innovating business model of system integrators- in motion weighing
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Innovating Business Model
In Motion Weighing Industry
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Market Aggregate Material Production and Processing
• Mining
• Fertilizer
• Coal
• Stone Crusher
• Cement
• Farming
• Ports
• Municipality waste
Material Processing Companies 1. Have a need to account weight of material as they are produced, processed, stored and moved at various places. 2. Since materials are moved on conveyors, there is a requirement to measure weight of material while in motion.
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In Motion Weighing, IMW Uses Load cells placed underneath conveyor and integrated with electronics
to collect, transmit and report weight of material moving in conveyor
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Fierce Competition in IMW Industry
• Since penetration of IMW solution has spread into more industries, the sophistication of technology has increased.
• Most of the sophisticated solutions are owned by companies outside India.
• In India, several of these technologies are available through their local agents or system integrators.
No doubt, the industry is becoming fiercely competitive!
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Value Proposition
Channels
In Motion Weighing - Business Model (Old)
Customer Segment
1 2
3
Like others, Satpal is an IMW system
Integrator for a German
Technology Company
He offers IMW Solution to
material producing companies
He promotes his service through web, participates in tenders and once he wins a tender sends his engineers to install equipments
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Value Proposition
Channels
Revenue
In Motion Weighing - Business Model (Old)
Customer Segment
1 2
3
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Satpal is paid for the equipment installed at the site of customers and he also receives
recurring AMC fee for maintaining the
equipment.
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Value Proposition
Channels
Revenue
In Motion Weighing - Business Model (Old)
Customer Segment
1 2
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4 To deliver the Value Proposition, Satpal
has a team of engineers and he has
technology license from the German Tech
Company
Key Partners
Key Resources
Key Activities
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Value Proposition
Channels
Revenue
In Motion Weighing - Business Model (Old)
Customer Segment
1 2
3
4
Key Partners
Key Resources
Key Activities
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Key Costs 8
Customer Relationship
9
22-04-2014 8 Based on BM Canvas, Alex Osterwalder, ‘The Business Model Generation’
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Value Proposition
Channels
Revenue
In Motion Weighing - Business Model (Old)
Customer Segment
1 2
3
4
Key Partners
Key Resources
Key Activities
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Key Costs 8
Customer Relationship
9
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Value Proposition
Channels
Revenue
In Motion Weighing - Business Model (Old)
Customer Segment
1 2
3
4
Key Partners
Key Resources
Key Activities
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Key Costs 8
Customer Relationship
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Since almost every system integrator has the same business model and competition is ever more fierce,
Satpal’s business is under severe threat. In fact, during last 3 years he
lost significant market share.
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Patel- Another IMW System Integrator
• A year back, else where in the western part of the country, Patel, a system integrator for a Canadian Company was in a similar situation.
Competition has grown dramatically . Now almost all sorts of technologies are competing with each other. Supplying and installing IMW system has
become a commodity service business. The situation of current economy is not helping either since the
IMW system is expensive! But he thought differently!!!
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Value Proposition
In Motion Weighing - Business Model (New)
Customer Segment
1 2
Patel had heard enough about the power of
information and IT.
Rightly presented, operational data
dramatically improves decision making ability of an organization
Instead of selling only installation of IMW system, he positioned his business
as Business Solution Provider, with emphasis on
using S/W to improve , productivity and
operational efficiency of the clients 22-04-2014 12
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Value Proposition
Channels
In Motion Weighing - Business Model (New)
Customer Segment
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He began promoting his solution through trade
magazine, he started doing direct (consultative) selling presenting analytics, dash board and reports of IMW
system as the main pitch of his offer.
Through his s/w solution he was able to excite his clients
who found a way to identify their
operational losses and inefficiency.
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Value Proposition
Channels
In Motion Weighing - Business Model (New)
Customer Segment
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He further changed the value proposition by offering the IMW
system on Lease or discounts, adding an incentive to clients
who were postponing their CAPEX due to the overall
uncertain economic situation.
Revenue 4
Now he was able to charge the customer not just on physical system
but also on productivity based recurring fee plus
the regular support provided in software
service
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Value Proposition
Channels
In Motion Weighing - Business Model (New)
Customer Segment
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3
In order to implement his new value
proposition he recruited business analysts and partnered with a S/W company to fulfill the ongoing needs of his
clients business.
Revenue 4
Key Partners
Key Resources
Key Activities
5
6
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Value Proposition
Channels
In Motion Weighing - Business Model (New)
Customer Segment
1 2
3
Revenue 4
Key Partners
Key Resources
Key Activities
5
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Key Costs 8
Customer Relationship
9
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Value Proposition
Channels
In Motion Weighing - Business Model (New)
Customer Segment
1 2
3
Revenue 4
Key Partners
Key Resources
Key Activities
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Key Costs 8
Customer Relationship
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Value Proposition
Channels
In Motion Weighing - Business Model (New)
Customer Segment
1 2
3
Revenue 4
Key Partners
Key Resources
Key Activities
5
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7
Key Costs 8
Customer Relationship
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Thus Patel Transformed his business from the pure play system integrator to a
business productivity solution provider for material processing industry. He is thsus,
directly influencing his clients business results. Knowing the amount of benefit his
clients get from his team’s knowledge of client’s business, getting orders and a
good price is no more an issue. His is now the fastest IMW business in India despite
all uncertainty of general economy!!!
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The Difference that Makes the Difference
Business Model Satpal Patel
Value Proposition IMW Solution Business Solution
Customer Need Weighing Operational Efficiency
Market Access Tenders Direct Consultative Selling
Delivery Field Installation Installation plus Ongoing Operational Reports (Advice)
Revenue Material + Service charge Software Application & Support+ Material
Resources Engineers Biz Analyst Engineers + SW Developers
Cost Man + Material +Travel S/W Dev + Man + Material + Travel
Positioning System Integrator Business Partner
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CVMark The Biz Design Studio
Email: lolla@cvmark.com
Ph: +91 94480 70081
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