BMO Business Model Ontology Business Models BMO A

BMO Business Model Ontology Business Models – BMO

A Business Model Supports. . . ¨ Understanding ¨ Knowledge Sharing ¨ Measurement ¨ Simulation and Learning Business Models – BMO 2

BMO Main Concepts WHAT? VALUE proposition WHO? HOW? Value configuration Customer group Partnership Core capability Distribution channel Revenue Relationship Cost HOW MUCH? Business Models – BMO 3

Value proposition The value proposition defines the actual product or service n the value or benefits perceived by customers of the products and services offered by the firm n refined by Core capabilities requires Value proposition Business Models – BMO targets Customer group 4

Value Proposition – Reasoning ¨ Use n The actual use of a product or service by the customer ¨ Risk n Reducing the risk for the customer ¨ Effort n Reducing the effort for the customer Business Models – BMO 5

Value Proposition – Value Level ¨ Me-too n Same value as the competitors ¨ Innovative imitation n Established product with some innovative features ¨ Excellence n Exceptional value ¨ Innovation n New product or combination of products Business Models – BMO 6

Value Proposition – Price Level ¨ Free n No cost for the customer ¨ Economy n Low cost for the customer ¨ Market n Same cost as competitors charge ¨ High-end n High costs for the customer Business Models – BMO 7

Exec jet nti fro lue Underperformer s market er High-end Quality, comfort … Va High-end PRICE Value proposition > price/value Major airlines economy free Easy. Jet Me-too Low cost (frequent flight, on-time schedule, service) Imitative innovation Business Models – BMO VALUE excellence innovation 8

Customer Relationship Who are our customers? How do we reach them? How do we get and keep them? WHAT? Value proposition WHO? HOW? Value configuration Customer group Partnership Core capability Distribution channel Revenue Relationship mechanisms Cost HOW MUCH? Business Models – BMO 9

Customer Group ¨ Categorizations of the population into social classes or psychologically defined groups ¨ A company can specialize and gain competitive advantage by tailoring its value propositions refined by Value proposition targeted by Customer group Business Models – BMO 10

Distribution Channel ¨A channel can be defined as a set of links or a network via which a firm “goes to market” and delivers its value proposition precedes Distribution link is a Value proposition delivers refined by Distribution channel Business Models – BMO serves Customer group 11

Relationship – Customer Equity ¨ Customer n How do we get new customers? ¨ Customer n retention How do we keep existing customers? ¨ Add-on n acquisition selling How do we get our customers to buy more? Business Models – BMO 12

Relationship – Mechanisms ¨ Personalisation n Customising marketing and services to groups or individuals ¨ Trust Accreditation n Rating n Insurance n ¨ Branding n Building and maintaining an image Business Models – BMO 13

Infrastructure Management WHAT? Value proposition WHO? HOW? Value configuration Customer goup Partnership agreement Capability Distribution channel Revenue Customer relationship Cost How do we operate and deliver? How do we collaborate? What are our key competencies? HOW MUCH? Business Models – BMO 14

Capabilities and Resources ¨ Resource (ASSETS) n ¨ Inputs to the value creation process; can be tangible, intangible, or people-based skills Capability (KNOW-HOW) n The ability to exploit and coordinate resources to create, produce, and/or offer products and services to a market Capability refined by Resource required by Value proposition Business Models – BMO 15

Value Configuration Value chain Value network Value shop Business Models – BMO 16

Partnership Agreement ¨ Reasoning Economy of scales n Risk mitigation n Resource acquisition n ¨ Strategic importance n ¨ Degree of integration n ¨ Closeness of partnership Degree of competetion n ¨ Relevance for business success Partner is a competitor or not Substituability n Ease of finding a substitute partner Business Models – BMO 17

Financial Aspects WHAT? Value proposition WHO? Value configuration Customer group Partnership agreement Core capability Distribution channel REVENUE Customer relationship Cost HOW MUCH? What are our revenues? Our pricing? What are our costs? Business Models – BMO 18

Revenue Streams – Categories Mobile: REVENUE PRE-PAID card one time combination Phone • registry • subscription • Usage sale • Time • Services registry recurrent subscription Income of the subscription fees to become a member Paid by the buyer and/or the vendor advertisement Income of the ad banners posted on the shopfront Paid by the vendor use transaction Income of online sales paid by the buyer commission Income, percentage of a transaction made by the settlement (affiliate program) Business Models – BMO 19

BMO – Links Web Object Placeholder Address: http: //www. hec. unil. ch/yp/ Displayed in: Articulate Player Window size: 640 X 480 Business Models – BMO 20