The Business Model Alignment
The Binaïs Business Model Alignment
The Business Model Alignment is the commercial insight into a business in creation. We identified five zones for a proper alignment. The are the why, what for, how come, investments, and the return. But, bevor I head on to describe the zones, I would like to remind on the myth of a business model. As I put it in the “creating a business model,” myth and alignment are like the two sides of a coin. If one side disappears, there is no coin. Nearly the same is with a business model; lacking one aspect means less power, or even be powerless. So, be sure that you meet the two key aspects. Now, let’s have a closer look at the alignment’s zones.
The existential Why
Why do we do what we do? It is the existential question. As such it links directly to the myth of the business model. If we understand that we do not exist out of ourselves, that we are linked to every existence, then we recognize the depth of the existential why question. The answer will involve all groups we are connected to, the many stakeholders. And in a commercial sense it will be the values we deliver to them.
Referring to marketing terms than the customer value proposition comes first. It is about the advantages we provide to our customers for which they are willing to pay. Nevertheless, equally important are the benefits for our employees, for our suppliers, for the society, and, last but not least, for the environment. Such are the answers to the existential why.
What is our business? What problems do we solve? Or better, how improves our offering the life of the people involved in our business? What is new? What is different? How do we open windows of opportunities? For end users, and for partners in our distribution chain? What ever an organization does, there is something it does different. Not everything is or can be new. But how you put things together can be completely different. Think about Apple’s iPod as a device to play music. Many other devices where known doing the same. Not even streaming the music from a portal was new. But the combination of the device and the portal and, most importantly, the inclusion of the originators so that they had a profit from their work.
How come answers how we do what we do. The strategies, the tactics, the processes, the daily business. And, very important, who is doing what. What do we do ourselves? What do we commission? What is outsourced and what do we shift to potentially cheaper producing locations (offshoring). What are the key competencies we want to have in-house? There are many strategic issues to be covered. But do not forget the often inconspicuous things your stakeholders love and turn them into an applauding audience.
Today, every business has its costs under control. But investing in renewal and growth and allocating resources determines the future and well-being of every business. So, you have to handle them carefully and prudently and make them a top priority. The allocation of resources is a commercial key element in every business model and business planning.
Return is about to know exactly what for your customers pay. Pay they for the brand, the device, the design, the functionality, the service, the competence of your sales team? What is it, that makes them spending the money on your business? And, of course, to know where the profit margins are is of much importance.
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