crafting business models
DESCRIPTION
Crafting Business Models. Chapter 2. - PowerPoint PPT PresentationTRANSCRIPT
-
Crafting Business ModelsChapter 2
-
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002.
Components of a Business Model
Chapter 2 Figure 2-1
-
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002.
Chapter 2 Figure 2-1
Components of a Business Model (continued)
What is it?
How will we?
An organization's business concept defines its strategy. The concept is based on analysis of:
Market opportunity
Product and services offered
Competitive dynamics
Strategy for capturing a dominant position
Strategic options for evolving the business
Attract a large and loyal community?
Deliver value to all community members?
Price our product to achieve rapid adoption?
Become #1 or #2?
Evolve the business to "cash in on strategic options"?
Generate multiple revenue streams?
Erect barriers to entry?
Manage risk and growth?
-
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002.
Chapter 2 Figure 2-1
Components of a Business Model (continued)
What is it?
How will we?
An organization's capabilities define resources needed to execute strategy. Capabilities are built and delivered through its:
People and partners
Organization and culture
Operations
Marketing/sales
Leadership/Management process
Business development/Innovation process
Infrastructure/Asset efficiency
Achieve best-in-class operating performance?
Develop modular, scalable, and flexible infrastructure?
Build and manage strong partnerships with employees and the community?
Increase the lifetime value of all members of the community?
Build, nurture, and exploit knowledge assets?
Make informed decisions and take actions that increase value?
Organize for action and agility?
-
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002.
Chapter 2 Figure 2-1
Components of a Business Model (continued)
What is it?
How will we?
A high-performing organization returns value to all stakeholders. This value is measured by:
Benefits returned to all stakeholders
Benefits returned to the firm and its owners
Market share and performance
Brand and reputation
Financial performance
Deliver value to all stakeholders?
Claim value from stakeholder relationships and transactions?
Increase market share and drive new revenues off existing customers?
Increase brand value and reputation?
Generate confidence and trust?
Ensure strong growth in earnings?
Generate positive equity cash flow?
Increase stock price and market value?
-
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002.
Chapter 2 Figure 2-2
Linking Strategy to Value
-
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002.
Chapter 2 Figure 2-3
Classifying Network Business Models
-
Market Roles
Value Chain Roles
SuppliersProducersDistributorsCustomers
Design & BuildConnect
- Products- Buyers
- Services- Sellers
Model characteristics BBNI
Businesses Built on Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Sell physical products or- Assume control of inventory?
provide face-to-face service?
- Sell online?
- Sell info based products or
services?- Online negotiation or bidding?
- Provide customized- Physical product or service?
products or services?
2) Portals
- Provide gateway access to full range
of online info & services?
- Provide access to deep content,
products and services within
vertical industry?
- Provide info and services to all
types of users?
BBNI models
Businesses Built on Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Manufacturers- Retailer
- Service providers- Marketplace
- Educators- Aggregator
- Advisers- Infomediary
- Information & news- Exchange
service
2) Portals
- Producer portals
- Horizontal
- Vertical
- Affinity
Model characteristics BPNI
Businesses Providing Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Infrastructre Producers1) Infrastructure Distributors
- Manufacture computer or network- Assume control of inventory?
components or equipment?
- Sell online?
- Develop packaged software?
- Online negotiation or bidding?
- Provide infrastructure
services or consulting?- Physical product or service?
2) Infrastructure Portals
- Provide "gateway access" to networks,
data centers, or web services?
- Host, operate, and maintain networks
data centers or web services?
- Provide access to hosted application
services?
BPNI models
Businesses Providing Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Infrastructure Producers1) Infrastructure Distributors
- Equipment/ component- Infrastructure retailers
manufacurers
- Infrastructure market places
- Software firms
- Infrastructure aggregators
- Custom software and integration
service providers- Infrastrucure exchanges
- Infrastrucure services
2) Infrastructure Portals
- Horizontal infrastructure portals
- Vertical infrastruture portals
Sheet3
Market Roles
Value Chain Roles
SuppliersProducersDistributorsCustomers
Design & BuildConnect
- Products- Buyers
- Services- Sellers
Model characteristics BBNI
Businesses Built on Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Sell physical products or- Assume control of inventory?
provide face-to-face service?
