the business structure. The question here is,this;
"How the business model in your organization can cope with
fast-changing and competitive situation"
The book aims to give you insights for how to create the business and build strategy.
Business model is about value proposition.
It is about how your organization can create a value to customer and deliver it.
This book decomposes a business model to 4 domains
(customer, value proposition, infrastructure, finance).
For 4 domains, there are 9 building blocks.
9 building blocks are;
CS (Customer Segments)
=> Customer segments are groups of people of which your
organization trying to interact. So to question, for whom
shall we create a value? and identify who is "the most"
important customer. Below are examples of CS.
a). Mass market
b). Niche market
c). Focused market
d). Diversified market
e). Multi-side platform (e.g. credit card/retail store)
VP(Value Proposition)
=> What value does your organization propose to customer?
What particular does it solve?
What needs does it satisfy?
To which CS and what product/service does it deliver?
...VP is to answer above questions in order to make the
organization "valuable". Following three attributes can
greatly contribute the successful VP.
- Newness of product/service (e.g. Ethical Funds)
- Performance (HDD)
- Customization (
CH(Channels)
=> Channel is a path defining how it communicates and
delivers the service to customer. Consecutively,
how you can integrate the channels.
CR(Customer Relationships)
=> You can classify the CR as followed;
- Personal Assistance
- Self-Service
- Automation (e.g. Genius)
- Community (e.g. GlaxonSmithKline)
- Collaboration (e.g. Amazon book review)
R$(Revenue Streams)
=> How can your organization generate revenue?
Or conversely, how does customer wants to
consume the product/service?
- Sales of Product/Service (e.g. FIAT)
- Fee (e.g. Hotel)
- Subscription (e.g. News paper)
- Rental/Lease (e.g. Car rental)
- License (e.g. Intellectual Property)
- Agent Charge (e.g. Brokerage Allowance)
- Advertisement
KR(Key Resources)
=> For value proposition, what resources are needed?
- Physical Resource (e.g. factory, machine, system etc)
- Intellectual Property (e.g. brand, IP, partnerships etc)
- HR
- Financial Resource
KA(Key Activities)
=> What are the key activities in order to propose value/
- Manufacturing
- Problem Solving
- Platform/Network
KP(Key Partners)
=> Who are the key partners? Who are the key suppliers?
Which resource are you getting from which partner?
Which key activities are your KPs engaging?
- Optimization and Economy of Scale
- Mitigate Risk and Uncertainty
- Acquire resources and activities
C$(Cost Structure)
=> What is the most remarkable "cost" in business model?
Which resource is the most expensive?
Which key activity is the most expensive?
Once you find out, then you can map them out on canvas.
Good luck!
