As we start to build our business we will be elaborating on our processes and strategies for clearly identifying and developing our key resources, activities and partners.
Four categories of key resources.
- Physical – Anything you can kick.
- Intellectual – Valuable know-how, technological solutions etc.
- Human – Culture eats strategy for breakfast (Peter Drucker)
- Financial – Sell equity for investment capital (and mentoring), assume debt or launch a Crowdfunding project.
How to make effective and efficient use of resources:
Operations Management can help by;
- Reducing costs
- Increasing revenue via quality and service
- Reducing the risk of operational failure (Harley Davidson example)
- Building capabilities for innovation (Amazon AWS example)
What activities are crucial to making your business model work?
What activities do you perform best?
Can you outsource any activities?
Key activities that will make your company successful?
How will activities vary depending on VP (Value Proposition)
Key activities – production, problem-solving, platform / network
What network of suppliers and partnerships are required to make your Business Model work? (Renault/Nissan, Hulu)
What partnerships can be developed to reduce risk or acquire resources? (Strategic alliances, joint ventures, buyer-supplier)
CASE STUDY: The left shoe company.
Company based in Finland suffering from low-cost competition offers by cheap Asian imports. They chose two key partnership strategies in order to remain in business.
- Tech company partnership – Development of a 3D foot scanner placed in the shop.
I discuss this outline in detail during my webinars. If you have a business or want to start one you will need to go through this crucially important process.