innovating business model of in motion weighing industry

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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

4

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

3

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

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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

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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

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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

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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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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

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Value Proposition

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In Motion Weighing - Business Model (New)

Customer Segment

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Revenue 4

Key Partners

Key Resources

Key Activities

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Key Costs 8

Customer Relationship

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Value Proposition

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In Motion Weighing - Business Model (New)

Customer Segment

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Revenue 4

Key Partners

Key Resources

Key Activities

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Key Costs 8

Customer Relationship

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Value Proposition

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Customer Segment

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Revenue 4

Key Partners

Key Resources

Key Activities

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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: [email protected]

Ph: +91 94480 70081

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