Patrick van Abbema

April 19, 2012 2:00 PM to 4:00 PM EST

If you experience any technical difficulties during the presentation, please use the
chat box to the right of the screen and support will help or you can e-mail
webinars@batimes.com

Audio is provided through your computer speakers. If you are having difficulty
hearing the presentation please click on the little phone image above the chat
window and a window will open and give you necessary dial in information. We
will be performing sound-checks every few minutes to verify your sound.

Note: PMI PDU and CDU submission details are provided on the last slide.

10 components to designing an
effective business model

Presented by:
Patrick van Abbema, PMP, CBAP, CSP
2

Why have a
Business Model?

 A business model is at the core of any

organisation, yet they are not always clearly
defined, documented or optimised
As the rate of change in the business
environment increases and with greater pressure
to become more efficient; organisations must
form a clear view of how their business operates

A business model describes the rationale of

how an organization creates, delivers, and
captures value - economic, social, or other
forms of value.

 For whom is your business creating value

for?
What are your clients expectations?
Are you using a common language to
describe your services?
How do you communicate those services
so that other people understand?
How do you implement your services?
6

How does one describe a

Business Model?

 Formal descriptions of the business become the

building blocks for its activities. Many different
business conceptualizations exist.
Alexa Osterwalder's work propose a single
reference model, called Business Model Canvas
based on the similarities of a wide range of
business model conceptualizations.

A Business Model describes the logic and

rationale underlying the way in which we
create/enable/deliver the service(s) to our
customers as part of our business strategy

areas
9

WHY?

HOW?

WHAT?

WHO?

HOW MUCH?
10

10

BUILDING
BLOCKS

11

12

Desired business outcomes

describe what the business really
wants, and where it wants to be
when the service has been
delivered.
How does your service support
your desired business
outcomes?

Seeks to solve customer problems

and satisfy customer needs
What value to we deliver to the
customer?
Which customer needs are we
satisfying?

Services are delivered to

customers through channels

How do our customers want

to be reached?
How are we reaching them
now?
Which channel works best?

An organization serves one or

several customer types

For whom are we creating

value?
Who are our most
important customers?
(80% revenue comes 20%
of customers)

Relationships are established

and maintained with each
customer

What type of relationship

does each of your
customers expect to
establish and maintain with
you?

Describe the most

important activities an
organization must do to
make the service model
work.

What key processes do

your services require?

Distribution Channel

Describes the key resources

required to make a service
model work.
What key resources do your
services require?

Clients

Describes the ecosystem of

suppliers and partners that
make the services model work

Who are your key

partners?
Who are your key
suppliers?
What do they do?

Clients

Represents the revenue

(or cost recovery) an
organization generates
from each customer type
What services do your
customers currently
pay for?
How do they pay?

Describes all the costs

incurred to operate the
service model

What are the most

important costs
inherent to our
business model?
Which ones are the
most expensive?

Cost Recovery

23

Questions?

24

 To claim your PDU Credits, please visit: http://www.pmi.org

PDU Credits 2 Credit (Category A)
Provider ID: 1811 (Diversified Business Communications)
Title 10 Components to Designing an Effective Business
Model
Program ID WID00333

Two (2) CDUs towards CBAP recertification

Notice from IIBA: The content of the course is aligned with
the BABOK, this two hour session qualifies for 2 CDU
towards CBAP recertification.
Please visit the following link to provide Webinar Feedback:
https://www.surveymonkey.com/s/MKZVVBZ

 www.businessmodelgeneration.com

26