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Types and examples of business models. What is a business model? Overview of definitions Every business model should contain

business model". If we move away from economic terminology and try the Business Model (BM) - this is the very essence of the business, the ideal system by which it should function. The BM can be described in words or expressed graphically, but most importantly, it should give the answer to the question: how do you make money?

The business model defines the startup's place in the value chain. A business model is a system consisting of business components such as entrepreneurship, strategy, economics, finance, operations, competitive strategies, marketing, and company development strategies. Based on this, you can determine the main points that need to be considered in the business model from the very beginning:

1. Product.
2. Consumers.
3. Marketing (sales channels).
4. Suppliers and production.
5. Market (type, volume).
6. Competitors.
7. Finance (structure of expenses and incomes).
8. Non-economic factors that may affect your business.

Business Models for Internet Startups

Currently, 99% of companies have their representation on the Internet in the form of a website or a page on a social network, regardless of the field of activity. This is primarily due to the fact that the way of thinking of an ordinary person has changed. Think about what you would do if you needed to learn more about a product or service that you saw or heard advertised for? What will you do if you need to find out where you can find the best deal on the price of a new smartphone? Where to watch a new movie with friends? The list of questions can be continued indefinitely, and the answer will be one - on the Internet.

The size of the e-commerce market is constantly growing (see figure 2.1).

In the field of Internet startups, there are now many areas that are in the zone of special attention of investors. Such directions form trends, here they are:

• cloud technologies;
• education;
• media and advertising;
• game industry;
• social media;
• electronic commerce;
• safety;
• crowdsourcing;
• mobile applications;
• content creation (including user-generated content);
• startup financing;
• business software.

In all these areas, various projects can be implemented. There are a number of popular business models on the Internet, for example:

• intermediary;
• advertising;
• informational;
• trading;
• production;
• partnership;
• community;
• subscription;
• by consumption.

Consider the most popular of them.

Paywall business model

The business model based on paid access is popular in the b2b (business-to-business) segment, especially in the SaaS (software as a service) model - a business model for selling and using software, in which the supplier develops a web application and independently manages them, providing the customer with access to the software via the Internet. The main advantage of the SaaS model for the service consumer is the absence of costs associated with installing, updating and maintaining the equipment and software running on it. Users pay a monthly subscription fee for using the service. The advantage of this model is obvious (you don't sell everything at once), and in some ways it's easier than selling ads. In addition, there is a solvent audience in the b2b segment (this is a very important point, since paid access for b2c (business for individual buyers) is not very attractive to the audience, you can immediately recall such a model only for Linux Format and Popular Mechanics magazines).

Freemium model

Business model based on paid additional services. This business model is used by various sites, for example, when the user's profile is raised higher in the search results for SMS. Online games have recently also been working on this model. Access to the main service or content is provided completely free of charge, and they earn on various additional services, including selling virtual goods for real money that strengthen the position of the player. Figure 2.2 shows an example of a standard registration page for a Freemium site.

Rice. 2.2.

Business models based on paid placement

There are various websites dedicated to certain services. For example, catalogs of restaurants in a particular city. They are free for users. And they earn by receiving funds from restaurants that want to be in the catalog. Among the sites of such a plan, there are many travel portals with information from travel agencies and hotels. This model is also quite viable in the presence of a popular site.

Infomedia business model

Infomediary is about building a business based on providing data and web analytics, such as:

advertising model

There is a difference in the effectiveness of banner and contextual advertising. Until recently, big money could be attracted for placing banners. But even today, and some time ago, it is not so easy to earn a lot on such a model. Firstly, your resource must have a sufficiently large attendance - about several tens of thousands of visitors per day. Secondly, the theme is important. You need to clearly imagine the audience of the resource, contacts in advertising agencies or a good (experienced) sales manager who knows how to build business communications will not interfere.

Now let's look at the classification of business models. Probably the most comprehensive classification of e-commerce business models is "Business Models on the Web" by Professor Michael Rappa. The main categories of business models include:

1. Intermediary (Brokerage). Organizations receive a percentage or fee for transactions, most often in business-to-business (B2B), business-to-consumer (B2C), or consumer-to-consumer (C2C) segments. This includes not only all kinds of exchanges and resellers, but also payment systems that receive their percentage of transactions.
2. Advertising (Advertising). Revenue comes from displaying ads or user referrals to advertiser sites; the functionality of the site often serves to attract a mass audience or target advertising.
3. Informational (Infomediary). Income is obtained through the sale of information: audience data, meta-intermediaries between sellers and buyers, and others.
4. Trading (Merchant). Direct sale of goods and services.
5. Production (Manufacturer / Direct). Here, the manufacturer of the goods benefits not due to the Internet as such, but due to the reduction of the "distance" between him and the consumer of his products.
6. Affiliate (Affiliate). Again, a kind of advertising model, where income comes from the owners of partner sites in exchange for incoming buyers (visitors).
7. Community (Community). Here the name of the class of models characterizes not even the source of income (it can come from the sale of paid services, advertising or donations), but the environment where this income is generated.
8. Subscription. Revenue comes from users who subscribe to certain services.
9. By consumption (Utility). The "antipode" of the subscription model, where a certain service is also provided to the client, but the form of payment is based on the traffic consumed / information received or other quantitative indicator, but not on time (as is the case with the "classic" subscription).

These models can be implemented in various ways. In addition, a company may combine several different models in its overall strategy.

The business model is the potential of the enterprise, its commercial partners, necessary in order to create, promote and deliver the product to the target audience; relationships with consumers and investments necessary to generate a sustainable income stream.

You will learn:

• What is a business model and how does it differ from a strategy.
• What is the business model.
• How a business model is built.
• How can you evaluate the effectiveness of a business model.

This term means one way or another. Distinguish between simple and complex systems. For example, the business model of a restaurant chain is to generate income through the fact that customers are invited to a comfortable place for a pleasant pastime and an exquisite, delicious dinner.

The sources of income for commercial Internet sites are more diverse and presented with numerous options. For example, some of the owners of this business provide free information or a service in order to increase the client flow. Commercial sites with high traffic levels can be an excellent place to place advertisements. Thus, their owners earn money by selling sites for commercial purposes. Another category of sites receives income from sales on the Web. These include, for example, online stores.

