4

mailto: ckfarn@mgt.ncu.edu.tw
http://www.mgt.ncu.edu.tw/~ckfarn

2012.03 updated

 1
(Business Model)

DellDell Direct

(OEM)
(ODM)

 2
Process Model

* Industrialization of services business model

* Low-cost carrier business model

* Loyalty business models

* Monopolistic business model

* Auction
business
modelmarketing business model
* Multi-level

* Online
content
business model
* Bricks and* clicks
business
model
Network effects business model
* Premium
business model
* Collective*business
models
Online auction business model
Professional
open-source model
* Cutting out the *middleman
model
* Pyramid scheme business model
* Direct sales model
* Razor
and blades
business model (bait and hook
* Distribution business
models,
various
* Servitization of products business model
* Franchise
* Subscription
business model
* Freemium business
model
* Value Added Reseller model

Business model design template: Nine building blocks and their relationships,
Osterwalder 2004.

A business model is nothing else than a representation of how an

organization makes (or intends to make) money. This can be nicely
described through the 9 building blocks illustrated in the graphic below,
which we call "business model canvas".

Value Proposition
Sogo

OEM

10

Perrier

Life Style!!

11

12

13

Arm length relationship

14

15

16

17

18


ODM OEM

19

IT: Wal-Mart
Discount Stores
2002
Wal-Mart 21%, 7%
K-Mart 21%, 0.9%

IT

20

21

22

Wal-Mart

23

Wal-Mart
CRPWal-Mart
POS

Cross-docking

CPFR, RFID,

24

Flow shop
Assembly Line
Batch
Job shop

Service Model

25

Dell Acer

26

Why and why not?

27

28

29

30

SI

31

32

33


=
+

34

35

Productization of Service

36

100

100
100
1,000

37

 ROE
ROE =

ROE =

ROE =

38

A+B

39

 Cash Flow

40

Servitization of products

41


1060%
120
2

30
5

120 30
1 5

5
7.5

42

CCC: Cash Conversion Cycle

+
Cash Rich Operations
CCC

Cash Poor Operations

CCC

43

44


t=1: 20,000 2,000

1,000

2,500

1,500

10,000

1,000

9,000
5,000

45


t=1: 20,000 2,000
t=2: 40,000 12,000

1,000

2,000

2,500

5,000

1,500

3,000

10,000 20,000

1,000

2,000

9,000

9,000

5,000

7,000
12,000
46



7,000
21,000
300%

3,000
10,000
18,000

47


t=1: 20,00010,000
t=2: 40,000 4,000

1,000

2,000

2,500

5,000

1,500

3,000

10,000 20,000

1,000

2,000

9,000

9,000

5,000 15,000
4,000
48

Cash rich/Cash poor operations

49

50

51

 as-is
/

52

53

IT

(visibility, accessibility)

54

BPR

55

 to-be
/

56


Otis

lifting

Xerox

57

58

59

60

61

62

3
10

63


The concept is interesting and wellformed, but in order to earn better than
a 'C', the idea must be feasible.
-- A Yale University management professor in
response to student Fred Smith's paper
proposing reliable overnight delivery service

64

FedEx

24

3
3

65


Dell Computer
(Direct)

Wal-Mart

Continuous replenishment
Cross-docking

CPFR

66

Dell Direct Model200x

~50

5-7

67

Dell
CTO: (Configure to Order)

Dell

68

Dell Direct
DirectDell

Dell
Internet Dell Direct

69

Business Model of Dell

ODM

70


NB1995
95595%5
VMI (Vendor Managed Inventory)

1999
983

2000
982

983 982 1002 !!

71

BTSbuild to stock

BTObuild to order

72


955

1985
18

2001

12~26

73

BTObuild to order

CTO/ATOconfigure/assemble to
order

VMIBTF/VMIbuild to
forecast/vendor managed inventory

74

75

ERP-Enterprise Resource Planning

SCM-Supply Chain Management

CRM-Customer Relationship Management

76

77