Posts Tagged ‘business model’

When I watched TED’s great lecture by David Kelly entitled “How to Build Your Creative Confidence,” I thought about my climbing. When you climb, you need complete self-confidence and you must have trust in the other climber, who is on the same rope with you. I see a bond between self-confidence and trusting others with survival. When you are in a precarious situation, if you are climbing with a stranger or are in an unknown area, your level of uncertainty can be very high. I always had a healthy appreciation for the dangers of upcoming climbs, and somewhere inside me, I felt the thrill of fear. However, after having accomplished a large number of such climbs, I have transformed that fear into respect, and I believe that change took place due to my acquiring a lot more self-confidence. Now, when I listen to Pink Floyd’s “Learning to Fly,” it reminds me of how I used to feel before and how differently I feel today.

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Confidence in yourself and trust in your companions are  important values in climbing. The same is the case with respect to business ventures. Customers will not buy your product or service if they don’t feel a sense of trust in you. Your sales and marketing personnel can’t sell a product if they do not have self-confidence and/or lack confidence into the product. It is difficult to do business if you don’t fully trust a partner to fulfill agreements. How can we trust a partner if he doesn’t pay invoices for work done properly, as agreed?Somebody who isn’t confident in his product and who lacks self confidence can’t be successful.

When I  worked for a company as Chief Financial Officer, responsible for payments, I had the opportunity in the early nineties to meet with a sales director He reviewed our invoices during the meeting, amended  the contractual payment period on those invoices, and changed the payment dates from 60 days to 90 or even 120 days. That was an outrageous violation of my climbing philosophy. Yet, this shoddy practice has been maintained in Slovenia till today, and has resulted in in a lot of uncertainty for businesses here. The larger companies with their legal staffs are adept at exploiting our too flexible rules and too compliant institutions. Payment schedules in many cases may extend to one year, and some obligations are never fulfilled. This changing environment has given  rise to business uncertainty, and this uncertainty grows worse every day.

But what can be done to reduce such uncertainty and to restore a healthy business climate?

When I was first climbing an exposed wall and the muscles in my arms hurt from the stress, I often thought, “What if I fall?”  I feared losing my strength and my grip while testing my limits with top rope protection. However after having climbed so many walls, now I have stopped thinking about anything except the next grip and how to grasp it. So, by raising my self-confidence, I have started to trust those who have the same level of mastery as I do and those who are more  skillful and experienced than I.

In the business world ,it is much more difficult  to attain such expertise than it is in climbing because many more circumstances can affect one’s confidence in the execution of activities; there are a much greater number of variables. For example, we need to recognize the building blocks of a business model that have the most impact on operations and stakeholders’ activities. These building blocks include  partners, employees, clients, customers, funders, etc.. Trust is not static; it has to be assessed on both an emotional  and a quantitative level. Only when we have made these assessments, can we start to think about solutions.

How can solutions that will reduce uncertainty be developed?

We need to create personal business models, ones which help us to transform our ideas into action on a personal business model canvas. In the testing phase, we must check customer confidence in our ideas and in how much trust exists between ourselves and our partners . By doing so, we can create our own self-confidence. Tests are essential parts of the learning process and help us in the process of “guided mastery,” as David Kelly calls it

Uncertainty can be reduced by checking the confidence level of a company and can easily be checked by creating a business model canvas. Increased business confidence is one of the most important results of business model testing. We can compare the quantitative level of confidence (for example, delay of payments, quality of orders, etc.) with the qualitative level of confidence. Then we can use the results to create more complex business model combining cases, ones in which our business model and those of our partners, owners and other stakeholders are involved.

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If we want to work with a partner, they must help us in one of the following three areas.
1.       They should have to perform tasks that are associated with the execution of our processes.
2.       They must solve problems which we do not have sufficient resources to implement, or we do not have the expertise to resolve them.
3.       They have to help to satisfy needs that we have in the company. One of these needs is the need to communicate.
If the partner does not help in any of these areas, then it is pointless to cooperate with them.

What do partners have to give?
When choosing a partner company, it is useful to analyze its business model and figure out how we will be treated. We are going to be their customers, co-creators, and/or intermediaries, any or all of the foregoing. Is such a successful relationship going to be possible?
If you find that the company’s response is too rigid, then you have to find a more flexible partner.

Partners have to give…
Many companies in Slovenia assess potential suppliers. However, most of these assessments are not  made ​​in terms of the business model. They look only at estimated criteria of price, quality, personnel response, documentation management, etc. While these are all important factors, neglecting to analyze a potential supplier’s business model can easily result in a failed relationship.
Consequently, it is vital to realize that companies can have great benefits from an audit that analyses the conformity of the partner’s business model combined with their business model. The models have to be  compatible; otherwise, the companies won’t be able to work together..
If we assess our business model in terms of business model combining with the models of partners, we need to develop a business model combo which will help finish tasks, solve problems and meet all our mutual needs.

