Value Exchange Mapping System GUIDE. Capturing Business Model Interactions

Transcription

1 Value Exchange Mapping System GUIDE Capturing Business Model Interactions

2 INNODYN Demand Creation System 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. Innovate and prosper. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. To view a copy of this license, visit

3 Value Exchange Mapping: Capturing Business Model Interactions

4 Wo w Key Partners Key Activities Key Resources Fa c i t s nt a Value Propositions The BIG Picture Customer Relationships Channels Cost Structure Business Model Perspective is the logical relationships among the 9 building blocks Value Exchange Map Perspective is logic of value exchanges within the value network Value Network Customer Segments Revenue Streams

5 8 Players Value Producer Consumer Customers Business Everyone Else Supplier Service Provider Intermediary Partner Indentifier Other Organization Government example

6 12 Value Exchanges Money Payment (Revenue) Payment Commitment Payment (Cost) Credits Everything Else Product Service Data/Information Right Exposure Reputation Experience Misc.

7 Miscellaneous Everyone Else Knowledge Web Interaction IF/Else Key Activity Strategic Capability Transactions Value Capture (Monetized) Value Capture (Non Monetized) Player Group Boxes Customers Customer Value

8 Linked In Value Exchange Map Integration Recruiter Solutions Other Social Platforms Recruiters Basic Services Targeted content Linked In Connection recommendations Management Linked In Updates Linked In Today Resume Builder Targeted Job Recommendations Linked In Groups Targeted Marketing Solutions Professional Profile Advertisers Members Company Pages Talent Management Solutions Subscriptions Linked In Premium services (on top of basic) Employers InMail Access View Profiles Outside Network Job Seeker Premium Viewed Profile? Other Advanced... Targeted Sales Solutions Sales Professionals Growth Strategist Sticky Publishers Exposure Platform Apps Access to Platform Developers Free Members 90% Premium Members 10% Strong Same Side Network Effects

9 Linked In Key Partners Key Activities Value Propositions Customer Relationships Customer Segments App Developers management & monitoring Linked In platform Sales & marketing Research & Build & manage professional Identify Access to info & knowledge to advance career Build & manage business contacts Career management Web Direct Sales Force Free Members Premium Members Publishers Other social media platforms Key Resources Linked In platform Apps Link In members Targeted access to talent pool Company exposure & talent mgt. Targeted access of business professionals Targeted sales lead generation Channels Mobile Apps Sign In with Linked In Sites Developer Apps Recruiters Advertisers Employers Sales Professionals Cost Structure Data center infrastructure Linked In platform Sales & marketing Platform operations Direct sales force Promotions & advertising Research & activities Revenue Streams Premium member subscriptions Advertising solutions Recruiters solutions Employer solutions Sales solutions

10 Angie's List Small Businesses Reputation Management Tools Subsidize Free Listing Value Exchange Map Growth Strategist Home Service Add Businesses Consumer Review Database Angie's List Magazine Big Deal Notifications Advertising Call Center Support Medical Service 6-12 Month Campaigns Storefronts & e-commerce Services Angie's List Complaint Resolution Sign-up Fees & Subscription Fees Homeowner Consumers Auto Service Subscription Fees More Members General Consumers Other Service Big Deal Promotions 40% of Sale Commissions Per Sign-up Affiliates 60% of Sale More Customers Revenue from Delivery of Products/Services Products from Reputable Businesses Reliable & High Quality Services

11 Angie's List Business Model Canvas Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Affiliates Complaint resolution Generating content Sales & marketing Phone support Key Resources Platform & maintenance Platform Hire the best service providers Complaint resolution Discounts Live phone support Advisory information Authentic & detailed reviews Channels Direct via Web Live support via call center Mobile Apps Homeowner Consumers General Consumers Home Service Medical Service Call center Promote business Get quality customers Generate revenue Build & manage reputation Auto Service Other Service Cost Structure Platform staff Data & Infrastructure maintenance Sales & marketing staff Call center Commissions for member Sign-ups Revenue Streams Sign-up fees & subscriptions Advertising e-commerce services Commissions on promotions

12 NETFLIX 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. General Info 37+ Million subscribers Leader in category S&P 500 (June 30th, 2013) #629 Fortune 1000 (2013) Financial Picture (2012) Revenue: $3, Gross Profit: $ Operating Income: $ Net Income: $ Growth Trajectory Increase subscriber base with original content exclusive to Netflix; expand into international markets Business Model Themes Subscription revenue model Long-tail business model Broker/reseller model [Value Exchange Map] Subscription Customers License Fees Distribution Rights " Subscription Streaming Streaming DVD Postage VP " DVD's Post Office DVD Delivery % Sales Reach Customers Netflix " Advertising Fees DVD Jackets Ads DVD [Apple, Sony, etc.] % Sales Viewing Behavior Original Intermediary Parters Right to Sell Streaming Production Production Companies Advertisers Growth Strategist

