Free Essay

Business Modeling

In: Business and Management

Submitted By bejaranomartha1
Words 4324
Pages 18
pAssignment: Business Modeling

Business Modeling

Group 1: Thomas Westelaken, Sebastiaan de Monte, Chris Hoedemakers, Daniëlle Peverelli, Teije Oudshoorn

Assignment: Business Modeling

Group 1: Thomas Westelaken, Sebastiaan de Monte, Chris Hoedemakers, Daniëlle Peverelli, Teije Oudshoorn

Assignment: Business Modeling

Table of Contents
1. 2. Introduction .......................................................................................................................................... 4 Story ...................................................................................................................................................... 5 2.1. 2.2. The case (spotify) .......................................................................................................................... 5 The business model canvas........................................................................................................... 6 Customer segments (CS) ....................................................................................................... 7 Value Propositions (VP)......................................................................................................... 9 Channels (S)......................................................................................................................... 10 Customer Relationships (CR)............................................................................................... 11 Revenue Streams (R$) ......................................................................................................... 12 Key Resources (KR) .............................................................................................................. 12 Key Activities (KA) ............................................................................................................... 12 Key Partnerships (KP) .......................................................................................................... 13 Cost Structure (C$) .............................................................................................................. 13

2.2.1. 2.2.2. 2.2.3. 2.2.4. 2.2.5. 2.2.6. 2.2.7. 2.2.8. 2.2.9. 2.3. 2.4. 3.

The Essence of the Business Model ............................................................................................ 14 Tangible business model ............................................................................................................. 15

Process ................................................................................................................................................ 16 3.1. 3.2. 3.3. Canvas ......................................................................................................................................... 16 Translation .................................................................................................................................. 18 Tangible Model ........................................................................................................................... 19

Group 1: Thomas Westelaken, Sebastiaan de Monte, Chris Hoedemakers, Daniëlle Peverelli, Teije Oudshoorn

Assignment: Business Modeling

1. Introduction
The assignment started with drawing up a business model canvas and ended up with presenting a selfmade tangible business model of Spotify. The goals were to obtain more knowledge about business in a playfull and creative way and being able to use the knowledge that was obtained. This report will show you the story of spotify, the business model canvas of spotify with elaboration, the essence of spotify, the tangible business model and the process of making the tangible model.

Group 1: Thomas Westelaken, Sebastiaan de Monte, Chris Hoedemakers, Daniëlle Peverelli, Teije Oudshoorn

Assignment: Business Modeling

2. Story
2.1. The case (spotify)

First of all a short introduction of Spotify was made. Spotify provides music through streaming to everyone who downloads their application. Both the application and listening to the music is completely free. The user just needs to create an account, and have access to the internet in order to stream the music. Most importantly is that this way of listening to music is entirely legal. However, the user can in return not access the music file and can thus only listen to it within Spotify’s application. In the free version, the user will also get audio advertisements between the songs they are listening. This can however be avoided by paying a small subscription fee.

Group 1: Thomas Westelaken, Sebastiaan de Monte, Chris Hoedemakers, Daniëlle Peverelli, Teije Oudshoorn

Assignment: Business Modeling

2.2. The business model canvas

Group 1: Thomas Westelaken, Sebastiaan de Monte, Chris Hoedemakers, Daniëlle Peverelli, Teije Oudshoorn

Assignment: Business Modeling

2.2.1. Customer segments (CS)
After analysing one particular customer the customer segments that are targeted by Spotify were defined. Spotify aims for the mass market and for a multi sided platform. There are three segments in the mass market: Premium Listeners, who are able to use Spotify mobile and offline; Unlimited Listeners, who pay a small amount for more time to use Spotify; and the Open Listeners, these customers have limited access, do not have to pay but have to listen to commercials and have a limited listening time of max. 20 hours. The multi sided platform works together with one of the segments of the mass market, the Open Listeners. Advertisers get a specific value for their money which means they are also a customer. The Advertisers and Open Listeners need each other because Spotify needs listening customers to be able to promise value to the Advertisers and the Open Listeners need the Advertisers to be able to get a free of charge Spotify service.

Group 1: Thomas Westelaken, Sebastiaan de Monte, Chris Hoedemakers, Daniëlle Peverelli, Teije Oudshoorn

Assignment: Business Modeling

Customer Empathy map The customer that has been worked out in the empathy map is a young professional. This customer has thoughts, feelings, pains, gains, sees things, hears things and says and does certain things. These segments were defined for this customer, related to music. The young professional, let’s call him John, has just landed a busy job. He has to travel a lot and therefore has not a lot of leisure time because of his demanding job. During his travel he likes to kill time by listening to music. Also music makes him relax. He earns more money nowadays and therefore feels bad about piracy because he is now able to buy music. He buys almost everything he needs on the internet while he has no time to go to an actual store. He sees there are a lot of easy ways to get music. But he does not have a lot of money to spend because he just bought an apartment. A lot of information is shared through social media he notices. His friends tell him he has to look well after himself now he is getting exhausted by work. His boss on the other hand demands that he has to make his deadlines. Society tells him, now he is no longer a student, he has to be mature. To mature his taste in music he is busy exploring new music styles. He would like more leisure time, less pressure and less stress. Also he wants to listen to music, anyplace, anytime, anywhere.