- Sell online?
- Sell info based products or
services?- Online negotiation or bidding?
- Provide customized- Physical product or service?
products or services?
2) Portals
- Provide gateway access to full range
of online info & services?
- Provide access to deep content,
products and services within
vertical industry?
- Provide info and services to all
types of users?
BBNI models
Businesses Built on Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Manufacturers- Retailer
- Service providers- Marketplace
- Educators- Aggregator
- Advisers- Infomediary
- Information & news- Exchange
service
2) Portals
- Producer portals
- Horizontal
- Vertical
- Affinity
Model characteristics BPNI
Businesses Providing Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Infrastructre Producers1) Infrastructure Distributors
- Manufacture computer or network- Assume control of inventory?
components or equipment?
- Sell online?
- Develop packaged software?
- Online negotiation or bidding?
- Provide infrastructure
services or consulting?- Physical product or service?
2) Infrastructure Portals
- Provide "gateway access" to networks,
data centers, or web services?
- Host, operate, and maintain networks
data centers or web services?
- Provide access to hosted application
services?
BPNI models
Businesses Providing Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Infrastructure Producers1) Infrastructure Distributors
- Equipment/ component- Infrastructure retailers
manufacurers
- Infrastructure market places
- Software firms
- Infrastructure aggregators
- Custom software and integration
service providers- Infrastrucure exchanges
- Infrastrucure services
2) Infrastructure Portals
- Horizontal infrastructure portals
- Vertical infrastruture portals
Sheet3
-
Market Roles
Value Chain Roles
SuppliersProducersDistributorsCustomers
Design & BuildConnect
- Products- Buyers
- Services- Sellers
Model characteristics BBNI
Businesses Built on Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Sell physical products or- Assume control of inventory?
provide face-to-face service?
- Sell online?
- Sell info based products or
services?- Online negotiation or bidding?
- Provide customized- Physical product or service?
products or services?
2) Portals
- Provide gateway access to full range
of online info & services?
- Provide access to deep content,
products and services within
vertical industry?
- Provide info and services to all
types of users?
BBNI models
Businesses Built on Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Manufacturers- Retailer
- Service providers- Marketplace
- Educators- Aggregator
- Advisers- Infomediary
- Information & news- Exchange
service
2) Portals
- Producer portals
- Horizontal
- Vertical
- Affinity
Model characteristics BPNI
Businesses Providing Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Infrastructre Producers1) Infrastructure Distributors
- Manufacture computer or network- Assume control of inventory?
components or equipment?
- Sell online?
- Develop packaged software?
- Online negotiation or bidding?
- Provide infrastructure
services or consulting?- Physical product or service?
2) Infrastructure Portals
- Provide "gateway access" to networks,
data centers, or web services?
- Host, operate, and maintain networks
data centers or web services?
- Provide access to hosted application
services?
BPNI models
Businesses Providing Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Infrastructure Producers1) Infrastructure Distributors
- Equipment/ component- Infrastructure retailers
manufacurers
- Infrastructure market places
- Software firms
- Infrastructure aggregators
- Custom software and integration
service providers- Infrastrucure exchanges
- Infrastrucure services
2) Infrastructure Portals
- Horizontal infrastructure portals
- Vertical infrastruture portals
Sheet3
Market Roles
Value Chain Roles
SuppliersProducersDistributorsCustomers
Design & BuildConnect
- Products- Buyers
- Services- Sellers
Model characteristics BBNI
Businesses Built on Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Sell physical products or- Assume control of inventory?
provide face-to-face service?
- Sell online?
- Sell info based products or
services?- Online negotiation or bidding?
- Provide customized- Physical product or service?
products or services?
2) Portals
- Provide gateway access to full range
of online info & services?
- Provide access to deep content,
products and services within
vertical industry?
- Provide info and services to all
types of users?
