21919 – Spring 2019 Assessment Task 2 Brief(1) (1) (1)

21919 – Business Models & Strategic Planning – Spring 2019

Assessment Task 2 – (Individual)

This is a Business Model Report/Plan, which will address the key features and justification for your business model choices.

Overview:

Business model design and business model innovation examine the various options of how to make a new or existing business (more) valuable and viable. For this assignment we distinguish Business Model Creation and Business Model Innovation.

The starting point for Business Model Creation is usually a business idea, an invention, technological advancement, and the discovery of a market niche or any other knowledge that may promise successful commercialization. Creating a new business model means experimenting with the combination of various factors that jointly do not yet exist in a given market context and together present a unique way of gaining competitive advantage.

The starting point for Business Model Innovation is usually an existing business that for some reason has become or is in danger of becoming less viable. This could be the case because competing products and services have taken away market share or due to increased global competition, changing access to key resources etc. that lead to lower margins. The reasons for why an existing business model weakens are numerous. In any case, such situation means that strategists are asked to re-position the business or re-think how value can best be created and delivered.

The strategic management and innovation methods, tools and techniques being used for either situation are largely the same. This assignment requires you to individually either innovate an existing business model or create a new business model. Having gained a sound understanding of the various elements of a Business Model you will now choose a market context and start exploring the options for improved or new business models.

The two key tools and techniques used in this assignment are the Business Model Canvas (BMC) and the Value Proposition Canvas (VPC) as well as some other related Strategic Management techniques.

You are going to engage directly with existing and potential customers, talk to existing and potential suppliers, or other stakeholders for the purpose of gathering important information, evidence and support for the creation of value propositions and related business model options.

Your task is to imagine, explore, test, verify and articulate the elements of a BMC and VPC and to ensure their fit. You might apply a business model pattern or a combination of patterns.

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. You might apply a business model pattern or a combination of patterns.

How to Start:

Start by choosing a market or industry context in which you like to create or innovate a business model. You can:

Take an idea for a business that you already have and create a business model for it.

Pick an existing business in a foreign market to bring to Australia.

Pick a business and explore a new market segment.

Take a business you know well (e.g. through your job) and innovate the business model.

The most important is that you gain access to and develop a thorough understanding of the market segment. You will practice the various tools and techniques of value proposition development and business model creation.

Throughout the course of this assignment you will apply the techniques that are covered in class. On a weekly basis there will be recommended tasks and/or questions for you to investigate. The answers to those questions will come from your engagement with real (potential) customers and other (potential) stakeholders in your business.

Documenting those interactions and responses will provide you with the information and evidence needed to justify your business model choices. Keep a record of the various iterations of your BMC and VPC to show progress and how the model and your thinking evolved over time.

Assessment Criteria

The assignment relates to the following subject learning objectives:

Use creative and analytical techniques to make and justify strategic decisions.

Apply processes and methods of value creation, business modeling and strategic planning.

As well as to the following program learning objective:

Formulate creative and innovative solutions to complex management issues (2.2)

Your report will be assessed according to the following criteria.

Demonstrates clearly the application of the Business Model Canvas, Value Proposition Canvas and possibly other relevant innovation management tools and techniques to create and justify a specific business model. (Business Knowledge and Concepts, 25)

Successfully applies critical thinking, and analytical thinking to create elements of a business model and predict their strategic implications. (Attitudes and Values, 20%)

Report is well written, laid out and referenced and communicates clearly (Communication skills, 10%)

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