**BLM战略规划的核心是业务模式创新**
First, the transfer of value between the various business models
since the 1980's, a new kind of market competition rules quietly forming in most industries, and accelerating changes in the market in the next three decades competition competition between competition among enterprises today, not products and services, but the business model (Business model, sometimes also translated into the business model) between: the competitive landscape, as management guru Peter Drucker said. So far, market share and scale-based rules for success no longer works, a number of new players in the industry is on the rise, although they initially smaller, but they are gradually win the market in the major customers of all ages. This phenomenon shows that the market value is rapidly transferred, the transfer of their way to be transferred from the old business model to those who can better match the market, especially the new business model of customer needs.
Show business model is a business or business unit (product line, division) how to select target customers, define the scope of business to meet customer needs what, and how profitable and how to conduct a series of competition in the market, but also the internal and external interests of each parties cooperate with each other, continue to provide products and services to customers and profit from a complete and stable system.
The basic elements of business models include: customer choice, value proposition, profit model, control strategy and business scope.
1, customers choose
• We can add real value for which customers?
• What we do not want to serve the customer?
2, value proposition
• We sell what products, services and solutions?
• What value for customers?
3, profit model
• How do we get part of the value created by me as profit?
• Our profit model?
4, strategic control
• What is our strategic control points? What are the key resources and capabilities?
• Where is our value proposition differences in? How to maintain a competitive advantage?
5, business
• our role and scope of business activities
• What activities are implemented by our own, which performed together with partners?
Let's look at a case the value of the US steel industry shift, the nineties, is living in the same "unattractive," the steel industry, Nucor Company (Nucor) - United smaller mills operating profit reached twice the national steel company this old steel companies, although half of its income is only the latter. The company mainly produces steel bars for the construction industry Newcomen use, not its customers high quality requirements of steel bar (as long as you can meet the minimum standards), they only care about one thing - price, Nucor as a core company build their own complete business model. Many people think that Nucor's success only comes from low-cost technologies and raw materials (electric arc furnace to melt scrap steel), in fact, this is only part of its business model, other key elements also include low-cost (from the countryside), and flexible (non-union) labor and low direct administrative costs (annual revenues of $ 3 billion company headquartered only 23 people). At the same time, the company adopted a strategy Nucor acquired technical cooperation with external companies and research institutes, the company in product development cost is also in a good position. In short, Nucor target customers are most sensitive to price this important demand, to build a sound business model, and ultimately gain a competitive edge.
The following is a comparison of United States Steel Corporation and Nucor company's business model:
Value will occur not only between companies within the industry transfer, the transfer will cross, so we will say: kill the thief is not the police, but micro-channel and Alipay. Another example is caused by a sharp decline in sales of instant noodles Master Kong and unity, not their direct competitors and Jinmailang white elephant, but the US group and hungry and so it takeaway. Again let the business of shops selling and repairing bicycles plummeted to close down, not shop next door Wang family counterparts, but one night the streets were carpeted shared bicycle.
Second, the new engine of growth in enterprise value: business model innovation
in the past for a long period of time, relying on technology and product innovation to promote enterprise value growth is the only effective way, but in the modern era, playing alone product and technology innovation after all over the world are not afraid of days are gone, such as the world's first gigabyte 3.5-inch disk drive came in 1992, when producers can earn a 60% gross margin, ten years , through constant technological innovation, disk drive performance increased 60 times, while the producer was at barely maintained about 15% of gross profit. But we have to admit, to design a mechanical drive head, so that it can store and retrieve data on the distance only circular tracks on the disk surface is 0.00008 inches, and almost no errors, and the product is a mechanical micro Wonder technology innovation of electronics. Product and technological innovation no longer be the sole engine of growth in the value main reason is that competitors quickly imitate reduced benefit period of technological innovation, due to the perfect accelerate global economic integration, information delivery network, business has been difficult for a long time exclusive an innovative technology brought dividends, therefore, in spite of technological innovation for customers to create still enormous practical value, but they bring value growth for the company in the role but gradually weakened.
Companies need to find new growth engines value that business model innovation, business model innovation and technology innovation products does not exclude, but rather as a key element incorporated. Business model innovation is customer choice, value proposition, profit model, control strategy and business five elements of the system of innovative design, it is played a combination of boxing, competitors may imitate one or two points which innovation, but difficult to copy the entire business model.
Many companies have similar technology products and services, but under different business models driving, showing distinct growth in the value of the case. Budget airline Spring Airlines and full-service airlines such as Air China, China Southern Airlines offers similar air passenger services, but with Spring Airlines cheap air tickets sold in the first profits of the domestic aviation industry, with an average load factor of around 95%. Early Apple's Macintosh operating system in terms of functionality, far more than Microsoft's Windows, but Windows dominance in the computer industry, Apple is still struggling for survival. In the camera industry, technology is relatively poor puts Nikon and Canon have unmatched technical superiority of the German camera maker Leica cornered the market. Whether non-technical advantages of the enterprises it has made extraordinary achievements of some phenomenon or a technological leader disappointing operating performance, have revealed such an important fact: technology and product innovation outside drifted effective business model, we have not then the main force to promote the sustained growth of corporate value. Business model innovation has become the engine to promote the continuous development of enterprises, with a business model innovation-oriented era has arrived.
