Business Model : Thursday, August 21, 2008 1 Business Model Compiled By:-
Ashish Kumar
naresh kumar
MBA - A
“All men can see these tactics whereby I conquer but what none can see is the strategy out of which victory evolves.” : 2 Thursday, August 21, 2008 “All men can see these tactics whereby I conquer but what none can see is the strategy out of which victory evolves.” - Sun Tzu © RoyaltyFree/ David DeLossy/ Getty Images
Introduction :- : 3 Thursday, August 21, 2008 Introduction :- Business model is an architecture for the product, service and information flows, including a description of the business actors and their roles.
Business model is a description of the potential benefits for the various business actors.
Business model is a description of the sources of revenues.
Definition:-
Business model converts innovation to economic value for the business. In simple terms, a business model is the method of doing business by which a company sustain itself, that is, it can generate its revenue.
Components of Business Model:- : 4 Thursday, August 21, 2008 Components of Business Model:- Value Proposition: A solution that addresses the customer’s problem, and the value of this solution from the customer’s perspective.
Market Segment: The potential of an innovation can only unlocked by identifying the different types of market which has to be targeted.
Value Chain Structure: The firm will capture part of the value that it creates in the chain of activities. Revenue Generation and Margins: Concentrating, how revenue is to be generated (sales, leasing, subscription, support, etc.), the cost structure and target profit margins.
Position in the Value Network: Identification of competitors, complementors, and any network effects that can be utilized to deliver more value to the customer.
Competitive strategy: How the company will attempt to develop a sustainable competitive advantage and use it to improve the enterprise’s competitive position in the market.
Working of Business Model: : 5 Thursday, August 21, 2008 Working of Business Model:
Purpose of Business Model: : 6 Thursday, August 21, 2008 Purpose of Business Model: The conceptual Business model represents the data area under investigation. It: Organizes a high – level view.
Develops a broad and robust understanding of the business processes that an IS/warehouse will support.
Provides a relatively long – lasting business perspective.
Prepares for later modeling.
Provides a basis for meta data generation and management.
The growing role of the Business Architect: : 7 Thursday, August 21, 2008 The growing role of the Business Architect: In today’s knowledge and innovation driven complex economy, business architects are in growing demand.
They are cross – functionally excellent people who can tie several silos of business development expertise together, create synergies, design winning business model and a balanced business system and then lead people who will put their plans into action.
Slide 8 : 8 Thursday, August 21, 2008 Customer’s Focus: Exceptional customer service results in greater customer retention, which in turn results in higher profitability.
Sadly, mature companies often forget of forsake the thing that made them successful in the first place. They lose focus on the customer and start focusing on the bottom line and quarterly results. They forget that satisfying customer needs and continuous value innovation for new, smaller companies to emulate and improve upon what made their bigger competitors successful in the first place.
Applications:- : 9 Thursday, August 21, 2008 Applications:- The popular business models that are currently in use or in experiment stage are listed below:
E – Shop: This is a web marketing of a company or a shop. They offer better information, selection, buying and delivery, including 24 – hour availability.
E – Procurement: It is a electronic tendering and procurement of goods and services. The benefits are wider choice of suppliers, better quality, improved delivery, reduced cost of procurement.
E – Auction: Electronic auctions offer an electronic implementation of the bidding mechanism also known from traditional auctions. It requires very low amount to implement, because of which it becomes more feasible to offer sale small quantities of low value. An e.g. of E – Auction is www.bazee.com.
E – Mall: It is a collection of E – Shops where a common payment method applies and all E – Shops are under a common umbrella or a brand name. The collective benefits are increased in a traffic, increasing expectation of customers, etc. For e.g. Big Bazaar.
Value Chain Service provider: They are specialize on a specific function for the value chain, such as electronic payments of logistics, with the intention to make that their distinct competitive advantage.
Collaboration Platforms: They provide a set of tools and an information environment for collaboration between enterprises. Collaboration platforms provide a set of tools and an information environment for collaboration between enterprises.
Slide 10 : 10 Thursday, August 21, 2008 Any Questions Regarding the Topic……?
Slide 11 : 11 Thursday, August 21, 2008 Thank You For Being a Patient Listener…