Schlagwort-Archive: Earning model

What do I do?

Enterprises should actually be able to describe, what they do. Corporate areas and departments, which supply internal customers, often do not even have the idea to describe their business – let alone individuals. It is ever more important to explain oneself comprehensively, because when the business model (BM) is tangible, it is far more easy for customers and partners as well as employees and colleagues to fulfill their contribution. It does not matter whether one is working in a large or small company, a unit or a department, as employee or an executive, employed or self-employed, commercially or honorary. But how does an outline looks like for what I do?

The BM is an outline for explaining your activities. You have the following advantages. It

  • clarifies the different aspects of the activities,
  • supports the specification of procedures,
  • shows double work,
  • makes decisions easier,
  • identifies synergies and
  • helps saving money and time.

machen

It focusses on the following content-wise elements.

  • Deliverable concept
    The deliverable concept consists of five segments. There is an idea behind each activity. It is the basis of the undertaking and concretizes the solutions and the desired market with its sales opportunities. The better the preferred value discipline is specified (i.e best process, best product or customer intimacy), the better you can align the activities with it. The clear descriptions of the advantages motivate partners and customers to do their best. The description of the proposed results is the most important aspect. These can be products or services. Be aware, in which state of the life cycle your deliverables are.
  • Earning model
    You receive wage, salary or other kinds of remuneration for your core business based on the individual contracts. They are mostly of physical nature, e.g. money or assets. Sometimes it can be additionally non-material advantages, like reputation or personal satisfaction. The look outside the box extracts additional earning sources from the context, e.g. through the network that comes from a honorary activity.
  • Value creation
    The creation of value happens along the value chain. It starts from the moment, when the value-add rises for the first time and ends, when no further value increase occurs. Some parts we produce by ourselves and others are created by others. The smart allocation of tasks to the steps of the value creation offers opportunities for improvement.
  • Relationships
    The exact image of the partners and the customers facilitates the joint work. This contains not only the list of the relations, but also the description of tasks, authorities and responsibilities as well as a verbal characterization.
  • Resources
    Most of the activities need resources, i.e., financial means, qualified capacities, and an intact infrastructure. They should be clearly specified and available at the right time. Restrictions on resources obstruct the performance. Plentiful means extend the possibilities.
  • Communication and Coordination
    As soon as people cooperate, the exchange of the information and the controlling of the involved ones becomes important. Open channels between the target audience and oneself ensure a good flow of information. This provides clarity about the intentions, the current situation and the mental states of the people and organizations concerned. With appropriate mechanisms for coordination you manage the co-operation.

The more people work together, the more important is it to convey the business model.

Bottom line: Today the companies, organizations, teams and individuals need a clear comprehension of their business model. This is also valid, if it is not concerned a business per se, but an activity that is not focused on profits. By describing it with the aspects specified above, you create a meaningful representation of your own field of work.

Same series:

Who am I?

Where do I want to go?

Enough is vague without scale

The business model does not say which, for what, how, with whom or wherewith the undertaking has to be realized. It points out that you have to describe content-wise Which, For what, How, With whom and Wherewith. This is the benchmark for calibrating yourself in the development of a new or the transformation of an existing activity.

Geschäftsmodell

If an enterprise is realized, the following aspects preoccupy normally every executive board, every project and every employee.

WHAT has to be documented on which level of detail?

In the planning, execution and controlling of program, it becomes repeatedly apparent that the list of tasks, the start and end dates, the dependencies as well as the responsibilities facilitate the steering of a project substantially. Currently, structured approaches, like the Businesses Model Canvas and Business model by memecon, are developed for modelling the venture

Isn’t it negligent, if a new firm is only based on numbers that are computed in a spreadsheet analysis? Often they forget the content-wise description of the actual offer, the additional possibilities of income, the entire value creation, the necessary relations and means. Additionally, the ways that are used to keep contact with the involved people and the mechanisms for coordination provide first ideas for steering the undertaking.

The venture is sufficiently outlined, if statements for all aspects are available. The level of detail is defined by the time that can be spent. After at most one fifth of the duration, all relevant aspects should be presented in an agreed way and the question about the feasibility should be answered. Further details are determined in the following steps.

Bottom line: The development of the business model is a structured approach that facilitates the content-wise specification of the elements. The explanations should be prepared as detailed as needed to decide the further development of the business. In the subsequent steps, the individual aspects will be further refined.

Videos:

The self-image in a nutshell: http://ow.ly/wsI4F

Potential application areas: http://ow.ly/wsJ1F