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Business Models

                  B-Web Models



Business Models      www.krooman.com   1
Defination
    What is a Business
    Model?
    A system which defines
    how a firm will build and
    use its resources to offer
    its customers superior
    value profitably.




Business Models            www.krooman.com   2
Linkages, Components
                  Business model
                     Customer Value
                         Scope
                    Revenue sources
                   Connected Activities
                     Implementation
                       Capabilities
      Internet
                                          Performance



                     Environment
                         Five Forces
                       Industry Drivers
                      Industry Dynamics
                            Macro




Business Models   www.krooman.com                   3
Key Questions

    Under what business model
    does my company operate?
    How do we develop a model to
    ensure success?
    Which business models are
    taking hold in my industry and
    why?
    Is my organisation capable of
    adapting to the required
    business model /business
    model changes?



Business Models               www.krooman.com   4
Types of B-Webs Models

    Agora
    Aggregation
    Value Chain
    Alliance
    Distributive Networks



Business Models        www.krooman.com   5
Agora

       Agora
       This model facilitates exchange between buyers and sellers.



                               Dynamic Pricing
                               Liquidity
                               Customers= Market Players
                               Market knowledge
                                                           Price Discovery




Business Models                www.krooman.com                         6
Aggregation
       Aggregation
       This model allows a lead company to select, target, set prices and
       ensure fulfilment of a range of services and products..

 Buyers                                                           Sellers




                            Selection
                            Convenience                      Needs Matching
                            Optimisation
                            Buyer= Market Maker
                            Segmentation

Business Models                   www.krooman.com                           7
Value Chain
       Value Chain
       This model allows a lead company to structure and organise a network
       to produce a highly integrated product to meet a customers need.




                                    Process Integration
                                    Customisation
                                    Customer_Value Driver   Product Design,
                                    Innovation, SCM         SCM



Business Models                  www.krooman.com                              8
Alliance
       Alliance
       This model allows for value integration without any control. Members
       design goods, create knowledge and share experience in a virtual
       space.
                                                               Innovation
                                       Creativity
                                       Collaboration
                                       Community
                                       Customer=contributor
                                       Standards & Roles




Business Models                   www.krooman.com                             9
Distributive Network
       Distributive Network
       This model provides essential services to the other models by
       allocating and delivering- information, objects, money and other
       resources.




                              Allocation/Distribution
                              Facilitates exchange/delivery
                              Customer=Sender/Recipient       Distribution
                              Network optimisation



Business Models                      www.krooman.com                         10
A Framework Approach
   Self Organizing


                    Agora                            Alliance
    Controlling




                                Distributive
                                 Network

                                                    Value Chain
                  Aggregation



     Hierarchical
         Low                    Value Integration               High

Business Models                  www.krooman.com                       11
Under what Business Model

    Self Diagnosis
    Reverse the value chain
    Choose a focus
    Execute flawlessly




Business Models       www.krooman.com   12
An Analytical Approach
          Component              Questions for all models               Questions specific to Internet
                                                                        business models

          Customer value         Is the company offering something      What unique features of the
                                 distinctive?                           internet allows you to offer
                                                                        something distinctive? Can we
                                                                        solve a specific problem
          Scope                  To whic customers are we offering      What is the sope of customers that
                                 our value?                             the internet enables us to reach?
                                                                        Does the net alter my
                                                                        product/service mix.
          Pricing                How do we determine price?             Does the internet make pricing
                                                                        different?

          Revenue Source         Where do the mullah come from?         Are revenue sources different?
                                 What are the margins?

          Connected Activities   What set of activities do we have to   How many new activities must be
                                 perform to deliver value?              perform? Can we perform existing
                                                                        activities better?
          Implementation         Organizational structure, systems,     What does the internet do?
                                 people and environment.

          Capabilities           Capabilities and capabilities gaps.    What new capabilities?


          Sustainability         How difficult for others to copy us?   Sustainability- easier or more
                                 How do we keep making money?           difficult?

Business Models                        www.krooman.com                                                       13

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Business model

  • 1. Business Models B-Web Models Business Models www.krooman.com 1
  • 2. Defination What is a Business Model? A system which defines how a firm will build and use its resources to offer its customers superior value profitably. Business Models www.krooman.com 2
  • 3. Linkages, Components Business model Customer Value Scope Revenue sources Connected Activities Implementation Capabilities Internet Performance Environment Five Forces Industry Drivers Industry Dynamics Macro Business Models www.krooman.com 3
  • 4. Key Questions Under what business model does my company operate? How do we develop a model to ensure success? Which business models are taking hold in my industry and why? Is my organisation capable of adapting to the required business model /business model changes? Business Models www.krooman.com 4
  • 5. Types of B-Webs Models Agora Aggregation Value Chain Alliance Distributive Networks Business Models www.krooman.com 5
  • 6. Agora Agora This model facilitates exchange between buyers and sellers. Dynamic Pricing Liquidity Customers= Market Players Market knowledge Price Discovery Business Models www.krooman.com 6
  • 7. Aggregation Aggregation This model allows a lead company to select, target, set prices and ensure fulfilment of a range of services and products.. Buyers Sellers Selection Convenience Needs Matching Optimisation Buyer= Market Maker Segmentation Business Models www.krooman.com 7
  • 8. Value Chain Value Chain This model allows a lead company to structure and organise a network to produce a highly integrated product to meet a customers need. Process Integration Customisation Customer_Value Driver Product Design, Innovation, SCM SCM Business Models www.krooman.com 8
  • 9. Alliance Alliance This model allows for value integration without any control. Members design goods, create knowledge and share experience in a virtual space. Innovation Creativity Collaboration Community Customer=contributor Standards & Roles Business Models www.krooman.com 9
  • 10. Distributive Network Distributive Network This model provides essential services to the other models by allocating and delivering- information, objects, money and other resources. Allocation/Distribution Facilitates exchange/delivery Customer=Sender/Recipient Distribution Network optimisation Business Models www.krooman.com 10
  • 11. A Framework Approach Self Organizing Agora Alliance Controlling Distributive Network Value Chain Aggregation Hierarchical Low Value Integration High Business Models www.krooman.com 11
  • 12. Under what Business Model Self Diagnosis Reverse the value chain Choose a focus Execute flawlessly Business Models www.krooman.com 12
  • 13. An Analytical Approach Component Questions for all models Questions specific to Internet business models Customer value Is the company offering something What unique features of the distinctive? internet allows you to offer something distinctive? Can we solve a specific problem Scope To whic customers are we offering What is the sope of customers that our value? the internet enables us to reach? Does the net alter my product/service mix. Pricing How do we determine price? Does the internet make pricing different? Revenue Source Where do the mullah come from? Are revenue sources different? What are the margins? Connected Activities What set of activities do we have to How many new activities must be perform to deliver value? perform? Can we perform existing activities better? Implementation Organizational structure, systems, What does the internet do? people and environment. Capabilities Capabilities and capabilities gaps. What new capabilities? Sustainability How difficult for others to copy us? Sustainability- easier or more How do we keep making money? difficult? Business Models www.krooman.com 13