8 Questions
What is the main purpose of the AS-IS Business Model?
To represent the current state of a company's business model
What is the focus of Customer Relationship Businesses in the Unbundled Business Model?
Building and maintaining customer relationships
What is the primary goal of the TO-BE Business Model?
To represent the desired future state of a company's business model
What is a characteristic of Infrastructure Businesses in the Unbundled Business Model?
Providing underlying infrastructure for other businesses
What is the concept of Unbundled Business Models based on?
Dividing the value chain into three distinct businesses
What is the primary focus of Product Innovation Businesses in the Unbundled Business Model?
Developing new products or services
What is the main implication of the Unbundled Business Model?
Focusing on core competencies and outsourcing or partnering for other aspects of the value chain
What is the main characteristic of Business Model Patterns?
They are models with similar characteristics, arrangements, or behaviors
Study Notes
Business Model Canvas
- A strategic management tool to visualize and assess business models
- Divided into two halves: left brain (logic and efficiency) and right brain (emotion and value)
AS-IS and TO-BE Business Models
- AS-IS Business Model:
- Represents the current state of a company's processes, activities, resources, capabilities, and strategies
- Used as a baseline for comparison
- TO-BE Business Model:
- Reflects the desired future state of a company's business model
- Includes planned changes, improvements, or innovations to better address challenges and opportunities
Business Model Patterns
- Definition: Models with similar characteristics, arrangements, or behaviors
- Examples:
- Unbundled Business Models
- Long Tail Business Models
- Multi-Sided Platforms
Unbundled Business Models
- Concept: Focus on a specific aspect of the value chain
- Three types of businesses:
- Customer Relationship Businesses:
- Focus on building and maintaining customer relationships
- Depend on creating a loyal customer base
- Example: Banks focusing on customer advisory services
- Product Innovation Businesses:
- Focus on developing new and innovative products or services
- Heavy investment in research and development
- Example: Tech companies creating new gadgets
- Infrastructure Businesses:
- Provide underlying infrastructure supporting other businesses
- Invest in physical or digital infrastructure
- Example: Telecom companies providing network services
- Customer Relationship Businesses:
Implications of Unbundled Business Models
- Focus on core competencies and outsource or partner for other aspects of the value chain
- Align resources and capabilities with strategic goals
Examples of Unbundled Business Models
-
- Swiss Private Banking:
- Traditional Model: Vertically integrated, handling wealth management, brokerage, and financial product design in-house
- Unbundled Example: Maerki Baumann separated its transaction-oriented platform (Incore Bank) and focused on customer relationships and advising clients
- Reason: Cost efficiency and confidentiality concerns
-
- Mobile Telecom Companies:
- AS-IS Model: Current state of providing multiple services internally
- TO-BE Model: Future state focusing on core services and outsourcing other activities
Test your knowledge of the Business Model Canvas, a strategic management tool used to visualize and assess business models. Learn about the left and right brain approach, AS-IS and TO-BE business models, and more.
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