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  1. Reinventing your new business model<br /> Anna Pan<br /> A presentation for COM546 Discussion<br /> 2. Reading Material: <br />Reinventing your…
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  • 1. Reinventing your new business model<br /> Anna Pan<br /> A presentation for COM546 Discussion<br />
  • 2. Reading Material: <br />Reinventing your business model<br /> Author: Mark W. Johnson<br /> Clayton M. Christensen<br /> Henning Kagermann<br />
  • 3. Actually, they are the first<br />A company called Diamond Multimedia<br /> introduced the Rio in 1998<br />Best Data<br />introduced the Cabo64 in 2000<br />
  • 4. What is business model?<br />A business model<br />from our point of view, consists of four interlocking elements that, taken together, create and deliver value.<br />
  • 5. Four Elements CVPProfit formulaKey resourcesKey processes<br />
  • 6. HOW?<br />Customer Value Proposition (CVP)<br />Target customer<br />Job to be done <br />to solve an important problem or fulfill an important need for the target customer<br />Offering<br /> Which satisfies the problem or fulfills the need.<br /> This is defined not only by what is sold but also by how it’s sold.<br />
  • 7. HOW?<br />PROFIT FORMULA<br />Revenue model: How much money can be made: price x volume. Cost structure How costs are Allocated<br />Margin model: How much each transaction should net to achieve desired profit levels.<br />Resource velocity: How quickly resources need to be used to support target volume. <br />
  • 8. HOW?<br />Key Resources and Key Processes<br /><ul><li>Key Resources :needed to deliver the customer value proposition profitably</li></ul>Key Processes: make the profitable delivery of the customer value proposition repeatable and scalable.<br />
  • 9. Discussion<br />What is the business model in your company?<br />Do you think it fulfills the four elements?<br />
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