13 Netflix Business Model Canvas Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Post office providers Processing DVD orders Streaming digital content Technology Key Resources licensing Producing original content Customer viewing suggestions Flat rate DVD rental via mail unlimited # turns on DVD's per plan All you can stream video No late fees Channels Self-service via Web Customer homepage DVD Customers Streaming Customers production companies Technology infrastructure Licensed content Original content Customer viewing behavior data Knowledge of what content will be popular No commercials Stream video on a number of devices Broad exposure of ads to customers Website Video game consoles ios Apps hubs (ex: AppleTV) Mail Advertisers Cost Structure DVD mailing fees DVD order processing costs license contracts Cost of producing original content Data equipment, facilities & staff Revenue Streams DVD plan subscriptions Streaming plan subscription Advertising fees

14 GROUPON 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. General Info 35+ million subscribers Leader in category Active in 48 countries #851 in Fortune 1000 (2013) Financial Picture (2012) Revenue: $2, Gross Profit: $1, Operating Income: $ Net Income: $ Growth Trajectory Expand goods business; physical warehouses for faster shipping; Groupon Reserve (capacity mgt); POS Apps and merchant services Business Model Themes Collective buying model Broker/reseller model Financial intermediary Model Growth Strategist [Value Exchange Map] VP Launch Deals at 50-90% Discount (Usually 50%) Merchant Consultation (Design Deals) Groupon Daily Deal Notifications Local Offers 1 Merchant Value Capture Assumptions Groupon customers will spend above Groupon customers will come back and pay full price Word of mouth referrals will generate new customers Capture 100% of Payment Join Deal Group & Commit Payment Local Offers 50% of Revenue Payout Over 3 Months Else " Deal Activates (Minimum Number of Customers Reached) Merchants Customer Intel 1 More Potential Customers Guaranteed Number of Customers Deal Cancels; No One Charged Groupon Local Offers Group of Buyers Heavily Discounted Products & Services

15 Groupon Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Credit card clearing houses Sales & marketing Key Resources Platform & app Help businesses attract new customers POS solution & credit card processing Guaranteed # of customers per daily deal Channels Automated Direct via Web and Direct via Sales & Marketing Te am Merchant center Consumers Groupon Apps & Web platform Daily deal notifications Discounts of 50%-90% Mobile Apps Small Businesses Groupon is guaranteed Cost Structure Revenue Streams Technology operations IT staff Sales & marketing staff Commissions on sale of daily deals POS & Credit card processing services Reservation system??

16 Spotify Value Exchange Map Distributor / aggregators Royalty fees Subsidized Add users Free service Large music labels Right to distribute music Merlin Network Unlimited service Partners Reach customers Spotify $4.99/month ISP's Consumer electronics companies $9.99/month Targeted exposure (free users) Premium service Platform Operators mobile operators Increase utility value of product or service Revenue from advertising (Free users only) Advertisers Growth Strategist

17 Spotify Business Model Canvas Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Distributor / aggregators Large music labels Delivery platform Analyze customer behaviors Key Resources licensing & reporting Listen to music on any device Huge catalogue of big music & Independent Social media integration download & listen to music off-line Channels Direct via Web Free Unlimited Premium Merlin Network Tracking & reporting portal Delivery platform Knowledge of customer listening prefs Target by demographics Target by location & music genre Customers not hostile to advertisement Mobile Operators Consumer electronics companies ISP's Platform Operators Advertisers Cost Structure Revenue Streams IT infrastructure Infrastructure maintenance Royalty fees Unlimited subscriptions Premium subscriptions Advertising revenue (free users only)

18 Whole Foods Market Unique Shopping Environment Supplier Partners Custom Ser vices Happy, Friendly and Knowledgeable Staff Customer-centric Attitude Customer Service #1 Grocery Products Producers Elagent/Artistic Stores Produce & other items meticulously displayed Purchases Distributors Coffee Bar, Bakery and Eatery (Large Selection) Eating/Socializing Areas Various Ser vices Specialty Service Purchases Support Fair Trade Certifiers Whole Foods Market Social Responsibility Certifiers Samples Throughout Store Sustainable Practices Certifier Consumers Healthy Lifestyle Shoppers Affluent Social Shoppers Quality Standards & Values Lifestyle Grocery Brand (Customer Pull) Supply Chain Compliance to Standards Growth Strategist In-store Cooking Exhibition & Food Sampling Fresh Juice Bar Other Partners Organic Certifiers Value Exchange Map Grocery Products Purchases Values-based Shoppers

19 Whole Foods Market Business Model Canvas Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Producers Distributors Specialty service providers Certifying organizations Key Resources Delighting customers Store design Purchasing Stores High quality products (certified) Supply chain management (win-win) Customer centric culture High quality natural & organic products Delightful shopping experience Certified quality standards Adhere to Sustainable practices Local community support Progressive organizational culture & values Channels Personal interaction in stores Healthy Lifestyle Shoppers Affluent Social Shoppers Values-based Shoppers Cost Structure Revenue Streams Building out new stores Store operations Store Amenities Outsourced services for stores Stocking Products for stores In-Store purchases Online purchases