Framework for Defining Business Model Components PPT

This PPT slide, part of the 58-slide Business Unit Strategic Plan Template Book PowerPoint presentation, outlines a framework for developing a business model, focusing on 2 main components: the value proposition and the value delivery system (VDS). The value proposition is broken down into several steps, including understanding customer desires, selecting target segments, and defining benefits and pricing. This process emphasizes the importance of segmentation, which helps in tailoring the value proposition to meet specific customer needs.

On the right side, the value delivery system details how to provide and communicate this value. Key elements include product design, procurement, distribution, service, pricing, and marketing communications. Each of these components plays a crucial role in ensuring that the value proposition is effectively delivered to customers.

The slide also highlights that each business unit (BU) must address 2 critical issues to define its business model. First, there needs to be a clear illustration of how the value proposition will be delivered and communicated to the target audience. Second, it is essential to identify existing strengths that can be leveraged and the capabilities that must be developed to stand out in the chosen value delivery system.

This framework serves as a guide for organizations to align their strategic initiatives with customer expectations and operational capabilities. By following this structured approach, businesses can enhance their effectiveness in delivering value and achieving their strategic objectives.

This slide is part of the Business Unit Strategic Plan Template Book PowerPoint presentation.

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