What is a finished model. Business model canvas in Russian: a description of the business model. What is the difference between a strategy and a model

Next in line is a new section of the business plan:. Today we will tell you why and how you need to draw up the next part of the business plan. And even if it does not seem so obvious, to some extent repetitive, in a professional (and not only) business plan, this is a necessary part. If only because it will give a new perspective on your small business idea and prospects for its improvement.

Description of the business model

Why is there a business model section in a business plan?

An analysis of the business plan process shows the relationship between the business plan as a product of this process and the business model as the starting point of any planning process. The business model is at the heart of the business plan and can even simplify the planning process for the main lines of business. At least the basic calculations of costs, revenues and profitability can be seen through the business model.

The business model focuses on four pillars of the business: customers, offering, infrastructure and financial stability... These elements are detailed in the business plan.

It's easier to start planning when we have a foundation. With the help of a business model, our planning process will focus our attention on the right things.

And, of course, it will be easier to convince the investor of the profitability of the investment if a working business model is presented that will make the business profitable.

What is a business model?

As a formal definition, we will use the definition from the book "Business Model Generation - Alexander Osterwalder & Yves Pigneur":

A business model describes how a business creates, acquires, and delivers value.

Read also

Description of the business model: what questions should it answer?

To facilitate the completion of this part of business planning, we will try to classify the main questions that you, as an entrepreneur, should answer:

• What market segments will the business serve, or?
• What value or benefit will the business offer?
• How and how will this value be presented to the market? This is a simple answer to the question of how your product and / or service will come to the attention of each segment that you identified above. Note that different segments may prefer different delivery channels.
• What will be the relationship with consumers? Both before and after the sale of a product or service, a business must maintain specific relationships with consumers. The answer to this question should be given here.
• What will be the income? Income is the result of the process of delivering value to customers and receiving money for that value. To do this, you need to design the size of each segment and its market share. Note: here use only assumptions and your previous knowledge, and you will do a full analysis of the market later.
• What do you need in order to deliver the value you offer to the market? This includes all the resources your business needs to successfully produce and distribute value to consumers. It can be people, equipment, knowledge, technology, or something else. Everything should be listed in this subsection.
• What must you do to realize this value in the marketplace? You must undertake different activities to accomplish the primary goal of producing and delivering value. For example, production, marketing, sales ...
• Who are the key partners in the business process? You are not alone in this process. You have suppliers, investors, consultants, partners ...
• What is the economic structure of a business? All items that are part of a particular business model create or have some value. It is best to develop an economic structure in this section in order to determine the possible costs, although, of course, there will be details in the financial part of the business plan.

Rethinking the business model

You need to know that a business model, like a business plan, can change. This is the cycle that drives continuous improvement in your business. It will be difficult for a business to develop without it. Moreover, at the current pace of development in all spheres, constant changes are simply necessary, and business as well.

I wrote about where business ideas come from, good and bad. Today I want to talk about the very first and main filter when selecting ideas - passing them through the prism of existing business models. There are a great many of them. Below you can find several definitions of this concept and a brief overview of the literature on this topic, and in the following publications we will try to make out real examples.

Business model logically describes how an organization creates, delivers to customers, and acquires value - economic, social, and other forms of value.

• Alexander Osterwalder (@AlexOsterwalder) defines them in his book Building Business Models:

A business model is an understanding of how an organization makes (or intends to make) money. A business model describes the value that an organization offers to various clients, reflects the organization's capabilities, the list of partners required to create, promote and deliver that value to clients, the relationship with the clients and the capital required to generate sustainable revenue streams.

He identifies 9 main blocks with which you can analyze a wide variety of models.

But is it enough to break down any business into these 9 blocks to understand it to the extent we need? We will consider this a little further. And now a few more definitions.

• Adrian Slivotzky (@ASlywotzky) in The Profit Zone says:

A business model is how a company chooses a consumer, formulates and delimits its proposals, allocates resources, determines which tasks it can perform on its own, and for which it will have to involve outside specialists, how it enters the market, creates value for the consumer and makes a profit from it.

In this book, he describes 23 profit-making models. If you are too lazy to read the entire book (although I still recommend that you familiarize yourself with it), you can flip through my presentation: there they are all presented in a condensed form.

• The MIT Institute has developed its methodology (Business Models Archetypes), in which there are 2 dimensions. Basic concepts on the Y-axis: Creator, Distributor, Owner (Landlord) and Broker (Broker). The second dimension - on the X axis - what assets are involved in the business: physical, financial, intangible and human. There are 16 types of business models in total.

• Another definition was given by Henry Chesbrough (@ openinnov8tor) in his book Open Business Models:

A company's business model is the way the company uses tocreating value and making a profit.

• Robert Hacker (@rhhfla) in the book Billion Dollar Company defines a business model as a set of 3 components:

By the way, I have not found more sensible and practical books and authors on this topic. I saw many books on this topic on Amazon and even bought some of them, but basically all of them turned out to be “water”. Has anyone else come across some interesting literature on this topic? If so, please recommend.

In the next post, as promised, we will break down the Gilt Group model.

Drawing up a business model helps to structure information about the company, identify strengths and weak sides, build a development strategy. There are different options, but one of the most popular is the Alexander Osterwalder model. It includes nine main points:

• who are your customers;
• what value your company provides;
• sales channels;
• customer relationship;
• key resources;
• key activities;
• key partners;
• income;
• costs.

Draw up a business model

Who are your clients

Your customers can be divided into groups according to certain criteria. It is not necessary to use generic sex / age / marital status. You can take more understandable, simple and succinct descriptions, for example:

• customers who want everything at once, are not used to waiting, do not accept rejection, are ready to pay well;
• clients who want to receive the maximum number of services for the minimum money make decisions for a long time, make constant complaints about work, do not make additional purchases.

If your clients are other companies, then you work in the business-to-business (B2B) segment, if they are individuals, then in the business-to-consumer (B2C) segment. In some cases, both forms of work are encountered. Answer the following questions for yourself:

• What segment do you work in?
• Why exactly in it?
• What criteria can be used to divide clients into groups?

What value does your company provide?

Answer the following questions for yourself:

• What is valuable about a product or service that you provide to a client?
• What problem does he solve?

There are many values, basic or complementary. For example:

• the speed of providing a product or service;
• quality of service;
• price;
• convenience;
• brand.

Customer value is at the core of innovative business models. If it's difficult to articulate right away, consider the question. If there is value in your proposed product, consider how you can increase it.

Sales channels

Determine how the user learns about the product and service and how he receives it. There are five main ways:

1. personal contacts or telephone;
2. website or store;
3. delivery;
4. Internet (blogs and social networks);
5. traditional media (radio, television, etc.).

To determine the quality of your own channels, answer the following questions for yourself:

• How do your potential customers learn about the product and service?
• Are these channels effective?
• How can they be improved?

Customer relationship

Analyze what type of relationship will be established with each client or client group. For one business, the best option is personal service, assigning a manager to key clients. For the other, self-service and automated systems sales. Define for your company:

• What is the best form of customer relationship?
• What to focus on: attracting new customers or developing a loyalty system and retaining old ones?
• Do I need to increase the average check and is it possible to do it?
• How often do customers repeat purchases?

Key Resources

The main resources include:

• human,
• financial,
• intellectual and
• material.

Answer the questions for yourself:

• Which ones are used in your business?
• Are they enough?
• Can they be improved or increased?

Key activities

It would be easier here to describe the business processes or main tasks that are performed in the company. But the business model requires identifying key activities in terms of creating value for the customer.