The financial business model is the link between:

1. those WHAT offers the enterprise (values ​​of the company that are of interest to customers).
2. WHO is the target audience and pays for the services offered.
3. HOW implementation (formation, distribution and sale) of this value to customers is ensured.

This connection is formed in such a way that the profit from the sales turnover exceeds the investments spent on the implementation of the chosen strategy.

The business model of an organization is a set of descriptions aimed at understanding the essence of the company management process and designed to:

• Development of a step-by-step plan for the development of the enterprise.
• Understanding the structure of the business function of the company.
• Answering a series of questions:

1. Who is involved in business processes, what roles does it play?
2. When and how is the commercial concept implemented?
3. In which departments of the company are specific business process models executed?
4. Improving the quality of cooperation and mutual understanding between organizational structures involved in decision making.
5. Implementation of a corporate information management system.
6. Opening opportunities and paths to certification.
7. Fast and effective training of new specialists, since business process diagrams are visual job descriptions.

The consumer portrait in 2020: how to adjust your business strategy based on trends

The editors of the Commercial Director magazine analyzed the trends in consumer behavior in 2020. The algorithm is suitable for any company.

What is the difference between business models and business strategies

The concept of the business model of an enterprise is often confused with the strategy, replacing one term with another, or implied as one of its components. This confusion stems from the fact that one definition is closely related to another, but not equal to it. Their differences are as follows:

• The factor of value creation and their transformation into income. A business model is intended to describe the way in which a company converts a given product or service into profit. And the strategy covers more distant prospects, creating a sustainable competitive advantage.
• Cost of business activity or income of the owner. Turning the value of the entrepreneurial business into the profit of the manager is not the main task of the business model of the project. This is the direct difference between this concept and strategy. Thus, the business model does not focus on methods of financing, but, nevertheless, it has a significant impact on shareholder returns.
• The level of qualification in the field of commercial activity. No special knowledge is required to form the business model of a company. In turn, the development of a strategy involves a more complex analysis, suggesting a certain level of awareness in the area where the enterprise is developing.

In order to visualize how the business model is related to the strategy, pay attention to the following formula presented by M. Levy:

V=MS, where

V - value, M - business model, S - strategy.

This formula demonstrates that an organization, in order to implement the chosen strategy, must determine the best business models that will serve as the basis for further development and creation of value for the target audience.

What are the types of business models

1. Manufacturer. Creation of physical goods, intangible products (music, films) or services. Who will be the target audience - the client or the distributor? The main task is the production of a demanded product and its subsequent delivery through an effective channel. There are three types of this business model:

• Direct marketing to the consumer involves the sale of a product on the website or through company-owned stores. The main advantages of this system are to get rid of intermediaries, increase income and build relationships with customers directly (with the help of free support, detailed product demonstrations, etc.).
• Sales to distributors and wholesalers and retailers. This business model involves the sale of products to specialized dealers who have multiple channels to reach end customers. Most manufacturing companies belong to this segment.
• Transfer of exclusive rights to distributors. In this case, manufacturing enterprises cooperate exclusively with one or more intermediaries, creating a monopoly on a particular product in a particular region and receiving a large income. For example, this category of sellers is represented by car manufacturers, film producers and book authors.

2. Distributor of goods and services. Intermediaries serve as the main link between the manufacturing company and consumers. Their task is to combine the products of various enterprises in order to scale sales. Distributors increase margins and reduce logistics costs. This market is characterized by fierce competition. The following types of this business model can be distinguished:

• Retail(including ecommerce) for a wide range of purposes, involving a huge number of products vertically. Consumers interact exclusively with distributors for all products, which is the value proposition of such a business. For example, Amazon and Walmart online stores adhere to this model.
• Niche Orientation(narrow focus). General retailing involves the sale of a wide range of products, and product specialization distributors work with a certain category of goods. Toys ‘R’ Us and Babyoye are examples of this business model.
• Club of personal sales. In this case, buyers pay a periodic membership fee, which gives them personal access to an exclusive system of discounts for top brands. For example, Costco, Sam's club, Gilt, Exclusively.
• One product per day. This sales business model is applied by Woot. Instead of selling hundreds of products, this company offers just one product per day at a significant discount. Manufacturers thus clear their warehouses very quickly, and the distributor sells goods in huge quantities. Users are daily provided with information about a particular product.
• integrated model. This system is used by traditional retailers who want to increase the customer flow at the expense of the Internet audience. So, consumers choose a product and pay for it on the distributor's website, and receive it in a warehouse, in a store.

Expert opinion

Successful business model when the product is sold piecemeal

Sergey Alekseenko,

Head of Distribution, Russian Branch, Bauer Media Group, Moscow

The business model that involves the sale of goods in parts is still popular. Partworks, various publications that come out with a certain frequency, at a predetermined time can serve as a vivid example. The principle of collecting is relevant for various goods, but is usually used as an additional, stimulating way to increase sales.

The main difference between a partwork and a regular periodical is that it is characterized by a clearly planned and fixed period of life. As a rule, this project is launched for 1-3 years, and then, as the theme of the publication is exhausted, it completes its work.

The formation of this business model largely depends on consumer interest. As a rule, the first trial issue of a publication is sold for a price two times cheaper than subsequent ones (from 50 to 100 rubles). In some cases, manufacturing companies determine the cost is lower than their cost to create a given product.

These costs will be repaid in the future through future sales. The tempting price of the novelty is combined with the unique design element of the product, embedded in its packaging - the most interesting in the entire collection. Thus, by involving the buyer in the game, the manufacturing company proceeds to the planned cost: the second copy of the edition costs several times more than the trial one.

Over time, the number of buyers will decrease, but this trend is foreseen in advance, so the company releases subsequent issues in a smaller circulation. The number of published copies of the journal is determined by the quality of the product, its relevance, concept, cost and uniqueness. The period when millions of copies were produced is long gone. Today, on average, from 200 to 400 thousand copies of the first issue are published. The duration of the release can be different - from a couple of months to several years. Consequently, circulations may also vary, but, as a rule, a complete collection of magazines does not exceed 170 issues.

