps.
47. Content is the critical asset required to
have a competitive advantage:
• Publishers, movie studios and video game
companies control valuable assets that are
difficult to imitate and very expensive to
recreate.
• For example, the control of Marvel by the Walt
Disney Company allows for the creation of
movies and TV series with heroes of the Marvel
Cinematic Universe, such as Captain America,
Black Widow, Ironman, Thor and Scarlet Witch,
who all also appear in the Avengers movies.
49. Portals
Initially born as gateways to the Internet, portals like Yahoo and
MSN are collectors of different services and content, including
news, email, video streaming and calendars.
They do not sell directly to customers, but make revenue from
advertising, steering users to external websites and charging for
some premium services, such as professional email accounts or
online storage.
First mover advantage enables providers to build a large user
base and reduce competition.
50. Transaction Broker
• Transaction brokers offer services that customers used to handle personally – going to physical shops
or making calls and sending emails.
• Some examples are financial services, travel services and job placement services.
• A typical example is the popular website www.booking.com .
• These brokers charge transaction fees for their services, such as the purchase of commodities or
stocks or the conversion between different currencies.
• By using these online services, customers get the advantage of saving time and accessing lower prices
granted by the service provider, who can aggregate a large demand without increasing its workforce.
• Job placement websites such as www.monster.com attract jobseekers and employers.
• Employers pay fees to put their job adverts on the website and are charged a fee when the
position is filled.
• Attracting large number of users create the externality that makes this type of business model
successful.
51. Market Creator
Market creators offer platforms for
developing transactions and exchanges,
enabling buyers and sellers to meet in
virtual places.
The diffusion of the internet has
favored the separation of markets from
physical spaces.
• Typical examples are eBay and Etsy.
52. Market creators make money
by charging a fee for each
transaction on their platform
or asking merchants to pay a
fee to access the marketplace.
Having the financial resources
and the marketing capabilities
to create an extensive base of
users grants the success of
this business model
53. Service Provider
• While e-tailers trade goods, service providers offer
services online.
• A typical example is online document backup and
sharing services such as Dropbox, OneDrive or
Google Drive, of which the latter also integrates
several editing features.
54. As they are web-based, service
providers cannot offer certain
types of services, such as
dentistry or car repairs, but they
can offer comparisons and
decide.
They can even
provide grocery
services.
Success in this type of business
model is based on the marketing
capability to build trust and
communicate reliability to
potential customers.
55. Test your
knowledge
• Consider e-Bay, an American company that provides a
virtual space where buyers and sellers can meet. What
is its business model?
• E-tailer
• Market creator
• Service provider
• Portal
56. The correct
answer is:
market creator.
Market creators offer platforms for
developing transactions and
exchanges, enabling buyers and
sellers to meet in virtual places.
E-Bay is the company that offers a
virtual space (virtual market) where
buyers and sellers can meet and
develop their transactions and
exchanges.
58. Business Model Canvas
• ‘How can we systematically invent, design, and implement these powerful new
business models? How can we question, challenge, and transform old,
outmoded ones?’ (Osterwalder et al., 2010, p. 5)
59. The author answers this question by
offering a business model canvas
• A tool for visualizing the design of business
models.
• It helps to detect outmoded elements in
business models and to transform old models
into new ones.
A business model canvas comprises
nine building blocks that cover four
main areas of a firm:
• Offer (value proposition),
• Customers,
• Infrastructure, and
• Financial viability
60.
61. Offer (Value
Proposition)
Area
The offer, or value proposition, is embedded
in the business model canvas and explains
how value is created for the customer.
The value proposition is shown in the value
propositions block of the business model
canvas.
The value propositions block is also known
as the value map and shows how the
business model creates value for the
customer.
62. The components
of the value map
(or value
propositions) are:
Products and services
Pain relievers
Gain creators
63. Products and Services
These are what the organization offers.
They help customers in completing their customer jobs,
satisfying their needs and creating value for customers.
Products and services can range from physical assets,
such as clothes, to online services such as music
streaming.
The value proposition typically combines more than one
product or service, such as the possibility of buying a
fridge online and the delivery and installation service.
64. Pain Relievers
These describe how products and services reduce customers pains,
or problems.
It is unlikely that all customers’ problems could be solved, but the
most relevant could be addressed by the value proposition.
For instance, the possibility of having medicines delivered at home
may be a useful service for people with mobility problems.
