Applied Business Development
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Transcript of Applied Business Development
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Applied Business Development
Welcome to IBCDP 6:2 – 2011-08-30
Matti Kaulio Royal Institute of Technology (KTH)Dept. of Industrial Economics and Management, [email protected]
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Roadmap
• Recapitulation• Best Assignment• Understanding Business Environment• Business Case Work
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F2F 2
• Strategic awarness• Understanding Business Environments• Adding Value (Service Design)• Service Production & Launch• “Making it Happen” & Examination
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Learning Goal
• How could new business opportunities look like in your industry?
• What competencies are needed for spotting and developing them?
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Last Meeting: Bussiness Models and Offerings
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Market and Technology Evolution:Past – Present – Future?
Generative Network• New Industry Entrants• Converging Tech., Industries &
Businesses“Open” Network• Deregulation• Competiton• IP-based Tech.
Propritarian Network• Market monopoly• Switch-based Tech.
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The Business Model IC
ORRevenuemodel
BSCosts Costs
Costs
Value Propositions
Business Concept
Customers
Offering
BusinessSystem
Source: Based on SIAR Normann, 1977, & Dr. Tommy Bergkvist, Strategic Management Institute, modified
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Problem-Segment-Offering (PSO) model
An identified market - Segment
The Problem/need a customer face
”Offering” and Revenue Model
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Revenue Models
• Producer model• Broker model• Consultancy model• Performance-based model• The TelCom model/combination model (fixed cost +
opening cost + variable cost; opening fee + downloaded data)
• The TechTrade model: Licenciering + royalty• The ”Gilette” model• The ”Drug Dealer” model• The ”Gore-Tex model”• The ”Adobe” model• The ”Singer” model• The Construction Industry model• ”Free” models
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Last Homework AssigmnentJune 2011
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Assigmnent and deliverableAssignment:Make an divergent analysis of your case topic. That mean
that you should develop a few (3-5) different possible applications, analyze and characterized them, and when you meet in the next module be prepared to chose one of these applications to continue with.
DeliverablesHand in: A report including a comparison of generated
possible applications. The report is written in Power Point and covers the ssigmnemnt, description of your research findings, description of 3-5 PSO offerings and a summarizing table
The report should be written in and handed in no later than on the 24st of June.
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Process1. Do research: What similar applications exists? What are their
offerings? Etc. Use internet and other sources2. Redflect upon the findings3. Generate alternatives: Develop 3-5 new PSO descriptions of new
applications4. Summarize your findings in a power Point Presentation where
your potential applications are presented in text and in a table- do not select which application to continue work with! This is a task för the next F2F module
5. Before leaving today you should have showed your preliminary applications for the coaches
6. Coaches will be walking around bewteen the groups. They should be seen as resources for your work.
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Best Assignment. . .
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Best Assignment
• Group 4
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Understanding Business Environments
” Industry Attractivness”
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The Landscape: Which Road to Go?
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Content
• PEST(EL)• Porter’s 5-Forces• Generic strategies• Market estimates
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PEST, PEST(EL)• Political
- Regulations, tax policy, trade restrictions, and political stability- Promotion of: health, education, and infrastructure of a nation.
• Economic - Economic growth, interest rates, exchange rates and the inflation rate,
• Social factors - cultural aspects, population growth rate, age distribution, career attitudes and
emphasis on safety and demographic changes such as aging population.• Technological factors include technological aspects such as
- R&D activity, automation, technology incentives and the rate of technological change.
• Environmental factors- environmental law, ecological and environmental aspects such as weather,
climate, and climate change. This aspect is linked to Political and leagal factors• Legal factors
- labour law, discrimination law, consumer law, antitrust law, employment law, and health and safety law
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Industry Analysis: 5-forces
Source: DeWitt & Meyer, 2004.
