Defining the Core Elements of a Business Model PPT
This PPT slide, part of the 29-slide Business Model Innovation (BMI): Business Model Journey PowerPoint presentation, 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 slide is part of the Business Model Innovation (BMI): Business Model Journey PowerPoint presentation.
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Maturity Model Business Model Innovation Business Model Design Value Proposition Customer Value Proposition Human Resources Innovation
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