the role of business modelling in strategy marek chalupnik 18 th august 2011

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The Role of Business Modelling in Strategy Marek Chalupnik 18 th August 2011

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The Role of Business Modellingin Strategy

Marek Chalupnik

18th August 2011

M. Chalupnik, The Role of Business Modelling in Strategy

Overview

Key questions in Strategy

Business Modelling in Strategy

Summary

M. Chalupnik, The Role of Business Modelling in Strategy

Strategy – key questions

Where are we now?

Where do we want to go?

How do we get there?

M. Chalupnik, The Role of Business Modelling in Strategy

Vision – where to go

M. Chalupnik, The Role of Business Modelling in Strategy

Story – how to get there

We buy…

Products are manufactured…

Customers buy…

We pay…

We sell…

We negotiate…

Products are delivered…

Products are available…

We negotiate…

M. Chalupnik, The Role of Business Modelling in Strategy

Strategy – need for support

M. Chalupnik, The Role of Business Modelling in Strategy

Strategy – need for support

Need to support strategic decision making

M. Chalupnik, The Role of Business Modelling in Strategy

Strategy – need for support

Need to support strategic decision making

Modelling, analysing and simulating various aspects of a business

M. Chalupnik, The Role of Business Modelling in Strategy

Overview

Key questions in Strategy

Business Modelling in Strategy

Summary

M. Chalupnik, The Role of Business Modelling in Strategy

Business Modelling in Strategy

Two types of Business Modelling:

o Top-level Business Modelling

o Business Process Modelling

M. Chalupnik, The Role of Business Modelling in Strategy

Top-level Business Modelling

Direction

We buy…

Products are manufactured…

Customers buy…

We pay…

We sell…

We negotiate…

Products are delivered…

Products are available…

We negotiate…

Story

M. Chalupnik, The Role of Business Modelling in Strategy

Top-level Business Modelling

Direction

We buy…

Products are manufactured…

Customers buy…

We pay…

We sell…

We negotiate…

Products are delivered…

Products are available…

We negotiate…

Story

Value proposition (VP)

M. Chalupnik, The Role of Business Modelling in Strategy

Top-level Business Modelling

Customer segments (CS)

Value proposition (VP)

Customer relationships (CR)

Direction

We buy…

Products are manufactured…

Customers buy…

We pay…

We sell…

We negotiate…

Products are delivered…

Products are available…

We negotiate…

Story

M. Chalupnik, The Role of Business Modelling in Strategy

Top-level Business Modelling

Customer segments (CS)

Value proposition (VP)

Channels (CH)

Customer relationships (CR)

Key partnerships (KP)

Direction

We buy…

Products are manufactured…

Customers buy…

We pay…

We sell…

We negotiate…

Products are delivered…

Products are available…

We negotiate…

Story

M. Chalupnik, The Role of Business Modelling in Strategy

Top-level Business Modelling

Customer segments (CS)

Value proposition (VP)

Channels (CH)

Customer relationships (CR)

Key resources (KR)

Key activities (KA)Key partnerships (KP)

Direction

We buy…

Products are manufactured…

Customers buy…

We pay…

We sell…

We negotiate…

Products are delivered…

Products are available…

We negotiate…

Story

M. Chalupnik, The Role of Business Modelling in Strategy

Top-level Business Modelling

Customer segments (CS)

Value proposition (VP)

Channels (CH)

Customer relationships (CR)

Key resources (KR)

Key activities (KA)Key partnerships (KP)

Direction

We buy…

Products are manufactured…

Customers buy…

We pay…

We sell…

We negotiate…

Products are delivered…

Products are available…

We negotiate…

Story

Cost structure (C$)

Revenue streams (R$)