Group 1: Thomas Westelaken, Sebastiaan de Monte, Chris Hoedemakers, Daniëlle Peverelli, Teije Oudshoorn

Assignment: Business Modeling

2.2.2. Value Propositions (VP)
Because there are two customer groups, the listeners and the advertisers, the values can be separated into two parts as well. In the first part, the value propositions for the listeners, Spotify offers basically the opportunity to legally listen an large amount of music for free of for minimum payment. This means that you can listen over 15 million songs, while paying with either time or little money. The fact that this system is completely legal, makes it even more attractive for the customers. In addition to these values, personal playlists can be created and accessed on any pc. For the premium listeners, Spotify also offers the possibility to listen via a Smartphone and even listen offline. No storage space on the hard disk is needed (except for the offline listening), because the music is streamed from the internet. And because of the streaming, there is no loading time before listening a song. Another value that is offered by Spotify, is that there is an possibility to share music. And because everyone can share music, it is easy to find new music. Also there is a function to find new songs by similar music genres and artists.

For the second group, Spotify offers an attractive way of advertising. Because Spotify is linked to social media, such as Facebook, it can gather information about specific users. This information combined with the information Spotify gathers directly from the user, targeted commercials are possible. Different users get different commercials. The listener group is a mass market. So advertisers have the opportunity to aim at a very large target group, but also to aim at a smaller target group, but still have a large amount of people that notice the advertisement. Another thing Spotify offers, is that when people are listening to music, while paying with time, people have to listen to commercials in between songs. These commercials can’t be skipped or muted, so advertisers can be sure that the commercial is being heard. Also statistics about how many see or hear an advertisement are really simple to find out.

Group 1: Thomas Westelaken, Sebastiaan de Monte, Chris Hoedemakers, Daniëlle Peverelli, Teije Oudshoorn

Assignment: Business Modeling

2.2.3. Channels (S)
Spotify reaches its customers, and delivers its value through different channel phases. 1. Awareness First of all, they need to create awareness about who they are and what they deliver. Spotify has done this primarily by relying on media attention and friend to friend promotion. Lately, with the coming of new social media partners (such as Facebook, Twitter and MSN), this has become an even stronger channel to create awareness on their service. In this same way, advertisers become aware of Spotify’s existence and the possibility to advertise through it. Strikingly, Spotify seems to have chosen not to promote themselves by means of advertisements, thus saving money their promotion. 2. Evaluation The second step in reaching customers is to evaluate and promote the organizations value proposition. Spotify does this again by friend to friend communication. Once arrived at Spotify’s website, potential customers (both music listeners as Advertisers) are elaborately informed about the different features (values) Spotify has to offer. 3. Purchase When customers are convinced of the value of Spotify, they are only a few simple steps away from actually using (or buying) Spotify’s services. Spotify only enables users to do this by means of their website. Listeners download the application from here, while advertisers contact a Spotify correspondent via email or a form. 4. Delivery The delivery of Spotify its entire value proposition (for both music listeners as advertisers) is done by means of their music streaming application on both computer and smartphone. 5. After sales The after sales of Spotify are rather limited. This however means they again save money in their overall cost structure. For music listeners Spotify provides a self-service online help section (FAQ based help). Next to this, there is a community based support forum where customers (as well as Spotify employees) help other customers out. Finally there is the option to send an email contact form to the customer support department of Spotify. For Advertisers, Spotify ensures detailed tracking & reporting and enables advertisers to contact them through email.

Group 1: Thomas Westelaken, Sebastiaan de Monte, Chris Hoedemakers, Daniëlle Peverelli, Teije Oudshoorn

