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Business Model…!!!
Vivek Deshmukh
Email id:- vsdrocks467@gmail.com
1
Why to know Business Model :-
• Today, The new generation is buzzing with Idea of having their own
business and everyone wants to start his own venture.
• So the new generation is coming to know the term “Business Model”.
• To me Business Model is the support structure to the basic Idea, Idea comes
from imagination but Business model comes from Strategic Planning.
• The Business Model should give answer to every question related to the Idea
like WHY?, WHEN?, WHERE?, HOW? (Like W5H2 questions).
2
What is Business Model? :-
• A business model is the plan implemented by a company to generate revenue
and make a profit from operations. The model includes the components and
functions of the business, as well as the revenues it generates and the
expenses it incurs.
• poorly thought out business models were the downfall of many Businesses.
3
Continued :-
• Business Model is used for a broad range of informal and formal descriptions
to represent core aspects of a business, including purpose, business process,
target customers, offerings, strategies, infrastructure, organizational
structures, sourcing, trading practices, and operational processes and policies
including culture.
• The type of business models might depend on how technology is used.
4

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The document discusses the key elements of entrepreneurship. It defines an entrepreneur as an individual who creates a new business and takes on most of the risks and rewards. The document outlines 11 elements that are important for entrepreneurship, including creativity, a business idea, business plan, products/services, vision, motivation, innovation, ambition, self-confidence, risk-taking ability, and entrepreneurial knowledge. Examples of innovative entrepreneurs like Tilak Mehta and John Grade are provided.

meaningdefinition and elements of entrepreneurshipelements of entrepreneurship
6 Elements of Business Models :-
1. Acquire high value customers
2. Offer significant value to customers
3. Deliver products or services with high margins
4. Provide for customer satisfaction
5. Maintain market position
6. Fund the business
5
Categorization of Business Models :-
• V4 BM framework –
The Four main dimensions encapsulating sixteen elements: Value
Proposition, Value Architecture, Value Network, and Value Finance
• Shift from pipes to platforms –
In the case of pipes, firms create goods and services, push them out and sell
them to customers. Value is produced upstream and consumed downstream. There is a
linear flow, much like water flowing through a pipe. Unlike pipes, platforms do not just
create and push stuff out. They allow users to create and consume value.
6
Categorization of Business Models :-
• Platform business models –
1. The Toolbox creates connection by making it easy for others to plug into the
platform.
2. The Magnet creates pull that attracts participants to the platform.
3. The Matchmaker fosters the flow of value by making connections between
producers and consumers
Data is at the heart of successful matchmaking, and distinguishes platforms from
other business models.
7
Business Model Design :-
• It is part of the business development and business strategy process and
involves design methods.
• During Designing Business Model 3 main things to be focused –
1. Economic consideration(information related to costing, pricing methods,
and revenue structure)
2. Component consideration(blueprint of how a company does business)
3. Strategic outcome(design of key interdependent systems that create and
sustain a competitive business)
8

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Examples of Business Models :-
1. Bricks and clicks business model - Business model by which a company
integrates both offline (bricks) and online (clicks) presences.
2. Collective business models - a science park or high-tech campus provides
shared resources (e.g. cleanrooms and other lab facilities) to the firms
located on its premises, and in addition seeks to create an innovation
community among these firms and their employees.
3. Cutting out the middleman model - The removal of intermediaries in a
supply chain.
9
Examples of Business Models :-
4. Direct sales model - Direct selling is marketing and selling products to
consumers directly, away from a fixed retail location.
5. Distribution business models
6. Value-added reseller model - is a model where a business makes
something which is resold by other businesses but with modifications
which add value to the original product or service.
7. Fee in, free out - Business model which works by charging the first client a
fee for a service, while offering that service free of charge to subsequent
clients.
10
Examples of Business Models :-
8. Franchise - Franchising is the practice of using another firm's successful business
model.
9. Sourcing business model - Type of business model that is applied specifically to
business relationships where more than one party needs to work with another
party to be successful.
10. Freemium business model - Business model that works by offering basic Web
services, or a basic downloadable digital product, for free, while charging a
premium for advanced or special features.
11. Pay what you can – Non-profit business model which does not depend on set
prices for its goods, but instead asks customers to pay what they feel the product
or service is worth to them.
11
Business Model Framework :-
• Business model frameworks represent the core aspect of any company; they
involve “the totality of how a company selects its customers defines and
differentiates its offerings, defines the tasks it will perform itself and those it
will outsource, configures its resource, goes to market, creates utility for
customers, and captures profits”.
• A business framework involves internal factors (market analysis;
products/services promotion; development of trust; social influence and
knowledge sharing) and external factors (competitors and technological
aspects).
12

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This document discusses developing a business model and business plan. It explains the key components of a business model, including value proposition, beneficiaries, operations considerations, product differentiation strategies, and growth strategies. Students are instructed to examine Google's business model and identify its value proposition components, beneficiaries, and differentiation strategy. The document also discusses different growth models and identifies Google's model as Greiner's growth model. Finally, it notes that developing a good business plan is important and provides links for students to learn more about business models and business plans.

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My report in EDU35- No one are allowed to download this file due to I acknowledge my sources. Thank you for consideration..