Pathwork producers face challenges in attracting and retaining their target audience. To this end, they develop serious marketing work: they place ads, conduct various promotions and research.

Expert opinion

What does the business model structure look like?

Alexander Osterwalder,

1. Consumer segments. This section includes groups of people or companies that an organization sees as potential customers. The target audience is at the center of any business model. Without its own client base, no company will be able to receive a stable profit. And in order to best satisfy the needs of its customers, the company divides them into groups depending on their desires, behavioral characteristics and other characteristic features. The head of the enterprise must decide which groups are of interest to his activities. The development of the business model is based on the needs of customers in each segment.

2. The value of the offer. This section consists of a set of products or services of interest to each consumer group. Customers give preference to a particular company, focusing on the value or benefit offered to them. The enterprise, in turn, directs its activities to solving consumer problems and satisfying their needs. Each group has its own wishes, so it is important to create products or services that have a specific value and benefit for them.

3. Sales channels. This block contains information on how the enterprise establishes communication with a potential audience, distributes, delivers, sells products or services to each group of consumers. Focusing on these channels, they choose methods of interaction with customers. This plays an important role in the formation of a positive image of the enterprise in the minds of consumers. Sales channels are intended for:

• increasing customer awareness of the company's products and services;
• assistance in assessing the benefits (values) of the organization's proposal;
• providing an opportunity for the audience to purchase a product or use a service;
• guarantees of benefit to consumers;
• providing after-sales service to customers.

4. Relationships with clients. This section characterizes the features of the relationship of the enterprise with members of each group. The enterprise should determine which methods of interaction are most effective in communicating with these categories of consumers. Relationships can be either personal or automated. Communication with consumers performs the following functions:

• attracting an additional flow of buyers;
• retention of the client base;
• increase in sales.

5. Income streams. This section shows what cash flows are involved in the formation of the total income of the enterprise. Each firm must clearly understand what value each category of customers pays them for. Based on this, cash flows will be formed. By counting the approximate number of consumers, you can determine the total income of a particular business model.

6. Key resources necessary to create value proposition and deliver it to the customer, connect with the target audience, carry out the sales process, etc. Different types of entrepreneurship imply their own separate key resources. For example, a manufacturing company needs equipment and production workshops. There are physical, financial, intellectual or human resources. They can be rented, purchased or borrowed from partners.

7. Key processes. This section describes a number of the most important processes, functions, activities. In order to implement the business model in practice, it is necessary to create and maintain the activity of a certain set of key processes. These are the most important activities an organization needs to create, deliver, deliver value proposition, and develop customer relationships, etc. As in the previous case, key processes are determined by the type of business model.

8. Key partners. This section includes suppliers and partners. In some cases, partner companies are the backbone of the business model. Businesses form alliances to optimize their program, mitigate commercial risk, or share resources.

9. Cost structure. This section includes all costs necessary to implement the business model. All of the above blocks imply certain costs. These costs are determined by key resources, processes and partners. Some business models are more costly than others. The cost structure should be determined during the concept development process. Based on the resulting costs, you can calculate the expected income from a particular concept.

What the Generic Business Model Template Looks Like

Let's look at what parts business models consist of and how they interact with each other. The image below shows the elements of this structure and the main relationships.

In the center of the image is the Products/Services subsection. As a rule, the products themselves are not of interest to customers, since similar offers can be found in competing companies. For buyers, only the solution of their problems and satisfaction of needs on the most favorable terms for them is of value.

To understand what exactly you can interest the target audience and what are the advantages of your company, describe them in the “Offer” category. Each group of customers corresponds to a specific set of products or services.

Offering value to your customers is the foundation of your business. This element is the link between the needs of the client and your products (services). "Offer" contributes to the creation of income from the sale of goods (right side of the image) and the organization of business activities for subsequent sale (left side of the diagram). The formation of a profit stream implies certain costs (“cost structure”). By calculating the difference between the sum of income and expenses, you can determine the financial prospects of a particular business model.

Pay attention to the right side of the scheme (profit generation), consisting of income streams from the sale of certain products to a specific group of consumers. From this image, we see that a profitable offer is intended for a certain category of customers due to an established mechanism of relationships with the target audience. The company sends information to customers with a certain frequency, at specific stages of development of interaction, in order to convince them of the benefits of its offer for them, which further ensures the sale (sale) of products.

The basis of the company's contact with consumers are channels that differ depending on the stage of the relationship with customers: from the period when the business created its offer to the moment the product is purchased. There are five phases in total:

1) Notification. The purpose of this stage is to inform the consumer group about the available products and services of the company.

2) Belief. The main task is to help the client in evaluating the proposed benefit.

3) Deal. At this stage of interaction, the conditions necessary to carry out the process of purchasing a product or service are formed.

4) Delivery. In this phase, it is ensured that the consumer receives the product with the declared benefit.

5) After-sales interaction pursues the goal of organizing customer service after the product is sold.

The total profit is formed through offers, channels and consumer groups. In addition, each flow can be characterized by its own rules for establishing prices (for example, the creation of fixed price lists, the size of discounts, negotiated prices based on the volume of purchases).

The cash flows of the business model consist of:

• one-time payments made after each transaction;
• regular payment (for example, a subscription fee) for after-sales service of purchased goods.

The elements of the left part of the diagram contribute to the selection of the most effective tools (mechanisms of relations and channels) in order to obtain the highest possible total profit in the future.

The left side of the image shows the cost generation model in the process of creating a unique offer, its subsequent distribution, sale, delivery and collection of revenue from each flow. This scheme has all the elements that create conditions for the implementation of the proposal, and implies specific costs for this.

To sell products, a business must have key resources and processes (skills) that provide:

• formation of a certain value;
• creation and maintenance of interaction channels (in accordance with the phase and group of a particular client).

Key processes (or activities) refer to the necessary actions. Here, the main resources are used to implement the proposal. For example, for a trading company, the key process is the ability to sell their products. For the service center - not only the implementation of their services, but also their provision at the proper level.

Key resources may be provided by business partners. An example is the suppliers of products or raw materials. They can also perform key processes.