M. Chalupnik, The Role of Business Modelling in Strategy

Top-level Business Modelling

Direction

We buy…

Products are manufactured…

Customers buy…

We pay…

We sell…

We negotiate…

Products are delivered…

Products are available…

We negotiate…

Story

M. Chalupnik, The Role of Business Modelling in Strategy

Top-level Business Modelling

Macroeconomic forces

Industry forces

Key trends

Market forces

Competitors

Direction

We buy…

Products are manufactured…

Customers buy…

We pay…

We sell…

We negotiate…

Products are delivered…

Products are available…

We negotiate…

Story

M. Chalupnik, The Role of Business Modelling in Strategy

Top-level Business Modelling

Macroeconomic forces

Industry forces

Key trends

Market forces

Competitors

Scenario analysis

Game theory

Simulation

Direction

We buy…

Products are manufactured…

Customers buy…

We pay…

We sell…

We negotiate…

Products are delivered…

Products are available…

We negotiate…

Story

M. Chalupnik, The Role of Business Modelling in Strategy

Top-level Business Modelling

Macroeconomic forces

Industry forces

Key trends

Market forces

Competitors

Direction

We buy…

Products are manufactured…

Customers buy…

We pay…

We sell…

We negotiate…

Products are delivered…

Products are available…

We negotiate…

Story

Does the story make sense?

Do the numbers make sense?Is the strategy aligned with

key trends and macroeconomic forces?

What are other options?

What are the risks?

M. Chalupnik, The Role of Business Modelling in Strategy

Top-level Business Modelling

Macroeconomic forces

Industry forces

Key trends

Market forces

Competitors

Understanding

M. Chalupnik, The Role of Business Modelling in Strategy

Top-level Business Modelling

Macroeconomic forces

Industry forces

Key trends

Market forces

Competitors

Understanding

Development Refinement

M. Chalupnik, The Role of Business Modelling in Strategy

Top-level Business Modelling

Macroeconomic forces

Industry forces

Key trends

Market forces

Competitors

ValidationUnderstanding

Development Refinement

M. Chalupnik, The Role of Business Modelling in Strategy

Top-level Business Modelling

Macroeconomic forces

Industry forces

Key trends

Market forces

Competitors

ValidationUnderstanding

Communication

Development Refinement

M. Chalupnik, The Role of Business Modelling in Strategy

Top-level Business Modelling

Macroeconomic forces

Industry forces

Key trends

Market forces

Competitors

M. Chalupnik, The Role of Business Modelling in Strategy

Top-level Business Modelling

Macroeconomic forces

Industry forces

Key trends

Market forces

Competitors

M. Chalupnik, The Role of Business Modelling in Strategy

Top-level Business Modelling

Macroeconomic forces

Industry forces

Key trends

Market forces

Competitors

Business Process Modelling

M. Chalupnik, The Role of Business Modelling in Strategy

Business Process Modelling

Simulation models

Mathematical models

Graphical models

M. Chalupnik, The Role of Business Modelling in Strategy

Business Process Modelling

Do the numbers make sense?

?

M. Chalupnik, The Role of Business Modelling in Strategy

Business Process Modelling

ValidationDevelopment

Do the numbers make sense?

?

M. Chalupnik, The Role of Business Modelling in Strategy

Business Process Modelling

M. Chalupnik, The Role of Business Modelling in Strategy

Business Process Modelling

ValidationDevelopment

M. Chalupnik, The Role of Business Modelling in Strategy

Business Process Modelling

Implementation

ValidationDevelopment

M. Chalupnik, The Role of Business Modelling in Strategy

Overview

Key questions in Strategy

Business Modelling in Strategy

Summary

M. Chalupnik, The Role of Business Modelling in Strategy

Summary

1. Need to support strategic decision making

M. Chalupnik, The Role of Business Modelling in Strategy

Summary

1. Need to support strategic decision making

2. Business Modelling as a way of supporting

strategic decision making

M. Chalupnik, The Role of Business Modelling in Strategy

Summary

1. Need to support strategic decision making

2. Business Modelling as a way of supporting

strategic decision making

Top-level Business Modelling: Strategy development Strategy refinement Strategy validation Strategy communication

Business Process Modelling: Strategy development Strategy validation Strategy implementation

M. Chalupnik, The Role of Business Modelling in Strategy

Thank you!

Q&A