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Via Business model innovation

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Karolina Rozmus

on 27 May 2014

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Transcript of Via Business model innovation

Business model innovation
The benefits
Provides a bigger picture of the company
Elements
“Business Model is about new ways of creating, delivering and capturing value.“
- Alex Osterwalder

Model
Model is a systematic description of an object, system or a process that has significant characteristics.
Business Model
Characteristics and descriptions of the way the organization sells its offerings in exchange of money. The model helps to describe and understand how the organization buys and sells its offering in an exchange on money (profit).
Business
Business is referred to as an organization which buys and sells goods and/or services which are exchanged in a form of money.
Value Proposition
is about delivering the value experience to the customers
What exactly is a business model?
Three characteristics of value proposition
Capability
Impact

Customer Segments
Who will purchase our products and services?
Types of customers
x
x
Channels
Which type of relationship best suits your company ?
Personal assistance
Dedicated personal assistance
Self service
Automated service
Communities
Co-creation
Revenue streams
Key resources
Physical
assets, referred to as equipment (machines, vehicles), inventory (products), properties owned by a company (facilities, building, stores points of sales), and capital
Intellectual
It is collection of ideas (knowledge) developed by a company
It includes: brands, patents, copyrights and customer database
Human
In some industries human resources play a prominent role, especially in creative industries which are based on experience and highly skilled people.
Financial
Financial resources are money available to enterprise in a form of cash, credit lines or stock option (growth & investment)
Key activities
Production
Any activities related to production of a product such as designing, prototyping, making and delivering it, with a focus on quantity or quality.
Problem solving
This activity requires a company to invest in constant development and trainings. Usually a company specializes in problem solving activities therefore, it has to focus on satisfying different client’s needs.
Knowledge management
Platform/network
Companies such as eBay and Visa have to establish a platform for customer to be able to use their offers.

2. Partnerships formed between competitors (in the same market)
3. Partnerships based on cooperation agreement between two or more companies to establish new enterprise
4. Strategic alliance with a supplier to minimize the costs, and have a reliable source of supplies
1.Alliances between two companies or more, which do not compete with each other

Key Partnerships
Value-driven
The goal is to offer superior quality products and services
Focusing on every detail of the offer
Cost structure
Cost-driven
The goal of the company is to minimize all cost
Outsourcing activities
Offering the value at the lowest cost


Fixed costs
Variable costs
Economies of scale
Economies of scope

Define the way a company communicates and targets the customer segments to deliver the value
Customer Relationships
What is the value?
Mass market
Niche market
Segmented markets
Multi-sided markets
Diversified markets
Helps in adjusting the model to fit their business
Helps in communication and implementation of new market opportunities
Cost
Business Models Innovation
Examples
Xerox 914
Charles Carlson
Benefit:
2000 copies a day vs 30-50 copies a day
Issue:
Machine was very expensive
Solution ?
Monthly payment = $ 95,00
Bonus = 2000 free copies a month
Additional costs = ,05 cent a copy
Search engine
Where's
G
o
o
g
l
e
making its money?
ADVERTISING

selling search terms
2011
$ 33,3 billion
in total revenue

of Google's Revenue
97 %
is from advertising
Case study
Machine
manufacturer
Marketing
Retail
Patent
Brand
Marketing
Production
B2C distribution
Distribution channels
Production facilities
Coffee
Production
B2C distribution
1 x machine sale
Repetitive pod sales
Nespresso machines
Nespresso pods
Nespresso Club
Mail order
Nespresso.com
Call center
Nespresso stores
Households
Businesses
Business model (innovation)
Karolina Rozmus
Nespresso

Joint venture with manufacturer
Offices
Machine manufacturer
Key lesson
We have to go beyond the product and services
Innovation + Business Model
Sony Microsoft Nintendo
Video games consoles
Double-sided platforms
Full transcript