It is important to evaluate all the costs required to implement the company's proposal. Of course, the cost structure is directly related to the decisions made to generate profit streams. Any adjustment in this matter will result in a change in the total cost of the proposal.

The financial prospects of the enterprise are calculated based on the difference between income streams and total costs.

A business model is usually created and developed using a universal template, consisting of all the components and sample questions, by answering which you can decide on the best option for implementing your proposal.

This technique contributes to the creation and objective assessment of the development path of a business idea. You form several options, conduct a comparative analysis and choose the most effective and reliable model that will become the basis of the proposal implementation system.

How business models are built: step by step instructions

In order to create a business model, you need to answer nine questions in turn, entering the results in the corresponding cells of the template. You can draw up this diagram on A1 or A0 paper and place it on the wall, marking the answers with multi-colored stickers.

Step 1. We create a profitable part of the business model.

The central components of the model are the value proposition and consumer groups. These elements are closely interconnected with each other, so the questions should go strictly one after another. When answering the first question, you must assume the answer to the second. Conversely, the answer to the second question confirms the first. Let us consider in more detail the elements of the business model, which are described by the answers to the following questions:

1) What is the essence of your proposal? Answer the following questions first:

• What is the value of your offer to customers?
• What customer problem will you solve with your product?
• What needs will the client satisfy if they take advantage of your offer?
• What set of products or services are you offering to your target audience?

A value proposition always implies a specific value for a certain group of buyers, which is the characteristic of a product that satisfies the needs of the client. These properties of goods (services) can be both quantitative (cost, speed of service) and qualitative (shape, design, ease of use). Let's take a closer look at some of the characteristics that make up the benefit offer:

• Novelty. There are a number of proposals that satisfy a new set of requests that did not arise before due to the lack of this product (service). As a rule, this concerns technological innovations. For example, as mobile phones became popular, a lot of devices and accessories for them (cases, programs, special cords, etc.) were created.
• Performance. Optimizing the release process or increasing the speed of service is a traditional way of creating a value proposition. This approach is actively used in the computer industry, which every year produces more and more powerful equipment for consumers.
• Customization according to customer requirements. A great way to create value for a customer is to tailor a product or service to the customer's needs.
• "To always work." Consumers are loyal to those products that help them solve certain problems. For example, the Rolls-Royce company actively uses this principle: airlines buy aircraft engines from them along with a guarantee that this product will not be inoperative, which, in turn, makes it possible to concentrate all attention on transporting passengers without puzzled yourself a question about maintenance. In return, Rolls-Royce is rewarded for every hour the engines are running.
• Construction (design). In the field of fashion and electronic devices, this property is essential.
• Name/brand/status. There is a certain category of customers who prefer to purchase goods from famous manufacturers, which is an attribute of their belonging to a certain category of society.
• Price. Offering the same product at a lower cost is a standard way of attracting a category of consumers that is sensitive to the price of a product or service. Free offers such as magazines, mobile apps, etc. are very popular.
• Cost reduction. By helping to reduce the client's costs, you create a valuable offer for him. For example, you can reduce the cost to the consumer when implementing a service.
• Reduced acquisition risk. Usually, during the purchase, customers run the risk of purchasing the wrong product that they expected. For example, in such situations, dealers offer free maintenance for used cars for a year. Thus, they reduce the risks of purchasing a car with undetected defects.
• Availability. For example, mutual funds are material investments in shares with a small initial capital. As a rule, an amount of 30 thousand rubles or more is required for investment. While for a mutual fund it is enough to deposit only 1000 rubles, for students - 100 rubles.
• Ease of management and use. An example is the touch screen of a mobile phone, which provides a comfortable environment for operating the device.

2) Which customer groups will be interested in the benefits offered? Before answering this question, please clarify:

• Which consumer groups are ready to purchase this product or service?
• Who is the most important customer and is he in the 20% that provide 80% of the profits?

The following categories of consumers can be distinguished:

• Bulk Buyer. For the business model, there is no distinction between customer groups. Offer creation, distribution of channels and building relationships with the target audience are focused on customers with similar needs and common problems.
• Niche. This category of consumers is intended for a specific part of the customer group. As in the first case, the formation of value, relationships and distribution of channels is aimed at meeting precisely their needs and requests. This category is very common in a business built on the interaction of "supplier - customer".
• Segment. In some business models, each group of customers is divided into certain categories, whose needs and requests are slightly different. For example, the banking sector. They subdivide their consumers according to the amount of invested material resources, providing them with various offers of benefit (increase in interest with an increase in contribution).
• Mixed. Many companies offer value to two or more unrelated customer groups at once. For example, a newspaper of free ads provides information for readers, and publishing platforms for advertisers.

3) How will you contact customers (channels)? The answer to this question contributes to the formation of a model of interaction with consumers. Preview all five phases for each client group and choose a different way in which you will build rapport at each stage of relationship development.

For example, in order to sell digital products via the Internet, only three channels are involved: the site - throughout all five phases; e-mail - for the first, second and fifth; acceptance of payment (via electronic money, bank cards, etc.) - for the third phase.

4) How will you build and maintain relationships with clients? Answer the following questions:

• What interaction types need to be supported for each benefit offer?
• Which of them can be used for each group of clients?

What are the types of customer relationships?

• Personal. They are based on the interaction of employees with customers: specialists are engaged in service in the process and after the sale. This type of relationship can be carried out in the office, using e-mail, telephone, etc.
• Dedicated personal. This interaction model implies that a certain employee is assigned to each client in order to establish closer and deeper relationships designed for a long time.
• No relationship. In this case, the organization does not maintain contact with the consumer, relying on his independence in resolving the issues that have arisen.
• Automated. This is a modernized version of the previous type of relationship - the client is provided with a standard certificate, a website where you can find answers to common questions, etc. Thanks to modern developments, the company has the ability to form "pseudo" personal relationships through software.
• Groups, communities, forums. Their function is to provide contacts between members of the community to solve emerging problem situations through the exchange of information. These groups enable an organization to understand the needs and demands of its customers.
• Complicity. In many businesses, customer relationship policies go beyond the traditional approach, and executives invite consumers to participate in the development of additional value propositions. For example, online bookstore Ozon encourages customers to post their reviews of books.

