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BMO

BMO. Business Model Ontology. A Business Model Supports. Understanding Knowledge Sharing Measurement Simulation and Learning. WHAT?. VALUE proposition. WHO?. HOW?. Value configuration. Customer group. Partnership. Distribution channel. Core capability. Revenue. Relationship. Cost.

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BMO

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  1. BMO Business Model Ontology

  2. A Business Model Supports... • Understanding • Knowledge Sharing • Measurement • Simulation and Learning

  3. WHAT? VALUE proposition WHO? HOW? Value configuration Customer group Partnership Distribution channel Core capability Revenue Relationship Cost HOW MUCH? BMO Main Concepts

  4. refined by Value proposition The value propositiondefines • the actual product or service • the value or benefits perceived by customers of the products and services offered by the firm requires targets Core capabilities Value proposition Customer group

  5. Value Proposition – Reasoning • Use • The actual use of a product or service by the customer • Risk • Reducing the risk for the customer • Effort • Reducing the effort for the customer

  6. Value Proposition – Value Level • Me-too • Same value as the competitors • Innovative imitation • Established product with some innovative features • Excellence • Exceptional value • Innovation • New product or combination of products

  7. Value Proposition – Price Level • Free • No cost for the customer • Economy • Low cost for the customer • Market • Same cost as competitors charge • High-end • High costs for the customer

  8. Exec jet High-end Quality, comfort … Value frontier EasyJet Low cost (frequent flight, on-time schedule, service) Value proposition > price/value PRICE High-end Underperformers market Major airlines economy free VALUE Me-too Imitative innovation excellence innovation

  9. Customer Relationship Who are our customers? How do we reach them? How do we get and keep them? WHAT? Value proposition WHO? HOW? Value configuration Customer group Partnership Distribution channel Core capability Revenue Relationship mechanisms Cost HOW MUCH?

  10. refined by Customer Group • Categorizations of the population into social classes or psychologically defined groups • A company can specialize and gain competitive advantage by tailoring its value propositions targeted by Value proposition Customer group

  11. precedes Distribution Channel • A channel can be defined as a set of links or a network via which a firm “goes to market” and delivers its value proposition Distribution link is a refined by delivers serves Value proposition Distribution channel Customer group

  12. Relationship – Customer Equity • Customer acquisition • How do we get new customers? • Customer retention • How do we keep existing customers? • Add-on selling • How do we get our customers to buy more?

  13. Relationship – Mechanisms • Personalisation • Customising marketing and services to groups or individuals • Trust • Accreditation • Rating • Insurance • Branding • Building and maintaining an image

  14. Infrastructure Management WHAT? Value proposition WHO? HOW? Value configuration Customer goup Partnership agreement Distribution channel Capability Revenue Customer relationship Cost HOW MUCH? How do we operate and deliver? How do we collaborate? What are our key competencies?

  15. refined by Capabilities and Resources • Resource (ASSETS) • Inputs to the value creation process; can be tangible, intangible, or people-based skills • Capability (KNOW-HOW) • The ability to exploit and coordinate resources to create, produce, and/or offer products and services to a market Capability required by Resource Value proposition

  16. Value Configuration Value chain Value network Value shop

  17. Partnership Agreement • Reasoning • Economy of scales • Risk mitigation • Resource acquisition • Strategic importance • Relevance for business success • Degree of integration • Closeness of partnership • Degree of competetion • Partner is a competitor or not • Substituability • Ease of finding a substitute partner

  18. Financial Aspects WHAT? Value proposition WHO? Value configuration Customer group Partnership agreement Distribution channel Core capability REVENUE Customer relationship Cost HOW MUCH? What are our revenues? Our pricing? What are our costs?

  19. Revenue Streams – Categories Mobile: combination REVENUE PRE-PAID card • Phone • registry • subscription • Usage • Time • Services one time sale registry recurrent Income of the subscription fees to become a member Paid by the buyer and/or the vendor subscription Income of the ad banners posted on the shopfront Paid by the vendor advertisement use transaction Income of online sales paid by the buyer commission Income, percentage of a transaction made by the settlement(affiliate program)

  20. Web Object Placeholder Address:http://www.hec.unil.ch/yp/ Displayed in: Articulate Player Window size:640 X 480 BMO – Links

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