BBNI models
Businesses Built on Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Manufacturers- Retailer
- Service providers- Marketplace
- Educators- Aggregator
- Advisers- Infomediary
- Information & news- Exchange
service
2) Portals
- Producer portals
- Horizontal
- Vertical
- Affinity
Model characteristics BPNI
Businesses Providing Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Infrastructre Producers1) Infrastructure Distributors
- Manufacture computer or network- Assume control of inventory?
components or equipment?
- Sell online?
- Develop packaged software?
- Online negotiation or bidding?
- Provide infrastructure
services or consulting?- Physical product or service?
2) Infrastructure Portals
- Provide "gateway access" to networks,
data centers, or web services?
- Host, operate, and maintain networks
data centers or web services?
- Provide access to hosted application
services?
BPNI models
Businesses Providing Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Infrastructure Producers1) Infrastructure Distributors
- Equipment/ component- Infrastructure retailers
manufacurers
- Infrastructure market places
- Software firms
- Infrastructure aggregators
- Custom software and integration
service providers- Infrastrucure exchanges
- Infrastrucure services
2) Infrastructure Portals
- Horizontal infrastructure portals
- Vertical infrastruture portals
Sheet3
-
Market Roles
Value Chain Roles
SuppliersProducersDistributorsCustomers
Design & BuildConnect
- Products- Buyers
- Services- Sellers
Model characteristics BBNI
Businesses Built on Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Sell physical products or- Assume control of inventory?
provide face-to-face service?
- Sell online?
- Sell info based products or
services?- Online negotiation or bidding?
- Provide customized- Physical product or service?
products or services?
2) Portals
- Provide gateway access to full range
of online info & services?
- Provide access to deep content,
products and services within
vertical industry?
- Provide info and services to all
types of users?
BBNI models
Businesses Built on Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Manufacturers- Retailer
- Service providers- Marketplace
- Educators- Aggregator
- Advisers- Infomediary
- Information & news- Exchange
service
2) Portals
- Producer portals
- Horizontal
- Vertical
- Affinity
Model characteristics BPNI
Businesses Providing Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Infrastructre Producers1) Infrastructure Distributors
- Manufacture computer or network- Assume control of inventory?
components or equipment?
- Sell online?
- Develop packaged software?
- Online negotiation or bidding?
- Provide infrastructure
services or consulting?- Physical product or service?
2) Infrastructure Portals
- Provide "gateway access" to networks,
data centers, or web services?
- Host, operate, and maintain networks
data centers or web services?
- Provide access to hosted application
services?
BPNI models
Businesses Providing Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Infrastructure Producers1) Infrastructure Distributors
- Equipment/ component- Infrastructure retailers
manufacurers
- Infrastructure market places
- Software firms
- Infrastructure aggregators
- Custom software and integration
service providers- Infrastrucure exchanges
- Infrastrucure services
2) Infrastructure Portals
- Horizontal infrastructure portals
- Vertical infrastruture portals
Sheet3
Market Roles
Value Chain Roles
SuppliersProducersDistributorsCustomers
Design & BuildConnect
- Products- Buyers
- Services- Sellers
Model characteristics BBNI
Businesses Built on Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Sell physical products or- Assume control of inventory?
provide face-to-face service?
- Sell online?
- Sell info based products or
services?- Online negotiation or bidding?
- Provide customized- Physical product or service?
products or services?
2) Portals
- Provide gateway access to full range
of online info & services?
- Provide access to deep content,
products and services within
vertical industry?
- Provide info and services to all
types of users?
BBNI models
Businesses Built on Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Manufacturers- Retailer
- Service providers- Marketplace
- Educators- Aggregator
- Advisers- Infomediary
- Information & news- Exchange
service
2) Portals
- Producer portals
- Horizontal
- Vertical
- Affinity
Model characteristics BPNI
Businesses Providing Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Infrastructre Producers1) Infrastructure Distributors
- Manufacture computer or network- Assume control of inventory?
components or equipment?
- Sell online?
- Develop packaged software?
- Online negotiation or bidding?
- Provide infrastructure
services or consulting?- Physical product or service?
2) Infrastructure Portals
- Provide "gateway access" to networks,
data centers, or web services?