5) What exactly will customers pay for (these are your sources of income)? Make a short list and include:

• What kind of value will the consumers of the group buy?
• How will payment take place?
• How much does each stream contribute to the total profit?

Consider the main ways of generating profit streams:

• The commodity is money. The company transfers the right to use a physical product, such as a book, an electronic device, a car, etc.
• User fee. Cash flow comes from the provision of services. An example is the per-minute payment for mobile communications, the daily payment for a hotel room, the delivery of goods by mail, etc.
• Subscription fee. For example, using unlimited Internet, fitness classes, etc.
• Rent/leasing. Transfer of rights to use physical goods for a certain period or with subsequent redemption. For example, bike rental, car rental, tool rental, etc.
• Transfer of intellectual property rights. For example, the privilege to translate and publish a book.
• Intermediary activity fee (broker's fee). An example of this business model would be a client paying a commission to a realtor after a successful real estate transaction. Thus, intermediary services between two or more participants are paid.
• Advertising. As a rule, the organizers of festive events receive a large percentage of the sale of places to place advertising content.

The main methods of value formation:

• Fix price. A clear price list for each product or service. The price is determined by the quantity or quality of the benefit offered. For example, additional options when purchasing a car or a smartphone. The price is directly related to the type and characteristics of the consumer group (private customers or commercial enterprises), as well as the quantity of products purchased (discount is possible).
• Dynamic pricing. This is the value that is formed in the process of negotiations. The price is determined by the time of purchase (depending on the season and time of day), as well as supply and demand. The auction price is set during the bidding process.

Step 2. We create the expense part of the business model.

The following questions determine which methods and resources should be involved in the implementation of this business model, what costs will follow.

1) What knowledge and technologies (resources) are needed in order to :

• create offers;
• form channels;
• maintain relationships with the client base?;
• get cash flow.

• Physical. Tools, production equipment, devices, marketplaces, etc.
• Intelligent. Brand, specialized knowledge and skills, patents, partnerships, copyrights, etc.
• Human. These resources are key to every business model. They play an important role when the activity of the organization is associated with intensive use of knowledge or creativity - lawyers, consultants, advertising agencies, designers, etc. Every business needs experienced salespeople.
• Financial. Own investments, credit funds, etc.

2) What key processes are required in order to :

• create offers;
• form channels;
• maintain relationships with the client base;
• get cash flow.

Key processes are divided into:

• Production. Those that relate to the direct creation of the proposal.
• Problem solving. Those that are related to the solution of issues that arise in the process of relationships with consumers in each of the five phases.
• Platform. Those related to business based on automated distribution of offers (web technology, payment terminals, etc.).

3) Do you need the help of partners? To answer this question, describe:

• Who are your partners.
• Who are your suppliers.
• What resources are you interested in business partners.
• What activities do they have planned?

There are three motivations for creating and maintaining a business interaction model:

• Optimization and economies of scale in production. It is not necessary that every company has all the resources at once. You can use partner funds to reduce costs.
• Reduction of uncertainty and risks. Business partners help you stand out in the fight against competitors.
• Obtaining specific resources or performing specific activities. For example, for the production of products, you must first obtain the appropriate license.

4) How much will the implementation of each proposal cost?

Carefully analyze all expenses and answer the following questions:

• Which business model requires the most investment?
• What resources are the most expensive?
• What processes will be involved?

Step 3. We evaluate the profitability of the business model.

So the model is built. Now it is important for you to evaluate how much income it will bring. The business model score is calculated using the following formula:

Profitability = The sum of all income - the sum of all items of expenditure.

Analysis of the business model by individual elements

When you design a business model, don't limit yourself to just one option. Your only decision may not be the most successful and profitable. Consider different options for implementing your business idea. Form several models in order to evaluate the effectiveness of various combinations of developing the benefit offer to the target audience.

Combining classic and new customer relationship techniques, develop at least five options. Evaluate the effectiveness and profitability of each of them, then choose the most profitable and best business model.

Before you start creating a project, keep in mind that you are evaluating the profitability of a model based on subjective assumptions. Before moving on, make sure that your forecasts are sound, otherwise you risk losing all your invested capital.

Which components of the business model are subject to verification:

1. Test the hypothesis that potential customers have a problem, How good is your product or service? Select a few loyal potential customers and give them a step-by-step “problem presentation” to assess whether your assumptions are justified.

The demonstration is intended to determine the content of the problem: at what point it occurs, how often, how annoying the potential consumer is.

Tentative plan for conducting a “problem presentation”:

• List a few problems that your product can solve.
• Ask the client to prioritize and highlight the most important.
• The consumer then describes how they are coping with the problem at the moment, and what their costs are in doing so.
• Briefly describe what solutions you see.
• Ask how the proposed method is convenient and beneficial for the client.
• Would he use it if it was free.
• Is the client willing to pay for this solution to the problem. It is advisable to specify a certain amount.
• Who else, in the opinion of the consumer, may be interested in this offer.

2. Create a product trial or a service that you think can solve these problems. Create a prototype which you will then show to your target audience. Your task during the presentation process is to understand whether this solution will help to solve the problem of the client.

The tentative structure of the “problem solution presentation” is:

• State the problem clearly.
• Demonstrate to the customer how your solution will get rid of the problem with a product demo.
• Re-specify whether the potential consumer is ready to pay a certain amount for solving an existing problem.
• Ask where exactly and how it will be more convenient for him to purchase this product.
• Ask for whom else, in the opinion of the client, this solution to the problem is relevant.
• End your presentation with a call to action (to conclude a contract or purchase a product).

3. Refinehow do your offers match the opinions of customers about this problem and how to solve it. You can easily draw conclusions, focusing on the number of transactions. If the level of sales is low, then adjust the characteristics of the problem of potential customers, or you will have to look for a different category of customers for your offer.

4 . When the presentation of the solution to the problem ends with a successful transaction, no changes are made to the description of the business model. Then we we finish testing and again evaluate the profitability of the updated model.

