Innovating Business Model

Copyrights 2014 CVMark. All Rights Reserved.

In Motion Weighing Industry

Market
Aggregate Material Production and Processing Mining Material Processing Companies 1. Have a need to account weight Fertilizer of material as they are produced, Coal processed, stored and moved at various places. Stone Crusher 2. Since materials are moved on Cement conveyors, there is a requirement Farming to measure weight of material while in motion. Ports Municipality waste
2

Copyrights 2014 CVMark. All Rights Reserved.

22-04-2014

In Motion Weighing, IMW

Uses Load cells placed underneath conveyor and integrated with electronics to collect, transmit and report weight of material moving in conveyor

Copyrights 2014 CVMark. All Rights Reserved.

22-04-2014

Fierce Competition in IMW Industry

Since penetration of IMW solution has spread into more industries, the sophistication of technology has increased. Most of the sophisticated solutions are owned by companies outside India. In India, several of these technologies are available through their local agents or system integrators.
No doubt, the industry is becoming fiercely competitive!
22-04-2014 4

Copyrights 2014 CVMark. All Rights Reserved.

In Motion Weighing - Business Model (Old)

Like others, Satpal is an IMW system Integrator for a German Technology Company He offers IMW Solution to material producing companies

Value Proposition

Customer Segment

Copyrights 2014 CVMark. All Rights Reserved.

Channels

He promotes his service through web, participates in tenders and once he wins a tender sends his engineers to install equipments

22-04-2014

In Motion Weighing - Business Model (Old)

Value Proposition Customer Segment

2
Satpal is paid for the equipment installed at the site of customers and he also receives recurring AMC fee for maintaining the equipment.

Copyrights 2014 CVMark. All Rights Reserved.

Channels

Revenue 4

22-04-2014

In Motion Weighing - Business Model (Old)

Key Partners 7 Key Activities 5 Value Proposition Customer Segment

Copyrights 2014 CVMark. All Rights Reserved.

Key Resources 6

Channels

Revenue 4
To deliver the Value Proposition, Satpal has a team of engineers and he has technology license from the German Tech Company

22-04-2014

In Motion Weighing - Business Model (Old)

Key Partners 7 Key Activities 5 Value Proposition Customer Relationship

Customer Segment

Copyrights 2014 CVMark. All Rights Reserved.

Key Resources 6

Channels

Key Costs 8

Revenue 4

22-04-2014

Based on BM Canvas, Alex Osterwalder, The Business Model Generation

In Motion Weighing - Business Model (Old)

Key Partners 7 Key Activities 5 Value Proposition Customer Relationship

Customer Segment

Copyrights 2014 CVMark. All Rights Reserved.

Key Resources 6

Channels

Key Costs 8

Revenue 4

22-04-2014

In Motion Weighing - Business Model (Old)

Key Partners 7 Key Activities 5 Value Proposition Customer Relationship

Customer Segment

Copyrights 2014 CVMark. All Rights Reserved.

Key Resources 6

Since almost every system integrator has the same business model and competition is ever more fierce, Satpals business is under severe threat. In fact, during last 3 years he lost significant market share. Channels 3

Key Costs 8

Revenue 4

22-04-2014

10

Patel- Another IMW System Integrator

A year back, else where in the western part of the country, Patel, a system integrator for a Canadian Company was in a similar situation.
Copyrights 2014 CVMark. All Rights Reserved.

Competition has grown dramatically . Now almost all sorts of technologies are competing with each other. Supplying and installing IMW system has become a commodity service business. The situation of current economy is not helping either since the IMW system is expensive! But he thought differently!!!

22-04-2014

11

In Motion Weighing - Business Model (New)

Patel had heard enough about the power of information and IT.
Rightly presented, operational data dramatically improves decision making ability of an organization

Value Proposition

Customer Segment

Copyrights 2014 CVMark. All Rights Reserved.

22-04-2014

Instead of selling only installation of IMW system, he positioned his business as Business Solution Provider, with emphasis on using S/W to improve , productivity and operational efficiency of the clients

12

In Motion Weighing - Business Model (New)

Value Proposition
He began promoting his solution through trade magazine, he started doing direct (consultative) selling presenting analytics, dash board and reports of IMW system as the main pitch of his offer.
Copyrights 2014 CVMark. All Rights Reserved.

Customer Segment

Channels

Through his s/w solution he was able to excite his clients who found a way to identify their operational losses and inefficiency.

22-04-2014

13

In Motion Weighing - Business Model (New)

Value Proposition
He further changed the value proposition by offering the IMW system on Lease or discounts, adding an incentive to clients who were postponing their CAPEX due to the overall uncertain economic situation.
Copyrights 2014 CVMark. All Rights Reserved.

Customer Segment

Channels
Now he was able to charge the customer not just on physical system but also on productivity based recurring fee plus the regular support provided in software service

Revenue 4

22-04-2014

14

In Motion Weighing - Business Model (New)

Key Partners 7 Key Activities 5 Value Proposition Customer Segment

Copyrights 2014 CVMark. All Rights Reserved.

Key Resources 6

Channels

22-04-2014

In order to implement his new value proposition he recruited business analysts and partnered with a S/W company to fulfill the ongoing needs of his clients business.

Revenue 4

15

In Motion Weighing - Business Model (New)

Key Partners 7 Key Activities 5 Value Proposition Customer Relationship

Customer Segment

Copyrights 2014 CVMark. All Rights Reserved.

Key Resources 6

Channels

Key Costs 8

Revenue 4

22-04-2014

16

In Motion Weighing - Business Model (New)

Key Partners 7 Key Activities 5 Value Proposition Customer Relationship

Customer Segment

Copyrights 2014 CVMark. All Rights Reserved.

Key Resources 6

Channels

Key Costs 8

Revenue 4

22-04-2014

17

In Motion Weighing - Business Model (New)

Key Partners 7 Key Activities 5 Value Proposition

Copyrights 2014 CVMark. All Rights Reserved.

Key Resources 6

the pure play system integrator to a business productivity solution provider for material processing industry. He is thsus, directly influencing his clients business results. Knowing the amount of benefit his clients get from his teams knowledge of clients business, getting orders and a Channels good price is no more an issue. His 3 is now the fastest IMW business in India despite all uncertainty of general economy!!!

9 Customer 2 Relationship Thus Patel Transformed his business from

Customer Segment

Key Costs 8

Revenue 4

22-04-2014

18

The Difference that Makes the Difference

Business Model
Value Proposition Customer Need Market Access

Satpal
IMW Solution Weighing Tenders

Patel
Business Solution Operational Efficiency Direct Consultative Selling

Delivery
Revenue Resources Cost Positioning
Copyrights 2014 CVMark. All Rights Reserved.

Field Installation
Material + Service charge Engineers Man + Material +Travel System Integrator

Installation plus Ongoing Operational Reports (Advice)

Software Application & Support+ Material Biz Analyst Engineers + SW Developers S/W Dev + Man + Material + Travel Business Partner

22-04-2014

19

CVMark
Copyrights 2014 CVMark. All Rights Reserved.

The Biz Design Studio

Email: lolla@cvmark.com Ph: +91 94480 70081

22-04-2014

20