Different Frameworks :-
• Business Model Canvas - Strategic management and lean start-up template for
developing new or documenting existing business models.
• Business reference model - concentrating on the architectural aspects of the core
business of an enterprise, service organization or government agency.
• Component business model - logical representation or map of business
components.
• Industrialization of services business model - Business model used in strategic
management and services marketing that treats service provision as an industrial
process, subject to industrial optimization procedures.
13
Business Model Canvas :-
14
References :-
• Business Model Definition | Investopedia
http://www.investopedia.com/terms/b/businessmodel.asp#ixzz42rgMFLtg
• http://www.businessmodelgeneration.com/
15
Thank
You!!!
16

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What is a Business model?

  • 1. Business Model…!!! Vivek Deshmukh Email id:- vsdrocks467@gmail.com 1
  • 2. Why to know Business Model :- • Today, The new generation is buzzing with Idea of having their own business and everyone wants to start his own venture. • So the new generation is coming to know the term “Business Model”. • To me Business Model is the support structure to the basic Idea, Idea comes from imagination but Business model comes from Strategic Planning. • The Business Model should give answer to every question related to the Idea like WHY?, WHEN?, WHERE?, HOW? (Like W5H2 questions). 2
  • 3. What is Business Model? :- • A business model is the plan implemented by a company to generate revenue and make a profit from operations. The model includes the components and functions of the business, as well as the revenues it generates and the expenses it incurs. • poorly thought out business models were the downfall of many Businesses. 3
  • 4. Continued :- • Business Model is used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, business process, target customers, offerings, strategies, infrastructure, organizational structures, sourcing, trading practices, and operational processes and policies including culture. • The type of business models might depend on how technology is used. 4
  • 5. 6 Elements of Business Models :- 1. Acquire high value customers 2. Offer significant value to customers 3. Deliver products or services with high margins 4. Provide for customer satisfaction 5. Maintain market position 6. Fund the business 5
  • 6. Categorization of Business Models :- • V4 BM framework – The Four main dimensions encapsulating sixteen elements: Value Proposition, Value Architecture, Value Network, and Value Finance • Shift from pipes to platforms – In the case of pipes, firms create goods and services, push them out and sell them to customers. Value is produced upstream and consumed downstream. There is a linear flow, much like water flowing through a pipe. Unlike pipes, platforms do not just create and push stuff out. They allow users to create and consume value. 6
  • 7. Categorization of Business Models :- • Platform business models – 1. The Toolbox creates connection by making it easy for others to plug into the platform. 2. The Magnet creates pull that attracts participants to the platform. 3. The Matchmaker fosters the flow of value by making connections between producers and consumers Data is at the heart of successful matchmaking, and distinguishes platforms from other business models. 7
  • 8. Business Model Design :- • It is part of the business development and business strategy process and involves design methods. • During Designing Business Model 3 main things to be focused – 1. Economic consideration(information related to costing, pricing methods, and revenue structure) 2. Component consideration(blueprint of how a company does business) 3. Strategic outcome(design of key interdependent systems that create and sustain a competitive business) 8
  • 9. Examples of Business Models :- 1. Bricks and clicks business model - Business model by which a company integrates both offline (bricks) and online (clicks) presences. 2. Collective business models - a science park or high-tech campus provides shared resources (e.g. cleanrooms and other lab facilities) to the firms located on its premises, and in addition seeks to create an innovation community among these firms and their employees. 3. Cutting out the middleman model - The removal of intermediaries in a supply chain. 9
  • 10. Examples of Business Models :- 4. Direct sales model - Direct selling is marketing and selling products to consumers directly, away from a fixed retail location. 5. Distribution business models 6. Value-added reseller model - is a model where a business makes something which is resold by other businesses but with modifications which add value to the original product or service. 7. Fee in, free out - Business model which works by charging the first client a fee for a service, while offering that service free of charge to subsequent clients. 10
  • 11. Examples of Business Models :- 8. Franchise - Franchising is the practice of using another firm's successful business model. 9. Sourcing business model - Type of business model that is applied specifically to business relationships where more than one party needs to work with another party to be successful. 10. Freemium business model - Business model that works by offering basic Web services, or a basic downloadable digital product, for free, while charging a premium for advanced or special features. 11. Pay what you can – Non-profit business model which does not depend on set prices for its goods, but instead asks customers to pay what they feel the product or service is worth to them. 11
  • 12. Business Model Framework :- • Business model frameworks represent the core aspect of any company; they involve “the totality of how a company selects its customers defines and differentiates its offerings, defines the tasks it will perform itself and those it will outsource, configures its resource, goes to market, creates utility for customers, and captures profits”. • A business framework involves internal factors (market analysis; products/services promotion; development of trust; social influence and knowledge sharing) and external factors (competitors and technological aspects). 12
  • 13. Different Frameworks :- • Business Model Canvas - Strategic management and lean start-up template for developing new or documenting existing business models. • Business reference model - concentrating on the architectural aspects of the core business of an enterprise, service organization or government agency. • Component business model - logical representation or map of business components. • Industrialization of services business model - Business model used in strategic management and services marketing that treats service provision as an industrial process, subject to industrial optimization procedures. 13
  • 15. References :- • Business Model Definition | Investopedia http://www.investopedia.com/terms/b/businessmodel.asp#ixzz42rgMFLtg • http://www.businessmodelgeneration.com/ 15