MindMap Gallery Business decision-making methods and business model analysis
Detailed explanation of business model analysis, a complete collection of business decision-making methods~brainstorming, nominal groups, Delphi method, and Gordon method. Can't tell the difference? look here!
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This is a mind map about bacteria, and its main contents include: overview, morphology, types, structure, reproduction, distribution, application, and expansion. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about plant asexual reproduction, and its main contents include: concept, spore reproduction, vegetative reproduction, tissue culture, and buds. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about the reproductive development of animals, and its main contents include: insects, frogs, birds, sexual reproduction, and asexual reproduction. The summary is comprehensive and meticulous, suitable as review materials.
Business decision-making methods and business model analysis
Business decision-making must be guaranteed by scientific methods, which are generally divided into qualitative decision-making and quantitative decision-making.
Qualitative decision-making methods (subjective decision-making method)
Brainstorming (Thinking Resonance Method)
Questions are asked in a clear format during the meeting and participants can speak freely
Advantage
Highly creative
Disadvantages
Heavily affected by psychological factors and prone to succumb to the opinions of the majority
Delphi method (expert investigation method)
First initiated by the RAND Corporation in the United States
Expert opinions are solicited anonymously through several rounds of correspondence. The forecasting organization team summarizes the opinions of each round and sends them as a reference to the experts for their analysis and judgment to come up with new conclusions. After several rounds of correspondence, the experts’ opinions converged, and finally the decision-makers were given the opportunity to make a decision.
key to success
Choose good experts
Number of experts: 10-30
Prepare a consultation form
applicability
Government agencies, enterprises, various organizations
nominal group technique
Make collective decisions in the name of a group, requiring each participant to contribute their own opinions in turn, and continue to cycle until everyone's opinions are covered, and finally all members vote to determine the final plan
Features
Back to back, independent thinking
Each member only puts forward one point of view/solution at a time
Participants are not allowed to refute other people's opinions
No communication is allowed unless asked to explain an opinion
Corporate decision-makers have the right to decide whether to accept the final voting results
Not a group discussion
Gordon's method (Synecdoche)
Qualitative decision-making method for group discussion guided by meeting facilitator
First, the supporter will give a general introduction to the decision-making issue and discuss it freely. At the appropriate time, the decision-maker will present the specific issues to the meeting members to further deepen communication. Finally, the decision-maker will absorb the discussion results and make a decision.
Features
Do not allow meeting members to directly discuss the problem itself, but only discuss partial or side aspects, or similar abstract issues
The moderator analyzes and studies the proposed ideas and guides members step by step to the problem itself
advantage
Abstract problems, reduce constraints, and generate creative ideas
difficulty
Correct guidance from the host
Quantitative decision-making methods
deterministic decision-making approach
Decision making under stable and controllable conditions
Common methods
linear programming method
Target
Solve the maximum/minimum value of a linear objective function
step
Determine the target variable - list the target equation - find the constraints - solve
break-even point method (quantity-cost-profit analysis method/capital-guaranteed analysis method)
Variable costs and total revenue as functions of output
effect
When making production decisions, determine the breakeven business volume
method
Fixed costs Variable costs, compared with total revenue to determine break-even production or production at a certain profitability level
risk-based decision-making approach (Statistical decision-making/random decision-making)
The conditions required for the decision-making plan are known, and the risk probabilities of multiple consequences are different.
Common methods
Expected profit and loss decision-making method
The expected profit and loss value of a plan is the sum of the products of the plan's profit and loss value under various possible market states and its probability.
Choose the option with the greatest gain or the least loss
decision tree analysis
Present the relevant factors that make up the decision-making scheme in the form of a tree graphic, and select the decision-making
Based on expected profit and loss value
Risk-based decision-making is most commonly used to analyze complex problems
Uncertain decision-making method
It is used when the market status is difficult to determine and the probability of occurrence cannot be predicted.
