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Consortium for Service Innovation

Business Model

The business model is the recipe for success. It needs to address the value proposition the business is offering: define the differentiators in the market and identify the capabilities that enable the value proposition. Ultimately, it is the business model’s ability to create loyal relationships with customers that defines its success.

customersuccess.png

Reference: Business Model Warfare by Langdon Morris, Innovation Labs

 

What is support’s role in the Business Model? Clearly support has to be an integral part of the company’s Business Model. 

Considerations for support as part of a business model

  • Multi-vendor model – making the life of joint customers better
    • Who gets paid when collaborating on a problem, how does the whole model work
  • Segmentation vs focus element of cannibalization
  • Consumer vs enterprise data
  • Open Source changes the dynamics of services (services are now the product)
  • Software as a service (salesforce.com), pay for what you consume.
    • Not predictable the way annual maintenance was
  • Separating license price from maintenance price
    • Remedial support
    • Value added services
  • Indirect model do the customers see the value
    • What are the value added services
    • How to justify the cost
  • Awareness
    • Detractor ------> Attractor (web 2.0)
  • Risk, trust and vulnerability
  • Input from customer participation to create an environment for success
  • Value proposition/experience
    • Ability to articulate
    • Support – loyalty renewal
  • Capability
  • Input from customer-participation
  • Economic modelbusinessmodel.png
    • Financial management
  • Demand management – financial management
  • Value proposition
  • Demand management
    • Positive demand
    • Disruptive demand
  • Scope – when does support start? Design
  • Facilitate persistent learning process -> value (include customer)

 

 

Traditional Model

New Model

Our productivity The customer's productivity
Control Alignment
Mission statement Vision
Objectives Purpose
Rules Values
Short/variable life cycle Sustainable life cycle

Internal

  • Capacity
  • Capability

Network for

  • Capacity
  • Capability
Kill your competition Co-opetition
Business stops frequently to reorganize (static) Business never stops reorganizing (adaptive)
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