Value Chain Framework

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Value Chain Framework

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New Business Models: Gap between “wish” and “action”

Most organizations face the challenge of transferring service-driven innovations into new business models. In general, companies are not lacking ideas: They continuously brainstorm about new business models, associated service solutions and new customer groups to address. But progress in realizing business models is slow. There is a big gap between the “wish” for new, profitable business and the required “action” to turn the ideas into real business.

The “Value Chain Framework” by CBC addresses this gap. The framework identifies the economic contribution of a service innovation at each stage of the value chain and enables the simulation and evaluation of different scenarios. The project was honored with the “Best of Consulting 2020” award in the category “Strategy” of WirtschaftsWoche, one of the leading weekly business magazines in Germany, in November.

Future positioning along the value chain

Most of the formerly traditional, hardware-centric companies are facing disruptive business environments. Groundbreaking technologies, unexpected new market entrants and a dramatic shift in the rules of the game significantly impact their portfolio and, ultimately, their organizational structures. Previously established and leading companies are called upon to rethink the future, their portfolios and integrate them into the existing strategy.

From the outset, the “Value Chain Framework” questions potential business models both from a technical and market perspective that challenges the client’s existing portfolio against the required capabilities. It results in the recommended future positioning along the value chain. The framework is developed as an easy-to-use application accessible for all business development functions in the organization.

The “sandglass principle”: Analyzing business ideas systematically

The developed “sandglass principle” is the core idea and identifies value creation potentials. The upper side of the sandglass allows the systematic specification of the variety of existing service ideas and cuts out selected service components. This part considers the specific customer’s willingness to pay, the competitive situation, potential entry barriers, and expected opportunities. The results of the top half lead to the bottom half of the sandglass. This part recognizes and concretizes the specific client’s ability to realize the potential business idea, the designated role within the value chain, and the resulting value-add for the company.

The “Sandglass Principle” developed by Continental Business Consulting (CBC)

One blueprint for all functions in business development

Continental Business Consulting (CBC) provides an enabler for the analysis and evaluation of future business model initiatives with the developed framework. The result offers a binding structure as a blueprint and represents a commitment through a train-the-trainer roll-out. The “Value Chain Framework” drives new business ideas from a “wish” attitude into “action” and closes the gap between idea generation and business case definition.

About “Best of Consulting” award

The “Best of Consulting” award is one of the most prestigious trophies in the German consulting industry. WirtschaftsWoche selected the best consulting companies in Germany in the categories Strategy, Finance, Operations, Technology, Marketing and Organization as well as Healthcare and Newcomer as particular sections.

Continental Business Consulting (CBC) has received the award for “Best of Consulting 2020” in the category “Strategy”. The jury honored the combination of theory and practice insights and the focus on the client’s needs in establishing a tailored solution for Continental. The advisory board and the independent jury, consisting of renowned representatives from science and business, rewarded the CBC team with the third place.
 

Please contact us

cbc@continental.com
 

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