TEchNOLOGy TRaNSFER MODEL - Javna agencija

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2 BUSINESS <strong>MODEL</strong>S 2.4.4 Customer Interface The customer interface defines how your products and services get to your customers and how your customer interfaces should be designed. The following questions are relevant: • What are our main distribution channels? • What‘s our pricing policy? • What customer service do we offer? • How do we bind our customers to the company? When developing new business models try also to think about new kinds of customer interfaces such as for example the Web 2.0. which offers numerous ways of interaction with existing, but also potential customers. 2.4.5 Value Chain The value chain is an essential part of any business model. It describes the categories of activities within and around an organization, which together create a product or service. A company should ask itself: • What are our core processes and what‘s the degree of vertical integration? • Where are the locations where value is generated? • How do we generate value? • How is the organization structured? • How do we handle logistics? The concept of the value chain was developed in relation to competitive strategy by Michael Porter. The graph shown is a representation of a value chain. Graph 3: The Value Chain within an organization Primary activities are directly concerned with the creation or delivery of a product or service and comprise inbound logistics, operations, outbound logistics, marketing and sales and services. Each of these groups or primary activities is linked to support activities. Support activities help to improve the effectiveness or efficiency of primary activities and comprise procurement, technology development, human resource management and the firm’s infrastructure. Value Chain Analysis is one way of identifying which activities are best undertaken by a company itself and which are best provided by others (outsourced). In addition it can be used to determine strategies where competitive advantages (cost or differentiation advantages) can be sustained. 21
KNOWLEDGE FOR BUSINESS IN BORDER REGIONS 2.4.6 Co operations A strategic alliance where two or more organizations share resources and activities to pursue a strategy can be of vital importance especially to a small and medium size enterprise in a technological industry. When developing or assessing your business model carefully evaluate: • With whom do we co-operate? • With which companies do we have alliances? • Do we have equity holdings? • What‘s the structure of our suppliers? The key success factor to any cooperation is that each partner involved is certain about the aim, the means and the conditions of the cooperation. No organization should feel exploited or betrayed by its partner. Open and honest communications and a relationship where the partners trust one another are therefore very important for the success of a cooperation. 2.4.7 Concepts for the future Concepts for the future comprise the area of a business model that deals with technology- and innovations management. In this context, try to find answers to the following questions: • In principle, what extent of innovation orientation is aimed at by the company? • Is the object of innovation orientation primarily the development of new products or new markets? • What future technologies are with which intensity further pursued? There are many different tools you can use when elaborating on these questions. One example is the Ansoff-Matrix. To portray alternative corporate growth strategies, Igor Ansoff presented a matrix that focused on the firm’s present and potential products and markets (customers). By considering ways to grow via existing products and new products, and in existing markets and new markets, there are four possible product-market combinations. Ansoff’s matrix is shown below: Graph 4: The Ansoff-Matrix Ansoff’s matrix provides four different growth strategies: • Market Penetration - the firm seeks to achieve growth with existing products in their current market segments, aiming to increase its market share. • Market Development - the firm seeks growth by targeting its existing products to new market segments. • Product Development - the firms develops new products targeted to its existing market segments. • Diversification - the firm grows by diversifying into new businesses by developing new products for new markets. Selecting a Product-Market Growth Strategy: • The market penetration strategy is the least risky since it leverages many of the firm’s existing resources and capabilities. In a growing market, simply maintaining market share will result in growth, and there may exist opportunities to increase market share if competitors reach capacity limits. However, market penetration has limits, and once the market approaches saturation another strategy must be pursued if the firm is to continue to grow. 22
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TEchNOLOGy TRaNSFER MODEL - Javna agencija

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