Description
Components of Business model
Componen ts of a Business Model
Source: Applegate, Lynda M., Rober t D. Austi n, a nd F. War re n McFarlan, Corporate I nformation Strategy and M anagement. Bur r Ridge, IL: McGr aw-Hill/Irwin, 2002.
Chapter 2 Figure 2-1
Components of a Business Model (contin ued)
What is it? An organization's business concept d efines its strategy. The concep t 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 ?? ?? ?? ?? ?? ?? ?? ?? How w ill w e? 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, Lynd a M., Rober t D. Austi n, a nd F. War r en McFarla n, Corporate Infor mation Strategy and M anagement. Bur r Ridge, IL: McGr aw-Hill/Irwin, 2002.
Chapter 2 Figure 2-1
Components of a Business Model (continued)
What is it? An organization's capabilities d efine resou rces need ed to execu te strategy. Cap abilities are bu ilt and d elivered throu gh its: ?? Peop le and p artners ?? Organization and cu ltu re ?? Op erations ?? Marketing/ sales ?? Lead ership / Managem ent p rocess ?? Bu siness d evelop m ent/ Innovation p rocess ?? Infrastru ctu re/ Asset efficiency How w ill w e? 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, Lynd a M., Rober t D. Austi n, a nd F. War r en McFarla n, Corporate Infor mation Strategy and M anagement. Bur r Ridge, IL: McGr aw-Hill/Irwin, 2002.
Chapter 2 Figure 2-1
Components of a Business Model (contin ued)
What is it? A high-p erform ing organization retu rns value to all stakehold ers. This valu e is m easu red by: ?? Benefits retu rned to all stakehold ers ?? Benefits retu rned to the firm and its ow ners share and ?? Market p erform ance ?? Brand and rep u tation ?? Financial perform ance ?? ?? ?? ?? ?? ?? ?? ?? How w ill w e? 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, Lynd a M., Rober t D. Austi n, a nd F. War r en McFarla n, Corporate Infor mation Strategy and M anagement. Bur r Ridge, IL: McGr aw-Hill/Irwin, 2002.
Chapter 2 Figure 2-1
Linking St r a tegy to Value
Source: Applega te, Lynd a M., Robert D. Austin, a nd F. Wa rre n McFa rla n, Corporate Information Strategy and Manage ment. Burr Ridge, IL: McGra w-Hill/Irwi n, 2002.
Cha pter 2 Figure 2-2
Classifying Network Business Models
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
Value Chain Roles
Suppliers
Producers
Design & Build
- Products - Services
Distributors
Connect
- Buyers - Sellers
Customers
Businesses Built on Network Infrastructure Business Models Characteristics
Suppliers
Producers
1) Producers
- Sell physical products or provide face-to-face service? - Sell info based products or services? - Provide customized products or services?
Distributors
1) Focused Distributors
- Assume control of inventory? - Sell online? - Online negotiation or bidding? - Physical product or service?
Customers
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?
Businesses Built on Network Infrastructure Business Models
Suppliers
Producers
1) Producers
- Manufacturers - Service providers - Educators - Advisers - Information & news service - Producer portals
Distributors
1) Focused Distributors
- Retailer - Marketplace - Aggregator - Infomediary - Exchange
Customers
2) Portals
- Horizontal - Vertical - Affinity
Businesses Providing Network Infrastructure Business Models Characteristics
Suppliers
Producers
1) Infrastructre Producers
- Manufacture computer or network components or equipment? - Develop packaged software?
Distributors
1) Infrastructure Distributors
- Assume control of inventory? - Sell online? - Online negotiation or bidding?
Customers
- 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?
Businesses Providing Network Infrastructure Business Models
Suppliers
Producers
1) Infrastructure Producers
- Equipment/ component manufacurers - Software firms
Distributors
1) Infrastructure Distributors
- Infrastructure retailers - Infrastructure market places - Infrastructure aggregators
Customers
- Custom software and integration service providers - Infrastrucure services
- Infrastrucure exchanges
2) Infrastructure Portals
- Horizontal infrastructure portals - Vertical infrastruture portals
Approaches to Business Model Evolution
Enhance Add functionality or features to current product/service offerings or improve performance of existing business
Extend Enter new line of business and/or add new business models
Extend
Enhance
Expand
Exit
Exit Exit a business or market or drop a product/service offering Expand Add new product/service offerings or enter new geographic markets
Source: Applegate, Lynda M., Rober t D. Austi n, a nd F. War re n McFarlan, Corporate I nformation Strategy and M anagement. Bur r Ridge, IL: McGr aw-Hill/Irwin, 2002. Chapter 2 Figure 2-4
doc_730513739.ppt
Components of Business model
Componen ts of a Business Model
Source: Applegate, Lynda M., Rober t D. Austi n, a nd F. War re n McFarlan, Corporate I nformation Strategy and M anagement. Bur r Ridge, IL: McGr aw-Hill/Irwin, 2002.