Key partners

No organization can exist in a business vacuum. For effective work will have to build reliable relationships with partners. It is important here not only to assess the quality of existing partners, but also to analyze how you can make the relationship more profitable and useful. In some areas, there are companies that have similar target audiences, but they are not direct competitors. Develop joint promotions, exchange clients, help each other in development.

Income

Consider sources of income. But shift the focus from your own company to the customer as follows:

• What is the client willing to pay for?
• What is the preferred payment method for him?
• Does the customer pay once or are the payments repeated regularly?
• Is the system of repeated and additional sales built?

Costs

Calculate key costs based on an analysis of key activities, resources and partners. Be sure to include in this paragraph:

• fixed costs;
• variable costs;
• cost optimization options (change of suppliers or contractors, transfer of some functions to outsourcing, rejection of unprofitable areas of work).

Based on this information, create several variants of business models so that they differ in the content of different blocks. Use uncomfortable questions or make assumptions that at first glance seem impossible. Analyze the received result, identify growth zones and choose the best business model for your business.

The business model is the potential of the enterprise, its commercial partners, necessary in order to create, promote and deliver a product. target audience; customer relationships and investments required to generate a sustainable income stream.

You will learn:

• What is a business model and how it differs from a strategy.
• What the business model consists of.
• How the business model is built.
• How can the effectiveness of a business model be assessed.

This term means one way or another. Distinguish between simple and complex systems. For example, the business model of a restaurant chain is to generate income by inviting customers to a comfortable place for a pleasant pastime and a delicious, delicious dinner.

The sources of profit for commercial internet sites are more varied and come in many variations. For example, some of the owners this business provide free information or service in order to increase customer flow. Commercial sites with high traffic levels can be a great place to place your advertisements. Thus, their owners earn money by selling sites for commercial purposes. Another category of sites generates income from online sales. These include, for example, online stores.

The financial business model is the link between:

1. Those WHAT offers the company (company values ​​that are of interest to customers).
2. WHO is the target audience and pays for the services offered.
3. HOW implementation (formation, distribution and sale) of this value to customers is ensured.

This connection is formed so that the profit from the sales turnover exceeds the investments spent on the implementation of the chosen strategy.

The business model of an organization is a set of descriptions aimed at understanding the essence of the company's management process and designed to:

• Workings step by step plan enterprise development.
• Understanding the structure of the company's business function.
• Answers to a number of questions:

1. Who is involved in business processes, what roles do they perform?
2. When and how is the commercial concept implemented?
3. In which departments of the company are specific business process models executed?
4. Improving the quality of cooperation and understanding between organizational structures involved in decision making.
5. Implementation of corporate information system management.
6. Opening opportunities and paths to certification.
7. Fast and effective training of new specialists, since business process diagrams are visual job descriptions.

Consumer Profile in 2020: How to Adjust Your Business Strategy to the Trends

The editors of the Commercial Director magazine analyzed the trends in consumer behavior in 2020. The algorithm is suitable for any company.

How business models differ from business strategies

The concept of an enterprise business model is often confused with strategy, replacing one term with another, or implied as one of its components. This confusion stems from the fact that one definition is closely related to the other, but not equal to it. Their differences are as follows:

• The factor of value creation and their transformation into income. A business model is intended to describe the way in which a company converts a given product or service into profit. And the strategy embraces more distant prospects, creating sustainable competitive advantage.
• Price commercial activities or the owner's income. Converting the value of an entrepreneurial business into a manager's profit is not the main task of the project's business model. This is the direct difference between this concept and strategy. Thus, the business model does not focus on financing methods, but, nevertheless, it has a significant impact on shareholder returns.
• Business qualification level. No special knowledge is required to form a company's business model. In turn, the development of a strategy involves a more complex analysis, which presupposes a certain level of awareness in the area where the enterprise is developing.

To illustrate how the business model relates to strategy, consider the following formula presented by M. Levy:

V = MS, where

V - value, M - business model, S - strategy.

This formula demonstrates that the organization, in order to implement the chosen strategy, must determine the best business models that will serve as the basis for further development and creating value for the target audience.

What are the types of business models

1. Manufacturer. Creation of physical goods, intangible products (music, films) or services. Who will be the target audience - customer or distributor? the main task- production of a demanded product and its subsequent delivery through an efficient channel. There are three types of this business model:

• Direct marketing to the consumer means selling a product on a website or through company-owned stores. The main advantages of this system are exemption from intermediaries, increasing income and building relationships with customers directly (through free support, detailed product demonstrations, etc.).
• Sales to distributors and wholesalers and retailers... This business model involves the sale of products to specialized retailers who have multiple channels to reach end customers. Most of the manufacturing companies belong to this segment.
• Transfer of exclusive rights to distributors. In this case, manufacturing enterprises cooperate exclusively with one or several intermediaries, creating a monopoly on a specific product in a specific region and receiving a large income. For example, this category of sellers is represented by car manufacturers, film producers, and book authors.

2. Distributor of goods and services. Intermediaries serve as the main link between the manufacturing company and consumers. Their task is to combine products various enterprises in order to scale up sales. Distributors increase margins and reduce logistics costs. This market is highly competitive. The following varieties of this business model can be distinguished:

• Retail (including ecommerce) for general use, involving a huge number of products vertically. Consumers interact exclusively with distributors across all products, which is the value proposition of such a business. For example, Amazon and Walmart online stores adhere to this model.
• Niche targeting(narrow focus). Retail general purpose implies the sale of a wide range of products, and distributors of product specialization work with a certain category of goods. Toys 'R' Us and Babyoye are examples of this business model.
• Personal sales club. In this case, buyers pay a recurring membership fee, which gives them personal access to an exclusive discount system for top brands. For example, Costco, Sam's club, Gilt, Exclusively.
• One product per day. This sales business model is used by Woot. Instead of selling hundreds of products, this company offers just one product a day at a substantial discount. Thus, manufacturers clean their warehouses very quickly, and the distributor sells goods in huge quantities. Users are provided with information about a particular product on a daily basis.
• Integrated model. This system is used by traditional retailers wishing to increase customer flow at the expense of the Internet audience. So, consumers choose a product and pay for it on the distributor's website, and receive it in a warehouse, in a store.

Expert opinion

Successful business model when the product is sold piecemeal

Sergey Alekseenko,

Head of Distribution, Russian Branch, Bauer Media Group, Moscow

The business model, which involves the sale of goods in parts, is still popular. A striking example is party art, various publications that come out with a certain frequency, at a predetermined date. The principle of collecting is relevant for various goods, but is used, as a rule, as an additional, stimulating way to increase sales.

The main difference between the partwork and the usual periodicals is that it is characterized by a clearly planned and fixed lifespan. As a rule, this project is launched for 1-3 years, and then, as the topic of the publication turns out to be exhausted, it completes its work.

The formation of this business model largely depends on consumer interest. As a rule, the first trial issue of a publication is sold for half the price of the next one (from 50 to 100 rubles). In some cases, manufacturing companies determine the cost is lower than their cost to create a given product.

These costs will be recouped in future sales. The tempting price of the new item is combined with a unique element of the product design, embedded in its packaging - the most interesting in the entire collection. Thus, by involving the buyer in the game, the manufacturing company moves to the planned cost: the second copy of the edition costs several times more than the trial one.

