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Part One
Overview and Background
Chapter 2
Value Disciplines and Related Frameworks
Business Model Generation
ОглавлениеIn Business Model Generation, Alexander Osterwalder and Yves Pigneur created what they call the business model canvas, which provides a high-level framework for specifying various choices to configure or restructure businesses. In their approach, they divide firm choices into nine major areas.52
The first three areas are activities (i.e., processes), partners, and resources (i.e., assets), which Hagel and Singer would presumably refer to as infrastructure; the relevance to operational excellence is clear.
Value propositions are another major category. As usual, the intent is to consider the benefit provided to the customer. It can be quantitative – say, a 10 percent reduction in heating bills – or qualitative – say, a not-to-be-missed entertainment experience. Since the value proposition is generated by the total product/service, including tangible and intangible elements, it's an area where product leadership or product innovation is essential.
Next, there are three areas of customer interaction: customer segments, customer relationships, and channels. The channels category includes communication such as marketing and advertising, distribution, and sales. Hagel and Singer would presumably consider these three areas in total to be customer relationship management, and Treacy and Wiersema would likely consider customer intimacy to be the relevant value discipline.
In addition, they delineate the underlying cost structure and revenue streams associated with these, which are areas for development of unique business and pricing models, such as, say, the “razor and razor blade” approach where the razors are low margin but the blades are highly profitable.
Each of the nine areas has a number of different options, and the total configuration of these options defines a business model. For example, customer segments might include the mass market, niche markets such as wealthy Brazilian expatriates with teenage children living in Ohio, or a diversified approach comprising multiple unrelated segments. Revenue streams might be based on physical product sales, delivery and ownership, or on a rental model, or based on third parties, such as advertisers. So, a particular business model might involve, say, online distribution (channel) of thermostats that can cut heating bills by 10 percent (the product and its value proposition) built by overseas manufacturers (partners) to wealthy Brazilian parents residing in Ohio (segment) that can display ads and therefore are free to homeowners because the advertisers pay (revenue stream).
While they identified a variety of business model patterns, such as the long-tail business (think Amazon.com and its broad portfolio of products), multisided platforms (think pay-walled or physical newspapers that sell subscriptions to readers and ads to advertisers), and freemium models (e.g., free-to-play mobile games that then sell virtual goods), the first pattern that they identify is based on this primary division into value disciplines or unbundled corporation components: basically operations/infrastructure/processes, products/services, and relationships.53
52
Alexander Osterwalder and Yves Pigneur, Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers (Hoboken, NJ: John Wiley & Sons, 2010).
53
Ibid, 57.