1. Business Model Innovation – Namely Inc.
Business model innovation Format: – Online presentation, max. 7 slides and 7 minutes
Description: Innovating business models can be a major value driver and allow an
organization to significantly outperform the competition. Yet many organizations have
difficulty to do so, because business model choices often remain implicit and are not
reconsidered for a long time. Step 1: choose an existing digital business. Make sure you
choose an example that has enough information about its operations available online. Use
the following criteria to choose a company: Company chosen is Namely Inc. mid-size (101-
500 employees) operating since at least 2012 annual revenues of between €8M and €800M,
or $10M and $1B. industries: healthcare, publishing, human resources Examples are:
Doximity (healthcare-US), DrudgeReport (publishing-US), Storyful (Publishing-Ireland),
ZipRecruiter (HR-US), MSI Group Limited (HR-UK) Step 2: Using available sources about the
company (at least 8), analyze its business model. In your analysis use the Johnson et al.
(2008) framework, i.e. specifying: Customer value proposition Profit formula Key resources
Key processes Step 3: Now that you analyzed existing business model. (I have some analysis
on the company), the task is to come up with an innovative business model design that will
improve the company’s competitiveness. Analyze the current business model in light of the
five strategic instances that may require business model to change (see Johnson et al. 2008,
p. 7) Develop a clear argumentation explaining what limitations of existing business model
can be solved through redesign? Come up with a business model innovation and explain the
novel business model through the framework of Johnson et al. (2008) Your final description
of the Business Model should cover the following elements: Customer value proposition
What is the unique, important value that your innovation brings to a specific range of
customers. The customers can be those who buy products / services or clients who receive
services from public organizations (e.g., citizens of Amsterdam who receive services from
City Hall). Try to specify the (new) products or services that your innovation develop or
improve. Make sure you have a convincing argument for why such a value proposition is
really valuable for the specified customers. Profit formula Having all the above elements in
mind, you need to estimate 3 main cost elements that you should cover for implementing
your BM and try to have a rough estimate of each cost element for the first 3 years (e.g., you
may think of 10 programmers who are full-time, with an annual salary of 40,000 Euro).
Next to it, how you are going to gain your revenue and try to have a rough estimate of it for
the first 3 year. Then comparing the cost and revenue, estimate your profit for the first 3
years (don’t worry if it turns out to be negative for the first years)! Key activities Specify at
2. least 3 key activities that should be designed and executed in order to develop the value
proposition. This can include the design, production, transportation, analysis, and
communication activities. Key resources Then specify at least 3 key resources that your
company needs to have (or acquire) in order to perform the key activities. Try to be as
specific as possible. For example, instead of saying “human resources”, specify which
expertise do your employees need? All these elements should be put together and fit with
each other and produce a viable business model, so that you can convince external
stakeholders (e.g., investors) or internal stakeholders (e.g., managers of the company) to
support your Business Model.#Business #Model #Innovation