Over time, the number of buyers will decrease, but this trend is foreseen in advance, so the company releases subsequent issues in a smaller circulation. The number of published copies of the magazine is determined by the quality of the product, its relevance, concept, cost and uniqueness. The period when millions of copies were released is long gone. Today, on average, from 200 to 400 thousand copies of the first issue are published. The duration of the issue can be different - from a couple of months to several years. Consequently, circulations may also vary, but, as a rule, the full collection of magazines does not exceed 170 issues.

Patwork manufacturers face the challenge of attracting and retaining their target audience. To this end, they are developing a serious marketing work: advertise, carry out various promotions and research.

Expert opinion

What the structure of a business model looks like

Alexander Osterwalder,

1. Consumer segments. This section includes groups of people or companies that an organization sees as potential customers. The target audience is at the center of any business model. Without its own client base, no company will be able to make a stable profit. And in order to best meet the needs of its consumers, the company divides them into groups depending on their desires, behavior patterns and other characteristic features. The head of the enterprise must decide which specific groups are of interest for his activities. The development of a business model is based on the needs of customers in each segment.

2. Value of the proposal. This section consists of a set of products or services of interest to each consumer group. Customers give preference to a particular company, focusing on the value or benefit offered to them. The enterprise, in turn, directs its activities towards solving consumer problems and satisfying their needs. Each group has its own wishes, so it is important to create products or services that have a specific value and benefit for them.

3. Distribution channels. This block contains information on how the company establishes communication with a potential audience, distributes, delivers, sells products or services to each group of consumers. Based on these channels, they choose methods of interaction with customers. This plays a critical role in creating a positive image of the enterprise in the perception of consumers. Distribution channels are intended for:

• increasing customer awareness of the company's products and services;
• assistance in assessing the benefits (value) of the organization's proposal;
• providing the audience with the opportunity to purchase a product or use a service;
• guarantees of benefits for consumers;
• providing customers with after-sales service.

4. Relationship with customers. This section characterizes the features of the enterprise's relations with members of each group. An enterprise should determine which methods of interaction are most effective in dealing with these categories of consumers. Relationships can be either personal or automated. Communication with consumers performs the following functions:

• attracting an additional stream of buyers;
• customer retention;
• increase in sales.

5. Streams of income. This section shows which cash flows are involved in the formation of the total income of the enterprise. Each firm must clearly understand for what value each category of customers pays them. Based on this, cash flows will be formed. By calculating the approximate number of customers, you can determine the total revenue for a particular business model.

6. Key resources are necessary in order to create value proposition and deliver it to the client, to establish contact with the target audience, to carry out the sales process, etc. Different types of entrepreneurship imply their own separate key resources. For example, a manufacturing company needs equipment and production facilities. Distinguish between physical, financial, intellectual or human resources. They can be rented, purchased or borrowed from partners.

7. Key processes. This section describes a number of the most important processes, functions, activities. In order to implement a business model in practice, it is necessary to create and support the activities of a certain set of key processes. These are the most important organizational activities required to create, offer, distribute value proposition and implement customer relationships, etc. As in the previous case, the key processes are determined by the type of business model.

8. Key partners. This section includes suppliers and partners. In some cases, partner companies are the backbone of the business model. Enterprises form alliances to optimize their program, reduce business risks, or share resources.

9. Cost structure. This section includes all costs required to implement a business model. All the blocks described above imply certain costs. These costs are driven by key resources, processes and partners. Some business models are more expensive than others. The cost structure should be determined during the concept development process. Based on the resulting costs, you can calculate the expected income from a particular concept.

What a generic business model template looks like

Let's consider what parts business models are made of and how they interact with each other. The image below shows the elements of this structure and the main connections.

In the center of the image there is a subsection "Products / Services". As a rule, the products themselves are not of interest to customers, since similar offers can be found in competing companies. For buyers, only the solution of their problems and satisfaction of needs on the most favorable terms for them is of value.

To understand what exactly you can interest the target audience and what are the advantages of your company, describe them in the "Offer" category. Each customer group has a specific set of products or services.

Offering value to your customers is the backbone of your business. This element is the link between the needs of the client and your products (services). "Offer" helps to create income from the sale of goods (right side of the image) and the organization of business activities for subsequent sale (left side of the diagram). Profit stream formation implies certain costs ("cost structure"). By calculating the difference between income and expenses, you can determine the financial outlook for a particular business model.

Pay attention to the right side of the diagram (profit generation), which consists of income streams from the sale of a certain product to a specific group of consumers. From this image, we can see that a profitable offer is intended for a certain category of customers due to the established mechanism of relationships with the target audience. The company addresses clients with information at a certain frequency, at specific stages of interaction development, in order to convince them of the profitability of its offer for them, which further ensures the implementation (sale) of products.

The basis of the company's contact with consumers is the channels that differ depending on the stage of the relationship with the customers: from the period when the business created its offer to the moment of purchasing the product. There are five phases in total:

1) Notification. The purpose of this stage is to inform the consumer group about the available products and services of the company.

2) Belief. The main task is to help the client in assessing the proposed benefits.

3) Deal. At this stage of interaction, the conditions are formed that are necessary in order to carry out the process of buying a product or service.

4) Delivery. In this phase, it is ensured that the consumer receives the goods with the declared benefit.

5) After-sales interaction pursues the goal of organizing customer service after the product is sold.

The total profit is generated through offers, channels and customer groups. Moreover, each stream can be characterized by its own rules for setting the cost (for example, the creation of fixed price lists, the amount of discounts, negotiated prices based on the purchase volume).

The business model's cash flows consist of:

• one-time payments made after each transaction;
• regular payment (for example, a subscription fee) for after-sales service of purchased goods.

The elements on the left side of the diagram contribute to the selection of the most effective tools (relationship mechanisms and channels) in order to get the highest total profit in the future.

The left side of the image shows the cost creation model in the process of generating a unique proposal, its subsequent distribution, sale, delivery and collection of revenue from each stream. This scheme has all the elements that create conditions for the implementation of the proposal, and implies specific costs for this.

To sell products, a business must have key resources and processes (skills) that provide:

• the formation of a certain value;
• creation and maintenance of communication channels (in accordance with the phase and group of a particular client).

Key processes (or activities) refer to required actions. Here, the main resources are used to implement the proposal. For example, for a trading firm, the key process is the ability to sell its products. For service center- not only the implementation of their services, but also the provision of them at the proper level.

Key resources can be provided by business partners. An example is suppliers of products or raw materials. They can also carry out key processes.

It is important to assess all the costs required to implement the company's proposal. Of course, the cost structure is directly related to the decisions made to generate profit streams. Any adjustment in this matter causes changes in the total cost of the proposal implementation.

An entity's financial prospects are calculated based on the difference in revenue streams and total costs.

A business model is usually created and developed using a universal template consisting of all components and sample questions, answering which you can determine the best option for implementing your proposal.

This technique contributes to the creation and objective assessment of the development path of a business idea. You form several options, spend comparative analysis and choose the most efficient and reliable model that will become the basis of the proposal implementation system.

How business models are built: step-by-step instructions

In order to create a business model, you need to answer nine questions in turn, entering the results in the corresponding cells of the template. You can draw up this diagram on A1 or A0 paper and place it on the wall, marking the answers with multi-colored stickers.

Step 1. Create the revenue side of the business model.

The central components of the model are value proposition and customer groups. These elements are closely interconnected with each other, so the questions should go strictly one after the other. In answering the first question, you must assume the answer to the second. Conversely, the answer to the second question confirms the first. Let's take a closer look at the elements of the business model, which are described by answers to the following questions:

1) What is the essence of your proposal? Pre-answer the questions:

• What is the value of your offer to customers?
• What customer problem will you solve with your products?
• What needs will the client satisfy if he uses your offer?
• What set of products or services are you offering to your target audience?