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English: 油麻地 Category:March 2010 in Yau Ma Tei...

English: 油麻地 Category:March 2010 in Yau Ma Tei Category:Hilti Group 喜利得集團 Category:Shops in Yau Ma Tei 地鋪 & Category:Hamilton Street, Hong Kong Category:Fleet vehicles in Hong Kong 公司車 Category:Evening in Yau Ma Tei (Photo credit: Wikipedia)

Help partners succeed, if you want to succeed.

 

When a company creates a new business model, it must verify that its latest model is compatible with the business models  of its key partners. The question should be whether the existing and prospective users of the company’s business model are willing to improve or implement innovative solutions. If a partner’s business model doesn’t integrate well with the  new business model, it is advisable that the partner create a novel model or alter its present one in order to serve the common goal: Making the combined  business models or innovative products within those  business models successful. To understand this process better, it makes sense to analyze a number of examples.

One such example is certainly Hilti. Hilti  developed a gun for concrete anchors a few years ago. Such anchors firmly attach  cables to concrete surfaces.  This new product allowed  users to omit some activities , which had previously been necessary and, at the same time,  made  the whole procedure shorter and less expensive. Thanks to  this innovative method, it was no longer necessary to drill holes, insert anchors, etc. However, if Hilti wanted to create a wide distribution of this product, it would first need to convince potential users. AFter that, these users would have to develop a fresh, more effecvtive business model for  their corporation. Therefore, Hilti decided that it made sense to train the company employees of potential users. This was a simple, yet very effective, way to present new technology. As a result, those firms that have opted for this technology have gained a competitive advantage over the competition and enjoy Hilti’s constant support. Hilti’s business model combining process inspired  innovation of the users’ business models, and consequently, their products/services have become more successful and efficient. Having successful  partners helps ensure Hilti’s continued success .

Hilti used training as an excellent  distribution channel to spread its new product and services among potential users. Moreover, by doing so, Hilti gets feedback for potential improvements, based on the needs and desires of potential customers at  the same time. Prospective and existing users get the information, skills and opportunities to innovate their business models. Hilti helps partners succeed so that everyone achieves  success.

 

 

 

 

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Can a Personal Business Model Be Combined with an Organizational One?
Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers describes a framework for thinking about what an organization offers, who its customers are, and how an organization creates value.
Business Model You: A One-Page Method For Reinventing Your Career provides guidelines and a framework for thinking about what we want, what we have, what we do, how we help those who help us, and who we help.
We can create a personal canvas which helps us find out when our personal business model can fit into an organization’s business model. The “Business Model You” canvas can help us find an organization for which we can work passionately because we can combine models with the same goals to achieve personal and organizational benefits.

What We Have to Know If We Want to Implement a Business Model Combo:

1.    If we want to combine Business Model Canvases with the Business Model You canvas, we have to understand the process of creating both kinds of business models.

2.    We have to know our pains and gains.

3.    We have to know an organization‘s pain and gains.

4.    If we can relieve an organization’s pains or help to achieve gains, we can work for that organization.

5.    But such an organization has to satisfy our expectations

6.    We have to test our hypotheses by means of canvases.

7.    Go ahead and try!



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I’ve joined a group which works on new sport devices for training; we brainstorm hypotheses of new business models. One original product that we created enables an innovative approach for recreational and professional sportsmen. We were able to answer the question “how to make the product” quickly and easily. However, the project starts to become more complex when we try to rethink value propositions, add supplement services, and put all the considerations in the context of  financing.
Our goal is to find out what jobs recreational and professional sportsmen want to get done, and if our product and supplemental services will help them to reach their objectives. We are focusing on the “who” side of the business model and distribution channels. Therefore, we start by discovering who our potential customers may be.
The new product and services will have a better chance of success:

  • if the group of customers who like this inventive way to use technology is large enough
  • if the product helps this same group of customers get their jobs done .

 

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Techno cake presently has forty-nine members, and that number could, and most likely will,  increase with each talk. Techno cake can exist in the long run only if we have a sustainable business model that extends beyond just  profit.  This is the  reason that I created the prototype of the Techno cake business model and now, to further develop that prototype,  I need  to brainstorm with the current members of the movement.

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Business Model Canvas, Osterwalder, Pigneur & al. 2010, CC BY-SA 3.0.