Assignment: Business Modeling

2.2.4. Customer Relationships (CR)
This section will talk about the relationships between Spotify and her customers. Because Spotify offers value to different target groups, this section is divided in two parts; the listeners and the advertisers. For the listeners Spotify offers various ways of relating to them. Depending on the situation Spotify offers no, little or personal assistance. 1. Automated service: Spotify notices you by your user account and gives you your personal playlists and other personal information. Furthermore, Spotify allows you to connect your Spotify account to your Facebook profile, so you can share your music with your friends. 2. Self service: In case of needed support Spotify offers a FAQ (Frequently Asked Questions) Help section online. In this section you can get general help for any problem that might occur while using the Spotify application or other related services. You need to look for the information yourself and there also is information stated on the site that is not specific for your problem. This section does not recognize you as a specific user but just gives all information, thus not being an automated service. 3. Community: Spotify also offers support through their Support Forum. This forum contains much more information about problems that might occur during usage of the Spotify application or other Spotify related services. In this section you can post your problem or question and other users may react to your post, giving you the answer to the problem. This section is also not filtered to your personal problem and therefore automated service does not apply. 4. Personal assistance: This can already be seen in the community part, where employees of Spotify sometimes give possible solutions to a problem. The real personal assistance comes in cases where both the FAQ and Support Forum cannot give solutions to the problem at hand. In this case it is possible to send a message by Contact Form to Spotify and wait for an answer. For advertisers it is harder to state the various ways in which Spotify offers Customer Relationships to them. The advertisement companies rely on personal assistance more than listeners, since it can be big business in some cases. Therefore Spotify offers a more personal assistance. 1. Self service: To help the advertisers with the first steps, however, Spotify has set up some guidelines on the website which will make the first steps easier for the advertisers. When advertisers stick to these guidelines, the chances of getting advertisement space is significantly larger than when not sticking to these guidelines. It is however up to the advertiser to find this out and make sure he complies with the set standards. 2. Personal assistance: This comes in the form of an advertisers contact form or email address of Spotify which allows for advertisers to get in contact with Spotify. It is unclear what more kinds of assistance Spotify offers to advertisers, since you would probably have to be in the business to see these. Imaginably these could be personal assistance, where an employee of Spotify makes sure that all the data is submitted in the right format and some contracts are signed. This kind of service is not dedicated, since it is probable that an employee will have multiple contacts to deal with.

Group 1: Thomas Westelaken, Sebastiaan de Monte, Chris Hoedemakers, Daniëlle Peverelli, Teije Oudshoorn

Assignment: Business Modeling

2.2.5. Revenue Streams (R$)
Spotify’s revenue stream as very basic. They collect revenues from two different streams. The first stream comes from the fixed subscription fees of the Unlimited and Premium account members. This is roughly 75% of Spotify’s total revenues. Secondly, there are the advertising revenues received from the advertisers. Together, this provided Spotify with a total revenue of about $85 million over 2010.

2.2.6. Key Resources (KR)
In order to deliver the above mentioned values, Spotify also needs certain resources. First of all, order to deliver music, they need to have music. Therefore the music licenses are the most important resource that are needed. Next to the music itself, a server is needed to actually get the music to the user. These are the two most important resources. Finally, in order to get customers, branding is needed. In the time Spotify is on the market it already established quite a name in a great part of the world. This branding provides more users and thus more revenue.

2.2.7. Key Activities (KA)
Next to resources, Spotify needs to undertake activities to deliver and keep delivering their services to their customers. First of all the server they use to get the music to their customers needs to be maintained. However, as Spotify grows, its server also needs to grow and thus even needs regular development. Furthermore, Spotify is still not able to deliver all music in the world to their users, and thus can their music library also still use more expansion. But the alternative services Spotify delivers (next to music on the pc) are also still growing. Finally, not only creating more value enables Spotify to increase their revenues. Launching Spotify in new markets creates more users and thus also more revenues.

Group 1: Thomas Westelaken, Sebastiaan de Monte, Chris Hoedemakers, Daniëlle Peverelli, Teije Oudshoorn

Assignment: Business Modeling

2.2.8. Key Partnerships (KP)
Spotify cannot work on its own. To exist, Spotify needs other companies to work together with. Of course, to deliver music, Spotify needs to have music. To get music, Spotify must have deals with record companies. So the record companies are a very important key partner for Spotify. If there are no deals, there is no music and if there is no music, there cannot be any listeners and if there are no listeners, Spotify has no customers. Another key partner for Spotify, is Facebook. Due to the deal that Spotify has with Facebook, Spotify is brought to everybody that uses Facebook. People that are sitting behind their computer, see at that moment that someone else is using Spotify. It is a very small step for them to take a look what Spotify actually is and to download is, because they are already on the internet. Beside Facebook, other social media like Twitter are possible future key partners as well.

2.2.9. Cost Structure (C$)
The money that goes to Spotify, does not all stay there. Spotify has to pay other companies to keep their own service running. Most money goes to the record companies, to buy the licenses for the music. This cost can also be seen as an investment, because if there is more music available, Spotify will become more attractive to use. Other money makes sure to keep the servers up, pays the loans of the employees of Spotify and goes to travelling and bounding with (possible) key partners. And the money that is left stays at Spotify itself.