Fan teacher in another article, "What is the underlying logic BLM planning business strategy is" in, gave a relatively common share flywheel drive business growth, and it is this business model enabler and flywheel power engine:
This figure clearly shows how the business model of the five elements is the role of the business system, good business models will push red rough outline of where the feedback loop into a virtuous cycle, to become flywheel earnings growth, and bad business model will business pull into the vicious circle of doom become round performance recession.
Third, the fission customer demand is driving business model innovation and value transfer of power source
business model has become relatively stable demand, while customer demand is constantly having intrinsic properties of fission, when the business model does not match the needs of customers, it is worth will be transferred to better match customer demand business models go up, leading to the reconstruction of market competition. To further understand the value of Transfer on the competitive landscape, there is the value of the transfer process of an industry classic case study, that is, the computer industry. The computer industry is one of the fastest growing industries value the twentieth century, in forty years time after the end of World War II, large enterprises, research institutions and government agencies make up the whole of the industry's consumer market, the late 1980s, millions of individuals began to flood the market in order to change the basis of the computer industry's customer mix, thus, changes in customer demand eventually led to the market value of IBM as the representative of Microsoft integrated business model in order to transfer of specialized business model and as a representative of Intel.
The successful application of integrated business model of the most important computer company IBM, as the graph machine manufacturing major manufacturers, IBM Watson under the leadership of a small, successful transition in 1952 as a computer company, to 1959, it became computer industry leader, with over 70% market share in the mainframe computer market. IBM uses an integrated business model is determined by the following factors:
(1) large-scale computers from different manufacturers have their own dedicated incompatible hardware architecture and operating system, thus forming a monopoly.
(2) manufacturers to provide a wide range of technical support and services for mainframe computers sold, in order to strengthen long-term relationships with customers.
(3) manufacturers to a certain price sales of computer hardware and provides a range of high-margin again customer-specific software products and peripherals.
However, IBM's business model limits the customer the freedom to use a computer, there is a class of frequently needed to calculate the research and engineering departments in businesses and universities, this type of user has extensive computer experience, even able to independently write computer programs, so they want to be free to use a computer, rather than subject to the monopoly of computer manufacturers. It is based on a portion of the value of identifying the demand for this type of customer segments, the computer industry has shifted to the DEC (Digital Equipment Corporation) and Wang Laboratories and a number of small computer manufacturers. DEC and other small computer manufacturers used with IBM's business model is similar, but also provides a dedicated hardware structure, only part of the software to work with customers to develop, mainly rely on profitable software and service contracts after the equipment sales.
In 1977 Apple introduced the Apple computer - type 2 marks the formal entry into the personal computer industry computer era, Steve Jobs believes that only when the computer and software become a powerful tool for individual work, study and life, the computer can truly reflect its magic power . During this period, IBM learned the lessons of the minicomputer era, in order to prevent the rise of Apple and other manufacturers of personal computers, and as soon as possible to seize the personal computer market, IBM uses a somewhat radical and high-risk business model, including micro R & D outsourcing processor and operating system. Although IBM personal computer business models to help track the value returned to the high-speed growth, but also to their planted the seeds of future decline.
Here are three typical business model of the era of mainframes, minicomputers and personal computers:
the integrated business model operating period, IBM, and DEC is to maintain its monopoly by proprietary hardware architecture and operating system and customer loyalty, and to obtain high profits through follow-up services. In the personal computer era, the contract with IBM, Microsoft and Intel signed and did not emphasize the exclusive right, so, both companies are free to sell the core components of PC assemblers to other hardware such as Compaq (Compaq), this makes IBM lost control of the microprocessor and operating system strategy, and these two parts is the time computer user consumption hot spots.
In the personal computer era, users demand has undergone a fundamental change, individual users want the freedom to buy hardware devices and high-performance applications inexpensive, and can achieve network communication between computers. While business users want compatibility between various computer systems, reduce the incompatible caused a lot of time, effort and money wasted, at the same time, business users also want the computer manufacturer for the problems of enterprises to provide more efficient and more professional system solutions, rather than the general level of broad recommendations. These changes in customer demand, spawned a large number of links to provide a more professional products and services in the value chain on the computer companies such as Microsoft to develop an operating system, providing Intel microprocessors and most powerful Network Systems Network Granville (Novell), the diversion of the three companies most value from integrated business model shift over to specialized business model:
Fourth, how to deal with BLM business value through strategic planning shift?