- Host, operate, and maintain networks
data centers or web services?
- Provide access to hosted application
services?
BPNI models
Businesses Providing Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Infrastructure Producers1) Infrastructure Distributors
- Equipment/ component- Infrastructure retailers
manufacurers
- Infrastructure market places
- Software firms
- Infrastructure aggregators
- Custom software and integration
service providers- Infrastrucure exchanges
- Infrastrucure services
2) Infrastructure Portals
- Horizontal infrastructure portals
- Vertical infrastruture portals
Sheet3
-
Market Roles
Value Chain Roles
SuppliersProducersDistributorsCustomers
Design & BuildConnect
- Products- Buyers
- Services- Sellers
Model characteristics BBNI
Businesses Built on Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Sell physical products or- Assume control of inventory?
provide face-to-face service?
- Sell online?
- Sell info based products or
services?- Online negotiation or bidding?
- Provide customized- Physical product or service?
products or services?
2) Portals
- Provide gateway access to full range
of online info & services?
- Provide access to deep content,
products and services within
vertical industry?
- Provide info and services to all
types of users?
BBNI models
Businesses Built on Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Manufacturers- Retailer
- Service providers- Marketplace
- Educators- Aggregator
- Advisers- Infomediary
- Information & news- Exchange
service
2) Portals
- Producer portals
- Horizontal
- Vertical
- Affinity
Model characteristics BPNI
Businesses Providing Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Infrastructre Producers1) Infrastructure Distributors
- Manufacture computer or network- Assume control of inventory?
components or equipment?
- Sell online?
- Develop packaged software?
- Online negotiation or bidding?
- Provide infrastructure
services or consulting?- Physical product or service?
2) Infrastructure Portals
- Provide "gateway access" to networks,
data centers, or web services?
- Host, operate, and maintain networks
data centers or web services?
- Provide access to hosted application
services?
BPNI models
Businesses Providing Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Infrastructure Producers1) Infrastructure Distributors
- Equipment/ component- Infrastructure retailers
manufacurers
- Infrastructure market places
- Software firms
- Infrastructure aggregators
- Custom software and integration
service providers- Infrastrucure exchanges
- Infrastrucure services
2) Infrastructure Portals
- Horizontal infrastructure portals
- Vertical infrastruture portals
Sheet3
Market Roles
Value Chain Roles
SuppliersProducersDistributorsCustomers
Design & BuildConnect
- Products- Buyers
- Services- Sellers
Model characteristics BBNI
Businesses Built on Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Sell physical products or- Assume control of inventory?
provide face-to-face service?
- Sell online?
- Sell info based products or
services?- Online negotiation or bidding?
- Provide customized- Physical product or service?
products or services?
2) Portals
- Provide gateway access to full range
of online info & services?
- Provide access to deep content,
products and services within
vertical industry?
- Provide info and services to all
types of users?
BBNI models
Businesses Built on Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Manufacturers- Retailer
- Service providers- Marketplace
- Educators- Aggregator
- Advisers- Infomediary
- Information & news- Exchange
service
2) Portals
- Producer portals
- Horizontal
- Vertical
- Affinity
Model characteristics BPNI
Businesses Providing Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Infrastructre Producers1) Infrastructure Distributors
- Manufacture computer or network- Assume control of inventory?
components or equipment?
- Sell online?
- Develop packaged software?
- Online negotiation or bidding?
- Provide infrastructure
services or consulting?- Physical product or service?
2) Infrastructure Portals
- Provide "gateway access" to networks,
data centers, or web services?
- Host, operate, and maintain networks
data centers or web services?
- Provide access to hosted application
services?
BPNI models
Businesses Providing Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Infrastructure Producers1) Infrastructure Distributors
- Equipment/ component- Infrastructure retailers
manufacurers
- Infrastructure market places
- Software firms
- Infrastructure aggregators
- Custom software and integration
service providers- Infrastrucure exchanges
- Infrastrucure services
2) Infrastructure Portals
- Horizontal infrastructure portals
- Vertical infrastruture portals
Sheet3
-
Market Roles
Value Chain Roles
SuppliersProducersDistributorsCustomers
Design & BuildConnect
- Products- Buyers
- Services- Sellers
Model characteristics BBNI
Businesses Built on Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Sell physical products or- Assume control of inventory?
provide face-to-face service?