Chapter 2 Figure 2-1
Components of a Business Model (contin ued)
What is it? An organization's business concept d efines its strategy. The concep t 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 ?? ?? ?? ?? ?? ?? ?? ?? How w ill w e? 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, Lynd a M., Rober t D. Austi n, a nd F. War r en McFarla n, Corporate Infor mation Strategy and M anagement. Bur r Ridge, IL: McGr aw-Hill/Irwin, 2002.
Chapter 2 Figure 2-1
Components of a Business Model (continued)
What is it? An organization's capabilities d efine resou rces need ed to execu te strategy. Cap abilities are bu ilt and d elivered throu gh its: ?? Peop le and p artners ?? Organization and cu ltu re ?? Op erations ?? Marketing/ sales ?? Lead ership / Managem ent p rocess ?? Bu siness d evelop m ent/ Innovation p rocess ?? Infrastru ctu re/ Asset efficiency How w ill w e? 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, Lynd a M., Rober t D. Austi n, a nd F. War r en McFarla n, Corporate Infor mation Strategy and M anagement. Bur r Ridge, IL: McGr aw-Hill/Irwin, 2002.
Chapter 2 Figure 2-1
Components of a Business Model (contin ued)
What is it? A high-p erform ing organization retu rns value to all stakehold ers. This valu e is m easu red by: ?? Benefits retu rned to all stakehold ers ?? Benefits retu rned to the firm and its ow ners share and ?? Market p erform ance ?? Brand and rep u tation ?? Financial perform ance ?? ?? ?? ?? ?? ?? ?? ?? How w ill w e? 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, Lynd a M., Rober t D. Austi n, a nd F. War r en McFarla n, Corporate Infor mation Strategy and M anagement. Bur r Ridge, IL: McGr aw-Hill/Irwin, 2002.
Chapter 2 Figure 2-1
Linking St r a tegy to Value
Source: Applega te, Lynd a M., Robert D. Austin, a nd F. Wa rre n McFa rla n, Corporate Information Strategy and Manage ment. Burr Ridge, IL: McGra w-Hill/Irwi n, 2002.
Cha pter 2 Figure 2-2
Classifying Network Business Models
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
Value Chain Roles
Suppliers
Producers
Design & Build
- Products - Services
Distributors
Connect
- Buyers - Sellers
Customers
Businesses Built on Network Infrastructure Business Models Characteristics
Suppliers
Producers
1) Producers
- Sell physical products or provide face-to-face service? - Sell info based products or services? - Provide customized products or services?
Distributors
1) Focused Distributors
- Assume control of inventory? - Sell online? - Online negotiation or bidding? - Physical product or service?
Customers
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?
Businesses Built on Network Infrastructure Business Models
Suppliers
Producers
1) Producers
- Manufacturers - Service providers - Educators - Advisers - Information & news service - Producer portals
Distributors
1) Focused Distributors
- Retailer - Marketplace - Aggregator - Infomediary - Exchange
Customers
2) Portals
- Horizontal - Vertical - Affinity
Businesses Providing Network Infrastructure Business Models Characteristics
Suppliers
Producers
1) Infrastructre Producers
- Manufacture computer or network components or equipment? - Develop packaged software?
Distributors
1) Infrastructure Distributors
- Assume control of inventory? - Sell online? - Online negotiation or bidding?
Customers
- 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?
Businesses Providing Network Infrastructure Business Models
Suppliers
Producers
1) Infrastructure Producers
- Equipment/ component manufacurers - Software firms
Distributors
1) Infrastructure Distributors
- Infrastructure retailers - Infrastructure market places - Infrastructure aggregators
Customers
- Custom software and integration service providers - Infrastrucure services
- Infrastrucure exchanges
2) Infrastructure Portals
- Horizontal infrastructure portals - Vertical infrastruture portals
Approaches to Business Model Evolution
Enhance Add functionality or features to current product/service offerings or improve performance of existing business
Extend Enter new line of business and/or add new business models
Extend
Enhance
Expand
Exit
Exit Exit a business or market or drop a product/service offering Expand Add new product/service offerings or enter new geographic markets
Source: Applegate, Lynda M., Rober t D. Austi n, a nd F. War re n McFarlan, Corporate I nformation Strategy and M anagement. Bur r Ridge, IL: McGr aw-Hill/Irwin, 2002. Chapter 2 Figure 2-4
doc_730513739.ppt