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Value Exchange Mapping System
GUIDE
Capturing Business Model Interactions
We have developed a new tool called the Value Exchange Mapping (VEM) System that works
with the Business Model Canvas to provide a kind of“stereo vision”with respect to the business
model.
Specifically, a VEM captures the value exchanges among the players in a value network in the
context of an organization’s business model. This provides a more comprehensive picture of the
business model making it easier to identify opportunities for business model innovation. The
VEM mapping system is licensed under the Creative Commons and is available for download
and use.
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International
License.To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-nd/4.0/deed.en_US.
www.innodyn.net
INNODYNBusiness Growth Development
®
Innovate and prosper.
Value Exchange
Mapping: Capturing
Business Model
Interactions
Linked In
Linked In
Free
Members
90%
Premium
Members
10%
Recruiters
Advertisers
Employers
Sales
Professionals
Developers
Targeted
Marketing Solutions
Talent
Management Solutions
Recruiter
Solutions
Targeted Sales
Solutions
Professional Profile
Company Pages
Linked In Groups
Premium services
(on top of basic)
Resume Builder
Linked In Updates
Linked In Connection
Management
Members
Linked In Today
Targeted Job
Recommendations
Targeted content
recommendations
InMail Access
View Profiles Outside
Network
Job Seeker Premium
Viewed Profile?
Other Advanced...
Content
Exposure
Sticky
Content
Platform
Apps
Access to
Platform
Content
Publishers
Value Exchange Map
Growth Strategist
Other Social
Platforms
Integration
Strong Same Side
Network Effects
Subscriptions
Basic Services
Cost Structure
Customer SegmentsCustomer Relationships
Channels
Key Activities
Key Resources
Key Partners
Revenue Streams
Value Propositions
Linked In
Web
Direct Sales
Force
Free
Members
Premium
Members
Recruiters
Advertisers
Employers
Sales
Professionals
Mobile Apps
Sign In with
Linked In
Sites
Premium
member
subscriptions
Developer
Apps
Advertising
solutions
Recruiters
solutions
Employer
solutions
Sales
solutions
Build & manage
professional
Identify Build & manage
business
contactsAccess to info &
knowledge to
advance career Career
management
Targeted access
to talent pool
Targeted access
of business
professionals
Company
exposure &
talent mgt.
Targeted sales
lead generation
Linked In
platform
Linked In
platform
development
Platform
operations
Direct sales
force
App
Developers
Content
Publishers
Sales &
marketing
Link In
members
Data center
infrastructure
Apps
Other social
media
platforms
Research &
development
Content
management &
monitoring
Promotions &
advertising
Sales &
marketing Research &
development
activitiesLinked In
platform
development
Angie's List
Affiliates
Consumer Review
Database
Angie's List Magazine
Big Deal Notifications
Call Center Support
Complaint Resolution
Sign-up Fees &
Subscription Fees
Free Listing
Advertising
Big Deal
Promotions
Storefronts & e-Commerce Services
Angie's List
6-12 Month Campaigns
Add Businesses
Subsidize
Subscription Fees
40% of Sale
60% of Sale
Reputation
Management Tools
Reliable & High Quality ServicesProducts from Reputable Businesses
Revenue from Delivery of Products/Services
General
Consumers
Homeowner
Consumers
More Customers
Home Service
Providers
Medical
Service
Providers
Auto Service
Providers
Other Service
Providers
Small
Businesses
More
Members
Commissions Per Sign-up
Value Exchange Map
Growth Strategist
Cost Structure
Customer SegmentsCustomer Relationships
Channels
Key Activities
Key Resources
Key Partners
Revenue Streams
Value Propositions
Angie's List
Homeowner
Consumers
General
Consumers
Home Service
Providers
Medical Service
Providers
Auto Service
Providers
Other Service
Providers
Hire the best
service
providers
Authentic &
detailed
reviews
Complaint
resolution
Live phone
support
Discounts
Advisory
information
Promote
business
Get quality
customers
Generate
revenue
Build &
manage
reputation
Direct via
Web
Live support
via call
center
Affiliates
Platform
Call center
Sales &
marketing
Phone support
Complaint
resolution
Platform
development &
maintenance
Generating
content
Platform
development
staff
Data &
Infrastructure
maintenance
Commissions
for member
Sign-ups
Sales
& marketing
staff
Sign-up fees
&
subscriptions
Advertising
e-Commerce
services
Commissions
on promotionsCall center
Business Model Canvas
Mobile
Apps
37+ Million subscribers
Leader in category
S&P 500 (June 30th, 2013)
#629 Fortune 1000 (2013)
Revenue: $3,609.282
Gross Profit: $983.416
Operating Income: $49.992
Net Income: $17.152
Subscription revenue model
Long-tail business model
Broker/reseller model
General Info Business Model ThemesFinancial Picture (2012) Growth Trajectory
Increase subscriber base with
original content exclusive to
Netflix; expand into international
markets
Netflix is the leading Internet television network for movies and TV shows with nearly 38 million
members in 40 countries. For one low monthly price, Netflix members can watch as much as they
want, anytime, anywhere, on nearly any Internet-connected screen without commercials.NETFLIX
[Value Exchange Map]
Distribution
Rights
DVD's
Content
Providers
Ads
Right to Sell
Streaming
Content
Customers
VP
Streaming
Content
DVD
Content
Advertisers
Content
Production
Streaming
Content
Viewing
Behavior
Advertising Fees
DVD Jackets
Subscription
Subscription
% Sales
License Fees
% Sales
Production
Companies
Original Content
Intermediary
Parters
[Apple,
Sony, etc.]
