BUSINESS MODELLING 2013-1-ES1-LEO05-67282

BUSINESS MODELLING
2013-1-ES1-LEO05-67282
Purpose of business modelling

To identify




a combination of values represented by the
products,
d t processes, services
i for
f the
th targeted
t
t d
customers and consumers
the method of creating and delivering this value
the way how to persuade customers and consumers
to pay for this value
the mechanism how to convert these payments into
profit
Objective of a business model

To develop an attractive offer for
customers/consumers based on a bundle of



products,
services,
related value added services
which
hi h can be
b delivered
d li
d in
i a profitable
fit bl way
Scope of application

Products, processes, services, systems and
market concepts of food businesses
 which
are based on commercialisation of R+D+I
results and activities
The business model canvas
7. Key
partnerships
KP
6. Key
Activities
KA
5. Key
Resources
KR
1. Value
Propositions
VP
9. Cost structure
C$
Forrás: Business Model Canvas (Osterwalder, Pigneur 2010.)
4. Customer
RelationRelation
ships
CR
2. Customer
Segments
CS
3. Channels
CH
8. Revenue Streams
RS
Development of a business model
Consider
C
id aspects
t represented
t d by
b the
th building
b ildi 9
blocks
 Be specific for your business idea,
consumer/customer segment, internal and external
resources, business environment, business culture
 Record
R
d your fi
findings
di
for
f eachh building
b ildi blocks
bl k in
i
Template 1

4.1 Core value propositions

Main aggregated benefits offered to a specific
customer/consumer segment through
a
bundle off products and/or
/ related services
 What we offer for them what they see as a
valuable solution for one of their problems?
 What is the p
problem or what is the new need,, which
has not been served yet?
 Are they ready to pay for it?
 Why they should choose our offer compared to
other competitive offers?
Template 1
Typical elements, for creating values to a specific
customer/consumer
/
segment
 Newness,,
novelty
y
 Better performance
 Customisation of products and services to specific
needs of customers/consumers or their segment
 Provision of related services
 Attractive design
 Brand and the status represented by it
 Price
 Enabling
E bli costt reduction
d ti
 Risk reduction
 Accessibility
A
 Convenience/Usability
4.2 Identify customer segments (1)

Customer/consumer segment: a distinct group
 having
common needs, expectations, behaviour or
other attributes
whom we want to reach – who are most likely to be
attracted by our value proposition
4.2 Identify customer segments (2)

C id similarities
Consider
i il iti and
d differences
diff
in
i
 needs
 product
d
and
d service
i attributes
ib
seen as a value
l
 preferred distribution channels
 expectations
i
and
d requirements
i
for
f relationships
l i hi with
ih
the product/service provider
 buying
b i power
 willingness to pay for different elements of the
offer,
ff etc.
 other potential grouping criteria
Typical types of customer segments

IIn addition
dditi tto specific
ifi character
h
t off th
the
customer/consumer group
 Mass
market
N
Niche market
 Slightly segmented, slightly differing
 Diversified
 Multi-sided platform (or multi-sided markets)
representing
i a situation
i
i where
h
two or more
interdependent customer segments are served
4.3 Establish distribution channels



How the users can access to the products and services?
How we communicate – with our customers and
consumers?
Define, which channels cover the following functions:
Raising awareness among customers/consumers about your
products and services
p
 Helping customers/consumers to evaluate your value
proposition(s)
 Allowing your customers/consumers to purchase your specific
products and services
 Making your value proposition based on your products and
services and their combination available to your
customers/consumers
 Providing post-purchase support


Mixing several channels may be necessary
Potential distribution channels

Own
O
Partners channels

Consider

number of contacts
 profit margin
 cost efficiency
 financial risks

4.4 Determine customer relationships (1)


How customers/consumers
H
t
/
will
ill be
b attracted
tt t d and
d
retained
Define your aim in the segment
Acquire new customers/ consumers (usually through
marketing)
 Retain existing customers/ consumers (usually through
services)
i )
 Add-on selling (increase the purchase of the existing
customers/consumers) (usually through sales)
customers/consumers),

4.4 Determine customer relationships (2)



Define, what your customers/consumers expect in
Define
relationships
What yyou p
provide now and what has to be added?
Consider typical types of customer relationships:
Personal assistance
 Dedicated personal assistance
 Self- service
 Automated
A
d service
i
 User communities (including online ones)
 Co-creation
Co creation by involving customers into the development
process
 Adjustment to personal needs
 Etc.

