MindMap Gallery Discover business models
Commerce arose in the Shang Dynasty during the pre-Shang period. In its early stages, commerce was a social activity conducted in the form of barter. Later, it developed into an economic activity that uses currency as a medium for exchange to achieve commodity circulation.
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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.
Discover business models
Preface
When creating a business model, three issues need to be considered:
Keep thinking about who your “stakeholders” are
Analyze “what value can be exchanged” by stakeholders
Design a win-win “deal structure”
business model
What is your “positioning”?
What kind of "business system" should be established?
Which "profit model" to choose?
What “key resource capabilities” are needed?
What kind of "free cash flow structure" does it constitute?
Strategy and Business Model
Strategy determines the company’s positioning and the value it provides its customers
The business model determines how to achieve the company's positioning and deliver the expected value
Innovation is divided into two categories
technological innovation
Business model innovation
Insight into business models
Insight into business models
business model
definition
A business model is essentially a transaction structure for stakeholders
The business model solves the strategic problem of corporate strategy formulation, and is also a bridge connecting customer value and corporate value.
theory
Michael Porter
"Competitive Strategy"
Pay attention to the development of enterprises at the company level
Jack Trout
"position"
Focus on the company’s specific products and services
Philip Kotler
"Marketing Management"
STP theory
Focus on product marketing
Positioning is about establishing a more direct and concrete link between the strategic and executive levels
constitute
business system
The business system refers to the business links needed for the company to achieve its positioning, the roles played by each partner, and the methods and content of stakeholder cooperation and transactions.
structure
Industry value chain
Internal value chain of the enterprise
Partner's role
Business system is the core of business model
key resource capabilities
Key resources and capabilities are the important resources and capabilities needed to make the business system run.
Profit model
Profitability refers to how a company obtains revenue, allocates costs, and makes profits
free cash flow structure
The free cash flow structure is the cash income generated during the operation of the enterprise after deducting cash investment. Its discounted value reflects the investment value of the enterprise using this business model.
Corporation value
Enterprise value, that is, the investment value of a company, is the discounted value of free cash flow that the company expects to generate in the future.
The investment value of an enterprise is determined by its growth space, growth ability, growth efficiency and growth speed.
The company's positioning affects the company's growth space, business system, key resources and capabilities, affects the company's growth ability and efficiency, plus profitability, will affect the company's free cash flow structure, that is, it affects the company's investment scale, operating cost payment and The ability and speed of sustained revenue growth, which in turn affects the investment value of the company and the efficiency and speed of corporate value realization.
Business model and management model
The management model includes strategy, organizational structure, management control, corporate culture, human resources management, and performance. The management model reflects the company's execution mechanism.
Business model includes positioning, business system, key resources and capabilities, profit model, free cash flow, and enterprise value
The business model is the basic structure of the enterprise, similar to a battleship, and the management model is similar to the fleet officers and soldiers driving the battleship.
The management model focuses on the determination of the company's long-term goals and the achievement of performance, while the business model builds a bridge between meeting customer needs, creating value for customers and maximizing corporate value.
The management model emphasizes the execution ability of the organization and the people in the organization, while the business model tells everyone how the enterprise operates and reflects the operating mechanism of the enterprise.
position
How can companies position themselves?
Define the business of the enterprise
four methods
Define your business in terms of the products and services it sells
Emphasis on defining an enterprise's business for certain or all needs of a certain type of customer group
Determine the company's business based on the industry value chain link in which the company is located
Define the enterprise's business according to its key resource capabilities and their combinations
Target customers
three methods
Radically question existing customers’ mind-sets
Start thinking from different angles
Select customers based on the company’s resources and core capabilities
What kind of products and services does the company provide to its target customers?
experience
Existing gaps represent opportunities
do what you are good at
Find a balance between persistence and change
positioning role
Business positioning is a bridge that communicates the past - the existing bridge, the present - its own characteristics, the future - the determination of the business model and the embodiment of the final corporate value.
business system
Identify business stakeholders
What business activities do I have or can engage in?
What business activities can the surrounding environment of the industry provide me with?
What value can I provide to relevant entities?
From a win-win perspective, how can I form these business activities into a value network and allow stakeholders to get the benefits they want?
step
Find the right niche
Analyze your own strengths and see what resources and capabilities are needed
Build a stakeholder network
Focus on the business system to build the operating mechanism of the entire business model
key resource capabilities
resource
financial resources
physical resources
human Resources
information
intangible resources
customer relations
company network
strategic real estate
ability
Organizational skills
material capabilities
trading ability
knowledge ability
Two methods
Determined according to the requirements of other conditions of the business model
Build a business model with key resource capabilities as the core
Focus on a single capability element within the enterprise and find and build other stakeholders that can be combined with that capability element.
Effectively integrate capability elements within the enterprise's internal value chain to create more competitive value chain outputs
experience
Different business models generally require different key resource capabilities.
The enterprise has its own key resource capabilities and uses these key resource capabilities to control other resource capabilities
Profit model
definition
Profitability is the source and method of corporate profits, and solves the problem of how the company itself obtains profits.
A profit model that taps the value of attention
“Razor blade” profit model
Free cash flow structure and enterprise value
investment value
The discounted value of the free flow expected to be generated by the investment object (project/business/enterprise) in the future
Whether an investment is worthwhile is determined by three factors
The term structure (FCF) of the free cash flow that the investment project is expected to generate in the future.
Duration of future expected free cash flow (H)
The rate of return required by investors, or the investor's opportunity cost (r), which is the cost of capital, reflects the company's expected future cash flow risk
Free cash flow from two perspectives
Total capital free cash flow
Equity Capital Free Cash Flow
The investment value of an enterprise and its realization efficiency and growth rate are determined by its growth space, growth efficiency, growth ability, growth speed and growth inclusions.
Growth space is affected by corporate positioning
Growth efficiency is closely related to business model
Growth capabilities are closely related to management mechanisms and execution capabilities, and are also related to business models.