1. Evolving New Business Models for Corporate Profitability Yeside Kazeem 1 September 2016

2. Business Model Components Who will help you? KEY PARTNERS How do you do it? KEY ACTIVITIES What do you do? VALUE PROPOSITION How do you interact ? CUSTOMER RELATIONSHIPS Who do you help? CUSTOMER SEGMENTS What do you need? KEY RESOURCES How do you reach them? DISTRIBUTION CHANNELS What will it cost? COST STRUCTURE How much will you make? REVENUE STREAM START HERE 1 September 2016Evolving new business models for profitability2

3. Business Model Components Who will help you? KEY PARTNERS How do you do it? KEY ACTIVITIES What do you do? VALUE PROPOSITION How do you interact ? CUSTOMER RELATIONSHIPS Who do you help? CUSTOMER SEGMENTS What do you need? KEY RESOURCES How do you reach them? DISTRIBUTION CHANNELS What will it cost? COST STRUCTURE How much will you make? REVENUE STREAM START HERE 1 September 2016Evolving new business models for profitability3

4. Business Model Components Who will help you? KEY PARTNERS How do you do it? KEY ACTIVITIES What do you do? VALUE PROPOSITION How do you interact ? CUSTOMER RELATIONSHIPS Who do you help? CUSTOMER SEGMENTS What do you need? KEY RESOURCES How do you reach them? DISTRIBUTION CHANNELS What will it cost? COST STRUCTURE How much will you make? REVENUE STREAM START HERE 1 September 2016Evolving new business models for profitability4

5. What do you do Value proposition Make promises What are you offering to customers – Risk management tool – Coverage of future expenses – Reduced variability of future costs – Peace of mind – Futures (Brighter, more certain etc) 1 September 2016Evolving new business models for profitability5

6. Business Model Components Who will help you? KEY PARTNERS How do you do it? KEY ACTIVITIES What do you do? VALUE PROPOSITION How do you interact ? CUSTOMER RELATIONSHIPS Who do you help? CUSTOMER SEGMENTS What do you need? KEY RESOURCES How do you reach them? DISTRIBUTION CHANNELS What will it cost? COST STRUCTURE How much will you make? REVENUE STREAM START HERE 1 September 2016Evolving new business models for profitability6

7. How do you do it Key activities Sell products – Life and non-life products – Retail vs Commercial products – Differentiators Use of data – telematics Creation of niche markets – UK annuities Every policy pays out - Outsurance Customer experience “I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” Maya Angelou 1 September 2016Evolving new business models for profitability7

8. Business Model Components Who will help you? KEY PARTNERS How do you do it? KEY ACTIVITIES What do you do? VALUE PROPOSITION How do you interact ? CUSTOMER RELATIONSHIPS Who do you help? CUSTOMER SEGMENTS What do you need? KEY RESOURCES How do you reach them? DISTRIBUTION CHANNELS What will it cost? COST STRUCTURE How much will you make? REVENUE STREAM START HERE 1 September 2016Evolving new business models for profitability8

9. What do you need Key resources People Technology 1 September 2016Evolving new business models for profitability9

10. Business Model Components Who will help you? KEY PARTNERS How do you do it? KEY ACTIVITIES What do you do? VALUE PROPOSITION How do you interact ? CUSTOMER RELATIONSHIPS Who do you help? CUSTOMER SEGMENTS What do you need? KEY RESOURCES How do you reach them? DISTRIBUTION CHANNELS What will it cost? COST STRUCTURE How much will you make? REVENUE STREAM START HERE 1 September 2016Evolving new business models for profitability10

11. Who will help you Key partners Distribution – Brokers – Mobile operators – Banks Operating partners – Technology firms – Data Analytics firm Human resource – Universities – Training institutes 1 September 2016Evolving new business models for profitability11

12. Business Model Components Who will help you? KEY PARTNERS How do you do it? KEY ACTIVITIES What do you do? VALUE PROPOSITION How do you interact ? CUSTOMER RELATIONSHIPS Who do you help? CUSTOMER SEGMENTS What do you need? KEY RESOURCES How do you reach them? DISTRIBUTION CHANNELS What will it cost? COST STRUCTURE How much will you make? REVENUE STREAM START HERE 1 September 2016Evolving new business models for profitability12

13. Who do you help Customer segment Corporate Government Retail 1 September 2016Evolving new business models for profitability13

14. Who do you help Retail customer 1 September 2016Evolving new business models for profitability14 Foundation Mass Affluent Wealth <N0.8m p.a N0.8m-N3m p.a N3m-N20m p.a >N20M p.a Physiological: food, water, sleep, shelter Breakdown of population by segmentMaslow’s hierarchy of needsFinancial needs Cash flow Safety: health and well being, personal security, financial security, safety net against accidents, illness, and their adverse impacts Security of cash savings Informal market Love/Belonging: friendship, family Savings for specific goals Esteem: respect, status, prestige, independence Self-actualisation: spontaneity, desire to achieve in home & personal life Financial protection Grow wealth, accumulate assets Informal market propensity to buy Low High The retail market is currently nascent in most countries and is characterised by large informal markets living below, or close to, the poverty line These individuals typically have low and irregular incomes. They have low levels of trust in formal financial institutions and currently many of their basic financial needs are being met through informal, often community-based structures, e.g. savings clubs However, over the next 20 years, these individuals are expected to “graduate” into the middle class.

15. Business Model Components Who will help you? KEY PARTNERS How do you do it? KEY ACTIVITIES What do you do? VALUE PROPOSITION How do you interact ? CUSTOMER RELATIONSHIPS Who do you help? CUSTOMER SEGMENTS What do you need? KEY RESOURCES How do you reach them? DISTRIBUTION CHANNELS What will it cost? COST STRUCTURE How much will you make? REVENUE STREAM START HERE 1 September 2016Evolving new business models for profitability15

16. How do you interact Customer relations Call centers Contact centers Internet Apps Flyers Word of mouth Social media 1 September 2016Evolving new business models for profitability16

17. Business Model Components Who will help you? KEY PARTNERS How do you do it? KEY ACTIVITIES What do you do? VALUE PROPOSITION How do you interact ? CUSTOMER RELATIONSHIPS Who do you help? CUSTOMER SEGMENTS What do you need? KEY RESOURCES How do you reach them? DISTRIBUTION CHANNELS What will it cost? COST STRUCTURE How much will you make? REVENUE STREAM START HERE 1 September 2016Evolving new business models for profitability17

18. How do you reach them Distribution channel Broker Agency Bancassurance Alternative Distribution – Mobile networks – Auto dealers – Supermarkets – Internet (including social media) 1 September 2016Evolving new business models for profitability18

19. How do you reach them Social media Mainly used as a mass marketing tool Other uses – Gaining customer feedback – Resolving queries in real time – Providing product updates – Information source for insight generation – Building relationships with clients – Fraud investigation 1 September 2016Evolving new business models for profitability19

20. Recent examples of innovation 1 September 2016Evolving new business models for profitability20