A business model describes the rationale of how an organisation creates, delivers, and captures value. We believe a business model can best be described through nine basic building blocks that indicates the logic of how a company intends to make money. The nine blocks cover the four main areas of a business: customers, offer, infrastructure and financial viability. The business model is like a blueprint for a strategy to be implemented through organisational structures, processes, and systems. Here is the nine blocks:
- Customer Segments
An organisation serves one or several customer segments
- Value Propositions
It seeks to solve customer problems and satisfy customer needs with value propositions.
Value propositions are delivered to customers through communication, distribution, and sales channels.
- Customer Relationships
Customer relationships are established and maintained with each customer segment.
- Revenue Streams
Revenue streams result from value propositions successfully offered to customers.
- Key Resources
Key resources are the assets required to offer and deliver the previously described.
- By performing a number of key activities.
- Key Partnerships
Some activities are outsourced and some resources are acquired outside the enterprise.
- The business model elements result in the cost structure.
The AHi can help you design your own unique business model with the view of making money through delivering a demanding value proposition. Call us today for an appointment.
Visit our website at www.ahiwc.com for more details.