Follow the 5 principles of thinking
optimistic principle
Based on the maximum expected profit and loss value in each state, the highest
Pessimism principle
Take the highest based on the lowest expected profit and loss value in each state
compromise principle
Somewhere between optimism and pessimism
step
Find the maximum and minimum values of each solution in all states
According to your own risk preference, give the optimism coefficient α (0<α<1), the maximum coefficient α, and the minimum coefficient 1-α
Calculate the weighted average of each option using α and the maximum/minimum profit and loss value
Max*α Min*(1-α)
Take the largest weighted average
regret value principle
Choosing a certain plan instead of choosing the best plan results in less benefit
step
Calculate the regret matrix
Subtract the expected profit and loss values of all plans in that state from the maximum expected profit and loss value in each state.
Select the maximum regret value of each major plan
Choose the smallest among the largest regret values
principle of equal probability
Assume that each market state has the same probability
step
Calculate the average of the expected profit and loss values for each option
Profit maximization goal: choose the maximum profit
Cost minimization goal: choose the lowest cost
shortcoming
There will inevitably be deviations between the average distribution and the actual situation, which will have adverse effects.
business model analysis
The business model expresses the core logic of corporate value activities, specifically as follows
value discovery
Understand customer needs and discover potential profit points in the market
logical starting point
value matching
Deliver value to customers through resource allocation and business operations
logical intermediary
value capture
Continuously obtain profits through a specific profit model
logical end point
Business models include
External customer value realization model, business cooperation model, investment and financing model
Internal production model, operation model, and profit model
Characteristics of a successful business model
Ability to create unique value
Integrated and systematic
Difficult to imitate
Ability to withstand risks
Strong operability
business model elements
position
Strategic Positioning
value proposition
Customer positioning
Business positioning
Product Positioning
resources and capabilities
resource
financial resources
physical resources
human Resources
information resource
relationship network
ability
management ability
Operating capacity
trading ability
Creativity
business system
Business content
Business Process
stakeholder relations
Transaction content and method
Distribution channel
The core of the business model
Profit model
Methods and channels for enterprises to obtain revenue, allocate costs, and earn profits
cash flow structure
How cash inflows and outflows appear in time series
Corporation value
investment value
The discounted value of the cash flows a company expects to generate in the future
Determined by the company’s growth space, growth capabilities, growth efficiency and growth speed
business model analysis
business model canvas
Value Analysis
value proposition
What value does the company deliver to its customers?
What kind of problems is the company helping customers solve?
What customer needs are the business meeting?
What series of products or services the company is providing to customer segments?
client subdivision
Who does the company create value for?
Who is the company's most important customer?
channel access
Through what channels can you reach your company’s customer segments?
How businesses can reach them now
How to integrate corporate channels
Which channels are most effective
Which channels are most cost-effective
How to integrate corporate channels with customer routines
customer relations
What relationships does each customer segment want the company to establish and maintain?
Which relationships have been established with the company?
What are the costs of these relationships?
How to integrate them with the rest of the business model
Infrastructure analysis
core resources
What core resources does the enterprise’s value proposition require?
What core resources do enterprises need for their channels?
What core resources do companies need for customer relationships?
What core resources are needed for revenue sources?
key business
What key businesses are needed for the enterprise’s value proposition?
What key businesses are needed for the company’s channel channels?
What key services are needed for an enterprise’s customer relationship?
What key operations are needed for revenue sources?
important partner
Who are the important partners of the enterprise?
Who are the important suppliers of the enterprise?
What core resources is the company getting from its partners?
What key businesses do partners perform?
Profit analysis
Source of income
What kind of value will make customers pay?
What are customers paying for now?
How customers pay
How customers prefer to pay
What proportion of total revenue does each source of income account for?
cost structure
Most important fixed costs
Which core resources cost the most
Which key businesses cost the most
Lean Canvas
Component business model CBM
Methods used to optimize the business during the business consulting process
Analyze current business processes, identify functional areas that need optimization and propose optimized target business processes
key deliverables
Component Business Model
Heat Map
To-be Business Process Model
McKinsey 7S model
Seven elements of business organization
structure
Strategy requires a sound organizational structure to ensure implementation
system
Develop an institutional system that is consistent with strategic thinking and prevent inconsistency and incoordination of the system
style
management style
staff
Staffing and training
skills
Executing company strategy requires employees to master certain skills
strategy
shared values