value exchange mapping guide

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Value Exchange Mapping System GUIDE Capturing Business Model Interactions

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This guide introduces the Value Exchange Mapping System (VEM). The VEM works with the Business Model Canvas to provide a kind of "stereo vision" with respect to the business model. The VEM perspective is the logic of value exchanges within the value network. By contrast, the Business Model Canvas (BMC) perspective is the logical relationships among the nine build blocks. Together, the VEM and BMC give a more comprehensive view of the business model from the vantage point of an organization and the value network in which it operates. In concert with the business model canvas, Value Exchange Mapping is a useful tool for business model thinking and business model innovation. This guide contains the download links for all the VEM icons - .png images, Omnigraffle and Visio stencils and templates (Creative Commons license) The Value Exchange Mapping System is a product of collaborative research between academics at Georgia State University, companies, and consultants. The research was facilitated by the Institute of Strategic Innovation located in Atlanta, Georgia USA.

TRANSCRIPT

Page 1: Value Exchange Mapping Guide

Value Exchange Mapping SystemGUIDE

Capturing Business Model Interactions

Page 2: Value Exchange Mapping Guide

ISIInstitute for Strategic Innovation

The Value Exchange Mapping System is a product of collaborative research between academics, companies, and consultants facilitated by the Institute for Strategic Innovation, Inc.

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-nd/4.0/deed.en_US.

www.isiworld.orgAtlanta, Georgia USA

Innovate and prosper.

Page 3: Value Exchange Mapping Guide

Value Exchange Mapping: Capturing Business Model Interactions

Page 4: Value Exchange Mapping Guide
Page 5: Value Exchange Mapping Guide
Page 6: Value Exchange Mapping Guide
Page 7: Value Exchange Mapping Guide
Page 8: Value Exchange Mapping Guide

Angie's List

Affiliates

Consumer Review Database

Angie's List MagazineBig Deal Notifications

Call Center SupportComplaint Resolution

Sign-up Fees &Subscription Fees

Free Listing

Advertising

Big Deal Promotions

Storefronts & e-Commerce ServicesAngie's List

6-12 Month Campaigns

Add Businesses

Subsidize

Subscription Fees

40% of Sale

60% of Sale

Reputation Management Tools

Reliable & High Quality ServicesProducts from Reputable Businesses

Revenue from Delivery of Products/Services

General Consumers

Homeowner Consumers

More Customers

Home Service Providers

Medical Service

Providers

Auto Service Providers

Other Service Providers

Small Businesses

More Members

Commissions Per Sign-up

Value Exchange MapGrowth Strategist

Page 9: Value Exchange Mapping Guide

Cost Structure

Customer SegmentsCustomer Relationships

Channels

Key Activities

Key Resources

Key Partners

Revenue Streams

Value Propositions

Angie's List

Homeowner Consumers

General Consumers

Home Service Providers

Medical Service Providers

Auto Service Providers

Other Service Providers

Hire the best service

providersAuthentic &

detailed reviewsComplaint

resolutionLive phone

supportDiscounts

Advisory information

Promote business

Get quality customers

Generate revenue

Build & manage

reputation

Direct viaWeb

Live support via call center

Affiliates

Platform

Call center

Sales & marketingPhone support

Complaint resolution

Platform development & maintenance

Generating content

Platform development

staff

Data & Infrastructure maintenance

Commissions for member

Sign-ups

Sales & marketing

staff

Sign-up fees&

subscriptions Advertising

e-Commerce services

Commissions on promotionsCall center

Business Model Canvas

MobileApps

Page 10: Value Exchange Mapping Guide

37+ Million subscribersLeader in categoryS&P 500 (June 30th, 2013)#629 Fortune 1000 (2013)

Revenue: $3,609.282Gross Profit: $983.416Operating Income: $49.992Net Income: $17.152

Subscription revenue modelLong-tail business modelBroker/reseller model

General Info Business Model ThemesFinancial Picture (2012) Growth TrajectoryIncrease subscriber base with original content exclusive to Netflix; expand into international markets

Net!ix is the leading Internet television network for movies and TV shows with nearly 38 million members in 40 countries. For one low monthly price, Net!ix members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen without commercials. NETFLIX

[Value Exchange Map]

Distribution Rights

DVD's

Content Providers

Ads

Right to Sell Streaming Content

Customers

VP

��'.�+

Streaming Content

DVD Content

Advertisers

��

Content Production

Streaming Content

Viewing Behavior

Advertising Fees DVD Jackets

Subscription �

Subscription �

% Sales �

License Fees�

% Sales

��

�Production Companies

��

Original Content

Intermediary Parters

[Apple, Sony, etc.]