4.5 Specify key resources, capabilities
and core competencies (1)

Which resources,
resources capabilities and competencies are
necessary to
create and offer value proposition
 reach markets
 main customer relationships
 earn revenues

in your customer/consumer segment?
4.5 Specify key resources, capabilities
and core competencies (2)

D
Describe
ib your main
i
resources,
 capabilities
 competences



Define your core competence
Define, which resources, capabilities and competences can
you access from
f
your chain
h i partners (customers/consumers)
(
/
)
4.6 Define key activities to create and
offer value propositions (1)

Which key activities are required to
create and offer our value propositions
 reach markets
 maintain relationships with our customer/consumer segment
 earn revenues


Analyse and evaluate

Inbound logistics (purchasing
(purchasing, receiving
receiving, warehousing
warehousing, inventory
control of input – raw material, ingredients, additives,
packaging material, other resources- materials;
4.6 Define key activities to create and
offer value propositions (2)
 Production
(designing
(designing, preparation
preparation, manufacturing
manufacturing, delivering
a product in required quantity and quality by the required
deadline))
 Problem solving (developing new solutions for individual
customer problems, knowledge management, regular training)
 Outbound
O b d logistics
l
(warehousing,
(
h
order
d fulfilment,
f lf l
transport,
etc.)
 Platform/network (establishing and maintaining matchmaking
platforms or network- related activities)
 Marketing and sale (channel selection, advertising, pricing,
etc.)
 After-sale (customer support, repair services, etc.)
4.7 Identify key partnership


With whom is necessary to collaborate systematically?
Who are our strategic partners, alliances





for providing our value proposition
What are the motivators of these partnerships?




with non-competitors
p
with competitors
joint ventures
buyer-supplier
buyer
supplier relationships
optimisation economy of scales
reduction of risks and uncertainty
acquisition
q
of complementary/additional
p
y/
resources,, capabilities,
p
,
competences from your chain partners – what? from whom?
Who are your suppliers?
4.8 Establish revenue streams (1)

D fi hhow we will
Define
ill generate
t revenue??





For which value are our customers/consumers in the targeted
segment really willing to pay?
Describe the answers for each segment
Evaluate several options for getting revenue
For which value are paying your customers/consumers now?
How they prefer to pay?
4.8 Establish revenue streams (2)

Consider
One time payments
 Revenues from on-going repeated payments
 Post purchase customer support

4.8 Establish revenue streams (3)

Consider typical ways to generate revenue:
Asset sale;
 Usage fee;
fee
 Subscription fee;
 Lending/Renting/Leasing;
L di /R ti /L i
 Licensing,
 Maintenance
M i
and
d updating
d i fee
f for
f softwares,
f
b
books
k and
d other
h
knowledge based products;
 Maintenance service fee for machinery;
machinery
 Refilling

4.9 Define cost structure (1)

H our costs are calculated,
How
l l d allocated
ll
d and
d covered?
d?
creating, marketing and offering value reaching markets
 using resources,
resources assets,
assets carrying out activities
 maintaining customer/consumer relationships and partner network
p
relationship
 earing revenues


Which costs structure is most appropriate for our approach?
cost driven, which focuses on minimising costs
 value driven, which focuses on value creation

4.9 Define cost structure (2)

Analyse
fixed costs,
 variable costs
 cost advantages through economies of scale and economies of
scope

26
4.10 Design your business model


Be fl
B
flexible
ibl and
d creative
ti
The listed options within the building blocks are typical
examples
l only.
l Y
You are free
f
to
t create
t new
w concepts,
t
approaches and tools.
4.11 Use your business model as an input to
thee bus
business
ess sstrategy
a egy
In summary




Business model
Scope of application
Th b
The
business
i
model
d l canvas
Development of a business model (typical elements)