- Sell online?
- Sell info based products or
services?- Online negotiation or bidding?
- Provide customized- Physical product or service?
products or services?
2) Portals
- Provide gateway access to full range
of online info & services?
- Provide access to deep content,
products and services within
vertical industry?
- Provide info and services to all
types of users?
BBNI models
Businesses Built on Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Manufacturers- Retailer
- Service providers- Marketplace
- Educators- Aggregator
- Advisers- Infomediary
- Information & news- Exchange
service
2) Portals
- Producer portals
- Horizontal
- Vertical
- Affinity
Model characteristics BPNI
Businesses Providing Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Infrastructre Producers1) Infrastructure Distributors
- Manufacture computer or network- Assume control of inventory?
components or equipment?
- Sell online?
- Develop packaged software?
- Online negotiation or bidding?
- Provide infrastructure
services or consulting?- Physical product or service?
2) Infrastructure Portals
- Provide "gateway access" to networks,
data centers, or web services?
- Host, operate, and maintain networks
data centers or web services?
- Provide access to hosted application
services?
BPNI models
Businesses Providing Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Infrastructure Producers1) Infrastructure Distributors
- Equipment/ component- Infrastructure retailers
manufacurers
- Infrastructure market places
- Software firms
- Infrastructure aggregators
- Custom software and integration
service providers- Infrastrucure exchanges
- Infrastrucure services
2) Infrastructure Portals
- Horizontal infrastructure portals
- Vertical infrastruture portals
Sheet3
Market Roles
Value Chain Roles
SuppliersProducersDistributorsCustomers
Design & BuildConnect
- Products- Buyers
- Services- Sellers
Model characteristics BBNI
Businesses Built on Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Sell physical products or- Assume control of inventory?
provide face-to-face service?
- Sell online?
- Sell info based products or
services?- Online negotiation or bidding?
- Provide customized- Physical product or service?
products or services?
2) Portals
- Provide gateway access to full range
of online info & services?
- Provide access to deep content,
products and services within
vertical industry?
- Provide info and services to all
types of users?
BBNI models
Businesses Built on Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Producers1) Focused Distributors
- Manufacturers- Retailer
- Service providers- Marketplace
- Educators- Aggregator
- Advisers- Infomediary
- Information & news- Exchange
service
2) Portals
- Producer portals
- Horizontal
- Vertical
- Affinity
Model characteristics BPNI
Businesses Providing Network Infrastructure
Business Models Characteristics
SuppliersProducersDistributorsCustomers
1) Infrastructre Producers1) Infrastructure Distributors
- Manufacture computer or network- Assume control of inventory?
components or equipment?
- Sell online?
- Develop packaged software?
- Online negotiation or bidding?
- Provide infrastructure
services or consulting?- Physical product or service?
2) Infrastructure Portals
- Provide "gateway access" to networks,
data centers, or web services?
- Host, operate, and maintain networks
data centers or web services?
- Provide access to hosted application
services?
BPNI models
Businesses Providing Network Infrastructure
Business Models
SuppliersProducersDistributorsCustomers
1) Infrastructure Producers1) Infrastructure Distributors
- Equipment/ component- Infrastructure retailers
manufacurers
- Infrastructure market places
- Software firms
- Infrastructure aggregators
- Custom software and integration
service providers- Infrastrucure exchanges
- Infrastrucure services
2) Infrastructure Portals
- Horizontal infrastructure portals
- Vertical infrastruture portals
Sheet3
-
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002.
Chapter 2 Figure 2-4
Approaches to Business Model Evolution
Enhance
Add functionality or features to current
product/service offerings or improve
performance of existing business
Expand
Add new product/service offerings
or enter new geographic markets
Extend
Enter new line of business and/or add new
business models
Exit
Exit a business or market or drop a
product/service offering