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Business Model reloaded

By 16. March 2016 No Comments

This blog edition is the first of 5 editions explaining our core templates for business design and allowing you to download the templates as PDF file.
Some of you are familiar with the concept of the Business Model Canvas to quickly visualize a holistic perspective of a business. We at fluidminds (now Orange Hills Australia) have elevated the Business Model Canvas to the next level.
The business model is our central planning tool to tap new revenue streams. It contains all relevant elements to describe a business model from an internal and external perspective. Furthermore, the tool guides the way to identify the core of the business („DNA“).

 

You can use the template as a printout DIN A0 poster and fill it with sticky notes or use our online version in Rapid Modeler.
Target groups
By target groups we understand customers and users: Customers are people who are willing to pay for our products and services. Users use our products, but aren’t necessarily the ones who pay
Brand and messages
When it comes to managing all marketing activities it is crucial to send a clearly understandable message to customers and users about why and how our offerings can significantly improve their lives.
Channels (towards target groups)
Among our most valuable treasures are our sales channels. We ask ourselves the question, which channels are particularly effective and efficient to reach our customers. Especially in projects focusing on technology, this question is often neglected.
Relationships
Every business model needs his own approach to communicating with customers and users and building and maintaining a relationship. The chosen approach needs to fit the expectations of our customers.
Offerings
The offerings are the central part of our business model. What are customers paying for? What do they get in return? Products, services, software or a combination.
Resources
In order to produce and deliver products and services, you need resources. What are the key resources we need inside your organization and what do we buy from partners?
Processes
Basic work steps are necessary in order to create and deliver an offering. We collect these in one spot, but we thereby focus on those steps that we have to master internally to be successful. It is not about completeness.
Channels (towards partners)
Similarly to the necessary channels towards customers, we obviously also need to build and maintain channels towards our partners. This is particularly exciting in complex value chains, for instance when the offerings are distributed by a network of partners.
Partners
Every successful company doesn’t only rely on its own competences and resources, but also on reliable partners. The orchestration of those partners is a key to success.
Profit formula
The profit formula is meant to visualize our revenues, the distribution of our operational expenditures and the capital expenditures due to investments. This way we can see instantly how we earn money.

DNA
Every successful business model has a unique „core“ that makes the difference. We describe the core with the so called unfair advantage of the internal operations to deliver the core value to our target group by fulfilling a specific task („job to get done“).
„Job(s) to get done“
The relevant perspective on target groups is their behavior when fulfilling certain jobs. To understand those jobs in detail is one of the keys to success. Such a job could be to control a specific process stage, to procure material, to transport things from A to B, to develop a software, etc. The more (context-) information we have to our disposal concerning such a job, the better we can develop a tailored innovation that simplifies fulfilling the task.
Core value
The core value refers to the offering as a whole which is supposed to create value for the target group. We try to describe this value in such a way that it directly fits the jobs the target groups want to get done. Often the core value consists in accelerating processes, increasing the efficiency or improving the quality of the job fulfillment.

Here we ask ourselves the question how and why we can differentiate ourselves from competitors. The focus lies rather on you and your organization than on advantages that arise from the performance of your technology. An advantage is only unfair if it is indeed hard to copy by competitors. This can refer to e.g. market access, network, patents, financial resources and values.