During the coronavirus pandemic in 2020, this service became an
important pain reliever for customers who, being at a higher risk of
fatal outcomes in case of contracting the Covid-19 virus, were
advised to shield (stay home) and could not travel to pharmacies.
65. Gain Creators
These describe how the products and services provided can create benefits for the customers.
Again, it is not possible to address all customer gains with gain creators, but the value proposition can
tap into the most relevant gains.
An example of a gain creator is buying train tickets with a possibility of having their e-versions sent to
the buyer’s email address and a possibility of downloading them onto a smartphone.
In this case, a customer gains by having easy access to a ticket via email or on the phone in case its
hard copy is lost.
For those travelling for business purposes, this
service has an additional benefit:
a speedy recording of the ticket purchase in the business’
accounting system.
66. Customers Area
Customers are shown in the customer area of the business model canvas.
• Customer Segments,
• Customer Relationships and
• Channels.
The customers area has three components:
It is located in the right-hand corner of the business model canvas shown in Next
slide
67.
68. Customer Segments
A customer segment is a group of customers
having common characteristics (e.g. age,
gender, location, lifestyle and interests).
• For instance, an organization may choose to serve
millennials as its customer segment.
A millennial is a person born between 1981
and 1996.
• Millennials rely on digital technologies, prefer
personalization in customer relationships, and expect
to be attended via multiple customer channels
69. Customer
Relationships
• Customer relationships portray the type of relationship
established with each customer segment.
• Osterwalder et al. (2010, p. 29) distinguish six types of
customer relationships:
• Personal assistance
• Dedicated personal assistance
• Self-service
• Automated services
• Communities
• Co-creation
70. Personal assistance
• A representative is accessible to
the customer in person or
through a media (e.g. by phone,
online).
• The representative supports the
customer during the process
71. Dedicated Personal
Assistance
• The customer has a dedicated
assistant, which is the typical
situation of some wealth
management services which
provide a key account manager
for the customer,
• or in some law firms where
corporate clients refer to a lawyer
who represents the law firm and
is responsible for serving the
client.
72. Self-Service
• There is no direct relationship
between the company and its
customer, so customers help
themselves in the purchase.
• An example would be the use of
vending machines.
73. Automated Services
• This mode of service combines self-service with
customization based on automatic profiling of the customer,
who will then receive personalized information.
• In doing so, it tries to personalize the relationship with the
customer.
• An example is the ordering process on Amazon, which
profiles the customer’s product preferences and uses this
information to propose complementary products.
• Similarly, Netflix records the preference of customers for
particular genres (e.g. adventure, drama, sci-fi) and
automatically proposes new movies and series that match
with customer preferences.
74. Communities
• Communities of customers can serve the
purpose of exchanging knowledge among
other clients or potential customers,
answer questions and solve problems.
• They are also important for collecting
valuable information on products and
services.
• It is the typical situation of software
development, where communities
develop around a specific software.
75. Co-Creation
• Some services are co-created by
customers.
• This means that customers
participate in the design,
development and/or production of a
product or a service.
• This is what happens with YouTube,
whose videos are uploaded by users
of the popular platform.
• Similarly, TripAdvisor’s reviews are
created by users.
76. Quiz
• Co-creation is:
• when customers produce and sell a product
independently
• when several companies produce a product or
a service together
• when an organization chooses not to involve
customers
• when an organization chooses to design,
develop, and produce a product or a service
together with customers
77. ANSWER
• when an organization chooses to
design, develop, and produce a
product or a service together with
customers
78. True or False
• Communities of customers
can serve the purpose of
exchanging knowledge
among other clients or
potential customers, answer
questions and solve
problems.
79. True Answer
• Communities of customers can serve the
purpose of exchanging knowledge among
other clients or potential customers, answer
questions and solve problems.
• They are also important for collecting valuable
information on products and services.
• It is the typical situation of software
development, where communities develop
around a specific software.
80. Channels
Channels are interfaces between
the company and its customers.
• A channel combines activities, people
and organizations to deliver a product or
a service to customers.
This building block of the canvas
tries to answer the question:
• How do businesses reach customers?
Osterwalder et al. (2010, p. 27) defines
five types of channels shown in Table 1.
• The channels may be combined.
81. Table 1 The five types of Channels
Control of the
channel
Type of
channel
Channel Examples
Own Direct Sales force Some fashion houses have a factory outlet near their production facilities or in large
commercial areas to sell directly to customers at discounted prices.