Offering a benefit always implies a specific value for a specific group of customers, which is the characterization of a product that satisfies a customer's needs. These properties of goods (services) can be both quantitative (cost, service speed) and qualitative (shape, design, ease of use). Let's take a closer look at some of the characteristics that make up the benefit offer:

• Novelty. There are a number of proposals that satisfy the new set of requests that did not arise earlier due to the lack of this product (service). As a rule, this concerns technological innovation... For example, as mobile phones became popular, many devices and accessories for them (covers, programs, special cords, etc.) have been created.
• Performance. Optimizing the production process or increasing the speed of service is the traditional way of generating a value proposition. This approach is actively used in the computer industry, which every year produces more and more powerful equipment for consumers.
• Customization according to client's requirements. A great way to create value for a customer is to tailor a product or service to a customer's request.
• "To always work." Consumers are loyal to the products that help them decide specific tasks... For example, the Rolls-Royce company actively uses this principle: airlines buy aircraft engines from them along with warranty obligation that this product will not be inoperative, which, in turn, makes it possible to concentrate all attention on the transportation of passengers, without puzzling oneself with the question of maintenance. In return, Rolls-Royce is rewarded for every hour the engines are in operation.
• Construction (design). In the field of fashion and electronic devices, this property is essential.
• Name / brand / status. There is a certain category of customers who prefer to purchase goods from eminent manufacturers, which is an attribute of their belonging to a certain category of society.
• Price. Offering the same product, but at a lower cost, is a standard technique for attracting a category of consumers that is sensitive to the price of a product or service. Free offers such as magazines, mobile applications etc.
• Reduced costs. By helping to reduce customer costs, you create a value proposition for them. For example, you can reduce consumer costs when introducing a service.
• Reduced acquisition risk. Usually, at the time of purchase, customers run the risk of purchasing a product that is not what they expected. For example, in such situations, dealers offer free service for used cars throughout the year. Thus, they reduce the risks of purchasing a car with undiagnosed defects.
• Availability. For example, mutual funds are material investments in stocks with a small initial capital. As a rule, an investment requires an amount of 30 thousand rubles or more. While for mutual funds it is enough to deposit only 1000 rubles, for students - 100 rubles.
• Ease of management and use. An example would be a touch screen. mobile phone, which provides a comfortable environment for the operation of the device.

2) Which customer groups will be interested in the benefits offered? Before answering this question, please specify:

• What consumer groups are willing to purchase this product or service?
• Who is the most important customer and is he in the 20% that provides 80% of the profit?

The following categories of consumers can be distinguished:

• Mass buyer. For the business model, there is no distinction between customer groups. Proposal creation, channeling, and relationship building with target audiences focus on customers with similar needs and common concerns.
• Niche. This category of consumers is intended for a specific part of the customer group. As in the first case, the formation of value, relationships and the distribution of channels is aimed at meeting their needs and demands. This category is very common in supplier-customer business.
• Segment. In some business models, each group of customers is divided into certain categories, whose needs and requirements differ slightly. For example, the banking sector. They subdivide their consumers according to the amount of material invested, providing them with various offers of benefits (an increase in interest with an increase in contribution).
• Mixed. Many companies offer value to two or more unrelated customer groups at once. For example, a newspaper with free classified ads provides information for readers, and advertisers provide a platform for publishing.

3) How will you contact customers (channels)? The answer to this question contributes to the formation of a model of interaction with consumers. Preview all five phases for each client group and choose a separate way of how you will connect at each stage of the relationship.

For example, in order to sell digital products via the Internet, only three channels are used: the site - during all five phases; email - for the first, second and fifth; acceptance of payment (via electronic money, bank cards etc.) - for the third phase.

4) How will you build and maintain customer relationships? Answer the following questions:

• What types of interactions do you need to support for each benefit offering?
• Which ones can you use for each customer group?

What types of customer relationships are distinguished:

• Personal. They are based on the interaction of employees with customers: specialists are engaged in service in the process and after the sale. This type of relationship can be carried out in the office, using e-mail, telephone, etc.
• Dedicated personal. This interaction model implies that a certain employee is assigned to each client in order to establish closer and deeper relationships, designed for a long time.
• No relationship. In this case, the organization does not maintain contact with the consumer, counting on his independence in resolving the issues that have arisen.
• Automated. This is a modernized version of the previous type of relationship - the client is provided with a standard reference, a website where you can find answers to common questions, etc. Thanks to modern developments, the company has the ability to form "pseudo" -personal relationships through software.
• Groups, communities, forums. Their function is to provide contacts between community members to resolve problem situations through the exchange of information. These groups enable an organization to understand the needs and demands of its customers.
• Complicity. In many businesses, customer relationship policies go beyond the traditional approach, with executives encouraging customers to participate in developing additional value propositions. For example, the online bookstore Ozon encourages buyers to post their reviews of works.

5) What exactly will customers pay for (these are your sources of income)? Make a short list and include:

• What kind of value will the group's consumers buy?
• How will the payment be made?
• What contribution does each stream make to the total profit?

Consider the main ways to generate profit streams:

• The product is money. The company transfers the right to use a physical product such as a book, electronic device, car, etc.
• User fees. The cash flow comes from the provision of services. An example is the per-minute payment for mobile communications, daily payment for a hotel room, delivery of goods by mail, etc.
• Subscription fee. For example, using unlimited Internet, fitness classes, etc.
• Rent / lease. Transfer of rights to use physical goods for a specified period or with subsequent redemption. For example, bike rental, car rental, tool rental, etc.
• Transfer of Intellectual Property Rights. For example, the privilege of translating and publishing a book.
• Mediation fee (broker's fee). An example of this business model is the payment by a client of a commission to a realtor after a successful real estate transaction. Thus, intermediary services between two or more participants are paid for.
• Advertising. As a rule, organizers of holiday events receive a large percentage of the sale of space for advertising content.

The main ways of creating value:

• Fixed price. A clear price list for each product or service. The price is determined by the quantity or quality of the benefit offered. For example, additional options when purchasing a car or smartphone. The price is directly related to the type and characteristics of the consumer group (private customers or commercial enterprises), as well as the quantity of products purchased (discount is possible).
• Dynamic pricing. This is the value that is formed during the negotiation process. The price is determined by the time of purchase (depending on the season and time of day), as well as supply and demand. The auction value is set during the bidding process.

Step 2. We create the expenditure part of the business model.

Using the following questions, it is determined which methods and resources should be involved in the implementation of a given business model, and what costs will follow.

1) What knowledge and technologies (resources) are needed to :

• create offers;
• form channels;
• maintain a relationship with a customer base ?;
• get cash flows.

• Physical. Tools, production equipment, devices, trading platforms etc.
• Intelligent. Brand, specialized knowledge and skills, patents, partnerships, copyrights, etc.
• Human. These resources are key to every business model. They play an important role when the activities of the organization are related to heavy use knowledge or creativity - lawyers, specialist consultants, advertising agencies, designers, etc. Any business needs experienced salesmen.
• Financial. Own investments, credit funds, etc.

2) What are the key processes required to :

• create offers;
• form channels;
• maintain relationships with the customer base;
• get cash flows.

