business orientated solutions in enforcement business orientated solutions in enforcement jos...
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Business Orientated Solutions in enforcement
Business Orientated Solutions in enforcement
Jos Uitdehaag
Business Model
A business modeldescribes the rationale
of how anorganisation creates,delivers and captures
value.
Business Model:
“Every organisation, whether a business or not, has a theory of the business. Indeed, a valid theory that is clear, consistent, and focused is extraordinarily powerful”.
Peter Drucker, Harvard Business Review, Sept-Oct, 1994 – ‘The Theory of the Business’, p. 96. [italics added]
Business Model
In other words: in theory there is no difference whether we are
talking about a private business orientated or a state based
organization
And in practice????
A business model can best be described through nine basic building blocks
that show the logic of how a company intends to make money.
The nine blocks cover the four main areas of a business:
customers, offer, infrastructure, and financial viability
The business model is like a blueprint for a strategy to be implemented
through organizational structures, processes, and systems
Contact
An organization
serves one or
several Customer
Segments.
It seeks to solve
Customer problems
and satisfy
customer needs with
value propositions.
Value propositions
are delivered to
Customers through
communication,
distribution, and sales
Channels.
Customer relationships
are established and
maintained with each
Customer Segment.
The Building Blocks
Value Propositions
Channels Customer Relationships
Customer Segments
The building blocks
Revenue streams
result
from value
propositions
successfully
offered
to customers.
Key resources are the
assets required to
offer and deliver the
previously
described elements…
…by performing
a number
of Key
Activities.
The business model
elements result in
the
cost structure.
Key resources Channels Cost structureRevenue streams Key partnerships
Some activities are
outsourced and
some
resources are
acquired
outside the
enterprise.
The building blocks
The Building Blocks – Customer Segments
Customer Segments
- mass market- niche market- segmented- diversified- multi-sided platforms
The Customer Segments Building Block defines the different groups of people or organizations an enterprise aims to reach and serve
The Building Blocks – Value Propositions
Customer SegmentsValue Proposition
- newness: IT use- performance- customisation- getting the job done- design- brand/ status- price- cost reduction- risk reduction- accessibility- convenience/ usability
The Value Propositions Building Block describes the bundle of products and services that create value for a specific Customer Segment
The Building Blocks – Channels
Customer SegmentsValue Proposition
- own- partner- direct- indirect
Channels
The Channels Building Block describes how a company communicates with and reaches itsCustomer Segments to deliver a Value Proposition
The Building Blocks – Customer Relationships
Customer SegmentsValue Proposition
Customer Relationships
- personal assistance- dedicated personalassistance- self-service- automated services- communities- co-creation
Channels
The Customer Relationships Building Block describes the types of relationships a company establishes with specific Customer Segments
The Building Blocks – Revenue Streams
Customer SegmentsValue Proposition
Customer Relationships
- asset sale- usage fee- subscription fees- lending/ renting/ leasing- licensing- brokerage fees- advertising
Revenue StreamsChannels
The Revenue Streams Building Block represents the cash a company generates from each Customer Segment (costs must be subtracted from revenues to create earnings)
The Building Blocks – Key Resources
Customer SegmentsValue Proposition
Channels
Key Resources
Customer Relationships
- physical- intellectual- human- financial
Revenue Streams
The Key Resources Building Block describes the most important assets required to make abusiness model work
The Building Blocks – Key Activities
Customer SegmentsValue Proposition
Channels
Customer RelationshipsKey Activities
- production- problem solving- platform/ network
Revenue StreamsKey Resources
The Key Activities Building Block describes the most important things a company must do to make its business model work
The Building Blocks – Key Partnerships
Customer Segments
Customer Relationships
ChannelsRevenue Streams
Value Proposition
Key Activities
Key Partnerships
- optimisation/economy of scale- reduction of risk& uncertainty- acquisition ofresources andactivities
Key Resources
The Key Partnerships Building Block describes the network of suppliers and partners that make the business model work
The Building Blocks – Cost Structure
Customer Segments
Customer Relationships
ChannelsRevenue StreamsKey Resources
Value Proposition
Key Activities
Key Partnerships Cost Structure
- cost-driven- value-driven- fixed costs- variable costs- economies ofscale- economies ofscope
The Cost Structure describes all costs incurred to operate a business model
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Contact
The Business Model Canvas - Example
C$ R$
KP
Customers whobuild new LEGOdesigns and post
them onlinebecome key
partners generatingcontent and value
KALEGO has toprovide andmanage the
platform/ logisticsthat allow
packaging/ deliveryof customer made
sets
KRLEGO has not yet
fully adapted itsresources and
activities, which areoptimised primarily
for the mass market
VP
LEGO Factorysubstantially
expands the scopeof the off-the-shelf
kit offering by givingLEGO fans the toolsto build, showcase,and sell their owncustom designed
kits
CRLEGO Factory
builds a Long Tailcommunity aroundcustomers who aretruly interested inniche content andwant to go beyond
off-the-shelf kits
CHLEGO Factory’s
existence dependsheavily on the Web
channel
CSThousands of new,customer designed
kits perfectlycomplement LEGO’s
standard sets ofblocks. LEGO
Factory connectscustomers who
create customiseddesigns with othercustomers, thus
becoming acustomer match-
making platform andincreasing sales
The Factory leverages productionand logistics costs already incurred
by its traditional retail mode
LEGO Factory aims to generatesmall revenues from a large number
of customer designed items. Thisrepresents a valuable addition to
traditional high-volume retail
revenues.
Alexander Osterwalder