�#&'���-��

DVD Postage

DVD Delivery

Reach Customers

Growth Strategist

Page 11: Value Exchange Mapping Guide

Cost Structure

Customer SegmentsCustomer Relationships

Channels

Key Activities

Key Resources

Key Partners

Revenue Streams

Value Propositions

Netflix

DVD Customers

StreamingContent

Customers

Advertisers

Self-servicevia Web

Customerhomepage

Website

Video gameconsoles

iOS Apps

Content hubs(ex: AppleTV)

Mail

DVD plan subscriptions Streaming plan

subscription Advertisingfees

Flat rate DVD rental via

mail

No late feesunlimited #

turns on DVD's per plan

All you can stream videoNo commercials

Stream video on a number of

devices

Broad exposure of ads to

customers

Processing DVDorders

Streaming digital content

Content licensing

Producing original content

Technology development

Customer viewing

suggestions

Technology infrastructure

Licensed content

Original content

Customer viewing

behavior data

Knowledge of what content will be popular

Post office

Content providers

Content production companies

DVD mailing fees

DVD order processing

costs

Content licensecontracts

Cost of producing

original content

Data equipment, facilities &

staff

Business Model Canvas

Page 12: Value Exchange Mapping Guide

35+ million subscribersLeader in categoryActive in 48 countries#851 in Fortune 1000 (2013)

Revenue: $2,334.472Gross Profit: $1,615.532Operating Income: $98.701Net Income: $-54.773

Collective buying modelBroker/reseller modelFinancial intermediary Model

General Info Business Model ThemesFinancial Picture (2012) Growth TrajectoryExpand goods business; physical warehouses for faster shipping;Groupon Reserve (capacity mgt);POS Apps and merchant services

Groupon is a marketing service that helps businesses attract customers by o!ering deep discounts on things to eat, see, and do in more than 500 markets worldwide. Groupons leverages collective buying power to guarantee businesses a minimun number of customers.GROUPON

[Value Exchange Map]Growth Strategist

Launch Deals at 50-90% Discount (Usually 50%)

Daily Deal �*.&2 �.&*)-

Guaranteed Number of Customers

50% of Revenue �

Merchant Consultation (Design Deals)

Customer Intel

VP

Groupon

Join Deal Group & Commit Payment

Deal Activates (Minimum Number of Customers Reached)

More Potential Customers

Heavily Discounted Products & Services

Capture 100% of Payment

Groupon

���

Local Offers

Local Offers

Local Offers

Group of Buyers

MerchantsDeal Cancels; No One Charged

ElsePayout Over 3 Months

Groupon customers will spend aboveMerchant Value Capture Assumptions

Groupon customers will come back and pay full priceWord of mouth referrals will generate new customers

��

1

1

Page 13: Value Exchange Mapping Guide

Cost Structure

Customer SegmentsCustomer Relationships

Channels

Key Activities

Key Resources

Key Partners

Revenue Streams

Value Propositions

Groupon

Consumers

Automated Direct via Web

and email

Small Businesses

Mobile Apps

Help businesses attract new customers

Guaranteed # of customers per daily deal

Daily deal notifications

Commissions on sale of daily

deals

Groupon Apps & Web

platform

Sales & marketing

Platform & app development

Technology operations

IT development

staff

Sales & marketing

staff

Discounts of 50%-90%

Groupon is guaranteed

POS solution &credit cardprocessing

Direct via Sales & Marketing

TeamMerchant

center

POS & Credit card processing

services

Reservation system??

