1 / 11

Living Business Models for Business Plans and Challenges

Explore the concept of Living Business Models (LBM) by Kim Warren and Rod Brown. LBM provides a quantified simulation that mirrors actual enterprise behavior, aiding in system design, testing strategies, managing performance, and making improvements over time. This innovative approach is essential for new business growth and adapting to rapid changes in the business landscape. Learn from success cases like Opun.co.uk and access dynamic tools for strategic decision-making. Discover the effectiveness of LBM in capturing critical factors, interdependencies, feedback mechanisms, and tipping points for business success. Attend workshops, courses, and access free resources to enhance your business modeling skills and achieve sustainable growth.

swanson
Download Presentation

Living Business Models for Business Plans and Challenges

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Living Business Models for Business Plans and Challenges Kim Warren and Rod Brown

  2. A Living Business Model … A working, quantifiedsimulationthat mimics the actual behaviour of all significant aspects of the enterprise, function or issue of concern A LBM matches real world performance, and for the same reasons, helping us: ... design the system so it can perform well … test alternative strategies and scenarios ... manage the system so it does perform well ... fix the system if it goes wrong

  3. Our concern is to improve performance over time New-business profit growth New-business business plan from year 2 2.0 13.0 This is not adequate: things change much faster, and we can act much faster opportunity 10 9.0 $m/month 1.0 progress to date 5 Profit: $m/year current plans 4.0 12 24 36 48 -1.5 months 2 3 4 year 1

  4. … also for initiatives, or functional plans and issues, over varying time-scales 15%/year • E.g. cutting key staff turnover in aerospace E.g. fixing service quality in telecoms 1 2 3 4 5 6 1.0 quarters 0.9 feared recovery recent problems 0.8 feared decline result 0.7 5 10 15 20 weeks Performance How? now Why? The generic questions: Where? time

  5. Success-case: Opun.co.uk… launched Jun 2015 Start to finish support for home-improvement projects Attracts home-owner enquiries with mostly web-marketing and word-of-mouth Recruits and validates contractors Skilled staff help with design, drawings, planning, fitting, building work, warranty

  6. Pre-launch model of how the business could work Added early data and shared the model with investors to raise £10m … and now used forweekly operating decisions • Success-case: Opun.co.uk… launched Jun 2015 See Rod explain the business and its model : sdl.re/OpunTalk STOP PRESS! June 2018:Premium retailer John Lewis Partnership acquires Opun

  7. Dynamic Strategy Map used by Opun Board

  8. Demo model of the Opun home-project business startup Get this model at sdl.re/OpunDemo

  9. Things have changed … Simulating business systems and performance was difficult … but better method and toolsnow make it practical … easier, faster, more reliable than common spreadsheet-based alternatives

  10. Why do these models work? They capture: … critical factors that accumulateover long periods • … all the interdependenciesin the system • … the many feedbackmechanisms that exist • … any thresholdsthat cause tipping-points • … intangible factors • NOTE: These issues also apply in non-profit and public sector cases, and equivalent models are equally useful.

  11. Want to learn more? • WORKSHOP this afternoon – see a LBM in action • Online courses for analysts/consultants and for leaders: sdl.re/courses • … including free sdl.re/modeling-getting-started/ StrategyDynamics.com… much free material • YouTube.com/StrategyDynamics … many topic-videos • Enquiries to sdl.re/contact

More Related