Value Proposition
Combining Qualitative and Quantitative Insights
A clear, logical and sustainable business model is a prerequisite for EVERY business, be it small, medium or large.The business model represents the essence of corporate activity and it is an outline of how an entity or enterprise creates VALUE. Business Model Management can be leveraged as an instrument to enhance corporate financial, operational and value creation performance.
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A “business model”, from our point of view, consists of four interlocking elements that, taken together, create and deliver value. The MOST important to get right is “customer value proposition”…followed by…”profit formula”…”key resources” and “key processes”. . . all tied together by a “delivery architecture” that facilitates the execution of the whole.
YOCFO's Business Model Management Components
Customer Value Proposition
A promise of value delivered, communicated, acknowledged, experienced and acquired.
Profit Formula
Stated as a percentage, where all expenses are first subtracted from sales, and the result is divided by sales.
Key Resources
The building block describing the most important assets needed to make a business model work. Every business model requires them so that a company can generate value propositions and revenue. Key resources can be physical, financial, intellectual or human.
Key Processes
Developing vision and strategy. Developing and managing products and services. Marketing and selling products and services.
