Chapter
Instructor’s Manual
1
Understanding Business Models
Key
Learning Objectives for Chapter 1:
Understand the concept of a business model
Learn how to analyze the three components of a business model –
strategy, capabilities, and value – through a business model audit
Understand the different ways that business models can evolve and
recognize potential drivers of business model evolution
Applegate, L.M., Austin, R.D, and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

1990 年代末期，由於 Internet 的快速崛起，造成了
dot.com 的氾濫
泡沫化  no sustainable profits
 Uses “jump-on-the-ball” approach to formulate
strategy
 Business model 被譏笑為 “half-baked plan”


但是 Business model 真的這麼不堪嗎？
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models
Business Model Framework and Definition
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Successful strategies define how a company plans to achieve
a distinctive and unique position that “woos customers
from established players or draws new customers into the
market”.

在 Free Business Models 中的吉利刮鬍刀的興起



freebie marketing (wiki)
其他範例？
Capabilities enable a company to execute current strategy
while also providing a platform for future growth. They
define the resources needed to execute strategy and, in
doing so, define the cost model of an organization.


IT 部門就是花錢的單位？
IT 部門的成本/獲利模式為何？
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Value defines “what that move is worth”
The financial returns for business owners and investors
 Stock price and market value.
 價值一定是有形的？




中興大學承接教育部教育雲資料中心
中興大學推動個資保護
討論議題：

想一下您的組織的價值為何？


若是公家機構呢？教育單位（學校）？公益團體呢？
IT部門的獲利模式？

把IT部門當做企業來經營，CIO各有所表
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models
Analyzing Strategy

Michael Porter (1996): Competitive strategy is about being
different. It is about deliberately choosing a different
position and set of activities that enable you to deliver
unique value.

Strategy: a series of choices that determine the
opportunities you pursue and the market potential of those
opportunities.
 involves
choices concerning products to sell, markets to enter,
and ways a company differentiates its offerings from other
alternatives
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models
Analyzing Strategy

These choices define strategic positioning (定位) along four
key dimensions:
 Market
positioning determines the choice of customers to serve,
the needs and expectations that will be met, and the channels
that will be used to reached those customers.
 Product positioning determines the products and services to offer,
the features of those offerings, and the price that will be
charged.
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models
Analyzing Strategy
Business network positioning determines the role an organization
plays and the activities it performs within an extended
network of suppliers, producers, distributors, and partners.
 Boundary positioning determines markets, products, and
businesses that will NOT be pursued.

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models
Analyzing Strategy

有了好的 Strategy 就夠了！？
Copy 啊！山寨版？（新聞：將 iPhone 6 reset 之後，發
現 reset 時出現 Android 的小綠人）
 申請專利或者建立高門檻



策略：App 化，to be or not to be.
需要檢視是否能夠“持續”（sustainable）

進行 Strategy audit
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models
A business model strategy audit includes analysis in
the following 4 areas:

examine the current situation systematically and in its
entirely.

Access Business Context
Analyze Customers
Analyze Competitors and Substitutes
Access the Business Network



Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Access Business Context (ie. 分析外在環境)
Examine industry and competitive dynamics and consider
relevant demographic, economic, political, regulatory, and
societal factors that influence (or could influence) the
business.
 Identify key trends that will either positively or negatively
impact the industry and any disruptors (technology,
regulatory changes, etc.) that could be a source of opportunity
or threat.
 Identify specific opportunities to pursue (or NOT)

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Analyze Customers

Identify pressing problems customers face and evaluate how a
company’s current products and services, as well as those
under development address those problems.







Market research
Internal customer information (ex. CRM)
Get a first-hand perspective by talking with observing customers
Whenever possible, involve them in designing and developing
products and services.
iphone 和 android 消費者的差異？
7-11 和全家消費者的差異？
各式衛生紙使用者的差異
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Analyze Competitors and Substitutes

Analyze alternatives customers have for meeting their needs






Which firms provide those alternatives?
What makes one company’s product or service offerings different
from other offerings? Do these differences matter to customers?
How much are customers willing to pay? How do prices differ
from one competitor to another?
Do competitors possess proprietary knowledge, assets, or
intellectual property that serve as barriers to entry?
What market share do different competitors have and how are
these shares changing over time?
Are there new entrants that offer radically different business
models or offerings?
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Access the Business Network
 analyzing the
network of suppliers, distributors, and other
partners needed to execute strategy
What activities do different players perform and what are the
relationships among the various players?
 How powerful are individuals and organizations that control key
activities, resources, or capabilities required to execute strategy?
 How is the network organized?

 shift

from “value chain” to “value network”
ex. iPhone6 CPUs from both Samsung and TSMC
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Business Network Relationships:



Transaction: Discrete exchange of goods, services, and
payments;
Contract: Prior agreement governs exchange; and
Partnership: Shared goals and processes for achieving them
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Business Network 討論議題：


HTC vs. Samsung
Apple vs. 鴻海 vs. 大立光
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

策略討論議題：

興大後花園（康河/康橋計畫）要不要推動岸線開發？

學校要不要把 email 服務全部轉成 Google 的免費服務？
學校還需要提供學生 email 帳號服務嗎？以及其衍伸的
影響？

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models
Successful strategies define how a company plans to achieve
a distinctive and unique position that “woos customers
from established players or draws new customers into the
market”.
 Capabilities enable a company to execute current strategy
while also providing a platform for future growth.
 Value defines “what that move is worth”

The financial returns for business owners and investors
 Stock price and market value.

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Capabilities
 define
the resources needed to execute strategy and, in doing so,
define the cost model of an organization.
 also define the assets of a firm and the efficiency with which those
assets are used

我的習慣：在規劃可能的策略時，相關的 capabilities 也
一併進行評估
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models
A business model capability audit includes analysis in the
following 4 areas:
 Analyze processes and infrastructure
 Analyze people and partners
 Analyze organization and culture
 Evaluate leadership and governance
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Analyze processes and infrastructure
 It
is helpful to begin the capability audit by extending the
analysis of a company's business network through a
more in-depth evaluation of core processes.
 Analysis should address core processes that
Produce products;
 Delivery services;
 Acquire and serve customers
 Manage relationships with key stakeholders
 Deliver a continuous stream of new products, services, and
innovation
 Activities performed by a company and its suppliers,
customers, and business partners

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Analyze processes and infrastructure

Also, examine end-to-end support processes (ex. Human
resource, payroll, etc.)
Do they enable efficient and effective strategy execution?
 Do people and partners at all levels have the information
needed to coordinate and control end-to-end processes and
the infrastructure required to support them?
 Are operations best in class in terms of speed, quality, cost,
and productivity?

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Analyze people and partners
How easy or difficult is it to attract, develop, motivate, and
retain expertise needed to carry out activities and coordinate
and control operations?
 Does the company have the reputation and image required to
attract and retain top talent?
 Do culture and incentives enable leaders to engage and
inspire?
 Have leaders developed clear performance targets,
measurement systems, rewards, and punishments that ensure
transparence and fairness?

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Analyze organization and culture
 assess
whether the organization design makes it easier or harder
for people to make decisions and get work done

Have people been grouped into work units and do they have the
accountability and decision-making authority needed to do their
work, make decisions, and meet performance targets?


ex. 10萬元以下(或軟體、勞務)的採購等
Are roles, responsibilities, and authority clear and are mechanisms
in place for coordinating work across units?


include formal reporting relationships, steering committees, and liaison
positions
Ex. 推動委員會、工作小組
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Analyze organization and culture

Does the informal culture support or hinder individuals and
groups as they attempt to fulfill their roles and responsibilities?


Do shared vision and values enable people and partners to work
together to achieve shared goals?


ex. 公開建議改進方案？
ex. 提升招生名額與素質？
Does everyone understand the boundaries for decision making
and action beyond which they must not cross?

Ex. 代為決行 vs. 授權
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Evaluate leadership and governance


Effective leaders use governance structures and systems to
balance the creativity and vision needed to set goals and
prioritize investments with discipline needed to execute and
deliver results.
Governance systems include strategic controls (scanning the
environment, defining strategic position, setting goals, and
prioritizing projects and investments); operating controls
(defining short-term objectives and controlling current business
operations and projects); effective risk management
(identification and management of key risks); and effective
development and management of the shared values and culture
that guide decisions and actions.
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Evaluate leadership and governance
Have leaders communicated a compelling and clear vision for
the future that unites people and partners around common
goals?
 Do leaders at all levels balance creativity and innovation with
disciplined execution?
 Can they set goals and deliver results?
 Are leaders well connected and have they demonstrated a track
record of success?
 Are there a high-performing board of directors and an executive
team that closely monitor strategic and operating performance?
 Do the board and executive team have systems in place to
identify and manage risks while also ensuring that the
organization’s culture and values guide decisions and behavior
at all levels?

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

討論議題：

某單位因時間上的需求，而尋求外包。
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models
Successful strategies define how a company plans to achieve
a distinctive and unique position that “woos customers
from established players or draws new customers into the
market”.
 Capabilities enable a company to execute current strategy
while also providing a platform for future growth. They
define the resources needed to execute strategy and, in
doing so, define the cost model of an organization.
 Value defines “what that move is worth”

The financial returns for business owners and investors
 Stock price and market value.