Web sale Direct Line sells its insurance policies online through its website.
Indirect Own stores H&M sells clothes in its shops, providing customers with a basic assistance by its
sale force.
Partner Partner stores In some Hilton Hotels customers can find fast food and other partner stores.
The same happens for online, with the partnership between e-tailers and fashion
brands, such as the partnership between Alibaba and Valentino
Wholesaler Car manufacturers sell cars to dealers that work as their wholesalers.
82. True or False
• An organization must always
opt for one channel.
83. True Answer • An organization must always opt for one
channel.
84. True or false
• Sales force, web sales and
own stores are examples of
partner channels.
85. True Answer
• This is the correct answer. Sales force, web
sales and own stores are examples of own
channels.
86. Infrastructure Area
• The infrastructure area
focuses on three elements
needed to deliver the value
proposition:
• Resources & Capabilities,
• Core Activities, and
• Key Partners
88. Resources and Capabilities
• The resources are assets an organization can use in its
activities.
• These may include buildings, financial, human
resources, customer bases, and partner networks.
• A capability is an organization's ability to use resources.
• Examples include a capability to develop and
maintain partner networks, and a capability of
managing customers and their experiences.
• For instance, the business model infrastructure of a
British Media and Telecommunications Conglomerate,
Sky Group Limited, benefits from its customer
management capability.
89. Core Activities
The core activities are key activities performed by the organization to make the business model
work.
They depend strictly on the type of business model offered by the organization.
If it is a product business model, some production or operational activities would take place in
order to deliver a product or a service.
In the case of matchmaking or multi-sided business models, activities are concentrated on running
a platform, promoting its diffusion and providing customer service and support to clients.
For instance, the core activity in Airbnb, an internet-based service offering short-term home rentals,
is running a platform linking lodgers and guests.
90. Key Partners
Key partners are fundamental for every business model.
• This is a fundamental question that this building block tries to answer.
Which activities are delivered by partners?
• This is the case of wholesalers of kitchen appliances who create promotional offers to local customers
according to their knowledge of the market.
For instance, partners can help in reaching customers through particular indirect
channels:
• Which resources are provided by our supply partners?
• This means, for instance, understanding what suppliers are able to mobilize:
• some retailers work with logistics providers to deliver their products to customers. These providers may
control a fleet of vehicles and also warehouse facilities.
Another question that this building block aims to answer is:
91. Financial Viability Area
• It focuses on the money a value proposition costs versus
what it generates as a revenue.
• Therefore, the financial viability is composed of two
elements:
• Revenue streams and
• Cost structure.
92.
93. Revenue Streams
The revenue streams are revenues that the business model generates.
The key question at issue here is: ‘What value are customers willing to pay for?’ (Osterwalder et al., 2010, p. 31).
In the business models of fast couriers such as DHL, a German multinational delivery service
provider, and FedEx, an American multinational delivery services company, the revenue streams
rely on the customers’ willingness to pay more for speedy deliveries.
It is also important to clarify how revenues are collected or, in other words, how customers pay.
The two possibilities are shown next slide
94.
95. Cost Structure
Cost structure
identifies the costs
underlying the business
model.
A business model
involves using
resources.
Each resource has its
own cost.
Therefore, the key
question to be
considered here is:
‘What costs are
generated by the
resources
employed?’
96. Also, a business model involves a series of activities an organization needs to
perform to generate value.
Therefore, an additional important
question here is
‘What are the costs associated with the
activities of the business model?’
For instance, some customers see value in greener solutions with carbon neutral
deliveries; yet it is costly to develop such offers.
Usually more innovative, they require additional investments of time, attention
and money to develop.
97. For example,
DPD, the largest parcel delivery company in Europe, offers
carbon-free bicycle deliveries to customers interested in,
and ready to wait and pay more for, green solutions.
This may be the case of green solutions.
Yet, despite their higher costs, green
value propositions are at the core of
business models in many companies.
Also, they do not always reflect the
conventional meaning of efficiency
measured in financial terms.
98. Business
Models for
Professional
Development
The idea of using business models
for professional development
comes from Clark et al. (2012).
The authors suggested that
business models may be used to re-
invent careers and take them to a
new level.