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Syndicom, founded in 2000, is a leader in on-line collaborative communities for medical practitioners and medical device companies. Its business model has established a platform for a community of spinal surgeons who meet virtually and share information about patients to further the development of new therapies. Syndicom also offers medical device companies private, peer-to-peer medical education, collaborative product development, and real-time sales support.

Syndicom’s R&D team combines the business models of many surgeons into the Syndicom business model. They form a crowd source for the Syndicom value propositions for the R&D of service (for orthopedic, trauma and spinal cases) and peer to peer medical education. The surgeons involved are the same-time partners and customers of the Syndicom value propositions of products and services. Syndicom has its own offer as a value proposition for membership into Syndicom, R&D database information, and real-time service.

Companies which offer medical devices combine their business models into the Syndicom business model because by doing so, they can sell on-line to clinics or hospitals where surgeons work. The Syndicom network brings a value proposition to its members and can enable best client relations.

Syndicom’s cost structure is based on the key costs: the R&D of services cost, the platform management cost, and the platform maintainence cost. These are mostly fixed and are determined by the number of network members. Syndicom gets a revenue stream from membership fees, on line sale fees, and advertising fees.

Why should surgeons and medical device producers join the Syndicom business model? Surgeons can gain the opportunity to co-create new products/services, to use other services, and to profit from the know-how and experiences of other surgeons. Medical devices producers join the network because it offers them an on-line channel to many potential customers.

Business Model Canvas, Osterwalder, Pigneur & al. 2010, CC BY-SA 3.0.

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You have to answer this question if you want to know whether or not you can combine your business model with other business models. If you have indispensable elements in your business model, then copying it will be very difficult. When you offer something different, other companies will want to work/ collaborate with you. However, if you don’t have unique solutions in your business model other companies can copy your products/services very easily.

Of course, one reason other companies might want to collaborate and work with you is if they like your products or services, which you offer at a low price. However, that arrangement will last only as long you have the lowest prices. Should they find a competitor that offers an even more attractive deal, they will desert you without hesitation.

If you want to combine business models successfully, you have to create a unique business model.You have to answer the question: How do I play the game? If you don’t create a unique business model, one that is different from those other companies either already have or can create, what game can you play? It could well be a losing game of low prices, low margins, and 0 profits. You could be constantly fearful for the continued existence of your business.

A necessary condition for successful business model combining is that companies have to combine business models with complementary and indispensable business model ingredients. Businesses collaborate because they have a vital need for each other in order to ensure the creation of substantial value.

Wi Fi Kos

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Can we combine the business models of the wireless future of medicine with a low- budget business model for athletes?

We can see from the video that is possible to monitor the vital functions of athletes with wireless technology. We can measure their heart rates, oxygen use, sleeping process, etc. Some Individual athletes can’t their have own medical teams, but they can do continuous measurements with apps on mobile devices. That service will enable better monitoring of athletes’ performance with a much lower budget. One medical team of specialists can monitor and advise more athletes or more teams of athletes online.  An athlete’s trainers can easily plan training phases, and individual athletes can be in top form for competitions,.

I think that business models of the wireless future of medicine could be combined with business models for the future of sport.

more about “YouTube – Eric Topol: The wireless fu…”, posted with vodpod
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I had series of workshops in the less developed local community of Makole, situated in the scenic area of Haloze. The municipatry is surrounded by many hills, where limestone caves and impressive canyons can be found.  In addition, there are  forests, vineyards and meadows dotting the landscape, and Štatenberg castle is a famous local attraction.

A large section of Haloze is part of the EU project Natura 2000, which extends environmental protection to the flora and fauna found there. Naturally, tourism has a high economic priority, and the local community wants to increase the number of tourists so as to raise revenue. Therefore, I had a fundamental question for the participants in the workshop:” What is your value proposition for me as a potential tourist to Makole?”.

By proposing in my introduction to the workshop that the local residents could help formulate solutions with regard to tourist value propositions for their community, I unwittingly provoked some opposing views. Two ethnologists present at the workshop protested that such solutions could be devised only by academics in higher-level institutions in Ljubljana and that workshops whose purpose was to elicit suggestions from the local community were unnecessary and would prove unavailing.

However, when we proceeded with the workshop, it quickly became apparent that the local people had some great ideas, such as vineyard cottage accommodations, an open train for tourists, a grape harvesting event  and others.

This workshop confirmed the importance of some kind of crowdsourcing to create fresh ideas and propose new potential projects. Local residents who know the real problems and resources of the community are the best source to provide relevant, practical suggestions. We used brain-storming methods and the creative talent of the local inhabitants to find the right answers and to offer constructive input.

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