A lens to view the greater organisational picture
An organisation’s business model explains how value is generated, delivered and preserved. It’s a system of inputs, business activities, outputs and outcomes that bring together different sub-units of the organisation to:
For longer-term business resilience, the CGMA Horizon Scanner recommends building out scenarios, with a time dimension that is integrated across eight groups:
Define value.
Create value.
Deliver value.
Capture and share value among the various stakeholders.
The CGMA Business Model Framework is a powerful tool for understanding the end-to-end view of an organisation and its interactions within an ecosystem. Reviewing your business model and organisational value touchpoints holistically help you avoid making decisions that focus on pandemic cost-cutting in the short-term but could potentially lead to future corporate failure. Future-focused questions around your business model require considerations beyond the short-term’s financials. They must seek to establish how your organisation’s brand, reputation, long-term success and customer loyalty will be affected as you emerge into the post-COVID-19 business world.
Define — For whom and with whom do we create value?
Does our purpose remain relevant post-lockdown or should the pandemic change it?
How has the pandemic changed the needs and priorities of our stakeholders? Which stakeholders should we focus on?
How resilient is our value proposition post-COVID-19?
Create — How do we create the products, services and experiences that meet customer needs?
Does the value we create resonate with our customers in a socially distanced reality?
What are the medium- and long-term risks from post-lockdown measures or changing stakeholder behaviour?
How has the pandemic and subsequent government interventions affected our suppliers?
How will resources be procured in the new reality? For example, does a local home sourcing resilience approach make more sense than a just-in-time global efficiency one?
Could we adapt our products or services to those that customers desire more?
Could we simplify operations post-lockdown?
Deliver — How do we match and deliver our products and services to the right customers at the right time, place and price?
Do the pandemic and lockdown measures affect our methods of delivery?
Is the pandemic changing to whom we deliver value? Does this affect how we can build a healthy long-term relationship with the customer?
How will the pandemic affect the cost of delivering value to customers? Will there wider economic effects be coming out of lockdown that change margins and pricing?
How can technology help change the way we deliver value post-COVID-19?
Capture — How do we share the benefits of value creation to incentivise key stakeholders to continue to partner with us?
For whom do we capture value?
Has the pandemic affected the way we capture value?
What will we do with any residual value generated given the economic instability and need to balance risk and resilience?
How will we share surplus value amongst our stakeholders in the new reality? Organisations are being judged by how they treat their customers, suppliers and customers.
Download here