Key processes are subdivided into:

• Manufacturing. Those that relate to the direct creation of the proposal.
• Problem solving. Those that are related to solving issues that arise in the process of relationships with consumers in each of the five phases.
• Platform. Those that relate to a business based on the automated distribution of offers (web technology, payment terminals, etc.).

3) Do you need the help of partners? To answer this question, describe:

• Who are your partners.
• Who are your suppliers.
• What resources are you interested in business partners.
• What activities did they plan to hold.

There are three motives for creating and maintaining a business interaction model:

• Optimization and economies of scale. It is not at all necessary that every company has all the resources at once. You can leverage partner funds to keep costs down.
• Reducing uncertainty and risks. Business partners help to withstand the competition.
• Obtaining specific resources or performing specific activities. For example, to manufacture products, you must first obtain the appropriate license.

4) How much will each proposal cost?

Analyze all costs carefully and answer the following questions:

• Which of the given business model requires the largest investment?
• What are the most expensive resources?
• What processes will be involved?

Step 3. Assess the profitability of the business model.

So the model is built. Now it is important for you to assess how much income it will bring. The business model score is calculated using the following formula:

Profitability = Sum of all income - the sum of all expense items.

Analysis of the business model by individual elements

When you're designing a business model, don't limit yourself to just one option. Your only decision may not be the most successful and profitable. Consider various options for implementing your business idea. Form several models in order to obtain an assessment of the effectiveness of various combinations of the development of the benefit proposal to the target audience.

By combining classic and new customer relationship techniques, develop at least five options. Evaluate the effectiveness and profitability of each of them, then select the most profitable and best business model.

Before you start creating a project, keep in mind that you are evaluating the profitability of a model based on subjective assumptions. Before moving on, make sure your predictions are sound or you risk losing all of your invested capital.

Which components of the business model are subject to validation:

1. Test the hypothesis that potential customers have a problem, how good is your product or service. Select a few loyal potential customers and stage a “problem presentation” with them in order to assess whether your assumptions are true.

The demonstration is intended to determine the content of the problem: at what moment it occurs, with what frequency, how annoying a potential consumer is.

Indicative plan for conducting a "problem presentation":

• List a few problems that your product can solve.
• Ask the client to prioritize and highlight the most important one.
• The consumer then describes how they dealt with the problem in currently, and what are its costs.
• Briefly describe what solutions you see.
• Ask how the proposed method is convenient and beneficial for the client.
• He would use it if it were free.
• Is the client willing to pay for this solution to the problem. It is desirable to indicate a certain amount.
• Who else, in the opinion of the consumer, may be interested in this offer.

2. Create a trial version of the product or a service that you believe can solve the problem. Create a prototype that you can then demonstrate to your target audience. Your task in the presentation process is to understand whether this solution will help to cope with the client's problem.

Approximate structure of the "presentation of the solution to the problem":

• Be clear about the problem.
• Demonstrate to the customer how your proposed solution will solve the problem with a demo version of the product.
• Re-check if the potential consumer is willing to pay a certain amount to solve the existing problem.
• Ask exactly where and how it will be more convenient for him to purchase this product.
• Ask for whom else, in the client's opinion, this solution to the problem is relevant.
• End your presentation with a call to action (to sign a contract or buy a product).

3. Clarifyto what extent do your suggestions coincide with the opinions of customers about this problem and methods of its solution. You can easily draw conclusions based on the number of transactions concluded. If the level of sales is low, then adjust the description of the problem of potential customers, or you will have to look for another category of customers for your proposal.

4 ... When the presentation of the solution to the problem ends with a good deal, no changes are made to the description of the business model. Then we we finish testing and re-evaluate the profitability of the updated model.

When you do your experiment, make sure that the communication channels you offer with potential buyers are as comfortable for them as possible. Check that they are effective in terms of mass demand for your product or service.

If you have received answers to all your questions and are sure that potential customers are interested in your product, then proceed to adjust the left side of the diagram to assess the profitability of the updated business model.

TOP 6 books about building business models

1) Yves Pignet, Alexander Osterwald “Building business models. Handbook of the strategist and innovator "

In this book you will find a unique system for the analysis, formation and development of the business model of Alexander Osterwald, which is used by the world's leading companies, including Google, IBM, Ericsson. The authors demonstrate an easy and understandable method of visualizing the key components, which provides a logical explanation for why the organization chose this particular method of generating revenue. To master Osterwald's business model, you need nothing more than a large sheet of paper and a block of stickers. Through this simplistic approach, you will become familiar with the overall strategic picture of entrepreneurship. With the help of concise stickers, you can easily learn the main elements of a business plan and connect them into a single system.

2) Oliver Gassman, Caroline Frankenberger, Michaela Schick “Business models. 55 best templates "

The profit of each organization is largely determined by the choice of the most effective business model. Analyzing methodologies is an excellent tool for both start-ups and those looking to reorganize their business and make it as profitable as possible. In this book, you will get acquainted with the strategy for the formation and implementation of innovative models, as well as learn about the main stages and difficulties in this matter. This work is based on 55 business building templates that are used by the most successful modern companies and you will also learn how to put them into practice.

3) Tim Brown “Design Thinking in Business. From developing new products to designing business models "

Nowadays, most progressive companies hire designers not to “embellish” ready-made ideas, but entrust them with developing from scratch. Previously, the tasks of this specialist were limited by the framework of the existing project, now he is endowed with much greater powers. Design, as a thinking process, has completely transformed, and its principles are relevant for a wide variety of areas of activity.

4) John Mullins, Randy Komisar “Finding a Business Model. How to save a startup by changing the plan in time "

Even if an entrepreneur has very carefully developed a business plan, received approval and funds from venture capitalists, this does not guarantee the success of the project. This is why it is important to have additional strategies that you can switch to in case of failure. This book will teach you how to correctly diagnose the effectiveness of your business plan and, if necessary, change course in a timely manner.

5) Chris Anderson "Long Tail"

This book is the result of numerous experiments and interactions with entrepreneurs and scientists. In it, the author presented an analysis of data related to the sales and use of services of enterprises that specialize in the “long tail” market, for example, Netflix and eBay.

This book describes in principle new model business development that is just gaining popularity.

The information is intended for those who sell their products on the Web, as well as for everyone who is not indifferent to the future prospects for the development of marketing on the Internet.

The book is written in living language, and practical ideas can be applied immediately after you read it. It is actively gaining popularity, and experts in the field of Internet marketing leave the most rave reviews.

6) Eric Schmidt, Jared Cohen "New Digital World"

This book provides a large-scale picture of the development of technology. This is not a fantasy genre. The book consists of vivid examples of modern developments, the main ways of their further development and the facts of how they can be applied in practice. It is in this area that the formation of tomorrow takes place.

The future is here today, and the authors of this book are probably closest to it: Eric Schmidt (the chairman of the board of directors of Google, who served as CEO of the organization for ten years) and Jared Cohen (the founder and leader of Google Ideas).

Information about experts

Sergey Alekseenko, distribution manager of the Russian branch Bauer Media Group in Moscow. The company's assets are represented by television channels, radio stations, 112 online projects and 396 publications in 15 countries of the world. Since 2008, the company has been the sole distributor of Hachette Collections patwork patches. The official website is www.bauermedia.ru.

Andrey Soolyatte, CEO and business partner of Finexpert.ru in Moscow. This company was founded at the end of 2004 by Andrey Soolyatte, Vladimir Repin and Alexander Khalileev. At the beginning of 2010 the organization was renamed into BPM Consulting Group LLC.

