Present the business model for your case

The customers and the competitors of your organization

What the organization has to offer (products and services)

Structure of the organization by indentifying the

activities in the organisation

Resources and the link to external sources

Follow the 5 layered Business Model

• Market level – customers and competition• Customers : who are ?• Competitors : who are ?

• Offering level• Product : what products are offered ?• Service: offered services ?

• Activities and Organization• Primary activities : see value chain• Support activities : see value chain• Organization structure : 6 elements

• Ressources• Strategic Resources• Critical resources to the future• Human resources• Financial resources• Technological resources

• Market level – factor markets and production input

6-4

What is a Business Model?

6-5

Market /IndustryCustomers

– Are long term or short term– How does the firm cooperate with the customer?– Do they share knowledge ? Or just simply

transaction of goods and services for money ?

Competitors– Existing competitors identified and

understood.– Competitors may be suppliers of substitute

product– Business model describe how most important

and competitors affect the business.

6-6

Market /IndustryCompetitors : factors affecting the business

• Scale and size

• Product range and innovation

• Degree of differentiation

• Cost structure.

• Location

• Value chain configuration

• Organizational structure

• Ability to switch costs

14-7

Porter’s five forces model

6-8

Offerings

Service or physical product offered at a certain cost.

• Should understand the function of product and service : which customer´s need is going to fulfill or could fulfill?

Ex: A car may satisfy transport needs but it may satisfy the needs of people to be identified in a certain way.

Services vs Product

• Product are easy to define• Services are reffered to as work

achievement to solve a problem for the customer

–Mending a broken bicycle –Serving a meal

• Services are immaterial, cannot be resold or stored

• Require interraction buyer-seller

Activities and flow of activities

• Producing offering requires

activities.

• Chain of internalized activities

should be addressed

Organization

Division of labors

How work is divided between

departments and individual within

department as well.

Should each dep specialise on a

specific task or should generally

competent to conduct any task.

Should be based on the input

( competence) or on the objective

of the task ( product)

Organization

Division of responsabilities

–Vertical dimension of the

organization

–How many hierarchical level are

there between the executive and

operative staff?

–What is in the manager´s

responsibility?

Ressources and competencies• Strategic and potentially strategic

ressources should be identified and their values assessed as well as their interrelations.

• Types of ressources :

• Physical

• Financial

• Human

• Organizational

• Tangible and intangible

What Is Organizational Structure?• Organizational Structure– How job tasks are formally divided, grouped, and

coordinated

– Key Elements addressed by manager in designing organization´s structure:

1. Work specialization

2. Departmentalization

3. Chain of command

4. Span of control

5. Centralization and decentralization

6. Formalization15-14

Factor markets and suppliers

• Understand the origin of resources• Understand supplier and the relations

with them and factor conditions.• Sources : able to access to labor and skills–Source component from trustworthy

supplier–Access core of labor highly skilled , able to

learn and stay with for a long time(relocation of computer programming to India)

• Reliable supplier• Preventing dependency on supplier while

keeping close productive relationship.

Factor markets and suppliers

• Good relation stimulate learning and knowledge sharing buyer-supplier.

• BUT , supplier could recognize the value of its input and raise the price.

• Able to access capital (funding)

A marketplace where factors of production such as labor , capital , and resources are purchased and sold.

It and business model

IT is a ressource ( people , knowledge, organizational structure and culture, production technology and control systems.

IT consists consists of : Information technology (computers , software and information systems) Communication technology ( computer network . Telephone ..etc )

It help people , business and organizations in communicating and processing data.

It is a ressource to be used by people and other resources interdepenedent with the market , activities , offerings and the factor market. So IT affcets other parts of the businessmodel and vis versa