The document is a SIP report for Bestfit Business Solutions that analyzes the company's current business model and provides recommendations to improve profitability. The objectives are to study Bestfit's business model and activities, analyze products/services, costs, revenue, delivery, and recommend a new model. It summarizes the Indian consulting industry and lists top local and global firms. Bestfit provides consulting services primarily to the BFSI sector. The report introduces business models and their key components. Problems identified include idle staff, late delivery, lack of marketing/sales, and competitive pricing. Potential solutions investigated sharing resources across service lines, dedicating marketing, and assigning accountability to department heads. The best solution selected is to re

1. SIP REPORT
A STUDY ON BUSINESS MODEL AND ITS
RE-DESIGNING FOR BETTER
PROFITABILITY – WITH SPECIFIC
REFERENCE TO BESTFIT BUSINESS
SOLUTIONS
PRAVEEN SURESH - 1116121

2. SIP DETAILS
Company:- Bestfit Business
Solutions, Mumbai
Industry:- Consulting
Type of study:- Causal Research
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3. CONTENTS
 OBJECTIVES OF THE STUDY
 INDUSTRY OVERVIEW
 COMPANY PROFILE
 INTRODUCTION TO BUSINESS MODELS
 PROBLEM IDENTIFICATION
 PROBLEM FORMULATION
 PROBLEM SPECIFICATION
 PROBLEM RESOLUTION ALTERNATIVE
INVESTIGATION
 BEST PROBLEM RESOLUTION SELECTION
 LIMITATIONS OF THE STUDY
 REFERENCES
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4. OBJECTIVES OF THE
STUDY
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5.  A project will go haywire if it doesn’t have its objectives
clear. If one knows the whole, only then the right path
can be decided and with disciplined work and positive
attitude achieving this objective will be a catwalk.
 Therefore, we also set down the objectives before
starting the project which are as follows:







To study business models in general
To study Bestfit and its activities
To analyse the products & services offered by Bestfit
To understand the costing & revenue structure
To know the service/product delivery mechanism
To study the business model of Bestfit
To know the present profitability pattern of Bestfit
To recommend a fresh business model which will
increase its profitability
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6. INDUSTRY OVERVIEW
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7.  Consulting industry in India – approx $ 4 bn
 Focus of consulting firms –
Strategy/Marketing/Operations ( these are termed as
management consulting), IT, HRM
 Industry in which consulting firms operate – Financial
services, Healthcare, Software, Manufacturing,
Travel & Hospitality,
 Approx 9000 consulting firms in India out of which
approx 6000 in major metros
 90% of these firms are run by management experts,
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proprietors and is unorganized.

8.  Geographic details of consulting industry in india
Delhi – 26%; Mumbai – 25%; Bangalore – 15%; Chennai
– 12%; Calcutta – 9%;
Source:
http://www.indianconsulting.org/indian-consulting-culture/which-are-the-top-consulting-firmsin-india/ - Date last accessed on 20/05/2012

http://www.dare.co.in/news/others/with-30-cagr-consultancy-biz-to-touch-rs-22000-cr-by-2011assocham.htm - Date last accessed on 16/07/2012
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9.  Some Top consulting firms globally (also operating in
India)
 Some Indian Consulting
Companies
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10. COMPANY PROFILE
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11.  Bestfit Business Solutions India Pvt Ltd was
established in 2007 at Mumbai to provide
“BEST FIT” solutions for players in the BFSI
(Banks, Third Party Distributors (Insurance &
MF), Stock Brokers, NBFCs) industry, primarily
to reduce operational complexities and cost of
operations.
 Solutions spectrum includes:
o Software Products,
o Back Office Processing,
o IS Audit,
o Business Process Re-Engineering,
o Quality Management Consulting &
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o Corporate Training

12. INTRODUCTION TO
BUSINESS MODELS
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13.  It was in the early 1970s when the word business model
appeared for the first time as an economic keyword in public talk
(Ghaziani & Ventresca, 2005).
 The business model constitutes a holistic concept, considering
all elements that build the anatomy of a firm’s core logic for
creating and appropriating value (Amit & Zott, 2001; DubossonTorbay, Osterwalder, & Pigneur, 2002; Ghaziani & Ventresca,
2005; Hedman & Kalling, 2003; Petrovic, Kittl, & Teksten,2001)
 By "business model" people mean everything from how a
company earns its money to how it structures the organization.
 In principle, a business model does not matter to customers;
it is important to the company and the organisation of its
business. The business model determines the external
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relationships with suppliers, customers and partners. However,

14. Definition

Magretta (2002) defines business models as “stories that
explain how enterprises work”.

Peter Drucker and defines “a good business model” as
the one that provides answers to the following questions
 Who is the customer and what does the customer value?
 What is the underlying economic logic that explains how we can deliver value
to the customers at an appropriate cost?
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15. Basis for designing the business
model
 Organisational Form
 Transactional Process (Client – Company)
 Delivery (Brick & Mortar, Parnters, Distributors)
 Revenue
 Price
 Chain of command (internal)
 E-Commerce
 Customers (B2C, B2B)
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16. 9 Building Blocks of Business Models
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17. BESTFIT - 9 Building Blocks of Business Models
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18. PROBLEM
IDENTIFICATION
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19.  Problem – “HOW TO INCREASE PROFITABILITY”
 Problem Characteristics
 Problem is “Market Related”
 An over-served market dense with competition and market
entry barriers
 A minority supplier suppressed & harassed by dominant
suppliers
 Distribution Problem
 Set A Problem (Upstream Corporate Value Chain Innovation)
– There may be a need for divestitures in relation to
underutilized capacities
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20. PROBLEM
FORMULATION
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21. Variables
Sub-Problems
 Staff idle time increased due to lack of projects/business in their
line of expertise
 Loosing contracts due to lack of reaching the clients in time
(marketing)
 Lack of empowerment and thus more internal
transactions/approvals which complicates the process
 Loosing contracts due to delivery time clashes
 Loosing contracts due to competitive pricing
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 Loosing contracts due to lack of relative experience

