Environment-Strategy-Structure-Operations (ESSO) Business Model Development (copyright: Dr. Michael Lim 2010) Environment PESTEL and Opportunities and Threats How do they affect us and our Customers, Competitors & Suppliers Operations •Key activities •Key resources •Key competitors •Key suppliers and partners •Key customers- segment, channel (e.g. direct, franchise) •Cost and Revenue Operational Competitive priorities •Cost •Quality •Time •Flexibility •Innovation •Affective Strategy Market opportunities Competitive advantage Resource based view Market access e.g. government contracts Customer base– broad or narrow/ focused/ niche Knowledge Management •Knowledge in people’s heads •Documents, Databases and Resource Planning Programs •Strategy, Structure and Operations Structure •Hierarchy •Community (flat) •Mixed Design Copyright: Dr. Michael Lim (2010) Lim, M. 2010. Environment-Strategy-Structure-Operations (ESSO) Business Model. Knowledge Management Module at Bangor University, Wales. Available at: http://www.communitiesofinnovation.com/L/Dr_Michael_Lim_%20Business_Model_Knowledge_Creation_and_Innovation_Lecture%209.ppt (last accessed 02/12/10)