In this new application of business
models, the business model canvas
remains a valuable way to visualize
one’s ideas
100. A Business Model Canvas for Professional
Development
The business model canvas has the same nine building blocks which are integrated
into four areas:
• Offer area,
• Infrastructure area,
• Customer area and
• Financial viability area.
However, unlike the business model canvas used for strategic planning in
organizations, the business model canvas for professional development asks
questions related to its designer’s career strategy.
101. How do you help? Value
Proposition
• Another way to think about this question is by considering
the value you add.
• Perhaps, your value comes from the ability to solve a
problem for your employer or for customers you work with
or plan to target.
• Alternatively, you may be valuable because you help your
employer to achieve important goals, or you do something
that contributes to your society.
102. What do you do? Core
Activities
• The next question you need to ask yourself is ‘What do I
do?’ While answering this question, you should think about
activities that determine your work.
• For instance, is your focus on teaching, researching,
designing, coaching, or managing?
• It is also possible that you might be thinking of moving from
one core activity to another.
• For example, if you have been doing sports professionally,
then you might move on to a coaching career.
103. Who are you and what
do you have? Resources
This is now the time to consider your resources. What do you have?
• For instance, what are your skills, capabilities, talents, and knowledge that help you to
perform your core activities and achieve your goals?
In the post-pandemic era, a new normal has emerged where some skills
may become more important.
Jones (2020) suggests that to succeed professionally one will need to
develop five essential skills:
• be able to adapt to the changing world
• be creative by bringing in new ideas
• be emotionally intelligent (ability to make sense of emotions, feelings and thoughts of
other people)
• be technologically savvy to be able to use diverse digital products, software and platforms
• be able to stand out in the digital space.
104. Who helps you?
Partners
Your work affects your life and the people you live with and
interact with professionally.
It is important to consider the role of these people in your
career and professional development.
How can they help you to implement what you have defined as
an offer in your answer to the ‘How do you help?’
• For example, while thinking about who helps you, you may consider
members of your family, your friends and acquaintances, and some of your
colleagues.
These may be your superiors or mentors who like your
approach and are willing to support you.
105. Who do you help?
Customers
• This question focuses on the individuals and
organizations who could benefit from your offer.
• For example, a blogger may think about the
audience their blogging activity may help.
• Likewise, a freelance journalist may think about
the magazines, media groups and audiences their
publication(s) contribute to, or a freelance tutor
in mathematics may consider the different types
of students – such as beginners and advanced
learners – who they can help.
106. How do you
interact? Customer
Relations
• This question refers to the
relationships you have with those
you help, and your answer will
depend on your answer to the
question ‘Who do you help?’.
107. What do they think of
you? Channels
• This question is related to your professional
reputation in the eyes of those you help.
• For example, which professional membership
organizations or networks do you belong to?
• A writer of children’s books may strengthen
their profile by joining the Society of Children’s
Book Writers and Illustrators.
108. Another aspect to consider with this question
is your visibility.
For instance, where can your customers find you, see information
about your successes and plans, and get in touch with you?
• You may have your own internet page or blog.
• You may rely on word-of-mouth communications by interacting with those who can
help spread the word about the quality of work you do.
• In this case, your existing customers may recommend you to someone or send a link
from your page to their networks on social media sites, such as Facebook, Twitter and
Instagram.
Alternatively, you may post a message about your product or service
on a public notice board in a membership organization.
109. What do you have? Sources of Income
The question ‘What do you have?’ is tagged to ‘Sources of income’ in the business model canvas.
However, this does not mean that answers relating to income are the only possible response to this question.
You may not necessary be interested in income only.
You may want to consider nonmonetary benefits too, such as professional reputation and recognition.
Also, you may not be able to generate income at each stage of your professional development straight away, but what you do
now may enhance your professional reputation and may help you to generate income in the long term.
In other words, some of your current activities may not necessarily be a source of income at the moment, but they may bring
in some non-monetary benefits (e.g. recognition, fame, reputation, and influence) that could be sources of future income.
110. What do you
give? Cost
structure
This is the final building block and involves you thinking
about all the expenses related to your offer.
Again, like in the question ‘What do you have?’, the answer
to the question ‘What do you give?’ may be given in both
monetary and nonmonetary terms.
In other words, your expenses may also be measured in
terms of time, energy, reputation damage in case of
failure, risk to health and disrupted work–life balance (e.g.
lack of attention to your family, friends, and hobbies).