Innovative Business Modeling Techniques
As much as Made4U is about inventing and refining innovative technologies to render possible commercially viable value chains that will produce personalized spectacles (frames, lenses, incl. treatment and tinting), it is very much focused into testing innovative bring-to-market business models. The first work package of our work is devoted to analyzing planned phases and value chain activities from a cost structure viewpoint based on an approach known as "Value-Added Stack". However, this is only part of the modeling story.
Dr. Alexander Osterwalder, EPFL (Lausanne), has recently launched a generic template that can be readily used to create comprehensive and holistic business models. This template Osterwalder calls the Canvas. Such an approach guides businessmen and product strategists in their formulation of the necessary elements that will constitute their bring-to-market business models. Via the Canvas one seeks answers to a number of questions, grouped in two sets. The Demand set, addressing the customer facing aspects of the model and the Supply set, concerned with the resourcing and production aspects of the model:
DEMAND:
1. What is our value proposition (what is our offer and how is it different from competitive offers)?
2. Who is our customer (define targeted market segments)?
3. How do we connect with our customers (customer relationship aspects)?
4. How do we reach our customers with our products (the sales and delivery lifecycle channels)?
5. How do we make money in this process (revenue streams)?
SUPPLY:
6. Which are our Key Activities (platform maintenance, production lines, etc...)?
7. Which are our Key Resources (Intellectual, human, physical assets, brand,...)?
8. Who are our Key Partners in all this?
9. What is our cost structure (so that profits can emerge from the operation)?
As mentioned earlier, the tasks under point 9 above are analyzed in extended detail in WP1. On the other hand, based on the conclusions and recommendations of WP1, the Work Package for Dissemination and Exploitation (WP8) will focus on the remaining aspects of the Osterwalder Canvas for the Made4U consortium to complete the business modeling work needed to accompany the project Plan for Use and Dissemination of Knowledge.
For additional detail on this approach feel free to download and read the PDF presentation provided in our downloads section.
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