Anastasia Gushchina, general director of the company representative office Finn flare in Moscow. Field of activity: production of clothing, footwear, accessories for the category of buyers above average income. Organization form: holding. Territory: Russia, Kazakhstan, Finland. 25 own brand stores located in Moscow, St. Petersburg, Astana, Helsinki. Franchise network: 245 shops. Number of staff: 400. Annual turnover: 107 million dollars (as of 2007).

Interest in the business models of companies abroad has grown exponentially over the past decade and a half. This is evidenced by the results of one of the studies carried out by A. Osterwalder (2005), which analyzed the number of publications on business models in business and scientific journals (see Fig. 1).

Most of the definitions of the term "business model", which are given by experts, can be divided into two categories:
1) value-oriented / customer-oriented (approach aimed at the external environment of the organization);
2) process / role oriented (an inward-looking approach).

I will give some examples (1-3) of definitions of a business model related to the first category.

Example 1. A business model is how a company chooses a consumer, formulates and delimits its proposals, allocates resources, determines what tasks it can perform on its own and for which it will have to involve outside specialists, enters the market, creates value for the consumer and makes a profit from it. Companies may offer products, services or technologies, but the offering is based on the complex system of actions and relationships that constitutes the company's business model. (A. Slywotzky, 1996)

Example 2. A business model is an understanding of how an organization makes (or intends to make) money.
A business model describes the value that an organization offers to various customers, reflects the organization's capabilities, the list of partners required to create, promote and deliver that value to customers, the capital ratios required to generate sustainable revenue streams. (A. Osterwalder, 2005).

Example 3. Business model companies are the way a company uses to create value and generate profits. (H. Chesbrough, 2006).
An example reflecting a second approach to defining a business model, more focused on internal processes / roles, is presented below (Exhibit 4).

Example 4. A business model is a description of an enterprise as a complex system with a given accuracy. Within the framework of the business model, all objects (entities), processes, rules for performing operations, the existing development strategy, as well as criteria for assessing the effectiveness of the system's functioning are displayed. The form of presentation of the business model and the level of its granularity are determined by the goals of the modeling and the accepted point of view.
When defining a business model, the set of features that determine the content of a given term can be quite wide. At the same time, the key elements of the business model of any company that determine its content are, in the opinion of the author of this article: the value for external customers that the company offers based on its products and services; a system for creating this value, including suppliers and target customers, as well as value chains; the assets that the company uses to create value; the financial model of the company, which determines both the structure of its costs and the methods of making a profit.

Another significant aspect of defining a business model is related to the fact that a business model is often confused with a strategy, replacing one concept with another, or including strategy as one of the components of the business model. This confusion stems from the fact that a business model is closely related to strategy, but not identical to strategy. The relationship between business model and strategy can be illustrated using M. Levy's "equation of value": V = MS, where V = Value, M = Model, and S = Strategy. This equation assumes that the company must identify the best business models for implementing the strategy and, based on these, deploy and implement its strategy aimed at creating value for customers and other stakeholders.

Evolution of business models.

The evolution of business models throughout the 20th century can be summarized as follows:

1. The oldest business model, which still remains one of the basic ones, is the shop keeper model: opening a store where potential customers are located;

2. The next very popular business model, which emerged in the early 20th century and experienced numerous new births, is the bait and hook model (also called the "razor and blade model" or "tie-to-product model" Examples: razor (bait) and blades (hook); Cell Phones(bait) and traffic time (hook); computer printers (bait) and cartridges for them (hook); cameras (bait) and photo printing (hook);

3. In the 1950s - new business models were developed by McDonald's and Toyota;

4. In the 1960s - Wal-Mart and Hypermarket were innovators;

5. In the 1970s - New business models were developed by Fedеral Express and Toys R Us;

6. In the 1980s - Blockbuster, Home Depot, Intel and Dell Computer;

7. In the 1990s - Southwest Airlines, Netflix, eBay, Amazon.com, Starbucks, Microsoft and dot-coms;

8.In last years- the most original and effective business models were developed and implemented by Google, IKEA. *

Classification of business models.

Among the approaches proposed for the classification of business models, it is worth noting the classification of MIT Business Model Archetypes (BMAs), developed by a group of specialists from the Massachusetts Institute of Technology (2004), and the classification of business models (Business model framework ( BMF) developed by H. Chesbrough (2006).

The MIT Business Model Archetypes typology is based on two fundamental dimensions of any company's business. First dimension: the types of rights to assets that are sold by the company. This dimension allows us to distinguish four basic business models: Creator, Distributor, Owner (Landlord), and Broker (Broker). Second dimension: what assets are involved in the business. This dimension allows us to distinguish four main types of assets: physical, financial, intangible and human. Based on the main types of assets, four more subcategories of business models are distinguished within each of the four main business models. In total, within this typology, 16 types of specialized business models are identified. Of these 16 types of business models, only 7 are currently prevalent among large companies in the United States. The typology under consideration and examples of companies using certain types of business models are presented in Table 1.

Table 1. Typology “MIT Business Model Archetypes”.

H. Chesbrough, when classifying business models (Business model framework (BMF)), used two parameters, according to which, in his opinion, business models differ: the scale of investments made to support the business model, and the degree of openness of the business model.
The classification of business models H. Chesbrough includes six types of business models, presented in table. 2.

Table 2. Classification of business models H. Chesbrough.

Analysis of the practice of developing and implementing business models shows that business models can be created:

- for a specific product or service (group of similar products / services);
- for the company as a whole;
- for a group of companies or a holding.

What are business models used for in practice? It is possible to highlight the following options for their use:

- to assess and analyze the effectiveness of the company's business in comparison with other similar companies;
- to assess the potential and investment attractiveness of the company's business in the future;
- to optimize the company's business in terms of strategy and in terms of maximizing and retaining the value that the company creates for customers and other persons interested in its business.

Currently, in the context of the global crisis, many business models have lost their effectiveness and competitiveness. Russian companies that used these business models go bankrupt, suffer losses, and leave the market. Conversely, a number of business models that were not relevant in the pre-crisis period proved to be highly effective during the crisis and provided companies that use them with new opportunities for business growth and development. Further application of ineffective business models and sluggishness in defining new business models, slowness in the transition to them can lead to many Russian companies to significant financial losses and the loss of the opportunity to stay in business in principle. The crisis is a chance for many companies to significantly strengthen their positions in the market, using previously unavailable strategic opportunities.

The Canvas or Lean Canvas is an easy way to capture opportunities as your business grows. This model was created seven years ago and is used mainly in the creation of startups. This method was invented and developed by Ash Maurya. The author himself did not think that his theory would have such an effect. At the moment, his model is taught in more than two hundred universities in the world. And on its basis, hundreds of thousands of models have been created for various business sectors.

Canvas Model Table:

Filling out the table cannot be called difficult, because it can be used at any point in the development of a company, both when creating a company and for an operating enterprise. It contains nine points that must be completed. For convenience, the model can be printed in A1 or A2 format by pasting stickers in the required field.

Point one: customer segments

In this field you need to specify the segments of your customers. Who are they? What do they need? What will make them turn away?

There are also two key questions: Who are we working for? Who is the most important client for us?

Therefore, if age is important to you, then indicate it, if the profession, then it, etc.

Point two: core values

In this field, you must highlight what your customers are buying. Remember that it is necessary not to describe the product, but to indicate what it does, what problem it solves.

If these are flowers, then make a gift, cheer up. If a down jacket, then this is warmth, comfort, beauty.

