02 What Is A Business Model
Download as PPTX, PDF
3 likes1,450 views
A business model is a conceptual tool that expresses the business logic and value proposition of a firm. It describes how an organization creates, delivers, and captures economic, social, or other forms of value for its customers and partners. The business model concept can be used to represent the key aspects of a company, including its purpose, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes. Common elements of a business model include its value proposition, target customer segments, distribution channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure.
02 What Is A Business Model
- 1. What is a Business Model?1
- 3. Definition of Business ModelA business model is a conceptual tool containing a set of objects,concepts and their relationships with the objective to express thebusiness logic of a specific firm. Osterwalder, A., Pigneur, Y., and Tucci, C. L., CLARIFYING BUSINESS MODELS: ORIGINS,PRESENT, AND FUTURE OF THE CONCEPT, Communications of the Association for Information Systems, 15, May 2005.3
- 4. What a Business Model DescribeA business model describes the rationale of how an organization creates, delivers, and captures value - economic, social, or other forms of value. 4http://en.wikipedia.org/wiki/Business_model
- 5. Definition of Business ModelThe term business model is thus used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies.5http://en.wikipedia.org/wiki/Business_model
- 6. Nine Business Model Building Blocks6
- 7. Nine Business Model Building Blocks7
- 8. Nine Business Model Building Blocks8
- 9. A Model (Value Chain) in 80s9
- 11. Todays Business Model 11
- 12. 12
- 13. Summary of what is a business model13
- 14. More on What Is a Business Model
- 16. Value propositionThe proposed value bundled and then offered to potential value recipients.Sometimes hard to tell. 16Alma-Tadema: Courtship the Proposal
- 17. Value propositionIs Googles value proposition its search? And its recipients customers?Only its products and services?
- 18. Googles Value No! It provides user data to "upstream" application developers18
- 19. Googles Value RecipientsOnly its customers? No! users (a very large number of value propositions, often provided for free)network partners (revenues in return for relevant ads on their sites)DevelopersEmployees, Google owners, etc.Other business, libraries, authors the world!19
- 20. Googles Value SourceOnly its revenue? No! create momentum for a new technology cloud computing20
- 21. The functions of a business modelIdentify a market segmentThe entire world as a segment? Define the structure of the value chain (or canvas)21
- 23. 23
- 24. Long Tail Business Model24Click Me!The Long Tail Eats the Head
- 25. Business Model Example Xerox RentalMarket segment corporate and governmentValue proposition high quality copies at a low monthly lease rateValue chain elements entire copier system including suppliesCost & margin modest profit on equipment, high on suppliesValue network position first mover, not require or pursue partnersCompetitive strategy technical product quality and capability25
- 26. Business Model Example 3ComMarket segment corporate PCValue proposition file and printer sharing between PCsValue chain elements focus on Ethernet protocol and add-on boardsCost & margin high volume low costValue network position set IEEE 802 (LAN/MAN) standardCompetitive strategy compete on standard and new channels26