5.15.80: DISCIPLINE #8 REVISIT YOUR BIZ MODEL - WILLIAM EASTMAN

​Today's we close out Discipline #8 by reviewing the impact Upgrading Your Offer and the Customers Experience has on your Business Model.  Sometimes this requires rethinking the business mode; other times it is a few nuanced changes. 

Past 3 of 3 for Discipline #8 - Your Biz Model

​PROFIT RADIO - "A Network of Entrepreneurs for Entrepreneurs"

Introduction
​We introduced the 5.15.80 Model at the beginning of the Season. It was a combination of research into small business performance and our practical experience from the last 2 decades. You could go to any area around the global with a market based economy and randomly select 1,000 companies, here is the distribution you would find: 5% or 50 companies that own their markets, 15% or 150 companies that are making money, and 80% or 800 companies that are barely surviving.

This series is about how to move from one level up and our concern in this series is the 5%, not how you get here which which is covered in the 15% series; the focus now is how to SUSTAIN your market domination.

LISTEN > ENGAGE > APPLY

Show Objectives
Today we finish Discipline 8 of the 9. As we covered in previous shows each discipline is present in 3 parts. Today our focus is on how to incorporate all of the previous changes into how you create value.

Key Issues - Owner Perspective:

1. What impact does overhauling our Offer and methods of Doing Business impact the business model?
2. If you haven't consciously made this decision, how do I do it?

What You Need to Know
Business Models: (also called a business design) is the mechanism by which a business intends to generate revenue and profits, it is a summary of how a company plans to serve its customers and involves both strategy and implementation. It is the totality of:

• How it will select its customers
• How it defines and differentiates its product offerings
• How it creates utility for its customers
• How it acquires and keeps customers
• How it goes to the market (promotion strategy and distribution strategy)
• How it defines the tasks to be performed
• How it configures its resources
• How it captures profit

Based upon the company’s primary and secondary value disciplines, the organization identifies current and new opportunities to provide value to targeted customers. IBGR Example:

• Customer Intimate
• Product Leadership

The choice of business model(s) are the bridge from identifying competitive advantage to building core competence. It is the basis for an overall strategy to reach each of the current and/or future opportunities.

What You Need to Do
Business Models - Categories with IBGR Examples

1. Meta: models Affects All Competitors
   1. defacto standard: set standards for the competition 
2. Customer: Targeted Accounts / Perfect Customers
   1. microsegmentation: many small clusters of customer types
   2. solution to knowledge: understand customer usage
3. Channels: Suppliers & Distributors
   1. channel concentration: sell to one who sells to many
   2. strengthen weakest link: provide what our customers cannot do for themselves
4. Offer: Individual or Bundled Products and/or Services
   1. knowledge to product:  build new products & services or upgrade from customer data
   2. product to solution: niche products into specific solutions
   3. product to pyramid: creating an offer ladder 
5. Internal: Systems & Processes
   1. digital operations: everything platform based
   2. networking: collaboration between internal resources and customers; between insourced and outsourced functions

The next step is to review your Core Competencies, Process Maps, and Metrics. That is beyond the scope of this show BUT!!! if you want to take this to the next level JOIN our Community of Commerce and I'll cover it with you 1:1. The deal of the year.

Next Week - Part 1: Discipline 9 of 5.15.80: How to Co-Develop Processes, Products, and Services & Achieve LCP and Sigma 3.

1. Follow the 5.15.80 Series all season.​
2. Start your day with the best Global BUSINESS NEWS
3. JOIN the IBGR Community if you want our template for the '30 Business Models'
4. DOWNLOAD the IBGR Growth App
5. RESEARCH anything related to Starting, growing, or Exiting a business on the IBGR Network

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We are your single, one stop source for business success, period, end of story.

Make sure you leave some thoughts in the comment section below. I am interested in continuing the conversation.