22. PROBLEM
SPECIFICATION
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23.  Since the firm is a one man show i.e., where the CEO
is the chief resource person (who is CISA Qualified,
ISO Lead auditor, Chief Trainer) the focus on all
businesses at a time is not possible.
 Consequently, company cannot justify focusing on too
many businesses which require the CEO/Chief
resource person to be available at all places at the
same time.
 Further there is no dedicated Marketing/Sales
personnel and hence the client base has not
increased.
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 Comment:- In view of all the above, the

24. Relation between Variables
 The relationship between Controllable variables and
the problem is direct. That is more the manpower,
advertising, business focus, client focus the
profitability increases.
 However, the lesser the pricing the more profitability
is not possible (directly) but due to one good project,
repeat orders can be obtained due to which
profitability will increase.
 The uncontrollable (with reference to Bestfit) variables
impacts profitability but not to such a great extent.
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Given that “uncontrollable” variables are constant if
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25. PROBLEM RESOLUTION
ALTERNATIVES
INVESTIGATION
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26. Problem Resolution Proposition
 Proposition 1:- Re-design business model
Eg:- Re- deploy and share resources for service
lines.
Bring
in
more
accountability
and
ownershipEmploy more staff for each business line,
Employ dedicated personel for marketing etc.
 Proposition 2:- Focus on hiving off any business line
 Proposition 3: - Pump in more funds for expansion
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27. Investigation
• The investigation will be carried out to test
which hypothesis will bring in more profitability.
• It will include studying various statistics to
understand how time, resource is dispensed
for each project and what is the revenue from
that business
• The business where there is highest profit
(margin) with least resource allocation &
delivery time will be suggested to be focused
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28. BEST PROBLEM
RESOLUTION
SELECTION
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29.  Based on study of various figures (of the
companies past performance) and also based
on the time /resource employed for each
project of each business line we will arrive at
the conclusion that the business model has to
be re-designed
 E.g: - Employ dedicated marketing personnel,
share resources across service lines for cost
reduction, Train existing staff to handle cross
functions etc., assign deptl heads with
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accountability
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30. SUGGESTED BUSINESS MODELS FOR
BESTFIT
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31. ( i ) BASED ON RESOURCES ALLOCATION BETWEEN SERVICES
FOR REDUCING COST AND THUS INCREASING PROFITABILITY
Model 1 (above) – Here the resources of some service lines are shared thus the cost is brought
down. The resources for the 3 services (IS Audit , Consulting & Training) majorly do typing, ppt
making and data entry jobs which are similar and require common skills.
Software and Back office processing can be individual but even s/w engineering can do
updates and patches and file uploading (in the back office processing service line thus bringing
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by sharing resources)
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32. ( ii ) PROFIT CENTER MODEL
Model 2 – Here each departmental head is given accountability for both
COST & PROFIT of his department and is asked to
run his
unit/department like SBU. The department uses the firms infrastructure
and resource. Further the firm pays all expenditure but accountability is
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Departmental heads to generate revenue and make it a profit

33. ( iii ) BASED ON ORGANISATION STRUCTURE TO BRING IN MORE
FOCUS ON BUSINESS AND THERBY INCREASE PROFITABILITY
Model 3 (above) – Where CEO has main portfolios requiring his individual skill, certification
and experience and assigning portfolios to other and interacting with Clients only during deal signing
and negotiations and core issues. This will bring in more accountability on the Departmental heads
for quality and delivery and help improve focus on clients. Further it will also increase productivity by
motivating people to perform and scale up the ladder to reach the top of the pyramid.
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34. ( iv -a ) BASED ON INTERACTION WITH/BETWEEN
CLIENTS/EMPLOYEES & CEO
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35. ( iv- b) BASED ON INTERACTION WITH/BETWEEN
CLIENTS/EMPLOYEES & CEO
Model 4 & Model 5 (above) – Where CEO interacts with Clients only during
deal signing and negotiations and interferes for Domain Knowledge, Architecture,
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Final supervision and major decisions impacting cost, profitability etc
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36. LIMITATIONS OF THE
STUDY
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37.  The study is only limited to Bestfit and no other consulting
company
 The study takes the past revenue and costs as base which are
subject to fluctuations
 99% of the data is secondary
 The study assumes that all other factors/conditions remain
unchanged.
 The study only focuses on business model aspect of the firm to
increase profitability
 Since the firm is already in existence it is very clearly instructed
by the firm that further Capital investment, Venture
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Investment,change of business line etc are not an option to

38. REFERENCES
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39.  Oswald A. J. Mascarenhas, S. J., Ph.D. –
“PROBLEM-CENTERED SUMMER
INTERNSHIP PROJECTS (SIP) AND
BUSINESS CONSULTANCY PROJECTS
(BCP): NEW RESEARCH PARADIGMS” MAY
7, 2012 - Revised and expanded: May 31,
2012
 Alexander Osterwalder, Yves Pigneur &
Christopher L. Tucci -- “CLARIFYING
BUSINESS MODELS: ORIGINS,PRESENT,
AND FUTURE OF THE CONCEPT” –
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Communications for the association for

40. THANK
YOU
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