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The Business Model Canvas Template - Local government shared Cloud resources
Designed for: INSEAD BMI WK5 Designed by: Mike Williams Date: 21/11/16 Version: 1.0
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Key Partners Partners Local government bodies
IT Departments Buyers Service commissioners External IT service providers / ISVs Microsoft Hardware vendors Suppliers External IT service providers Local Government bodies IT Department Key resources from partners Cloud Platform Deployment and Management skills Public Cloud Services Key activities from partners Enable Cloud platform technology Provide Government pricing and consumption model Provide Hybrid services Motivation for partnership Government bodies reduce cost of acquiring Cloud services. Government bodies increase revenue from existing DC capacity Microsoft grow Cloud platform adoption and start local government on journey to Public Cloud Microsoft Partners – PS and Management revenue Key Partners Who are our key partners? Who are our key suppliers? Which key resources are we acquiring from partners? Which key activities do partners perform? Motivations for partnerships optimization and economy reduction of risk and uncertainty Acquisition of particular resources and activities
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What do our value props require? Buy in from government bodies
Key Activities What do our value props require? Buy in from government bodies ROI study Existing capacity study Our distribution channel Central Cloud services/capacity catalog Services bidding process Customer relationships Key between Gov bodies and Microsoft Essential open selection process for implementation partners SI/ISV Revenue Stream For Microsoft Sales of Cloud Platform technology. SI and ISV PS and support revenue For government bodies revenue return for DC capacity or reduced cost of Cloud services. What key activities do our value propositions require? Our distribution channels? Customer relationships? Revenue streams? Categories Production Problem solving Platform/network
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Value Propositions What value do we deliver to the customer?
Maximizing return on existing DC capacity Agility / scalability / modernization of Apps Access to share resources and IP Cost reductions Investment maximization On ramp to public cloud and Hybrid services What problems are we solving? Repeated spending on core IT services Agility Modernization Low return on infrastructure investment What bundles of services? IaaS/PaaS, Hybrid/IoT/ML/Analytics What needs are we satisfying Value for public money Opportunity to innovate What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each customer segment? Which customer needs are we satisfying? Characteristics Newness Performance Customization “Getting the job done” Design Brand/status Price Cost reduction Risk reduction Accessibility Convenience/usability
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Customer Relationships
Microsoft – support, product roadmap SI – support / management ISV – support / marketplace development What type of relationship does each of our customer segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? Examples Personal assistance Dedicated personal assistance Self-service Automated services Communities Co-creation
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Customer Segments Value is for Local government The most important customers are both the organizations with capacity and ones needing services For whom are we creating value? Who are our most important customers? Mass market Niche market Segmented Diversified Multi-sided platform
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H/W vendor with willingness to share risk
Key Resources Key resources Right SI/ISV partners H/W vendor with willingness to share risk Agreement for internal marketplace We would prime the common Cloud platform i.e. sponsor and jointly fund Pilot and early trials. This would be CSP Azure revenue with potential for SPLA What key resources do our value propositions require? Our distribution channels? Customer relationships? Revenue streams? Types of resources Physical Intellectual (brand patents, copyrights, data) Human Financial
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This channel is in place
Channels Channels Our channel would be a joint approach through our PS teams and key partners This channel is in place We have existing history of working with partners Evaluation We must formulate a well rounded model for this proposition and present to key decision makers and at local government IT conferences. Purchasing Model needs evaluation, may be single purchasing option or cross organization. Buying consortium? Support Use our CSP model to channel first line support through partner then backed off via Premier agreement Through which channels do our customer segments want to be reached? How are we reaching them now? How are our channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? Channel phases Awareness How do we raise awareness about our company’s products and services? Evaluation How do we help customers evaluate our organization’s value proposition? Purchase How do we allow customers to purchase specific products and services? Delivery How do we deliver a value proposition to customers? After sales How do we provide post-purchase customer support?
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Platform build and commissioning Services marketplace
Cost Structure Most important costs Platform build and commissioning H/W, PS Services marketplace PS Feasibility study / capacity mapping Most expensive cost people time followed by hardware I think this business idea is driven by a combination of Cost saving and value. And will be underpinned by the ability for services to have predictable costs, drive economies of scale and the benefits of agility and shared IP. What are the most important costs inherent in our business model? Which key resources are most expensive? Which key activities are most expensive? Is your business more Cost driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing) Value driven (focused on value creation, premium value proposition) Sample characteristics Fixed costs (salaries, rents, utilities) variable costs Economies of scale Economies of scope
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Revenue Streams I think the customer will see value in the benefits one consistent platform, sharing costs across this infrastructure and modernizing applications. I’m not sure thay will be willing to pay more per say, IT services in local government are radiationally expensive, this model should see reduced cost or return on investment. A combination of initial capex combined with a consumption model should help. All consumption if H/W vendors are willing to structure supply on a pay as you consume capacity model. For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each revenue stream contribute to overall revenues? Types Asset sale Usage fee Subscription fees Lending/renting/leasing Licensing Brokerage fees Advertising Fixed pricing List price Product feature dependent Customer segment dependent Volume dependent Dynamic pricing Negotiation (bargaining) Yield management Real-time-market
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Designed by: Business Model Foundry AG
The makers of Business Model Generation and Strategyzer This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
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