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Monday, May 13, 2013

Map the Business Model, then the Business Process Model (II).


Someone can think "it is very difficult to understand the Business Model, let´s do the work and let´s start mapping processes...". The reality is that if you gather the  required audience (leaders and decision takers of the organization), you can have a good understanding of the Business Model, before starting to map a Business Process Model.

I recommend to take a look to the book of Alexander Oster and Yves Pigneur, "Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers", or review presentations that explain quite well the concept and the methodology, like http://www.slideshare.net/Alex.Osterwalder/what-is-a-business-model


Let´s try, for example, to map the business model for a non-alcoholic beverage company. For this company, we start with the Customer Segments, and then move to the left in the canvas. It is desirable to create a first draft model, and complete the model with the leadership of the company during a workshop.



Then, we can analize the model in terms of required capabilities to deliver the value to the clients, and start to list them. Such capabilities will be part of the Business Process Model of the company. In this case, we find that some of the capabilities are:

- Client and consumer sales capabilities
- Supply chain management capabilities (procurement, manufacturing, distribution, warehousing, transportation)
- Product lifecycle management capabilities
- Marketing and Trade Marketing capabilities
- Support capabilities (HR, finance, TI)

As a first draft and as simplified example, we can create a Business Process Model that will contain the capabilities mapped in the following way:



You should refine this model (and its representation) with leadership. Macro-process, processes, subprocesses and so forth will be linked to these capabilities and will form the process inventory for the company.

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