When you conduct your experiment, make sure that the channels you offer to communicate with potential buyers are as comfortable as possible for them. Check that they are effective in terms of mass demand for your product or service.

Once you've got all the answers and you're convinced that potential customers are interested in your product, then proceed to adjust the left side of the diagram to evaluate the profitability of the updated business model.

TOP 6 books about building business models

1) Yves Pignet, Alexander Osterwald “Building business models. Handbook of the strategist and innovator»

In this book you will find a unique system of analysis, formation and development of the business model of Alexander Osterwald, which is used by the world's leading companies, including Google, IBM, Ericsson. The authors demonstrate an easy and understandable method of visualizing the key components, which gives a logical explanation of why the organization chose this particular method of generating income. To master the Osterwald business model, you will need nothing more than a large sheet of paper and a block of stickers. With this simplistic approach, you will be introduced to the overall strategic picture of entrepreneurship. With the help of stickers with brief statements, you can easily learn the main elements of a business plan and combine them into a single system.

2) Oliver Gassman, Caroline Frankenberger, Michaela Schick Business Models. 55 best templates»

The profit of each organization is largely determined by the choice of the most effective business model. Analysis of methodologies is a great help both for start-ups and for those who seek to reorganize their business and make it as profitable as possible. In this book, you will get acquainted with the strategy for the formation and implementation of innovative models, as well as learn about the main stages and difficulties in this matter. The basis of this work are 55 business building patterns that are used by the most successful modern companies, and you will also learn how to apply them in practice.

3) Tim Brown “Design Thinking in Business. From developing new products to designing business models"

Now most progressive companies involve designers not to “embellish” ready-made ideas, but entrust them with development from scratch. Previously, the tasks of this specialist were limited to the scope of the existing project, now he is endowed with much greater powers. Design, as a process of thinking, has completely transformed, and its principles are relevant for a wide variety of fields of activity.

4) John Mullins, Randy Komisar “Finding a business model. How to save a startup by changing the plan in time

Even if an entrepreneur has carefully developed a business plan, received approval and funds from venture investors, this does not guarantee the success of the project. That is why it is important to have additional strategies that you can switch to in case of failure. This book will teach you how to correctly diagnose the effectiveness of your business plan and, if necessary, change course in a timely manner.

5) Chris Anderson "Long Tail"

This book is the result of numerous experiments and interactions with entrepreneurs and scientists. In it, the author presented an analysis of data relating to the sales and use of the services of enterprises that specialize in the Long Tail market, such as Netflix and eBay.

This book describes a fundamentally new business development model that is only gaining popularity.

The information is intended for those who sell their products on the Web, as well as for anyone who is not indifferent to the future prospects for the development of marketing on the Internet.

The book is written in a living language, and practical ideas can be applied immediately after you read it. It is actively gaining popularity, and experts in the field of Internet marketing leave the most rave reviews.

6) Eric Schmidt, Jared Cohen New Digital World

This book presents the big picture of technology development. This is not a fantasy genre. The book consists of vivid examples of modern developments, the main ways of their further development and the facts of how they can be applied in practice. It is in this area that the formation of tomorrow takes place.

The future is now, and the authors of this book are probably closest to it: Eric Schmidt (Chairman of the Board of Directors of Google, who served as CEO of the organization for ten years) and Jared Cohen (Founder and CEO of Google Ideas).

Information about experts

Sergey Alekseenko, head of distribution of the Russian branch Bauer Media Group in Moscow. The company's assets are represented by television channels, radio stations, 112 online projects and 396 publications in 15 countries. Since 2008, the company has been the sole distributor of Hachette Collections patchworks. Official site - www.bauermedia.ru.

Andrey Sooliatte, General Director and business partner of Finexpert.ru in Moscow. This company was founded at the end of 2004 by Andrey Sooliatte, Vladimir Repin and Alexander Khalileev. In early 2010, the organization was renamed BPM Consulting Group LLC.

Anastasia Gushchina, general director of the representative office of the company Finnflare in Moscow. Field of activity: production of clothes, footwear, accessories for the category of buyers above the average income. Form of organization: holding. Territory: Russia, Kazakhstan, Finland. 25 own branded stores located in Moscow, St. Petersburg, Astana, Helsinki. Franchise network: 245 shops. Number of staff: 400. Annual turnover:$107 million (as of 2007).

Business model- a logical schematic description of the business, designed to help in assessing the key success factors of the company. Strategic planning stage.

Term in English business model

A business model is a kind of organizational truth that only the organization's management team can develop. She must be long-term and answer questions: with whom? what? where? as? at what speed and scale?

The purpose of business modeling is to create a reliable, visual and easy to understand description of the company's activities. It can be a drawing, a diagram, a three-dimensional model, made according to certain rules. The most important thing is understandability and applicability.

Business model as striving for excellence

The term "business model" has different interpretations, but if we make the least formal designation, then it will be building a business that will be a cross between the client's ideas about the ideal company and the products and services that the company can actually offer.
Explain why the business model is an average? The fact is that all customers want to be served by a company that most closely matches their ideas of an ideal company: the lowest prices, the highest quality products, the most complete service, the fastest service, the most convenient location, etc. Simply put, each element of a company's competitive advantage must satisfy customer requirements by 10 points out of 10 possible.
Naturally, such companies do not exist and cannot exist. If any enterprise can offer at least 50% of the “ideal set”, then its other criteria will already be very far from 10 points out of 10. For example, take a tailoring studio. If the quality of the material and fittings, the location of the atelier, the quality of the work of craftsmen and attendants, according to customers, correspond to “ideal indicators”, then not everyone will like the price level and the speed of work. But these are the conditions of the market - if a business entity were an “ideal company” for customers in all respects, that is, everyone would like it, but this enterprise would go bankrupt very soon.
Accordingly, the business model is about building a business to give customers a little more than you can, to the extent possible, not always being close to the “ideal”, but being in many ways better than competitors.
In order to determine the level of “success” of a business model, there is such an indicator as the ratio of the market value of an enterprise to its turnover.
If we talk about building a business model as a business development model in a documentary form, then it is an analysis of the initial data “as is” and target plans “as it should be”.
And, of course, the developed and implemented business model is not a permanent phenomenon. A business model cannot be made "once and for all", and be relevant throughout the entire period of the company's life cycle. The conditions of the external business environment are quite changeable, the enterprise is also developing. Therefore, all these changes should be adequately reflected in the business process model.

