Framework for Defining Customer Value and Profitability PPT
This PPT slide, part of the 30-slide Business Model Innovation PowerPoint presentation, outlines essential components of a business model, emphasizing how the profit formula, key resources, and key processes collectively shape the customer value proposition. At the core, the customer value proposition is defined by 3 critical elements: identifying the target customer, understanding the job to be done, and offering a solution that meets the customer’s needs. This foundational aspect is crucial for ensuring that the business addresses real problems and fulfills significant needs.
The profit formula is highlighted as a pivotal element, detailing how revenue is generated, the allocation of costs, and the margin model necessary to achieve desired profit levels. This segment underscores the importance of understanding financial mechanics, which are vital for sustainable business operations. Resource velocity is also mentioned, indicating how efficiently resources must be utilized to support sales targets.
Key resources are categorized into several areas, including people, technology, equipment, information, channels, and partnerships. This categorization emphasizes the diverse assets that a business must manage to deliver on its value proposition effectively.
Lastly, the slide discusses key processes, which encompass the rules and metrics that guide operational efficiency. This includes defining norms and establishing criteria for investment decisions, which are essential for aligning resources with strategic objectives.
Overall, this slide serves as a comprehensive framework for understanding how various components of a business model interconnect to create value and drive profitability. It provides a clear blueprint for executives looking to innovate or refine their business strategies.
This slide is part of the Business Model Innovation PowerPoint presentation.
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Innovation Management Business Model Innovation Business Model Design Value Proposition Customer Value Proposition Sales Innovation
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