The Role of Business Modelling in Strategy Marek Chalupnik 18 th August 2011

M. Chalupnik, The Role of Business Modelling in Strategy Overview  Key questions in Strategy  Business Modelling in Strategy  Summary

M. Chalupnik, The Role of Business Modelling in Strategy Strategy – key questions Where are we now? Where do we want to go? How do we get there?

M. Chalupnik, The Role of Business Modelling in Strategy Vision – where to go

M. Chalupnik, The Role of Business Modelling in Strategy Story – how to get there We buy… Products are manufactured… Customers buy… We pay… We sell… We negotiate… Products are delivered… Products are available… We negotiate…

M. Chalupnik, The Role of Business Modelling in Strategy Strategy – need for support

M. Chalupnik, The Role of Business Modelling in Strategy Strategy – need for support Need to support strategic decision making

M. Chalupnik, The Role of Business Modelling in Strategy Strategy – need for support Need to support strategic decision making Modelling, analysing and simulating various aspects of a business

M. Chalupnik, The Role of Business Modelling in Strategy Overview  Key questions in Strategy  Business Modelling in Strategy  Summary

M. Chalupnik, The Role of Business Modelling in Strategy Business Modelling in Strategy Two types of Business Modelling: o Top-level Business Modelling o Business Process Modelling

M. Chalupnik, The Role of Business Modelling in Strategy Top-level Business Modelling Direction We buy… Products are manufactured… Customers buy… We pay… We sell… We negotiate… Products are delivered… Products are available… We negotiate… Story

M. Chalupnik, The Role of Business Modelling in Strategy Top-level Business Modelling Direction We buy… Products are manufactured… Customers buy… We pay… We sell… We negotiate… Products are delivered… Products are available… We negotiate… Story Value proposition (VP)

M. Chalupnik, The Role of Business Modelling in Strategy Top-level Business Modelling Customer segments (CS) Value proposition (VP) Customer relationships (CR) Direction We buy… Products are manufactured… Customers buy… We pay… We sell… We negotiate… Products are delivered… Products are available… We negotiate… Story

M. Chalupnik, The Role of Business Modelling in Strategy Top-level Business Modelling Customer segments (CS) Value proposition (VP) Channels (CH) Customer relationships (CR) Key partnerships (KP) Direction We buy… Products are manufactured… Customers buy… We pay… We sell… We negotiate… Products are delivered… Products are available… We negotiate… Story

M. Chalupnik, The Role of Business Modelling in Strategy Top-level Business Modelling Customer segments (CS) Value proposition (VP) Channels (CH) Customer relationships (CR) Key resources (KR) Key activities (KA) Key partnerships (KP) Direction We buy… Products are manufactured… Customers buy… We pay… We sell… We negotiate… Products are delivered… Products are available… We negotiate… Story

M. Chalupnik, The Role of Business Modelling in Strategy Top-level Business Modelling Customer segments (CS) Value proposition (VP) Channels (CH) Customer relationships (CR) Key resources (KR) Key activities (KA) Key partnerships (KP) Direction We buy… Products are manufactured… Customers buy… We pay… We sell… We negotiate… Products are delivered… Products are available… We negotiate… Story Cost structure (C$) Revenue streams (R$)

M. Chalupnik, The Role of Business Modelling in Strategy Top-level Business Modelling Direction We buy… Products are manufactured… Customers buy… We pay… We sell… We negotiate… Products are delivered… Products are available… We negotiate… Story

M. Chalupnik, The Role of Business Modelling in Strategy Top-level Business Modelling Macroeconomic forces Industry forces Key trends Market forces Competitors Direction We buy… Products are manufactured… Customers buy… We pay… We sell… We negotiate… Products are delivered… Products are available… We negotiate… Story

M. Chalupnik, The Role of Business Modelling in Strategy Top-level Business Modelling Macroeconomic forces Industry forces Key trends Market forces Competitors Scenario analysis Game theory Simulation Direction We buy… Products are manufactured… Customers buy… We pay… We sell… We negotiate… Products are delivered… Products are available… We negotiate… Story

M. Chalupnik, The Role of Business Modelling in Strategy Top-level Business Modelling Macroeconomic forces Industry forces Key trends Market forces Competitors Direction We buy… Products are manufactured… Customers buy… We pay… We sell… We negotiate… Products are delivered… Products are available… We negotiate… Story Does the story make sense? Do the numbers make sense? Is the strategy aligned with key trends and macroeconomic forces? What are other options? What are the risks?

M. Chalupnik, The Role of Business Modelling in Strategy Top-level Business Modelling Macroeconomic forces Industry forces Key trends Market forces Competitors Understanding

M. Chalupnik, The Role of Business Modelling in Strategy Top-level Business Modelling Macroeconomic forces Industry forces Key trends Market forces Competitors Understanding DevelopmentRefinement

M. Chalupnik, The Role of Business Modelling in Strategy Top-level Business Modelling Macroeconomic forces Industry forces Key trends Market forces Competitors Validation Understanding DevelopmentRefinement

M. Chalupnik, The Role of Business Modelling in Strategy Top-level Business Modelling Macroeconomic forces Industry forces Key trends Market forces Competitors Validation Understanding Communication DevelopmentRefinement

M. Chalupnik, The Role of Business Modelling in Strategy Top-level Business Modelling Macroeconomic forces Industry forces Key trends Market forces Competitors

M. Chalupnik, The Role of Business Modelling in Strategy Top-level Business Modelling Macroeconomic forces Industry forces Key trends Market forces Competitors

M. Chalupnik, The Role of Business Modelling in Strategy Top-level Business Modelling Macroeconomic forces Industry forces Key trends Market forces Competitors Business Process Modelling

M. Chalupnik, The Role of Business Modelling in Strategy Business Process Modelling Simulation models Mathematical models Graphical models

M. Chalupnik, The Role of Business Modelling in Strategy Business Process Modelling Do the numbers make sense? ?

M. Chalupnik, The Role of Business Modelling in Strategy Business Process Modelling ValidationDevelopment Do the numbers make sense? ?

M. Chalupnik, The Role of Business Modelling in Strategy Business Process Modelling

M. Chalupnik, The Role of Business Modelling in Strategy Business Process Modelling ValidationDevelopment

M. Chalupnik, The Role of Business Modelling in Strategy Business Process Modelling Implementation ValidationDevelopment

M. Chalupnik, The Role of Business Modelling in Strategy Overview  Key questions in Strategy  Business Modelling in Strategy  Summary

M. Chalupnik, The Role of Business Modelling in Strategy Summary 1.Need to support strategic decision making

M. Chalupnik, The Role of Business Modelling in Strategy Summary 1.Need to support strategic decision making 2.Business Modelling as a way of supporting strategic decision making

M. Chalupnik, The Role of Business Modelling in Strategy Summary 1.Need to support strategic decision making 2.Business Modelling as a way of supporting strategic decision making Top-level Business Modelling:  Strategy development  Strategy refinement  Strategy validation  Strategy communication Business Process Modelling:  Strategy development  Strategy validation  Strategy implementation

M. Chalupnik, The Role of Business Modelling in Strategy Thank you! Q&A