Structure

It is assumed that the description of the business model allows you to cover the organization as a whole, to concentrate on the main things, to detect "bottlenecks" and interdependencies, contradictions and alternatives that are either not detected during the usual scanning of the enterprise's activities, or look more or less significant than they actually are. deed. Working with the model of the enterprise theoretically gives a chance to significantly increase the efficiency of its activities.

Any business model involves three factors: benefit factor(what benefits does the company bring (to customers, partners)); cost factor and profit factor(how the money will be earned).

Types

Within the framework of the general approach to business modeling, models of various levels and purposes exist and are used:

• Strategic analysis models (all kinds of matrices: SWOT analysis, PEST analysis, BCG Matrix, McKinsey).

• Strategy models (7S, Porter competitive strategy model, Shell model, Hofer-Shandel model).

• Models (including standards) of various systems and approaches to managing quality, finances, personnel, customers, goals, deadlines, commodity flows, etc. (CRM, SCM, BSC, TQM, ISO Quality Management, PMI, SCM, BPM, KPI, MBO, HRM).

• Reference models (standard industry solutions that can serve as an example for other companies to follow).

• Essential business models (value chain model, Zachman model, self-learning organization model, architectural models, etc.).

Which model you choose, such will be the management, such will be the development ..., such, ultimately, the value of the company ...

Model search and selection algorithm

There are several factors to consider when choosing the right business model:

• Each company can take business modeling out of the competence of specialists in IT systems and into a top manager's priority.

• It is necessary to turn to the methods and models accumulated “in narrowly professional areas”: first of all, these are the models currently used in the formation of corporate information systems, it is equally important to expand the use of model developments from project management.

• Be sure to create a strategic model (long-term and answering the questions: with whom? what? where? how? at what speed and scale?) management team of this organization.

• Determine to what extent the company at this stage of development needs instrumental models, and to what extent it depends on the need models.

• Draw up a "map of the territories of existing and possible models." Build the levels (hierarchy) and relationships of the models used (the simplest graph that depicts the interaction and mutual influence of the BSC (Balanced Scorecard), management accounting and budgeting models, logistics, production, sales models).

• Determine, based on the map and the strategic model, what specific models (mechanisms) are missing, and, having started searching for and extracting models from the market, be sure to use several sources for one model.

• Avoid rigid sequences in business model development. First, we develop a strategic model, then a process model, and only then only a structural one. Today, the principle of parallel design (also called the “iterative boiler”) wins in speed.

• When creating an eclectic "model range" of company management, it is necessary to devote time specifically to checking the compatibility of certain models. For example, choosing the Adhocracy as a structural model (a community of creative workers performing flexible and diverse roles and responsibilities), one cannot simultaneously strive for cost leadership.

• When forming a holistic business model, use the “component approach” and the “open systems” method. Without these tools, you will run into system conflicts too often, i.e. unexpected and uncomfortable situations.

What are the benefits of the business model?

The business model of an enterprise is a set of graphical and textual descriptions that make it possible to understand the essence of the enterprise management process. These descriptions help reveal the answers to the chain of questions and solutions:

• Allows you to develop a step-by-step plan for the development of the enterprise.
• Understand the structure of the business function of the enterprise, their definition.
• Who and in what role performs business processes?
• When and in what sequence are business processes implemented?
• In what organizational structures is the execution of specific business processes?
• Improves cooperation and mutual understanding between executive centers, decision-making and responsibility cells.
• Implement a corporate management information system
• Opens up opportunities and paths to certification;
• Allows you to quickly and effectively train new employees, because business process diagrams are visual job descriptions.

Literature and references

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Today, many experts and specialists talk about business process models and talk about their effectiveness, but many novice businessmen and startups do not even understand what it is. In this article, we decided to figure out what this term is and in what cases it is used.

Introduction

A business model is a unique, nuanced strategy of a company, the main goal of which is to maximize profits. The model necessarily includes various values ​​and directions that the company can offer customers, that is, in fact, it describes the possible potential of the organization, the possibilities for creating a certain product and communicating it to the consumer in order to obtain a permanent income.

Scheme of the classic business model

For example, a restaurant model offers a cozy place for the visitor to relax, where he can have dinner and have a good time on his own or with his relatives/friends. The online store model involves the resale of certain products through the network and the receipt of a certain profit, and the commercial site - the sale of advertising or links.

So what is a business model? This is a kind of link between the offer of the organization, the target audience and sales of the company's goods. Bringing this into a single whole, we get the necessary development and work strategy aimed at maximizing profits. When developing a strategy, it is necessary to understand the nuances of the company's work in order to build a detailed plan for its development. She will answer the following questions:

1. Who specifically influences the conduct of business processes and what exactly he does.
2. What commercial idea works/will be implemented in the company.
3. Who exactly implements the normal course of business processes.
4. What activities need to be carried out to improve communication and understanding of processes between branches or departments of the organization.
5. How to establish an effective system that allows you to manage labor resources and train new employees.

What is the difference between strategy and model

Many entrepreneurs and managers often cannot answer the difference between a strategy and a model, confusing these terms or considering them identical. Actually it is not. The model is needed to provide an option for quickly converting the company's offer into profit, while the strategy captures larger time intervals and considers ways not so much to increase profits as to survive the organization.

Attention:the model, unlike the strategy, does not consider where resources and financing will be attracted from, it aims only to increase profits.

It is also more superficial, that is, when compiling, it is not necessary to conduct a detailed analysis of the market, find out how much the product is in demand, whether the staff is qualified to reproduce it, etc.