DVD
Postage
DVD
Delivery
Reach
Customers
Growth Strategist
Cost Structure
Customer SegmentsCustomer Relationships
Channels
Key Activities
Key Resources
Key Partners
Revenue Streams
Value Propositions
Netflix
DVD
Customers
Streaming
Content
Customers
Advertisers
Self-service
via Web
Customer
homepage
Website
Video game
consoles
iOS Apps
Content hubs
(ex: AppleTV)
Mail
DVD plan
subscriptions Streaming plan
subscription Advertising
fees
Flat rate DVD
rental via
mail
No late fees
unlimited #
turns on DVD's
per plan
All you can
stream video
No commercials
Stream video on
a number of
devices
Broad exposure
of ads to
customers
Processing DVD
orders
Streaming
digital content
Content
licensing
Producing
original content
Technology
development
Customer
viewing
suggestions
Technology
infrastructure
Licensed
content
Original
content
Customer
viewing
behavior data
Knowledge of
what content
will be popular
Post office
Content
providers
Content
production
companies
DVD mailing
fees
DVD order
processing
costs
Content license
contracts
Cost of
producing
original content
Data equipment,
facilities &
staff
Business Model Canvas
35+ million subscribers
Leader in category
Active in 48 countries
#851 in Fortune 1000 (2013)
Revenue: $2,334.472
Gross Profit: $1,615.532
Operating Income: $98.701
Net Income: $-54.773
Collective buying model
Broker/reseller model
Financial intermediary Model
General Info Business Model ThemesFinancial Picture (2012) Growth Trajectory
Expand goods business; physical
warehouses for faster shipping;
Groupon Reserve (capacity mgt);
POS Apps and merchant services
Groupon is a marketing service that helps businesses attract customers by offering deep
discounts on things to eat, see, and do in more than 500 markets worldwide. Groupons leverages
collective buying power to guarantee businesses a minimun number of customers.GROUPON
[Value Exchange Map]Growth Strategist
Launch Deals at 50-90%
Discount (Usually 50%)
Daily Deal
Guaranteed Number
of Customers
50% of Revenue
Merchant Consultation
(Design Deals)
Customer Intel
VP
Groupon
Join Deal Group &
Commit Payment
Deal Activates
(Minimum Number of
Customers Reached)
More Potential Customers
Heavily Discounted Products & Services
Capture
100% of
Payment
Groupon
Local Offers
Local Offers
Local Offers
Group of Buyers
Merchants
Deal
Cancels;
No One
Charged
ElsePayout Over 3
Months
Groupon customers will spend above
Merchant Value Capture Assumptions
Groupon customers will come back and
pay full price
Word of mouth referrals will generate new
customers
1
1
Cost Structure
Customer SegmentsCustomer Relationships
Channels
Key Activities
Key Resources
Key Partners
Revenue Streams
Value Propositions
Groupon
Consumers
Automated
Direct via Web
and email
Small
Businesses
Mobile Apps
Help businesses
attract new
customers
Guaranteed #
of customers
per daily deal
Daily deal
notifications
Commissions on
sale of daily
deals
Groupon Apps
& Web
platform
Sales &
marketing
Platform & app
development
Technology
operations
IT
development
staff
Sales &
marketing
staff
Discounts of
50%-90%
Groupon is
guaranteed
POS solution &
credit card
processing
Direct via Sales
& Marketing
Team
Merchant
center
POS & Credit
card processing
services
Reservation
system??