In the value transfer process, companies must redesign some key nodes in their business models, or they will bear the risk of loss of value, strategic business planning is the most important key nodes where every year the management team to carry out business. Fan teacher training and project consulting services for strategic planning as recommended tools and methods BLM (Business Leadership Model, the leading business model), this model provides a trend analysis of how the value of the transfer of the management team, and its guidance What timing, for which customer segments, in what manner innovative business model designed to address the strategic thinking of the value of the transfer.
Let us now from the following three aspects to understand how BLM strategic planning model is to help the management team to deal with transfers of value.
(1) adhere to market-oriented, customer-focused strategic thinking of
Changes in customer demand is the driving source for the transfer of value, therefore, business strategic planning to customer demand as a starting point and starting point to develop strategies, rather than on their own resources and capabilities. So, even though the "market insight" includes four look: Look at the Trend (macro and industry), look at the customer, look at the opponent, look at their own, but the focus is to anticipate customer needs and demand trends in mining. Fan teacher as a strategic planning consultant BLM and trainers, many have seen their market assessment reports, we have found a common problem, seen in the trend report, look at his eloquent opponents and write a lot, and a lot of content from the outside research reports and other secondary sources, but the most immediate needs of the customer analysis only stay in the "appearance to look good," "simple to operate" and other more superficial level, a key demand factors affecting customer purchasing decision - making only a general location "price is no competitive advantage", "low brand influence", this phenomenon reflects our understanding of customer business management team and the market is not truly "insight." On customer demand, time friends can go online to search another article about the teacher's Fan, "in the end what is the user's real needs."
(2) innovative business model designed as a strategic planning core
computer industry value transfer case reminds us that, even if the strength such as IBM as the large companies, if you can not foresee the risk transfer of value, well-designed its business model, and there is no eligible for the next round of growth cycle value. Business model is designed to be challenging, it is necessary to think systematically customers choice, value proposition, profit model, control strategy and business scope of these five elements
in the "underlying business logic BLM what strategic planning is" a text, teacher Fan the business model than a house made of ground, house foundations (that is, business model) is good or bad, determines the house can stand the test of 12 typhoons. The house is on the ground and people working and living in the house, these systems and the work required to process system consisting of living as our enterprise business systems daily operations. Internal and external environment changes affect the first of more than a house foundation and the people working and living in the house, that is, business systems, so some small changes in the external market of wind rain, the performance gap will only give us cause, therefore we just need to adjust their business systems, that is, the right half of BLM model on the line, should not always put the house torn down, to transform the foundation (the design of new business models). That is, after determining the business model, the first task is to focus on to improve it so that it still has the power to generate value growth, unless there is evidence that the original design of the business model is indeed a problem, but in the future there will be a high probability above level 12 typhoon arrival (there is a clear signal to prompt transfer of value or are about to occur).
(3) competition and innovation and broaden the horizons
of innovation in the role and significance of business model design process Needless to say, the "innovation focus" BLM model is to remind the business management team, to be followed by changes in customer needs and value transfer direction, focus business model innovation, not to do outside drifted away from product and technology innovation business model, because a simple product and technological innovation is easily imitated by competitors, and a portfolio of business model innovation can really constitutes value formed moat growth.
As we mentioned earlier, resulting in a sharp decline in sales of instant noodles Master Kong and unity, not a white elephant and Jinmailang, but the US group and hungry yet, cross-industry value transfer as the industry continues to shift downstream along the value chain Like, for decades also been staged. However, the vast majority of enterprises in the analysis of their competitive environment, competitors or those targeted and that they have similar business models within the industry, in fact, worth perhaps is flowing to those business models are vastly different from your competition opponents, although you will find it difficult to these companies as your peers. So, we need to broaden the horizons of competition, to find some new competitors, very often, it is these new came out, deviant new competitors, rather than industry leader now more keen to capture changes in customer demand, the development of a set of better meet the customer's business model, to promote the transfer of value once again.
In the strategic planning process of a household electrical appliance enterprises refrigerator product line, the Fan teacher had suggested that customers buy a refrigerator is to store food and fresh, why customers want to store food, because to go to work, no time to water and soil every day, stored in the refrigerator , eat all you want. So in addition to the aid of the refrigerator, we have no other way you can eat fresh food any time you want to eat? Fresh green horse box is not? If so, then whether or not we should be as a competitor?
V. Conclusion
value transfer theory reminds us, pushing the value of the engine of growth has been switched from pure product innovation and technological innovation business model, the value will be transferred to those business models to better match market and customer demand, companies are business team in formulating business strategy, must conform to this trend, the business model of the design at the heart of the strategic planning process, and the BLM model was we adapt to this trend it provides a good frame of mind. Therefore, we would like to thank IBM, thanks to Huawei, and also thank you for your love of learning.
More original product innovation and R & D management articles, please pay attention to the public [No.] Rui En IPD research and development consultancy Fan teacher or micro signal [18,665,802,507]
