Business Model Innovation (BMI): Business Model Journey (PowerPoint PPTX Slide Deck)

This PPT slide outlines a structured approach to the evolution of a business model through 3 distinct phases: Creating Innovation, Sustaining Innovation, and Optimizing Innovation. Each phase reflects a specific stage in an organization's maturity and its corresponding focus on innovation.

In the first phase, Creating Innovation, the emphasis is on establishing a market presence. This stage is characterized by the formation of a business model that integrates customer value propositions, resources, profit formulas, and processes. The goal here is to build a foundation for growth and establish interdependencies that will support future development.

The second phase, Sustaining Innovation, shifts focus to maintaining and growing the business. This involves refining the existing business model to ensure it remains relevant and effective. Key components such as customer value propositions and resources are revisited to adapt to market changes and operational demands. The slide suggests that processes become more defined during this phase, responding to recurring tasks and challenges.

The final phase, Optimizing Innovation, is about driving efficiencies and maximizing returns. Here, the business model is optimized to meet investor expectations and adapt to market dynamics. The slide notes that performance oversupply may occur, indicating a potential misalignment between capabilities and market needs. It also highlights the need for a modular structure to facilitate agility and responsiveness.

Overall, the slide emphasizes that while business models are designed to evolve, they can become resistant to change over time. This insight is crucial for organizations looking to navigate their innovation journey effectively and sustain long-term growth.

This PPT slide outlines the fundamental components of a business model, emphasizing 4 core elements: Customer Value Proposition, Profit Formula, Key Resources, and Key Processes. Each of these elements plays a critical role in shaping how a business operates and delivers value.

The Customer Value Proposition is central to attracting and retaining customers, as it defines what the organization offers that meets customer needs. The Profit Formula, on the other hand, outlines the financial mechanics of the business, detailing how revenue is generated and costs are managed. This element is crucial for ensuring the sustainability and profitability of the business model.

Key Resources are the assets and capabilities required to deliver the value proposition effectively. These can include human resources, technology, and intellectual property. Key Processes refer to the operational workflows and systems that enable the organization to deliver its offerings efficiently. These processes are essential for maintaining quality and consistency in service or product delivery.

The interconnections between these elements are highlighted through arrows, indicating that changes in one area can impact the others. For instance, a shift in the Customer Value Proposition may necessitate adjustments in Key Resources or Processes to maintain alignment and effectiveness.

The slide also notes that priorities, represented in the middle, guide the organization in balancing these elements. This framework is designed to help executives understand how to align their strategies and operations to create value for both customers and the organization itself. Overall, this slide serves as a foundational overview for understanding the components that drive a successful business model.

This PPT slide outlines the final phase of the Business Model Journey, termed "Optimizing Innovation." This phase is characterized by a shift in focus towards enhancing process efficiencies and achieving cost savings. It highlights that as businesses mature, investments in product performance yield diminishing returns, prompting a transition to this optimization stage.

Key points include the emphasis on operational changes that can drive efficiencies. Examples provided suggest various strategies such as eliminating labor costs, redesigning products, and outsourcing certain activities. The slide notes that consolidating operations can also leverage economies of scale, which is crucial for maximizing profitability.

A significant shift occurs in stakeholder priorities during this phase. The voice of the shareholder becomes more prominent than that of the customer, indicating a strategic pivot towards financial performance metrics. This is reflected in the focus on improving the Balance Sheet to maximize shareholder value.

Data collection in this phase is predominantly centered around costs and efficiency metrics. The slide suggests that adopting a modular structure can enhance efficiency by standardizing the interdependencies within the business model. However, this may come at the cost of reduced flexibility, which could be a concern for some organizations.

Additionally, the slide notes an uptick in merger and acquisition activities as businesses with excess cash flow seek growth opportunities. However, it also points out that organic growth avenues may become limited, necessitating a strategic approach to M&A.

Overall, this phase underscores the importance of balancing efficiency with flexibility while maintaining a focus on shareholder value.

This PPT slide outlines the interconnected components of a business model, emphasizing how the Profit Formula, Key Resources, and Key Processes align to fulfill the Customer Value Proposition effectively. At the top, the Customer Value Proposition is defined by 3 critical elements: the target customer, the job that needs to be done, and the offering that addresses the identified need. This sets the foundation for understanding how value is created and delivered to customers.

Moving to the center, the Profit Formula is presented as a crucial element that determines the financial viability of the business model. It encompasses the Revenue Model, which indicates potential income streams, the Cost Structure that outlines how expenses are managed, and the Margin Model, detailing the net profit expected from sales. Resource Velocity is also highlighted, emphasizing the importance of efficiently utilizing resources to meet demand.

Key Resources are depicted as essential assets that support the business model. These include people, technology, equipment, information, channels, and partnerships. Each resource plays a vital role in enabling the organization to deliver on its value proposition.

