ANALYSING AND IMPROVISING BUSINESS MODEL

1
 introduction

Much can be learned about a business by analyzing its business

models. There are several different techniques for business
model analysis—techniques
appropriate for different business situations.
Business model analysis is the work of analyzing
existing business models to learn more about the business.
Business model analysis is about reaping value from models,
using the models to discover new insights.

2
 introduction

a customer at x restaurant claimed he became sick after

eating at the restaurant.

The restaurant settled the suit for $3.4 million.

3
 introduction

They consider the menu creation process and introduce a

new activity into the process to review new menu items for
legal risk.
They examine the new server hiring process and decide to
add some new training for servers, so the servers can
explain food preparation to customers.

4
 CHAPTER TEN

analysis techniques

There are several different analysis techniques, several

different ways to wring insight from an existing business
model. Each analysis technique has its
own methods.
Each technique is used for a different business purpose.
Business change is the common thread among the four model
analysis techniques
There are four different analysis techniques, several to wring
insight from an existing business model.
• All four techniques are about business change

5
 CHAPTER TEN

introduction

Dr. Rami Gharaibeh

6
 improvement analysis

No business is perfect; there are always opportunities

to make business processes faster, to improve the accuracy of
decisions, or to change the organization structure in ways that
improve customer satisfaction.
Business improvement is a neverending
task.

7
 improvement analysis

Even when a business is well designed for a particular

environment, it never stays that way. The business
environment continually changes.

A business that fit the environment yesterday will fail to fit

today. Business improvement is a never-ending task.
Ex :Automobiles,Electronic goods businesses .

8
 CHAPTER TEN
procurement of equipment

improvement analysis

Dr. Rami Gharaibeh

9
 CHAPTER TEN

improvement analysis

Dr. Rami Gharaibeh

10
 Business Transformation process
(simplification)

Business process simplification is changing a business process,

typically removing activities but also sometimes replacing
activities with others.
Business process simplification is performed for a business
reason, either to reduce the cost of the business process,
improve the quality, reduce the end-to-end cycle time, or for
some other reason.
Ex: Off line business stores to online offerings

11
 CHAPTER TEN

Business process simplification

Often a business process will have some activities and

gateways that are not justified by any courses of action.

The process includes activities that are performed for no

apparent reason, no reason beyond tradition: we have
always done it this way.

12
 Business process simplification

The restaurant general manager decides himself whether the

equipment is needed.
needed Once he decides to purchase, the
procurement specialist determines whether there are
cheaper alternatives and then purchases the equipment.

13
 CHAPTER TEN

Business process simplification

Dr. Rami Gharaibeh

14
 Business process simplification

Instead of being realized by six activities and two gateways,

the same tactics could be realized by a single gateway

15
 CHAPTER TEN

Business process simplification

Dr. Rami Gharaibeh

16
 Course of action valuation

A course of action is a set of tactics that the business will

maintain while performing the business process. It is a
strategy

Some strategies might sound good in theory but in practice are

not worth the effort of the business process activities that
implement them.

17
 Course of action valuation

With the model, we know what courses of action are realized

by which activities and gateways.

We could then determine the value of maintaining or

improving the strategy

18
 Course of action valuation

We can measure the cost of a course of action by summing the

costs of all the activities and gateways that realize that cost.

Then the total cost of efforts toward the course of action can be
weighed against the benefits.
This improvement approach is called
course of action valuation.

19
 Course of action valuation

Does the value of pursuing this course of action

really justify the cost and time to pursue it?

The restaurant might be better served by letting the

restaurant general manager make the purchase

20
 CHAPTER TEN

Course of action valuation

Dr. Rami Gharaibeh

21
 CHAPTER TEN

Course of action valuation

Dr. Rami Gharaibeh

22
 Impact Analysis

The attempt to understand the impacts of a proposed

change before acting on the change is called impact
analysis.
- Impact analysis is looking before leaping.
 What unintended consequences will result?

23
 Impact Analysis

When a single change is made to a business, many

consequences can occur.

A new governmental regulation, seemingly simple,

can lead to three new policies, a new organization
to monitor compliance, and 13 changes to business
processes.

24
 Impact Analysis

a change could be initiated by the organization or by

the environment

25
 Impact Analysis

When change is enforced

The business must comply with a new regulation.

Impact analysis allows the business to understand the
consequences before they happen, and prepare for
those consequences.

26
 Impact Analysis

Businesses are complex, with many organizations,

rules, and processes that interrelate in hundreds of
ways.
Without models, even the most thoughtful and
thorough executives will miss some impacts.

27
 Impact Analysis

Example
Reducing risk of lawsuit

28
 Impact Analysis

 An innovative menu with unusual combinations of

ingredients is more likely to attract a lawsuit than a
menu of steaks and grilled fish. But the task force
does not want to abandon the strategy Create
Innovative Menus as they abandoned the strategy of
expanding to South Florida.Innovative menus are just
too important. In this situation the cure is worse than
the disease.

29
 Impact Analysis

Instead the task force adopts a new business policy to

govern this strategy.
Legally Safe Menus: All menus must be reasonably safe
from lawsuits.