Business Model Diversification (PowerPoint PPTX Slide Deck)

This PPT slide addresses the critical question of how to enhance a Business Model portfolio over time. It emphasizes the importance of recognizing synergies between various Business Models within a company's portfolio. By identifying and leveraging these synergies, organizations can either discontinue underperforming models or introduce new ones that align better with their strategic goals.

The content suggests that companies often misjudge the capabilities and resources they possess, believing them to be complementary when they may not be. This misjudgment can lead to missed opportunities, especially when competitors are utilizing similar resources more effectively. Therefore, it becomes essential for managers to conduct a thorough and analytical review of their portfolio synergies.

Products that exhibit the weakest synergies should be scrutinized closely. The recommendation is clear: either eliminate these products or seek new synergies to enhance their performance. The slide also advises managers to focus on activities that are strategically beneficial, without hesitation to refine or divest from less effective Business Models.

An example provided is Amazon, which has successfully introduced Amazon AI and cloud-based services to strengthen synergies between its consumer products and other business areas. This case illustrates how innovation and adaptation can lead to improved portfolio performance. The insights presented here are vital for executives looking to optimize their Business Model portfolios and ensure long-term sustainability and growth.

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

The Customer Value Proposition is described as the "job to be done," emphasizing that it should help customers achieve their goals effectively and affordably. Precision is highlighted as the key attribute, indicating that the offering must address customer needs accurately without deviation.

Next, the Profit Formula is essential for the viability of a business model. It defines how a company generates revenue, detailing the necessary margins, asset velocity, and scale to ensure a satisfactory return. This element is crucial for understanding the financial sustainability of the business.

Key Resources encompass the essential assets required to deliver the Customer Value Proposition. This includes not just physical assets like technology and facilities, but also intangible assets such as brand reputation and financial resources. The focus here is on identifying and leveraging the right resources to create value.

Finally, Key Processes refer to the structured methods by which a company operates. These processes ensure consistency in delivering value and include various operational tasks like training, budgeting, and service delivery. Successful organizations are characterized by their ability to repeat these processes effectively, which is vital for scaling operations.

The slide concludes with a cautionary note about high-tech startups that may excel in defining their Customer Value Proposition, but often overlook the Profit Formula, leading to unsustainable business models. This insight serves as a critical takeaway for potential customers considering the document's content.

This PPT slide outlines the foundational steps necessary for conducting a Business Model Portfolio Analysis. It emphasizes the importance of identifying existing business models, critical resources, and key capabilities as the first 3 steps in a broader eight-step process.

The first step, "Identify Business Models," is crucial. It involves cataloging the company's various business models, which serves as the starting point for the analysis. This step is visually represented in the leftmost column of the accompanying visualization tool, indicating its primary role in the overall framework.

Next, the slide addresses "Identify Key Resources." This step requires a thorough examination of the significant resources generated by each business model. Examples include financial resources and user data. All identified resources should be systematically listed in the second column, labeled "Resources." This structured approach ensures that no critical asset is overlooked.

The third step, "Identify Key Capabilities," focuses on determining the essential capabilities that arise from each business model. This includes technological and sales capabilities, among others. The slide instructs that these capabilities should be documented in a column titled "Capabilities," positioned on the right side of the resource column.

Overall, the slide provides a clear and structured methodology for organizations looking to refine their business model strategies. By following these steps, companies can better understand their operational strengths and areas for improvement, ultimately leading to more informed decision-making and strategic planning.

This PPT slide presents an overview of a structured framework for analyzing business model portfolios, emphasizing a systematic approach derived from research into various industries, including Formula 1 and Amazon. It outlines eight essential steps that organizations can follow to effectively dissect and understand their business model portfolios.

Starting with the identification of business models, the process encourages organizations to clarify their operational frameworks. Following this, the focus shifts to pinpointing key resources that support these models. This step is crucial as it lays the groundwork for understanding what assets are necessary for execution. The third step involves identifying key capabilities, which are the skills and competencies that enable the organization to leverage its resources effectively.

The next phase introduces the identification of key performance indicators (KPIs), which serve as metrics to evaluate success. This is followed by connecting the identified models to the resources and capabilities, ensuring alignment between strategic objectives and operational capacity. The sixth step emphasizes identifying interconnected resources and capabilities, highlighting the importance of understanding how different elements of the business model interact.

The analysis phase allows for a deeper examination of the relationships among the various components, enabling organizations to visualize their performance dynamics. Finally, the last step focuses on monitoring and maintaining the business model portfolio, ensuring that organizations can adapt and respond to changing conditions.

This structured approach not only aids in visualizing the relationships within the business model, but also enhances overall performance by fostering a comprehensive understanding of how different elements contribute to success.

This PPT slide outlines a framework for understanding how various elements of a business model interconnect to fulfill customer value propositions profitably. At the center is the "Customer Value Proposition," which identifies the target customer, the job they need done, and the offering that addresses their needs. This foundational element sets the stage for the subsequent components.

Next, the "Profit Formula" is highlighted, which includes critical aspects such as the revenue model, cost structure, margin model, and resource velocity. Each of these components plays a vital role in determining how much money can be made, how costs are allocated, and the speed at which resources must be utilized to meet sales targets. This section emphasizes the importance of aligning financial goals with operational capabilities.

The slide also introduces "Key Resources," which encompass people, technology, equipment, information, channels, partnerships, alliances, and brand. These resources are essential for delivering the customer value proposition and executing the profit formula effectively.

Lastly, "Key Processes" are outlined, detailing the necessary processes, rules, metrics, and norms that guide the organization in its operations. This includes defining the size of opportunities needed for investment and the approach to engaging with customers and channels.

Overall, the slide serves as a comprehensive overview of how these interconnected elements work together to create a sustainable business model. Understanding this framework can help organizations refine their strategies and enhance their ability to meet customer needs while achieving financial success.