BUSINESS

MODEL
 WHAT IS A BUSINESS MODEL?

It is a description of the means and methods a

firm employs to generate sales revenues, profit,
and cash flow, while providing a template for
the business to scale up.
 OFFERING
MODEL
BUSINESS
MODEL
OPERATING
MODEL
Offering model
 Target Market
 Intended recipients of a firm’s products or services
 Key Question
 Who is the target market that has the greatest potential
for the firm?
 Value Proposition
 The relevant and unique benefit that the consumer
gets from buying or owning the firm’s product or
services
 Key Question
 What are the biggest unmet needs we should satisfy in
a novel way?
 Channel
 Thedistribution system where products or services will
be made available to the customers
 Key Question
 Where do we make our products conveniently available
consistent with the target market’s buying pattern?
 Revenue Model
 Thecompensation a firm will get for providing its
value proposition to support its intended profit
 Key Question
 What will be the most attractive pricing scheme that
can leapfrog demand and meet our objectives?
 Customer Bonding Strategy

 The relationship as well as the solution that will

established with buyers and end users
 Key Question
 How do we have a customer-centric organization that
can engage, deliver solutions and build positive
relationships with customers better than competition?
OPERATING MODEL
 Value Network
 The strategic linkage of extended supply chain for
the firm to provide specific products or services to
the customers
 Key Question
 How are activities linked and sequence?
 Resources and Processes
 Resources-the hard and soft assets deployed by the firm to carry
out its value proposition for the customers
 Processess-the critical repetitive activities that are routinized by the
company to deliver the value to the customers and to the company
in a sustainable way
 Key Question
 What assets should we leverage and what activities should we
perform well to unlock value?
 Cost
 The monetary consequences of the means to carry
out the value proposition
 Key Question
 What is the infrastructure cost that will carry out the
value proposition?
 Complements
 People or groups who will help, both directly and
indirectly, to enhance the value proposition
 Key Question
 What will make it appealing to start and stay as
complementors or partners?
 Configuration
 Rearrangements of resources, processes, activities and
offerings that can help enhance the profit goal of the
company
 Key Question
 How do we reorganize to provide value without over-or under-
spending?
 Starting Point of Assembling the Business Model

 Target Market- Who is the target market that has the greatest potential for the
firm?

 Value Proposition- What are the biggest unmet needs we should satisfy in a
novel way?

 Channel- Where do we make ourselves conveniently available consistent with

the target market’s buying patter?
 Converting Value Proposition into Revenue

 Value Proposition- What are the biggest unmet needs we should satisfy in a
novel way?

 Revenue Model- What are the biggest unmet needs we should satisfy in a novel
way?

 Customer Bonding Strategy- How do we have a customer-centric organization

that can engage, deliver solutions and build positive relationships with
customers better than competition?