Business Model Architecture and Its Triple Play. Dr. Phil Samuel

Transcription

1 Business Model Architecture and Its Triple Play Dr. Phil Samuel

2 Three Types of Innovation/ Improvement Product, and Service Innovation Crest Whitestrips Disruptive innovation allowing users to whiten their teeth at home; lowcost, low-skill needed; results are good enough. iphone The user interface is built around the device's multitouch screen, including a virtual keyboard rather than a physical one Western Union Mobile Wallet Convenient way to transfer funds from your cell phone to recipient s telephone. Process Innovation $35 Cataract Surgery Arvind Hospitals in India challenged the way Cataract surgery was conducted. As a results of implementing a series of provocative ideas, today they can do the surgery for less than $35 while maintaining 40% gross margin Cross - Docking Goods trucked to a distribution center from suppliers are immediately transferred to trucks bound for stores, without ever being placed into storage. Toyota Production System Applying lean principles removing waste from processes, Toyota has created an efficient and agile production system Business Model Innovation Patients like me Patients Like Me provides a platform to share real-world health experiences in order to let people help themselves, other patients like you and organizations that focus on medical conditions. Patients Like Me can make profit by selling all available data to other organizations Revenue Model Google provides online search at your convenience based on enormous amount of information available. While it is provided free to customers, Google generates large amount of revenue from adwords Peer to Peer Lending Peer-to-Peer Lending disintermediated established banks to promote lending between individuals

3 What is a Business Model? A business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. The process of business model construction is part of business strategy Alex Osterwalder, Business Model Generation

4 Business Model Architecture

5 Play One: Analyze existing business model of an organization

6 Amazon Web Services Business Model VALUE CREATION PARTNERS Third party vendors, consultants ENABLING PROCESSES & RESOURCES Amazon brand IT development Support CORE PROCESSES & RESOURCES Scalable IT infrastructure Data warehouses COMPLEMENTARY OFFERING Commercial software plugins Development tools CORE OFFERING Scalable, cost effective solutions for unmanaged cloud platforms BRAND STRATEGY Utilize Amazon image to drive sales Word of mouth CUSTOMER EXPERIENCE Scalable, unmanaged, safe and secure Spread across 10 geographic regions around the world. Multiple availability zones to reduce outages spreading DISTRIBUTION CHANNELS Online through Amazon AWS CUSTOMER SEGMENT & JTBD Customer Segment: Organization with large computing needs JTBD: Enable large computing capacity (potentially many servers) much faster and cheaper than building a physical server farm COST STRUCTURE Warehouses, engineer and developer salaries, hardware, support and maintenance REVENUE STREAMS Subscription services, pay as you go, commercial software

7 Zara Business Model VALUE CREATION PARTNERS Specialized garment suppliers (mostly in Spain) Trendscouts ENABLING PROCESSES & RESOURCES Vehicle testing Analytics and big data Nevada battery plant Trend analysis Small batch production No bulk production before seasons start CORE PROCESSES & RESOURCES Privately owned factories and distribution centers Cutting edge real-time analytics Vertical supply chain integration COMPLEMENTARY OFFERING New designs every few weeks Other fashion related items CORE OFFERING Constantly changing fashionable clothes based on feedback BRAND STRATEGY High end retail locations focused on delivering new trends and high quality clothes CUSTOMER EXPERIENCE Many locations across higher end retail centers DISTRIBUTION CHANNELS Online and retail stores CUSTOMER SEGMENT & JTBD Customer Segment: Fashionistas trend and fashion conscious JTBD: Access the latest fashion trends with constant flows of new items in weeks COST STRUCTURE Manufacturing, material suppliers, warehousing, logistics, retail store locations REVENUE STREAMS Sales of clothes and other items

8 Play Two: Analyze the industry innovations in a given period of time

9 Airline Industry Innovation Onboarding procedures, Safety improvements Pay as you go Global alliances Shared frequent flyer programs, Pre-check security programs, in-flight wifi POS and service delivery via smartphones high Activity Customer service training by Disney Check-in kiosks low Finance Value Creation Value Offering Value Delivery Revenue model Cost model Value creation partners Enabling process Core process Complementary Offering Core Offering Brand Channel Customer Experience Customer Segment

10 Rental Car Industry Innovation Models/ options Web based booking Child seat Insurance Fuel options GPS Fleet Satellite Radio Optimization Child seat Modeling Ski equipment Ads Clubs Travel Agents Airport shuttle Frequent Renter Services Business Travelers high Activity low Finance Value Creation Value Offering Value Delivery Revenue model Cost model Value creation partners Enabling process Core process Complementary Offering Core Offering Brand Channel Customer Experience Customer Segment

11 Play Three: Innovate your business model

12 Enterprise Rent-a-Car: Innovating the Business Model VALUE CREATION PARTNERS Partnership with auto insurers ENABLING PROCESSES & RESOURCES Customer friendly and motivated teams CORE PROCESSES & RESOURCES Car rental process Fast and agile car delivery and pick-up process COMPLEMENTARY OFFERING GPS CORE OFFERING Rental car BRAND STRATEGY Word of mouth Advertising Customer service perception CUSTOMER EXPERIENCE Enterprise Rent-A-Car brings a car to you at the accident scene Arrange pick-up of car or provide ride back when you return the car to Enterprise No hassle paperwork DISTRIBUTION CHANNELS Enterprise Rent-A-Car delivery team CUSTOMER SEGMENT & JTBD Customer Segment: occasional car renters who had an accident JTBD: Rent a car for temporary use while own car is getting repaired or replaced COST STRUCTURE Off airport locations with low cost of operation REVENUE STREAMS Steady income through partnership with auto insurers

13 Exercise: Read the Airbnb narrative at your table and build the business model using the template provided