Business Model Canvas 11 Value Propositions

2. Amir Bonakdar, T. W. (2013). Transformative Influence of Business Processes on the Business Model: Classifying the State of the Practice in the Software Industry. Hawaii: Hawaii International Conference on System Sciences.

A business model is an important and integral part of the business a strategy of any firm whether big or small. The way a business model is developed determines and indicates the values, ethics and principles on the lines of which the business at large will be operating. It also indicates how the business is going to function and covers various internal and external dimensions of a business and the organization as a whole.

Business model entails many facets. To narrow down the meaning of business model, it refers to the way businesses intend to create products to sell and to generate revenue in a particular industry (Ovans, A., 2015). As business decided elements necessary to accomplish goal and objectives, they must consider many factor that influence business models. According to Band (2009a), people, process & strategy effect business models. People effects business models through skilled or unskilled employees, organizational structures and incentives. Studies found that user adoption is the top problem that organizations face when implementing CRM solutions. Lack of training and education compound implementation CRM solutions. Change in

Customer Value is ‘the performance characteristics, features and attributes, and any other aspects of goods and which customers are willing to give up resources’ (Robbins, Bergman, Stagg and Coulter, 2012). This broad definition highlights the fact that there are multiple aspects that contribute to create a sense of value within the customer.

Before we can identify the needs of customers and stakeholders, it is important that we can identify who our customers and stakeholders actually are.

This paper will discuss the business chosen for the assignment. A mission statement will be developed, setting the business apart from others in the same or similar market. The vision statement will also made, discussing the direction the business wants to take in the future. Other topics such as, principles or values will be discussed. Concluding the paper will analyze the mission and vision statement, and values in guiding the business in a strategic direction. Followed by an evaluation of customers need in giving the competitive advantages.

After thorough analysis of the business model canvas for Alpha Troop 1/150th Armored Reconnaissance Squadron it is apparent that the organization leans heavily on its established partnerships. The greatest number of partners for the unit are sister units who perform the same type of mission as its own entity. Other key partnerships are higher headquarters who develop plans and provide, the who, what, when and where for operations to take place. Sister units are essential partnerships because they can provide additional support for the successful accomplishment of missions and operations. Some key partnerships are outsourced while a great deal of them will be attained from other outside entities (Osterwalder, 2010).

With the evolution of healthcare reform, it is imperative that healthcare organizations utilize target marketing as a way to recruit new business and stay competitive against major organizations. In order to effectively use target marketing a healthcare organization must carefully and precisely identify its target audience, geographical area and needs, as well as any competitors within the geographic area. Thornhill and White state that a unique advantage must be difficult, if not impossible, for other to compete against. Once a complete understanding of the audience and its needs has been established the facility can then start building its program and recruiting key players. In order to stay competitive and an industry leader, it is also

Business models have a huge impact on how an organizations operate. It is crucial that an organization chose a business model before inception in order to succeed. Basically, business models have become the new basis of competition, replacing product features and benefits as the playing field on which companies emerge as dominant or laggards (Plantes, 2013).

Customers are assets, and their values grow and decline. Segmenting customers based on their lifetime value is a powerful way to target them because marketing mix activities can then aim at enhancing customer value. (Ho, 2006)

There are some key value propositions such as value for money, thorough understanding of client business needs, nurturing customer relationships, delivering operational excellence and supporting their strategy through IT enable business solutions to give the clients the competitive advantage.

According to Don Debelak of entrepreneur.com “A great business models depend on developing three "green lights," or qualities that help the business succeed: finding high-value customers, offering significant value to customers, and delivering significant margins. Great business models also avoid three "red lights" that can derail a business: difficulties in satisfying customers, trouble maintaining market position, and problems generating funding for growth.”(entrepreneur.com, 2007)

It would have been good if this fundamental vision was in place right at the very beginning of the company’s formation. In the end it is the customers that make the company, so it makes sense to work towards satisfying this customer relationship. To become profitable and achieve market share are secondary objective that can be measured on a annual basis and overall company well being targets can be rewarded with incentives that link into the company’s performance as opposed to individual contribution to the company’s success.

As mentioned in the article, a good business model tells a good story. Effectively communicating an organization’s business model and strategy to all the members (employees) of the organization can enhance the company’s performance. By understanding where each individual stands and how they contribute to the value chain,

However, this paper chooses this definition as theoretical perspective of analysis for this paper subject to the following modifications: A business model is overall framework and philosophy by which a company (intends or) creates value in the market place through enhancement of its own combination of raw or in-put materials to create products (tangible and intangible including services), product packaging and systematic distribution in order to generate some or the best possible profit.