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Generic Competitive Strategies (Porter)
• Cost leadership• Differentiation• Focus
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Time
Diff
eren
t per
form
ance
mea
sure
TimeNonconsumers or
nonconsuming contexts
New-Market Disruption
Compete against nonconsumption• Telephone• Personal
computers• Photocopiers
Company improvement trajectoryCustomer demand trajectory
Perf
orm
ance
• Discount retailing• Stell minimills
Low-End Disruption
Target overshop customers with
lower-cost business model
Sustaining Innovation
Bring better products into
established markets
1. The Disruptive Innovation Theory
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5-Forces & Macro Environment
Source: DeWitt & Meyer, 2004. Modified
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Some Generic Strategies
Generic Competitive Strategies (Porter)• Cost leadership• Differentiation• Focus
Aggressiveness (Miles & Snow)• Prospector• Analyzer• Defender• (Reactor)
Alternative Generic Strategies• Niche players• Pioneers• Local producers• Dominant firms• Mee-too firms• Worldwide replicators• Professionals• Rationalizers• Conglomerates
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Market estimates
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• How many petrol stations are there in the USA?
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Approaches
• Top-down• Bottom up• Iterative process
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• 126 889!
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Understanding Business Environments
”Uniqueness”
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Content
• Value Chain vs Value Star• 4-action framework
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Porter’s Value Chain C
ORRevenuemodel
BSCosts Costs
Costs
Value Propositions
Business Concept
Customers
Offering
BusinessSystem
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Question?• What is the strategy of Skistar?
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Value star
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Uniqueness? Value Chain vs Value Star
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The Four-Action Framework (Blue Ocean)
A new valuecurve
ReduceWhich factors should be reduced
well below the industry’sstandards
CreateWhich factors should be created
that the industry hasnever offered?
RaiseWhich factors should be rasied
well above the industry’sstandards?
EliminateWhich of the factors
that the industry takes for granted should be
eliminated?
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Summary
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Your challenge this time . . .
• ”Paint the landscape”• ”Develop unique offerings”
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Assessment matrix, example
Application #1 Application #2 Application #3
Relative(Four-action framework) Customer ValueUniqeness(Four-action framework)
Industry attractivness/ Intensity of Competition(Pest, 5-Forces)Protection
Revenue Potential
Growth Potential
Diversification potential
. . .
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Homework assignment 2To be handed in on the 9th of September
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Homework, to bee reported on the 9th of September
1. Chose one of your applications (or a combination of)
2. Conduct a deeper analysis of your application based on the 5-Forces & PEST. Try the 4 action framework
3. If you are not satisfied – chose another application and iterate 1-2
4. The outcome should be one (1) selected application with a ”thick” background description!
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Process1. Chose one of your applications (or a combinations of), use the
assessment matrix2. Create a PEST(EL) analysis of this application
1. Are some aspects more important than the others?3. Create the 5-forces map.
1. TIPS: The delimitation of the industry can be tricky, and this issue is strongly linked to the final result
2. When conduction your 5-force analysis, use easy market estimates4. Try the 4-action framework to further develop your product5. Summarize your findings in a Power Point Presentation
1. Before leaving today you should have showed your preliminary applications for the coaches
2. Coaches will be walking around bewteen the groups. They should be seen as resources for your work.
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PEST, PEST(EL)• Political
- tax policy, labour law, environmental law, trade restrictions, and political stability- Promotion of: health, education, and infrastructure of a nation.
• Economic - economic growth, interest rates, exchange rates and the inflation rate.
• Social factors - cultural aspects, population growth rate, age distribution, career attitudes and
emphasis on safety and demographic changes such as aging population.• Technological factors include technological aspects such as
- R&D activity, automation, technology incentives and the rate of technological change.
• Environmental factors- ecological and environmental aspects such as weather, climate, and climate
change. This aspect is linked to Political and leagal factors• Legal factors
- discrimination law, consumer law, antitrust law, employment law, and health and safety law
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Industry Analysis: 5-forces
Source: DeWitt & Meyer, 2004.
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The Four-Action Framework (Blue Ocean)
A new valuecurve
ReduceWhich factors should be reduced
well below the industry’sstandards
CreateWhich factors should be created
that the industry hasnever offered?
RaiseWhich factors should be rasied
well above the industry’sstandards?
EliminateWhich of the factors
that the industry takes for granted should be
eliminated?
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Assessment matrix, example
Application #1 Application #2 Application #3
Relative(Four-action framework) Customer ValueUniqeness(Four-action framework)
Industry attractivness/ Intensity of Competition(Pest, 5-Forces)Protection
Revenue Potential
Growth Potential
Diversification potential
. . .