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Analysis of business value include
 Most
executives of publicly traded for-profit firms begin their
analysis of business value by looking at company financials.
These measures of economic value define the financial
returns for business owners and investors, which, in turn,
influence stock price and market value

Financial ratios such as the DuPont Formula (next page)
 When
the business environment is rapidly changing and
highly uncertain, understanding the drivers of value creation
is essential

Drivers identified during the strategy and capability audit.
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models
Using the DuPont Formula to Deconstruct ROE
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models
A business model value audit includes analysis in
the following 3 areas:



Identify internal and external stakeholders
Identify business drivers and alignment
Develop the financial model and determine financing
needs
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Identify internal and external stakeholders




What do they require and what are they able to (or willing
to) provide?
Can the company attract, retain, and motivate key
customers and are these customers willing and able to pay?
How do the interests of other stakeholder groups (e.g.
employees, partners, government, society) influence a
company’s ability to attract and serve customers?
What are the objective and subjective benefits that each of
the key stakeholders (or stakeholder groups) receive from
doing business with the company?
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Identify business drivers and alignment


SWOT analysis: What are the key opportunities and
threats identified during the strategy audit? What are the
key strengths and weaknesses identified during the
capability audit?
From the SWOT analysis, identify key revenue, cost, and
asset efficiency drivers and develop a business model
dashboard that reflects linkages and alignment among
various components.
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

Develop the financial model and determine financing
needs






What assumptions have been made about the drivers of revenue, costs,
and asset efficiency?
How much uncertainty is there in these assumptions?
How do changes in these assumptions based on best-case/worst-case
scenarios change the economics of the business?
Translate the financial model into “values”. (e.g. In for-profit firms,
calculate ROE, etc.)
How does the economic value delivered by a business relate to the
market value expectations of stakeholders?
Are there any fatal flaws in the business model? If so, how should
these problems be addressed?
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models
Analyzing Business Model Linkages
Are we creating sustainable advantage?
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models
Evolving Business Models

There are four key approaches to evolving a business
model




Enhance: Incremental improvements to an existing strategy
or capability
Expand: Launch new product categories, enter new
markets, or expand capability
Explore: Launch new businesses and build new capabilities
Exit: Exit a product or market or outsource a capability
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models
Evolving the Amazon.com Business Model (1995-2000)
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models
Keep in mind:

所有之前所說的分析、評估等，甚至發展新產品、
進入新市場等，想想看 IT 所扮演的角色
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

最快明年初 手機可ATM提款
聯合報 2015/11/02
 未來只要一機在手，就能做到「無卡」
也能提款。
 「行動金融卡」提款功能，還可以
遠端遙控，幫父母親掌控給子女的零用金。

請從 Business Model 的三個層面來討論，
並預估“成功率”
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

支付寶搶進台夜市！ 永康商圈11月底上路
東森新聞 2015/11/02
請從 Business Model 的三個層面來討論，
並預估“成功率”

Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

李紀珠正面思考 把政策包袱轉成商機



聯合報 2015/11/02
好像有點像“廣告”、或者“歌功頌德”
正面思考


背景：台銀是百分百國營行庫，軍公教優惠存款、學貸等逾
一百億元沉重的政策負擔壓力，讓台銀先天起步上就比其他
銀行艱辛
軍公教優惠存款




是「長期穩定」的資金來源
軍公教優存客戶，則是高忠誠、黏著度高又相對有財力的優質
客戶
台銀承擔約八成學生助學貸款的政策任務，也帶給台銀這家
老行庫七十二點四萬的年輕客戶，讓台銀在拓展數位金融市
場上，可有更多利基
國際金價下跌，讓黃金業務萎縮不少，推出具特色且受歡迎
的「黃金信用卡」，連動提高信用卡業務
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

討論議題：

Internet 的發展和潛能已經全部發揮了嗎？新的
business model 還不斷的出現（同一產業或者跨產業）




大廈管理公司與農會、產地公會的結合。
Yelp：美國最大的線上 users’ reviews 網站。
New York Attorney General Busts 19 Companies For Writing
Fake Yelp Reviews: 罰金約 35萬美金
影響交易秩序！ 三星「寫手門」案 公平會罰千萬元
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009
Chapter 1: Understanding Business Models

討論議題：

什麼是軟體定義商業？
所謂的軟體定義商業是指，企業有能力自製軟體，大幅
改變或強化他們自己原本做生意的方式。Uber就是一個
好例子。
Uber這家公司不是提供計程車或租車服務，而是善用軟
體改寫了原有的商業模式，讓乘客用自己的手機叫車和
付款，而不是在街上攔車和付現。
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資料來源：http://www.ithome.com.tw/news/96862
請以 Uber 分析商業模式的三個面像
Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009