Lastly, Key Processes are addressed, which encompass the operational aspects necessary for executing the business model. This includes established rules, metrics for performance measurement, and norms that guide decision-making and investment strategies. Understanding these elements provides a comprehensive view of how a business can align its resources and processes to deliver value while ensuring profitability.

This PPT slide outlines 5 key circumstances that often necessitate a change in business model, categorized into 2 sections: opportunities and needs. The first circumstance highlights the potential for disruptive innovation, particularly for large groups of customers who are currently underserved due to high costs or complexity of existing solutions. This suggests a market gap that can be exploited through innovative approaches.

The second circumstance emphasizes the importance of new technologies. Companies can either create a new business model around a novel technology or leverage existing technologies in new markets. This indicates a strategic pivot that can lead to significant growth if executed correctly.

The third point discusses the concept of a "job-to-be-done" focus. It points out that businesses often concentrate on refining existing products rather than identifying unmet customer needs. This can lead to missed opportunities in industries where customer demands are evolving.

The fourth circumstance addresses the necessity of defending against low-end disruptors. Companies must be vigilant about emerging competitors who can offer lower-cost solutions, which can erode market share.

Lastly, the fifth point reflects on the shifting nature of competition. It underscores the inevitability of market segments becoming commoditized over time, necessitating a proactive response to maintain relevance and profitability.

Overall, the slide serves as a strategic guide for executives contemplating business model innovation. It emphasizes the importance of recognizing both opportunities and threats in the market landscape, urging leaders to adapt and evolve their strategies accordingly.

This PPT slide presents a framework for understanding the evolution of a business model, emphasizing the importance of refining business processes. It outlines the current focus areas, which include the customer value proposition, profit formula, resources, and processes. The visual representation indicates interdependencies among these elements, highlighting how they interact and influence one another.

Key questions posed on the slide guide executives in evaluating innovation opportunities. These questions focus on improving the existing value proposition, expanding market reach, enhancing revenue growth, and optimizing profit structures. Each question prompts a critical assessment of the business's current capabilities and future potential.

The slide also suggests that while a company may have achieved product-market fit, there remains room for adaptability within the profit formula. This adaptability is crucial for sustaining innovation and ensuring long-term success. The emphasis on developing strong business processes indicates a strategic shift towards operational excellence, which is essential for maintaining relevance in a dynamic market.

Overall, the content encourages a thorough examination of how various components of the business model interrelate and evolve. It serves as a call to action for executives to consider how they can leverage these insights to drive innovation and improve overall performance. The structured approach to business model dynamics offers a clear pathway for organizations aiming to refine their strategies and enhance their market position.

This PPT slide outlines the 4 fundamental components of a business model, emphasizing their interrelatedness and importance for organizational success. It begins with the Customer Value Proposition, which is described as the core offering that addresses a specific customer need. This proposition is critical; its precision in meeting customer expectations determines its effectiveness.

Next, the Profit Formula is introduced. This element is essential for ensuring the business can generate revenue. It specifies the necessary margins, asset velocity, and scale required to achieve a satisfactory return. Without a solid profit formula, even the best value proposition may fail to sustain the business.

The third component, Key Resources, focuses on the assets necessary to deliver the value proposition. This includes not just physical assets, but also human resources, technology, and financial capital. The emphasis here is on identifying and leveraging the most crucial resources that create value for both the customer and the organization.

Lastly, Key Processes are highlighted. These are the operational frameworks and methodologies that enable the organization to function efficiently. They encompass a range of activities from training and development to service delivery and budgeting. Effective key processes are vital for ensuring that the organization can consistently deliver value and scale operations as needed.

The slide concludes with a cautionary note regarding high-tech startups, indicating that while they may excel in defining their Customer Value Proposition, many struggle with the Profit Formula, which can jeopardize their overall business viability. This insight serves as a critical takeaway for potential customers considering the document's value.

This PPT slide outlines the initial phase of the Business Model Journey, specifically focusing on "Creating Innovation." This phase emphasizes the organization's commitment to developing a compelling Customer Value Proposition. The primary objective is to identify and address unmet market needs. At this stage, businesses are often in search of a product-market fit, which is crucial for establishing initial offerings.

The slide highlights that resources during this phase are typically scarce. Organizations usually consist of a founding team with limited funding and ambition, along with potential technology or intellectual property. This scarcity necessitates a flexible approach, allowing for adaptability as the business seeks to understand the Customer Journey and enhance Customer Experience. The process is described as requiring patience and a bottoms-up inquiry, indicating that insights may emerge gradually rather than through a structured approach.

Metrics during this phase are centered around defining the Customer Value Proposition, focusing on the specific jobs that need to be accomplished for customers. The slide notes that data availability is limited, reflecting the nascent nature of the market. As the link between the Value Proposition and Key Resources begins to form, the overall Business Model remains unstructured. The Profit Formula is still in its early stages, which provides the organization with the flexibility to explore various avenues for growth and development.

This slide serves as a critical reminder for potential customers that understanding the foundational elements of their business model is essential for navigating the complexities of innovation and market entry.