Credit card
clearing houses
Spotify
Value Exchange Map
Free service
Unlimited
service
Premium
service
Advertisers
Distributor /
aggregators
Large music
labels
Merlin
Network
ISP's
Platform
Operators
mobile
operators
Consumer
electronics
companies
Spotify
Reach customers
Royalty fees
Right to
distribute
music
Targeted exposure (free users)
Revenue from advertising
(Free users only)
$4.99/month
$9.99/month
Partners
Increase utility value
of product or service
Growth Strategist
Add
usersSubsidized
Cost Structure
Customer SegmentsCustomer Relationships
Channels
Key Activities
Key Resources
Key Partners
Revenue Streams
Value Propositions
Spotify
Free
Unlimited
Premium
Advertisers
Target by
demographics
Target by
location &
music genre
Tracking &
reporting
portal
Customers not
hostile to
advertisement
Distributor /
aggregators
Large music
labels
Delivery
platform
development
Content
licensing &
reporting
Merlin
Network
Mobile
Operators
Consumer
electronics
companies
ISP's
Huge catalogue
of big music &
Independent
Platform
Operators
Delivery
platform
Listen to music
on any device
Social media
integration
download &
listen to music
off-line
Unlimited
subscriptions
Premium
subscriptions
Advertising
revenue
(free users only)
IT
infrastructure
development
Analyze
customer
behaviors
Knowledge of
customer
listening prefs
Infrastructure
maintenance
Royalty
fees
Business Model Canvas
Direct via
Web
Whole Foods Market
Purchases
Lifestyle Grocery Brand (Customer Pull)
Affluent
Social
Shoppers
Healthy
Lifestyle
Shoppers
Values-based
Shoppers
Unique Shopping Environment
Happy, Friendly and
Knowledgeable Staff
Elagent/Artistic Stores
Coffee Bar, Bakery and
Eatery (Large Selection)
Customer-centric Attitude
Customer Service #1
In-store Cooking
Exhibition & Food Sampling
Samples Throughout Store
Fresh Juice Bar
Produce & other items
meticulously displayed
Eating/Socializing Areas
Grocery Products
Quality Standards & Values
Producers
Distributors
Supplier
Partners
Organic
Certifiers
Fair Trade
Certifiers
Other
Partners
Social
Responsibility
Certifiers
Sustainable
Practices
Certifier
Grocery Products
Purchases
Various Services
PurchasesSpecialty Service
Providers
Support
Whole
Foods
Market
Custom Services
Supply Chain
Compliance
to Standards
Consumers
Value Exchange Map
Growth Strategist
Cost Structure
Customer SegmentsCustomer Relationships
Channels
Key Activities
Key Resources
Key Partners
Revenue Streams
Value Propositions
Whole Foods Market
Healthy
Lifestyle
Shoppers
Affluent
Social
Shoppers
Values-based
Shoppers
Personal
interaction in
stores
In-Store
purchases
Producers
Distributors
Specialty
service
providers
Certifying
organizations
Online
purchases
Delighting
customers
Stores
Customer
centric
culture
Store design
Stocking
Products for
stores
Outsourced
services for
stores
Store
operations
High quality
products
(certified)
Building out
new stores
Purchasing
Supply chain
management
(win-win)
Store
Amenities
High quality
natural &
organic products
Delightful
shopping
experience
Certified
quality
standards
Local
community
support
Adhere to
Sustainable
practices
Progressive
organizational
culture & values
Business Model Canvas

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Value Exchange Mapping Guide

  • 1. Value Exchange Mapping System GUIDE Capturing Business Model Interactions
  • 2. We have developed a new tool called the Value Exchange Mapping (VEM) System that works with the Business Model Canvas to provide a kind of“stereo vision”with respect to the business model. Specifically, a VEM captures the value exchanges among the players in a value network in the context of an organization’s business model. This provides a more comprehensive picture of the business model making it easier to identify opportunities for business model innovation. The VEM mapping system is licensed under the Creative Commons and is available for download and use. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-nd/4.0/deed.en_US. www.innodyn.net INNODYNBusiness Growth Development ® Innovate and prosper.
  • 4.
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  • 7.