Credit card clearing houses

Page 14: Value Exchange Mapping Guide

SpotifyValue Exchange Map

Free service

Unlimited service

Premium service

Advertisers

Distributor / aggregators

Large music labels

Merlin Network

ISP's

Platform Operators mobile

operators

Consumer electronics companies

SpotifyReach customers

Royalty fees

Right to distribute music

Targeted exposure (free users)

Revenue from advertising (Free users only)

$4.99/month

$9.99/month

Partners

Increase utility value of product or service Growth Strategist

Add usersSubsidized

Page 15: Value Exchange Mapping Guide

Cost Structure

Customer SegmentsCustomer Relationships

Channels

Key Activities

Key Resources

Key Partners

Revenue Streams

Value Propositions

Spotify

Free

Unlimited

Premium

AdvertisersTarget by

demographicsTarget by location &

music genre

Tracking & reporting

portal

Customers not hostile to

advertisement

Distributor /aggregators

Large music labels

Delivery platform

developmentContent

licensing & reporting

Merlin Network

Mobile Operators

Consumer electronics companies

ISP's

Huge catalogue of big music & Independent

Platform Operators

Deliveryplatform

Listen to music on any device

Social media integration

download & listen to music

off-line

Unlimitedsubscriptions

Premium subscriptions

Advertising revenue

(free users only)

ITinfrastructure development

Analyze customer behaviors

Knowledge of customer

listening prefs

Infrastructure maintenance

Royalty fees

Business Model Canvas

Direct viaWeb

Page 16: Value Exchange Mapping Guide

Whole Foods Market

Purchases

Lifestyle Grocery Brand (Customer Pull)

Affluent Social

Shoppers

Healthy Lifestyle Shoppers

Values-based Shoppers

Unique Shopping Environment

Happy, Friendly and Knowledgeable Staff

Elagent/Artistic Stores

Coffee Bar, Bakery and Eatery (Large Selection)

Customer-centric AttitudeCustomer Service #1

In-store Cooking Exhibition & Food SamplingSamples Throughout Store

Fresh Juice Bar

Produce & other items meticulously displayed

Eating/Socializing Areas

Grocery Products

Quality Standards & Values

Producers

Distributors

Supplier Partners

Organic Certifiers

Fair Trade Certifiers

Other Partners

Social Responsibility

Certifiers

Sustainable Practices Certifier

Grocery Products

Purchases

Various Services

PurchasesSpecialty Service Providers

Support

Whole Foods

Market

Custom Services

Supply Chain Compliance to Standards

Consumers

Value Exchange MapGrowth Strategist

Page 17: Value Exchange Mapping Guide

Cost Structure

Customer SegmentsCustomer Relationships

Channels

Key Activities

Key Resources

Key Partners

Revenue Streams

Value Propositions

Whole Foods Market

Healthy Lifestyle Shoppers

Affluent Social

Shoppers

Values-based Shoppers

Personal interaction in

stores

In-Store purchases

Producers

Distributors

Specialty service

providers

Certifyingorganizations

Onlinepurchases

Delighting customers

StoresCustomer centric culture

Store design

StockingProducts for

storesOutsourcedservices for

storesStore

operations

High qualityproducts

(certified)

Building outnew stores

PurchasingSupply chainmanagement

(win-win)

Store Amenities

High qualitynatural &

organic productsDelightful shopping

experienceCertifiedquality

standards

Localcommunity

support

Adhere toSustainablepractices

Progressiveorganizationalculture & values

Business Model Canvas

Page 18: Value Exchange Mapping Guide

For Apple Users

For Windows Users

These are the icons and templates as individual image files (.png) that can be used with any software like PowerPoint, Keynote, Word, Excel, etc.http://bit.ly/1lpZ8St

These are the OmniGraffle stencils and templates.http://bit.ly/1a7Iy4S

These are the icons and templates as individual image files (.png) that can be used with any software like PowerPoint, Keynote, Word, Excel, etc.http://bit.ly/1lpZmJj

These are the Visio stencils and templates.http://bit.ly/1nwqDsf

Get the VEM Icons

All VEM files are licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-nd/4.0/deed.en_US.

Trouble downloading files? Contact us at: [email protected]