Innovative Business Models

businessman drawing a business plan conceptA business model is not just how a company makes money,  it is a rationale of how the company creates, delivers, and captures value. A company’s business model correlates its unique value proposition to the requirements of the customer. When new technologies turn into new products, the business concept covers all of the Value Chain, and a new business model is required.

A business model can be broken down into several elements, or sub-models, including a value model, a profit model, a customer model, a market model, a promotional model, and a capabilities model. These sub-models don’t exist in isolation; rather, they link to and operate in tandem with all of the other sub-models to create the bigger picture – the actual business model. The actual business model is an entity whereby entrepreneurs and company strategists can deliver another level of innovation and value, and assure the success of a new product or service. Detailed understandings of these sub-models should be developed for each innovation and each customer (or set of customers) before an innovation is launched in the marketplace.

What We Do

StrategicVisions assists client management teams, via interactive hands-on training and mentoring services, in developing new business models each time a new product/services or new customer is targeted. The following list of sub-models (or business model components) will be developed for each customer interface.

  1. A unique Value Proposition
  2. A Capabilities Model (skills, organization, operations/processes, etc)
  3. A Resources Model (key skills, IP, human & economic capital, etc)
  4. A Customer – Market Model (segmentation, size, growth, etc)
  5. A Marketing Mix Model (product, price, promotions, channels, differentiation)
  6. A Profit Model (analysis of revenues, costs, suppliers & sources)

A new business model must mesh with the company’s existing management style, personnel, and financial capacity. Changes can be made by establishing objectives, and organizing employees to meet them, or by hiring outside consultants to help make necessary changes. StrategicVisions strives to preserve the company culture within any developed business model without affecting the successful operation of the existing business.