Separately, you can analyze what the buyer would like to buy. Perhaps what he buys is not exactly what he needs, and he buys the product only because there are no alternatives.

From this you can understand why this or that consumer is working with you. Perhaps you have a good assortment or a good location, but there is not a lot of product selection.

Point three: distribution channels

These are the channels through which you connect with the customer. Remember to consider every step: first contact, persuasion, delivery, advertising, etc. From this we can single out such questions as: Through what channels do our clients want to receive our values? Through what channels do they receive them now? Which ones are the most effective?

Point four: customer relationship

This is what your communication with consumers pours into and how you work with their segments.

This also gives rise to several questions necessary to answer: What is our relationship with each of the segment? How are they integrated? How dear to us?

Item Five: Streams of Income

In this block, all income streams are highlighted with division into types. For example, constant income with a fixed price, variable sales, rentals, by customer base group, sales type, etc.

Do not forget to mark the characteristic and rate of each stream. This will help you visualize the main and secondary streams that generate income. This helps in building a strategy: what should be focused on and what should be overlooked.

Item Six: Key Resources

In this block, all the necessary resources are allocated. Do not forget about all types, for example, for production, for building relationships, for distribution channels.

It is also worth breaking down resources into groups: finance, human, intangible, etc.

Item Seven: Key Activities (Activity)

This block should be understood as follows: what steps must be taken for the stages mentioned above.

Questions for understanding the block can be formulated as follows: What key actions do we need to work? For distribution channels? To build a relationship with a client?

Business model

To receive and record streams of income?

In other words, this block indicates the main steps of the work of your business process.

Item eight: key partners

Here it is necessary to indicate those partners without whom your company cannot exist. For example, vendors, freelancers, educators, consultants, etc.

There is also a list of questions for simplicity, which includes: Who are our key partners? Who are our key suppliers? What are the key resources we get from them? What activities are they doing for us?

Item nine: cost structure

In this block, all the most important resources should be allocated, for example, permanent and variable costs, expenses for wages, resource prices, loan payments, etc. For clarity, you can indicate their share of expenses over a period of time.

After building the model, you should show it to competent people who can point out your problems when building a business model. Lean Canvas is a flexible model, so it can and even needs to be supplemented or even attributed when preparing a startup. It is also possible that at first you will have several business models, you should not be afraid, this, on the contrary, will probably help you.

If you do not have the opportunity to consult with a specialist, here are a few points to help you test yourself:

1. All blocks are full.
2. Lack of inconsistency. That is, if you indicated that you are using expensive promotion methods, then this should be indicated in your costs.
3. Concise and precise wording.

print version

Business model

The purpose of developing a business model is to obtain a comprehensive description of the key elements of the business, which allows you to present the business system as a whole, as well as analyze ways to improve the efficiency of its functioning.
Business model development is the planning stage of a business strategy. The key elements of the business model of any company are the customer value that the company offers based on its products and services; the system and chains of creation of this value, as well as financial model companies, and thus the business model logically describes the factors on the basis of which the company creates, delivers to customers and acquires value.
The purpose of developing a business model: modeling the main parameters of a business development project in Russia (abroad).

Description of the result

Our experts will help in modeling the main parameters of your business project in Russia (abroad).
In general terms, a standard description of a business model in accordance with its main parameters:

• Infrastructure:
  • Key Resources
  • Affiliate network
• Offer:
  • Products / services offered to customers
  • Features and advantages (value characteristics) by which the company differentiates its activities from competitors
• Consumers:
  • B2C-, B2B-, B2G-, CRM- models (target segments, distribution channels, technologies and customer relationship management)
• Finance:

Brief for the formation of a commercial proposal

1.

BUSINESS MODEL

2.

Product description
Target segment
Owners of companies in the small and medium-sized business segment.
Problematic
client (pain)
The owner is the cornerstone on which the whole
business. Failure to build a strong team (up to the lack of
belief in the possibility of building such a team). Confused
distribution of responsibilities within the team. Business is impossible
leave for a more or less long time.

17 business models. Come up with a new one or use an old one?

As a result, the owner
the quality of life suffers, there is a very strong bias to the side
work, which lowers overall happiness.
Product
(solution)
Educational and practical activities for the systematization of business
As a product
decides
problem
(satisfies
need)?
Study programs are conducted in the format of "group consulting", in
within which the owners systematize their business, and receive
the ability to control and develop the company through a limited
set of activities ("interface" of business management).

3.

Alternatives available to customers
We consider the situation in the hypothetical absence of our company on the market.
Alternative
Advantages
disadvantages
Business schools
Opportunity to get
status diploma.
Years of study
programs.
Academic approach.
The need to spend a lot
of its time
High cost
A bias towards theory without
practical application
They teach mostly
"Business theorists"
Consulting
company
Opportunity to get
decision made "under
key".
Ability to work with
practitioners who have implemented
a large number of projects.
We get a "fish", not
"Fishing rod".
High cost
Excessive bureaucracy
decisions ("paper sale").
Various courses on
doing business and
individual
business trainers
Cheapness.
Possibility
"Reflect" on a narrow
subject matter.
Sometimes there are interesting
charismatic trainer.
Lack of holistic
systems approach.
Absolute majority
teachers - theorists.
Solutions based on
"Patches" (decide only
narrow problem).

English RussianRules

How to create an innovative business model

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To clearly, on real examples explain what it is - the elements of a business model, remember how the business models of two companies were born that made a revolution in their industries.

Creation of a unique offer. Before building a new business model or updating an old one, you need to understand what is special - something that no one else has done before you - you can offer people. Sometimes an idea pops up unexpectedly. Imagine for a moment that you are standing on a rainy day on a Mumbai street. Countless scooters are scurrying past you, maneuvering in the stream of cars. On closer inspection, it turns out that many are driven by whole families - parents and several children. You think, "These are crazy!" or "Yes, people have a hard time here."
When Ratan Tata, CEO of Tata Group watched the scene, he realized what an important job his corporation had to do: to offer Indian families a safer substitute for scooters. He knew that the cheapest car in India cost five times as much as a scooter and was too expensive for most of these families. This means that if the Tata Group produces a less expensive car, which could be much safer than a scooter to ride in any weather, it will certainly interest tens of millions of people who have not yet saved up money for a "real" car. And of course, the current business model of Tata Motors would not be suitable to produce such cheap cars - Ratan Theta understood that too.

At the other end of the market spectrum is Hilti, a manufacturer of high-end construction equipment from Liechtenstein. She redefined the needs of her clients. Construction firm receives money for a completed project; if necessary equipment not or it’s faulty, it won’t get the job done. That is, builders make money not because they have equipment, but because they use it as efficiently as possible. This means that Hilti will help customers do their job by selling them the use of the tools rather than the tools themselves. For a certain monthly fee, the company will be able to supply the customer with the best equipment available, repair or replace it, and complete the fleet. To enter the market with such a service, Hilti had to prepare a tool fleet management program and move from production and sales to service. To do this, Hilti had to find a new profit formula, provide itself with new resources and debug new processes.
The most important characteristic of the consumer value of a product (service) is the accuracy of the hit: how well with its help a person will be able to do the "job" he needs - and only that. But it is very difficult to hit the bull's-eye. Companies, striving to create something new, often forget about the importance of hitting one point; instead, they dissipate forces, trying to adapt their product not for one "job", but for several at once. So it turns out that as a result, none of them perform really well.