  • 8. Linked In Linked In Free Members 90% Premium Members 10% Recruiters Advertisers Employers Sales Professionals Developers Targeted Marketing Solutions Talent Management Solutions Recruiter Solutions Targeted Sales Solutions Professional Profile Company Pages Linked In Groups Premium services (on top of basic) Resume Builder Linked In Updates Linked In Connection Management Members Linked In Today Targeted Job Recommendations Targeted content recommendations InMail Access View Profiles Outside Network Job Seeker Premium Viewed Profile? Other Advanced... Content Exposure Sticky Content Platform Apps Access to Platform Content Publishers Value Exchange Map Growth Strategist Other Social Platforms Integration Strong Same Side Network Effects Subscriptions Basic Services
  • 9. Cost Structure Customer SegmentsCustomer Relationships Channels Key Activities Key Resources Key Partners Revenue Streams Value Propositions Linked In Web Direct Sales Force Free Members Premium Members Recruiters Advertisers Employers Sales Professionals Mobile Apps Sign In with Linked In Sites Premium member subscriptions Developer Apps Advertising solutions Recruiters solutions Employer solutions Sales solutions Build & manage professional Identify Build & manage business contactsAccess to info & knowledge to advance career Career management Targeted access to talent pool Targeted access of business professionals Company exposure & talent mgt. Targeted sales lead generation Linked In platform Linked In platform development Platform operations Direct sales force App Developers Content Publishers Sales & marketing Link In members Data center infrastructure Apps Other social media platforms Research & development Content management & monitoring Promotions & advertising Sales & marketing Research & development activitiesLinked In platform development
  • 10. Angie's List Affiliates Consumer Review Database Angie's List Magazine Big Deal Notifications Call Center Support Complaint Resolution Sign-up Fees & Subscription Fees Free Listing Advertising Big Deal Promotions Storefronts & e-Commerce Services Angie's List 6-12 Month Campaigns Add Businesses Subsidize Subscription Fees 40% of Sale 60% of Sale Reputation Management Tools Reliable & High Quality ServicesProducts from Reputable Businesses Revenue from Delivery of Products/Services General Consumers Homeowner Consumers More Customers Home Service Providers Medical Service Providers Auto Service Providers Other Service Providers Small Businesses More Members Commissions Per Sign-up Value Exchange Map Growth Strategist
  • 11. Cost Structure Customer SegmentsCustomer Relationships Channels Key Activities Key Resources Key Partners Revenue Streams Value Propositions Angie's List Homeowner Consumers General Consumers Home Service Providers Medical Service Providers Auto Service Providers Other Service Providers Hire the best service providers Authentic & detailed reviews Complaint resolution Live phone support Discounts Advisory information Promote business Get quality customers Generate revenue Build & manage reputation Direct via Web Live support via call center Affiliates Platform Call center Sales & marketing Phone support Complaint resolution Platform development & maintenance Generating content Platform development staff Data & Infrastructure maintenance Commissions for member Sign-ups Sales & marketing staff Sign-up fees & subscriptions Advertising e-Commerce services Commissions on promotionsCall center Business Model Canvas Mobile Apps
  • 12. 37+ Million subscribers Leader in category S&P 500 (June 30th, 2013) #629 Fortune 1000 (2013) Revenue: $3,609.282 Gross Profit: $983.416 Operating Income: $49.992 Net Income: $17.152 Subscription revenue model Long-tail business model Broker/reseller model General Info Business Model ThemesFinancial Picture (2012) Growth Trajectory Increase subscriber base with original content exclusive to Netflix; expand into international markets Netflix is the leading Internet television network for movies and TV shows with nearly 38 million members in 40 countries. For one low monthly price, Netflix members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen without commercials.NETFLIX [Value Exchange Map] Distribution Rights DVD's Content Providers Ads Right to Sell Streaming Content Customers VP Streaming Content DVD Content Advertisers Content Production Streaming Content Viewing Behavior Advertising Fees DVD Jackets Subscription Subscription % Sales License Fees % Sales Production Companies Original Content Intermediary Parters [Apple, Sony, etc.] DVD Postage DVD Delivery Reach Customers Growth Strategist
  • 13. Cost Structure Customer SegmentsCustomer Relationships Channels Key Activities Key Resources Key Partners Revenue Streams Value Propositions Netflix DVD Customers Streaming Content Customers Advertisers Self-service via Web Customer homepage Website Video game consoles iOS Apps Content hubs (ex: AppleTV) Mail DVD plan subscriptions Streaming plan subscription Advertising fees Flat rate DVD rental via mail No late fees unlimited # turns on DVD's per plan All you can stream video No commercials Stream video on a number of devices Broad exposure of ads to customers Processing DVD orders Streaming digital content Content licensing Producing original content Technology development Customer viewing suggestions Technology infrastructure Licensed content Original content Customer viewing behavior data Knowledge of what content will be popular Post office Content providers Content production companies DVD mailing fees DVD order processing costs Content license contracts Cost of producing original content Data equipment, facilities & staff Business Model Canvas
