Present the business model for your case  The customers and the competitors of your organization  What the organization has to offer ( products and services)  Structure of the organization by indentifying the activities in the organisation  Resources and the link to external sources Follow the 5 layered Business Model Business Analysis

Market level – customers and competition Customers : who are ? Competitors : who are ? Offering level Product : what products are offered ? Service: offered services ? Activities and Organization Primary activities : see value chain Support activities : see value chain Organization structure : 6 elements

Ressources Strategic Resources Critical resources to the future Human resources Financial resources Technological resources Market level – factor markets and production input

6-4 What is a Business Model?

6-5 Market /Industry Customers –Are long term or short term –How does the firm cooperate with the customer? –Do they share knowledge ? Or just simply transaction of goods and services for money ? Competitors –Existing competitors identified and understood. –Competitors may be suppliers of substitute product –Business model describe how most important and competitors affect the business.

6-6 Market /Industry Competitors : factors affecting the business Scale and size Product range and innovation Degree of differentiation Cost structure. Location Value chain configuration Organizational structure Ability to switch costs

14-7 Porter’s five forces model

6-8 Offerings Service or physical product offered at a certain cost. Should understand the function of product and service : which customer´s need is going to fulfill or could fulfill? Ex: A car may satisfy transport needs but it may satisfy the needs of people to be identified in a certain way.

Services vs Product Product are easy to define Services are reffered to as work achievement to solve a problem for the customer –Mending a broken bicycle –Serving a meal Services are immaterial, cannot be resold or stored Require interraction buyer-seller

Activities and flow of activities Producing offering requires activities. Chain of internalized activities should be addressed

Organization Division of labors  How work is divided between departments and individual within department as well.  Should each dep specialise on a specific task or should generally competent to conduct any task.  Should be based on the input ( competence) or on the objective of the task ( product)

Organization Division of responsabilities –Vertical dimension of the organization –How many hierarchical level are there between the executive and operative staff? –What is in the manager´s responsibility?

Ressources and competencies Strategic and potentially strategic ressources should be identified and their values assessed as well as their interrelations. Types of ressources : Physical Financial Human Organizational Tangible and intangible

What Is Organizational Structure? Organizational Structure – How job tasks are formally divided, grouped, and coordinated – Key Elements addressed by manager in designing organization´s structure: 1.Work specialization 2.Departmentalization 3.Chain of command 4.Span of control 5.Centralization and decentralization 6.Formalization 15-14

Factor markets and suppliers Understand the origin of resources Understand supplier and the relations with them and factor conditions. Sources : able to access to labor and skills –Source component from trustworthy supplier –Access core of labor highly skilled, able to learn and stay with for a long time(relocation of computer programming to India) Reliable supplier Preventing dependency on supplier while keeping close productive relationship.

Factor markets and suppliers Good relation stimulate learning and knowledge sharing buyer-supplier. BUT, supplier could recognize the value of its input and raise the price. Able to access capital (funding) A marketplace where factors of production such as labor, capital, and resources are purchased and sold.

It and business model IT is a ressource ( people, knowledge, organizational structure and culture, production technology and control systems. IT consists consists of :  Information technology (computers, software and information systems)  Communication technology ( computer network. Telephone..etc )  It help people, business and organizations in communicating and processing data.  It is a ressource to be used by people and other resources interdepenedent with the market, activities, offerings and the factor market. So IT affcets other parts of the businessmodel and vis versa