Usually people cannot do a specific "job" for one of four reasons: because they lack funds, the market is not focused on them, they lack knowledge or time. To release a “spot” product, you need to understand how to remove these obstacles. Intuit, a provider of accounting and electronic financial management software, released QuickBooks, a highly simplified small business accounting program that allows small business owners to easily control their income and expenses. In doing so, Intuit removed one barrier - the lack of knowledge that prevented these people from using more complex software. Medical company MinuteClinic offers instant diagnosis and treatment - in a mini-clinic at a supermarket or pharmacy. Her service is aimed at another reason - a lack of time, because of which people do not go to doctors for trifles: paramedics work in MinuteClinic departments, they take them without an appointment, and you can contact them at any time with minor illnesses.

Calculation of the profit formula. Ratan Theta understood that in order for Indian families to abandon scooters in favor of cars, the price of a new car must be drastically reduced, that is, to eliminate such a reason as lack of funds. This means that we have to break the usual ideas about the possible, and produce a car for one hundred thousand rupees, or $ 2.5 thousand, which is half the price of the cheapest existing model. Of course, the profit formula had to be fundamentally changed: to drastically reduce gross profitability and all components of the cost structure. However, Teta believed that if the company reaches a large volume of sales, it will make a profit, because there are a great many potential buyers in India.
To move from manufacturing and sales to fleet management, that is, to the provision of services, Hilti needed to transfer assets from customers' balance sheets to its balance sheet and start earning on leases / subscriptions. For a monthly fee, the client received access to all equipment, and he was also guaranteed timely Maintenance and repair. That is, all the main elements of the profit formula have changed: income (pricing, frequency of payments, the required volume of services and the method of calculating it), the cost structure (including for an increase in the share of related sales and the cost of managing the contract), as well as gross profit and the total amount deals.

Identification of key resources and processes. Having understood what to offer consumers and what the new profit formula will be, the company must draw up a list of key resources and processes. For example, the key resources of a professional services firm are employees, and key processes (training, professional development) will also be associated with them. And if a company produces consumer goods, then its key resources are popular brands and well-selected retail chains, and the key processes are brand promotion and distribution channel management.

Often, the success of a company does not depend on the resources themselves, but on their correct interaction. Companies almost always have to invent their own “fusion” of key resources and processes so that consumers get exactly what they need. Those who manage to find the perfect proportion almost always gain a competitive advantage for years to come. If we clearly formulate the essence of the consumer value of a product (service) and draw up a profit formula, then it becomes clear how exactly key resources and processes should relate to each other. For example, large general hospitals often promise to “do everything for everyone”.

Building business models Canvas

But being "everything to everyone" means maintaining enormous resources (specialists, equipment, etc.), which are simply unthinkable to organize more efficiently than competitors can do. As a result, all such hospitals look the same, and their patients are often unhappy with the treatment.

Conversely, a “point” service clinic can organize resources and processes to fully satisfy patients. For example, the narrowly focused proposal of the National Jewish Health Hospital in Denver can be summarized as follows: "If you have a respiratory disease, welcome to us. We will find its cause and prescribe the right treatment."

Having narrowly defined its specialization, National Jewish Health was able to competently debug the treatment process: the equipment, profile and qualifications of doctors are ideally matched to each other.

In order for the Nano car to cost about $ 2,500 and Tata Motors to receive a new profit formula, the company had to rethink the entire process of design, production and distribution.

Ratan Theta brought together a group of young engineers who, unlike more experienced designers, could come up with ideas that did not fit into the usual profit formulas for automakers. They reduced the number of machine parts to a minimum, which naturally affected its cost. In addition, Theta has revised its supply strategy. He outsourced 85% of the Nano's components and outsourced 60% fewer suppliers than usual to save on transaction costs and gain greater economies of scale.
In addition, Ratan Theta has come up with a new way of assembling and distributing cars.

According to the master plan, the modular components of the car should go to the assembly plants of the company itself and of independent manufacturers. Designing, manufacturing, distributing and servicing the Nano will all be completely innovative, unthinkable under the old business model. No final decision has been made, so Ratan Theta still has time to think about road safety.

For Hilti, the biggest challenge was retraining its sales representatives. Managing a fleet of equipment is not at all like selling a construction machine in half an hour: to convince the client not to buy it, but to subscribe to comprehensive service, it can take days, weeks or even months. Sales representatives, accustomed to talking with foremen and foremen in construction trailers, suddenly found themselves in an unfamiliar environment - at the negotiating table with the general and financial directors of the companies.
In addition, with the transition to leasing, it was necessary to acquire new resources - new employees, more powerful IT systems and new technologies: otherwise it would have been impossible to develop service packages and agree on the amount of payment with customers. Hilti needed to fine-tune the management of a large fleet of equipment so that customers would be more profitable to accept a new proposal from the company than to maintain their own arsenal. It was necessary to organize storage of equipment, debug control systems warehouse facilities and supply of spare parts. Hilti has launched a website where foremen can view a list of all the equipment they have ordered and their consumption rates at any time. With such data, it is easy to calculate how much it will cost to use.
The rules, regulations and metrics for a new business model are usually the last to be developed by a company - after New Product or the service will be tested. And it is right. In the early years, the business model must be flexible and adaptable.

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about nameless stories by example

Hello Friend. my name is Lina and I am writing.

no, I don't publish books, I don't even write on a typewriter. I have at my disposal a ficbook and a Word on an old laptop.

yes, I'm thirteen. I don’t call myself a writer and I don’t kick my chest in fits of pride. nope, just writing something at my leisure. someone like it. that's enough for me.

Company strategy and business model

oh, I'm sure yes. Because of this damn copyright, sometimes monetization is turned off for your favorite blogger because he used a piece of someone else's song. yes, we all know about this insidious copyright.

I suggest you look at this copyright from a different angle, buddy.

Recently, the problem of diverging viral pictures on public pages on the Internet has suddenly become acute. often, if the author does not make watermarks on his own picche, no one will ever recognize the original source. it's a pity.

sometimes you won't even be able to find the author's group, having seen his pictures in the feed, simply because the public did not bother to post a post with the author's name / nickname.

sad, huh?

me too.

but it is even sadder when the absence of a banal watermark in the picture unties the hands of bad people. they take these picches for themselves, redraw and so on.

unpleasant, in fact.

I thought that this would not come to me. After all, I don't even have a group in VK, and not very many people know about a profile on a ficbook. however, it is quite difficult to plagiarize on the same site - there the authors are respected and carefully monitored the published works.

one girl did not hesitate to hit the most painful - my favorite text, with dedication, with a piece of soul and love, was stolen, impudently altered and, in fact, passed off as her own (in the post, under the post, above the post - nowhere is there a trace of that the author is such and such Lina Anatolyevna; no-a).

I suggest that you familiarize yourself with fig. 1, fig. 2 and fig. 3!

I think the pictures are convincing enough.

from a banal example with picches of an unknown draftsman to his own. How do you like it? me very much.

most of all amused that the lady knows both my insta and me. until recently, really. now I'm with her ( suddenly!) in the block. immediately after my friend decided to ask what the hell was going on:

With the first two sentences

amendment, with three out of four.

Well, let's summarize?

buddy, please remember forever: copyright exists... this is not some unknown monster from myths, but a very real right that everyone who creates at least something has. Yes, I understand that writing (especially writing on the knee) is not such a work, compared to the same music, painting or working in the mine, but is it really difficult to write the author's nickname under the publication because of this? I'm not talking about asking before posting somewhere, but that's another story ...

take care of yourself and your loved ones, I have everything.

your evil Lina.