  • 14. 35+ million subscribers Leader in category Active in 48 countries #851 in Fortune 1000 (2013) Revenue: $2,334.472 Gross Profit: $1,615.532 Operating Income: $98.701 Net Income: $-54.773 Collective buying model Broker/reseller model Financial intermediary Model General Info Business Model ThemesFinancial Picture (2012) Growth Trajectory Expand goods business; physical warehouses for faster shipping; Groupon Reserve (capacity mgt); POS Apps and merchant services Groupon is a marketing service that helps businesses attract customers by offering deep discounts on things to eat, see, and do in more than 500 markets worldwide. Groupons leverages collective buying power to guarantee businesses a minimun number of customers.GROUPON [Value Exchange Map]Growth Strategist Launch Deals at 50-90% Discount (Usually 50%) Daily Deal Guaranteed Number of Customers 50% of Revenue Merchant Consultation (Design Deals) Customer Intel VP Groupon Join Deal Group & Commit Payment Deal Activates (Minimum Number of Customers Reached) More Potential Customers Heavily Discounted Products & Services Capture 100% of Payment Groupon Local Offers Local Offers Local Offers Group of Buyers Merchants Deal Cancels; No One Charged ElsePayout Over 3 Months Groupon customers will spend above Merchant Value Capture Assumptions Groupon customers will come back and pay full price Word of mouth referrals will generate new customers 1 1
  • 15. Cost Structure Customer SegmentsCustomer Relationships Channels Key Activities Key Resources Key Partners Revenue Streams Value Propositions Groupon Consumers Automated Direct via Web and email Small Businesses Mobile Apps Help businesses attract new customers Guaranteed # of customers per daily deal Daily deal notifications Commissions on sale of daily deals Groupon Apps & Web platform Sales & marketing Platform & app development Technology operations IT development staff Sales & marketing staff Discounts of 50%-90% Groupon is guaranteed POS solution & credit card processing Direct via Sales & Marketing Team Merchant center POS & Credit card processing services Reservation system?? Credit card clearing houses
  • 16. Spotify Value Exchange Map Free service Unlimited service Premium service Advertisers Distributor / aggregators Large music labels Merlin Network ISP's Platform Operators mobile operators Consumer electronics companies Spotify Reach customers Royalty fees Right to distribute music Targeted exposure (free users) Revenue from advertising (Free users only) $4.99/month $9.99/month Partners Increase utility value of product or service Growth Strategist Add usersSubsidized
  • 17. Cost Structure Customer SegmentsCustomer Relationships Channels Key Activities Key Resources Key Partners Revenue Streams Value Propositions Spotify Free Unlimited Premium Advertisers Target by demographics Target by location & music genre Tracking & reporting portal Customers not hostile to advertisement Distributor / aggregators Large music labels Delivery platform development Content licensing & reporting Merlin Network Mobile Operators Consumer electronics companies ISP's Huge catalogue of big music & Independent Platform Operators Delivery platform Listen to music on any device Social media integration download & listen to music off-line Unlimited subscriptions Premium subscriptions Advertising revenue (free users only) IT infrastructure development Analyze customer behaviors Knowledge of customer listening prefs Infrastructure maintenance Royalty fees Business Model Canvas Direct via Web
  • 18. Whole Foods Market Purchases Lifestyle Grocery Brand (Customer Pull) Affluent Social Shoppers Healthy Lifestyle Shoppers Values-based Shoppers Unique Shopping Environment Happy, Friendly and Knowledgeable Staff Elagent/Artistic Stores Coffee Bar, Bakery and Eatery (Large Selection) Customer-centric Attitude Customer Service #1 In-store Cooking Exhibition & Food Sampling Samples Throughout Store Fresh Juice Bar Produce & other items meticulously displayed Eating/Socializing Areas Grocery Products Quality Standards & Values Producers Distributors Supplier Partners Organic Certifiers Fair Trade Certifiers Other Partners Social Responsibility Certifiers Sustainable Practices Certifier Grocery Products Purchases Various Services PurchasesSpecialty Service Providers Support Whole Foods Market Custom Services Supply Chain Compliance to Standards Consumers Value Exchange Map Growth Strategist
  • 19. Cost Structure Customer SegmentsCustomer Relationships Channels Key Activities Key Resources Key Partners Revenue Streams Value Propositions Whole Foods Market Healthy Lifestyle Shoppers Affluent Social Shoppers Values-based Shoppers Personal interaction in stores In-Store purchases Producers Distributors Specialty service providers Certifying organizations Online purchases Delighting customers Stores Customer centric culture Store design Stocking Products for stores Outsourced services for stores Store operations High quality products (certified) Building out new stores Purchasing Supply chain management (win-win) Store Amenities High quality natural & organic products Delightful shopping experience Certified quality standards Local community support Adhere to Sustainable practices Progressive organizational culture & values Business Model Canvas