BUSINESS MODELLING

MOVING BEYOND OPPORTUNITIES

TEJAS SHYAM
 WHAT IS A BUSINESS MODEL

A structure that supports the viability of a product or

company
Describes how value can be created, delivered and
captured in a variety of contexts such as economic,
social or cultural
According to Peter Drucker, ‘a business model is
supposed to answer who your customer is, what
value you can create/add for the customer and how
you can do that at reasonable costs’
WHAT A MODEL DEALS WITH

Good Business
Model

Topline &
Bottomline

Customers,
Designing &
Sales &
Manufacturing
Distribution
 FOCUS AREAS IN A BUSINESS MODEL

Value Proposition What you can offer, in which domain and how it effectively solves the problem and
●

delivers value

Revenue Model ●
Revenue streams and cost structure

Market Opportunities ●
Defining target customer segments and identifying barriers if any

Market Strategy Product differentiation, resource mobilization, distribution channels and customer
●

relationships

Existing Competition ●
Competitor fitness and extent of competition

Competitive Advantage Technology, adaptiblity , partners, suppliers and regulatory advantages

●

Management Team ●
Experience, expertise, integrity and diversity
 WHY WE NEED A GOOD BUSINESS MODEL

A good business model leads to clarity in various

aspects:

Value Channel
Proposition
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 WHY WE NEED A GOOD BUSINESS MODEL

Revenue

Avenues Pricing Type

Asset Usage Fee / Rent/ Brokerag Advertisi Fixed Dynamic

Sale Subscription Lease/ Lend e

List Price ng Volume Dependent Feature Dependent
 COMMON TYPES OF MODELS
Bricks and clicks
Collective
Cutting the middleman
Direct sales
Fee in, free out
Franchise
Sourcing
Freemium
Premium
Pay what you can
Value added reseller
Razor and blades
Subscription
Loyalty
Monopoly
All-in-one
Aggregator
BUSINESS PLAN vs. BUSINESS MODEL
BUSINESS MODEL
Rationale of the Business
Only provides a skeletal
framework
Gives a schematic of how revenues
will be generated
States whether competition exists
and does the business have any
advantages
Blueprint of the business
BUSINESS PLAN
Written description of the future of
a business
Outlines people and steps in detail
Financial plan, including income,
cash flow, growth timelines, etc. is
detailed
Lays out strategies to be ahead of
competition
Roadmap of how the business will
move
 INTERLINK BETWEEN THE TWO

The business plan cannot exist without the business

model- the model is at the centre of the plan
While a business plan can describe the detailed
financial goals and structure of a business, the
business model explains how the money will flow -
from customer generation to marketing to sales, and
finally, to customer retention
If the business model changes, the business plan will
accordingly change
THANK YOU