Guide for Entrepreneurs on Business Model Improvement.

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Guide for entrepreneurs on business model improvement Adapting in the 21 st century

Business Model Innovation THE GRANDPARENT OF ALL INNOVATIONS

DEFINITION OF BUSINESS MODEL <ul><li>How a company does business </li></ul><ul><li>Covers the following: </li></ul><ul><li...

New trend among businesses <ul><li>According to Harvard Business Review: </li></ul><ul><li>> 7 out of l0 businesses wil...

Analogy <ul><li>Driving your old car up to 200 kmh? </li></ul>

But aren’t we doing that with our business using old tired models?

Focus of the 20 th century: <ul><li>Strategy </li></ul><ul><li>Process/manufacturing innovation </li></ul><ul><li>Market...

The new millenium requires better faster models!!!

A better model

The business model

Business model vs strategy vs tactics <ul><li>Business model – the car </li></ul><ul><li>Strategy – the accessories added ...

BM I

Compelling reasons for BMI <ul><li>Benefits : </li></ul><ul><li>l. Cost reduction – in 55 cases </li></ul><ul><li>2. Str...

Business Model Innovation Matters <ul><li>In the case of Apple, its stock prices </li></ul><ul><li>went up fourfold even ...

Business model overview

Business model – another view

Another bm canvass

BM analysis using sticky notes

What,who, how, how much?

BM using the whiteboard

Social Entreprise BM

Four main areas of business model <ul><ul><li>Customers </li></ul></ul><ul><ul><li>Customer offering </li></ul></ul><ul><u...

Alex Osterwalder definition of BMI <ul><li>“ Creating value for customers and so ciety by replacing outmoded business </l...

Building Blocks of Business Model <ul><li>CUSTOMERS: </li></ul><ul><ul><li>Customer segments </li></ul></ul><ul><ul><li>C...

BMI “ Seizing White Space ” by Mark Johnson <ul><li>Range of potential activities not currently addressed by the present ...

BMI Boston Consulting Group <ul><li>OPERATING MODEL </li></ul><ul><ul><li>Value chain </li></ul></ul><ul><ul><li>Organiza...

Harvard Business School on BMI <ul><li>Authors: Clayton Christensen, Mark </li></ul><ul><li>Johnson of Innosight, 2008 and...

Clayton Christensen - HBS

Steps in BMI <ul><li>Visualize </li></ul><ul><li>Assess </li></ul><ul><li>Renew </li></ul><ul><li>Plan </li></ul><ul><li>...

BMI Exercise <ul><li>Have a business model in front of you. </li></ul><ul><li>Have your team and officers discuss and </li...

Criticism vs. Ideo <ul><li>Design and creativity- Ideo produced the design for I tunes and Kindle. But its other novel...

Contrarian view vs BPO <ul><li>American Apparel decided not to outsource its clothing at China @ $4.00/hr but instead used...

Business Model Innovation covers more <ul><li>The backbone of strategy has been marketing: development, penetration, pro...

Liquidation as a Strategy

10 New Business Models <ul><li>Localized low cost producer </li></ul><ul><li>One-of-experience </li></ul><ul><li>Beyond ad...

Total Innovation from BMI <ul><li>New PTM- new customers? Who are the non customers that may be reached by your exististin...

Examples: <ul><li>Cloud computing from Amazon </li></ul><ul><li>Use of UPS tracking system to assist </li></ul><ul><li>For...

Innovation in channels <ul><li>The old channels – in house or BPO </li></ul><ul><li>Direct to the customers, or retail out...

Other innovation areas in BM <ul><li>Key partners </li></ul><ul><li>Key resources </li></ul><ul><li>Value chain configurat...

Can you now innovate your current business model? Can you now create a new model from ground up?

THANK YOU! [email_address]

acknowledgement <ul><li>The pictures and photographs are from google images </li></ul><ul><li>The primary sources of ideas...

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