BUSINESS CASE  GAP ANALYSIS- Analyzes the gap

between the situation and the desired

output
 ACTION PLAN- Detailed list of steps that
should be taken to incorporate proposed
solution to the business case
 COMPAERISON OF ALTERNATIVES-
Compare the differences in the time and
resources needed to achieve the plans
FIVE ELEMENTS OF BUSINESS CASE
STAGE &GATE SYSTEM-will vary, but the
 Strategic context- Compelling case for concept remains the same
change
 Economic analysis- Return on investment based
on investment appraisal of options
 Commercial approach- Derives from the
sourcing strategy and procurement strategy
 Financial case- Affordability to the organization
BUSINESS MODEL CANVAS
in the time frame.
Problem- 72 % of new product and service
innovations FAIL
ELEMENTS OF THE BUSINESS CASE Biggest mistake of entrepreneurs- Not
creating a business model canvas
Effect of the mistake- Either lacking results
or outright failure

Describes the rationale of how an organization

BUSINESS CASE GOAL IS TO PRESENT creates, delivers, and captures value
A PROBLEM ANALYSIS AND PROPOSE
SOLUTIONSS
 Ex; Like a blueprint for a strategy to be QUANTITATIVE
implemented through organizational
structures, processes and system

BUSINESS MODEL CANVAS – has 9

building blocks

COVERS 4 MAIN AREAS OF A

BUSINESS

 Customers
 Offer
 Infrastructure
 Financial Viability

9 BUILDING BLOCKS

1. Customer segments- An organization serves  Low cost

one or several customer segments.  More efficient than
 Speed of service

3. Channel- Deliver VP to customers through

communication, distribution and sale channels

4.

TYPES OF CONSUMER SEGMENT

 Mass market- Focus on a group of Customer relationship- Established and
customers with broadly similar needs maintained with each customer segment
 Niche market- Cater to specific, - Describe the type of relationships a company
specialized customers establishes with specific customer segments.
 Segmented- Some models distinguish - Can range from personal to automated; may
between segments with slightly different be driven by motivations such as: customer
needs acquisition, customers retention,
 Diversified- Serves two unrelated boosting sales.
customers segments with different needs
Ex; Amazon-retail vs cloud computing
 Multi-sided markets- Serving two or
more interdependent segment. All players
need to make the business model work.
ex; Credit card companies catering to
consumers clients and merchants.
2. Value proposition- Seeks to solve customer
problems and satisfy customer needs.

QUALITATIVE
 Unique experience
 Good for diabetic
 Innovate design
 Better user experience
5. Revenue streams- Results from value
propositions successfully offered to customers
- Represents the cash of a company
generated from each customer segment
- Are the arteries of a business model
TYPES OF REVENUE
 Transaction- onetime payment
 Recurring- Resulting from on-
going payments to either deliver
8. Key partnerships- Some activities are
value proposition to customers or
outsourced and some are acquired through
provide post purchase customer
other entities.
support.
- Describes the network of supplier and
partners that make the business model
work

-
9.
Co

st structure- the business model elements

6. Key resources- Assets required to deliver on
your promise
- Describes the most important assets
required to make a business model work
- It can be physical financial, intellectual,
or human.
that results in costs.
TWO CLASSES
 COST DRIVEN- Focus on minimizing
costs aim is to create and maintain the
leanest possible cost structure (low price

7. Key activities- It seeks to solve customer

problems and satisfy customer needs with value
propositions.

- Most important actions a company must

take to operate successfully

- Required activities to create and offer a

value proposition, reach your market,
maintain your customer relationships and value proposition, maximum
earn revenue. automation, and extensive outsourcing).
 VALUE DRIVEN- Focus more on value
creation for the customer than cost
reduction (premium value propositions,
highly personalized and dedicate
services)