World of Requirements – part I
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competencevitality
  What is MbC?
  What is MbC about?
Lecture Introduction
  Company culture
  Company culture management
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crisis equilibrium stability vitality
Lecture Introduction
  Theory of vitality
◦  vital signs
◦  pyramid of vitality
  Building up usefulness
◦  subjects
◦  needs
◦  services or products
  Business Model
◦  Customer segments
◦  Value propositions
PV215 - 2 5Lecture Introduction
• useful to someone, even if to itselfmeaningful
• it cannot exhaust itself to deatheffective
• to threatening forces and environment
changesresistant
• flexible enough to generate changesproactive
PV215 - 2 6Theory of Vitality
The existence of organism has to be
gradually (inspired by ecosystems observations)
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Vital
signs of
systems
USEFULNESS
EFFECTIVITY
STABILITY
DYNAMICS
Theory of Vitality
DYNAMICS
STABILITY
EFFECTIVITY
USEFULNESS
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(C) J. Plamínek
Theory of Vitality
Theory of Vitality
describes a
strategy of
building a vital
company!
VS
U
E
S
D
• To have defined product or service
portfolio which really satisfy needs of
real people who may need us or depend
on us
Definition
• To keep this portfolio up-to-date to
reflect changing both outer and inner
environment
Continual
update
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D
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Theory of Vitality
Subjects
• Who may need
us?
Needs
• What they may
need?
Services
Products
• How we can
satisfy the
needs?
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(C) J. Plamínek
Theory of Vitality
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Subjects Needs
Services
Products
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> Answer the question: Who may need us?
Important
subjects
Owners
Customers,
clients
EmployeesSuppliers
...
This is just
example!
It always
depends on
situation!
Kind of
relational
analysis may
help!
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Employees
Leaders
Managers
Workers
Important
subjects?
Customers
Internal
External
Internal
External
Suppliers
Competitors
Owners
Companies
Individuals
Municipalities
SocietyEnvironment
Market
company boundary
(C) J. Plamínek
D
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Subjects Needs
Services
Products
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Subjects Needs
Services
Products
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A business model describes the rationale of how
an organization creates, delivers and captures
value.
The business model is like blueprint for a strategy
to be implemented through organizational
structures, processes, and systems.
A business model concept that everybody
understands is needed!
By Alexander Osterwalder
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Business Model
The BM
Concept
must be
Simple
Relevant
Intuitively
understand
able
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But not
oversimplifying the
complexities of how
enterprises function!
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Business Model
describing
visualizing
assessing
changing
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By Alexander Osterwalder
A shared language for ...
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Business Model Canvas
... business models.
BMC consists of nine basic building blocks
that
• show the logic of how a company intends to make money
• cover four main areas of business:
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Infrastructure Offer Customer
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Business Model Canvas
Financial Viability
By Alexander Osterwalder
Customer
Segments
(CS)
Value
Proposition
(VP)
Key Partners
(KP)
Key
Resources
(KR)
Key Activities
(KA)
PV215 - 2 18Business Model Canvas
Channels
(CH)
Customer
Relationships
(CR)
Revenue Streams (R$)Cost Structure (C$)
By Alexander Osterwalder
PV215 - 2 19Business Model Canvas
What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
Through which Channels do our Customer Segments
want to be reached?
How are we reaching them now?
How are our Channels integrated?
Which ones work best?
Which ones are most cost-efficient?
How are we integrating them with customer routines?
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
For whom are we creating value?
Who are our most important customers?
What type of relationship does each of our Customer
Segments expect us to establish and maintain with them?
Which ones have we established?
How are they integrated with the rest of our business model?
How costly are they?
What value do we deliver to the customer?
Which one of our customer’s problems are we helping to solve?
What bundles of products and services are we offering to each Customer Segment?
Which customer needs are we satisfying?
What Key Activities do our Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue streams?
Who are our Key Partners?
Who are our key suppliers?
Which Key Resources are we acquiring from partners?
Which Key Activities do partners perform?
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships?
Revenue Streams?
Day Month Year
No.
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Subjects Needs
Services
Products
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Defines the different groups of people or
organizations an enterprise aims to reach and serve.
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Subjects Needs
Services
Products
For whom are we creating value?
Who are our most important customers?
Customer groups represent separate
segments if
• Their needs require and justify different offer
• They are reached through different
Distribution channels
• They require different types of relationships
• They have substantially different profitabilities
• They are willing to pay for different aspects of
the offer
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Services
Products
Mass Market
Niche Market
Segmented
Diversified
Multi-sided Platforms (or markets)
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Subjects Needs
Services
Products
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Subjects Needs
Services
Products
BMs do not distinguish between CS.
Consumer
electronics.
Food.
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Subjects Needs
Services
Products
BMs cater to specific, specialized CS.
Supplier-
buyer.
Automotive
industry.
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Subjects Needs
Services
Products
BMs distinguish between CS with slightly different needs
and problems.
Individual
bank client.
Corporate
bank client.
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Subjects Needs
Services
Products
BMs focus on two or more unrelated CS with very different
needs and problems.
Amazon’s
shoppers
buying books.
Amazon’s Web
companies
using cloud IT
infrastructure.
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Subjects Needs
Services
Products
BMs focus on more interdependent CS, where all
segments are required to make BM work.
Metro
newspaper
advertiser.
Metro
newspaper
readers.
Specifies the
reason why
customer turn to
one company
over another.
Promises solution
of customer
problem or
satisfaction of
customer need.
Consists of
selected bundle
of products and/
or services.
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Subjects Needs
Services
Products
Needs
Services
Products
What value we deliver to the customer?
Which one of our customer’s problems
are we helping to solve? Which
customer needs are we satisfying?
What bundles of products and services
are we offering to each Customer
Segment?
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Subjects Needs
Services
Products
Needs
Services
Products
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Subjects Needs
Services
Products
Newness
Performance Customization
Getting the
job done
Design
Brand/Status
Price
Cost
reduction
Risk
reduction Accessibility
Convenience
/Usability
quantitative qualitative
  Theory of Vitality
◦  Describes strategy of building up vital company
◦  Vital signs – usefulness, effectivity, stability,
dynamics
  Usefulness
◦  Subjects -> Needs -> Products/Services
◦  Business Model Concept by A. Osterwalder
◦  Definition of Usefulness using Business Model
Canvas
  Customer Segments
  Value Propositions
PV215 - 2 32Lecture Summary
  Usefulness (continued)
◦  Channels
◦  Customer Relationships
◦  Revenue Streams
  Effectivity
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