What is a business model

Popular types

Today there are many different models - it is almost impossible to describe them all. Therefore, we will consider the most popular kinds:

1. creator or manufacturer. It's simple - you create a certain product or product, and then sell it either to the final buyer or distributors (you can even sell products to one distributor, transferring exclusive rights to him).
2. Classic retail. The idea is simple - you buy a product from a manufacturer or wholesaler, selling it to the final buyer, receiving a certain percentage or markup for this.
3. Niche work. If classical retail usually offers customers a wide range of general goods, then niche work implies functioning in a narrow direction.
4. Personal sales. The company operates in the retail sector, offering a wide range of products to all visitors, but at the same time it has a certain circle of customers who have the opportunity to get nice discounts on popular items. To do this, clients need to pay fees to get into the “club”.
5. The only sale. Retail does not sell a huge assortment, but one type of product per day, but at a big discount. Thereby company selects stale goods from a supplier and makes hundreds/thousands of sales per day. Customers are notified about the sale of a new product in the chosen way - via e-mail, instant messengers, etc.
6. Integration. A fairly successful technique that allows you to increase sales through online stores for classic distributors. Buyers purchase goods from them, but at the same time they receive it through warehouses in a convenient place (or at the dealer's representative offices).
7. Franchise. A well-known way of doing business whereby a company grants the rights to use its trademark and a polished process to a franchisee who in return pays a certain percentage of the income.
8. Razor and blade. The classic way, which was developed in the middle of the last century. It implies the sale of a certain product cheaper than cost, provided that the second product is sold with a good markup. As an example, you can consider Gillette razors - the razor itself is inexpensive, but the cartridges are tightened by a serious amount. The second example is printers - a cartridge can cost up to 50% of the cost of a new device.
9. Broker. A classic example of mediation is when a broker finds a buyer and a seller of a certain product/service, receiving a certain percentage or a fixed fee for their actions. Brokerage is carried out according to various schemes: auction (for example, Ebay), rent (Booking), sale of virtual goods (GooglePlay), work with finances (Forex), provision of services (Kabanchik or oDesk), etc.
10. Rent. The company rents real estate, vehicles or certain products, then rents it out and receives a certain income. For example, a company rents an entire office building and then leases out the offices. Or rent a plane, organizing charter flights.

There are other examples building business models: subscription to certain resources or software products, affiliate programs that pay rewards for the actions taken, multi-level marketing systems, etc.

Standard Template

Consider what the traditional model looks like. The template is shown in the picture below.it lets you understand how things work. The key section is services and products. In fact, there are practically no unique products, so the goods are not actually interesting to buyers, since there are hundreds of similar offers around them. Customers are not interested in the product itself, but in what exactly it will be interesting and useful to them. That's why the "Offer" section is so important - you need to describe what you offer and what the product provides. The main thing is to interest potential customers to make a purchase.

Standard Business Model Diagram

Right side of template are ways to sell goods. It consists of several points, the key of which is the establishment of a channel for working with the client. It is the correctness of the channel construction that determines how quickly the consumer will purchase the product after the company releases a certain offer. It is believed that the channel should work in five steps:

1. Informing the client.
2. Persuasion of a potential buyer.
3. Make a deal.
4. Delivery of goods to the buyer.
5. After-sales communication.

Attention:the last point implies that the employee of the company, after the transaction, will clarify with the client whether he liked everything, whether he is satisfied with the quality of the goods. If necessary, the manager will help the client to issue a return or warranty case.

On the left in the diagram, the costs that an organization will incur to create a product and sell it are considered. It is necessary to correctly assess them in order to understand what difficulties will be faced and how to overcome them correctly. It should be understood that the left block completely affects the right one, that is, the costs affect the formation of profits.

Creation principles

Consider how to properly build your own model for a particular enterprise. To get started, study the template above and think about what you can learn or add from it. Then take a pen and a piece of paper by answering the following 5 questions:

1. What exactly do you offer and why customers should be interested in your offer. That is, why the buyer should be interested and what he will receive by making a purchase. In order to answer this question, you need to draw up a portrait of the target audience, describe the proposed product, its functions and advantages.
2. Who may be interested and benefit from your product. This question involves working with a dedicated target audience. You need to understand who will make regular deals, who will be one-time deals, who your niche can touch, what segment it will cover, etc.
3. Channels of interaction. Decide how exactly you will communicate with customers: via the Internet, by phone or instant messengers, with the help of personalized meetings (store), etc. Quite a lot depends on the channels of interaction, so this step should not be ignored.
4. Relationship support. It is necessary not only to convey information to the intended buyer, but also to make it permanent in order to increase the number of sales. To do this, you need to provide support for relationships in various ways.
5. For what and how they pay. Decide which products will be especially popular, keeping in mind the 80/20 Pareto rule, think over payment methods, pricing and other financial aspects.

Build multiple business models to determine the most effective

These five questions will help you shape the revenue side of your plan. Next, you need to take on the consumables:

1. Think about what resources and technology are needed in order to launch the sale of products. Resources can be not only material - intellectual, human, etc.
2. What processes need to be run in order to make a profit. Processes can be production, that is, launching the creation of a product, platform (creating a site or connecting payments) and organizational, leading to the solution of various issues.
3. Do you need outside help to implement the project or can you do it on your own?
4. What will the launch of the scheme result in. Accordingly, you need to calculate how many resources you need to invest, which processes will be the most complex and expensive, which will require maximum resources and labor costs.

Is the game worth the candle

In the previous chapter, we figured out how to make up the expenditure and income parts. After that, you need to evaluate whether the process should be pursued, that is, to find out if the idea will be profitable. To do this, subtract the estimated expenses from the estimated income. But, as you understand, these are approximate calculations, because they do not take into account a huge number of real nuances that will arise during the implementation of the project. The question arises - then why make a model?

The answer is simple - in order to choose the most simple and profitable line of business. You need to make not one model, but several in different directions, evaluating the perspectives of each individual case. At the same time, you can studyto understand exactly how such schemes are drawn up, what is indicated on them and how the situation is analyzed.

Moreover, it is necessary to calculate the risks for each stage of cooperation. For example, think about what problems people who have purchased your service or product might have, try to do a little work with a focus group consisting of the intended target audience in order to understand if they like your idea, ask the audience to tell, what interested them, and what did not like or did not cause emotions.Based on the collected information and analytics, try to create a trial version of the product and show it to the audience, having studied their moods and wishes. Find out if you see the problem in the same way as your customers.

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