Group 1: Thomas Westelaken, Sebastiaan de Monte, Chris Hoedemakers, Daniëlle Peverelli, Teije Oudshoorn

Assignment: Business Modeling

2.3. The Essence of the Business Model
We abstracted from the business model what we think is the essence of Spotify’s business. It starts with the music. There is no Spotify without music so the way to get music is to pay the record companies, their key partners, for royalties so they can add music to their library. The bigger the library the better Spotify works. Then the obtained music goes to the user who can chose how to listen to it. The first option is to listen for free. But this means for Spotify to still earn profit the open user needs to listen to advertisements. Here come the advertisers into the picture, they are also customers because of the money they pay to advertise, they get information back about the listeners and maybe new customers. When the user does not want to listen to advertisements they can pay 5 euro (or dollar) to get rid of it and be able to get more time to listen to music. This means the user is an unlimited user and the advertisers are no longer involved. If the user even wants an upgrade with extra’s like listen offline their own playlist they can pay 10 euros (or dollar) and this will make them premium users. Next to this the business model is aiming at getting a lot of Premium users, this is their biggest income so they need to get as many users as they can. The most important way of doing this is automatically posting on the Facebook profiles of users what they are listening to. This will interest their friends in Spotify and generate more users for the company.

Group 1: Thomas Westelaken, Sebastiaan de Monte, Chris Hoedemakers, Daniëlle Peverelli, Teije Oudshoorn

Assignment: Business Modeling

2.4. Tangible business model
One of the most striking features of Spotify is the fact that their value is not music but time to listen to music. The user does not own the music and this is why the music in the tangible model is projected. You can see it but you can’t really own it. The business model has to be picked up by the user to start working just like Spotify needs the user to work. When the user sees the projections (listens to music) he/she does not really see the business model of Spotify. For that they have to turn the ball around where you can find the essential parts of Spotify next to the user; record companies, advertisers and social media. The connections are made dynamic by the water flows. The user interacts with the ball (Spotify) by paying for unlimited or premium and this will change the projection and going from open to unlimited user the advertisers in the back will also lose their light. This back is exactly like the previously explained essence of Spotify.

Group 1: Thomas Westelaken, Sebastiaan de Monte, Chris Hoedemakers, Daniëlle Peverelli, Teije Oudshoorn

Assignment: Business Modeling

3. Process
3.1. Canvas
To start with building the business model the model presented by the Board of Innovation was used. With this the connections could be established between different parties. After looking up on the website of Spotify what were their major parties, the overall layout of the BoI model was set. With this model the customer segments and value propositions could be determined as well as revenue streams, cost structure and key partners.

One of the biggest problems that occurred was that it was unclear where to put a certain party. The advertisers were a grey area, considering that they bought something from Spotify, but also allowed the possibility for Spotify to offer their free service to the listeners. Because of this uncertainty we first set the advertisers as being key partners, which we got commented on during the first presentation. So, after all we adjusted the advertisers to part of the customers as Spotify offered a specific value proposition to them as well and the fact that the advertisers allowed the free service meant they could also be set as a key partner, but they eventually became to insignificant for that to be inserted in there. The customer empathy map was first set up for an ideal costumer, yet during the first presentation we got the comment that most likely there will be no such costumer. To get a more reliable empathy map a new map was constructed around a more realistic costumer. With the first two parts, costumer segments and value propositions, sorted out and an empathy map made we carried on to the other parts in the next week.

Group 1: Thomas Westelaken, Sebastiaan de Monte, Chris Hoedemakers, Daniëlle Peverelli, Teije Oudshoorn

Assignment: Business Modeling
For the second presentation the Channels, Customer Relationships and Revenue Streams were set up. To get the information needed we looked at a report of Spotify by the Guardian from August 2011 and an interview from Daniel Ek, chief executive, with the Financial Times in March 2011. This gave some data on what the most recent costs and revenues are and how much influence the paying customers have on the revenues. For the Customer Relationships all the information could be found on the website of Spotify itself offering various ways to aid the customer, both listener and advertiser. The Channels were a bit harder to find out, as things as media attention were harder to assess. During the second presentation we were informed that they actually do have commercials, something we were unable to find. The left side of the Business Model was actually quite easy to fill in, since they were already a bit apparent during the process of filling in the right side. Key Activities, Key Resources, Key Partners and Cost Structure were all already thought up. Key Activities was just what all other music services needed to do as well as Key Resources. The Cost Structure we were able to deduce from the information we had gathered for creating the Revenue Streams segment. The Key Partners contained the logical ones like record labels and social media.

Group 1: Thomas Westelaken, Sebastiaan de Monte, Chris Hoedemakers, Daniëlle Peverelli, Teije Oudshoorn

Assignment: Business Modeling

3.2. Translation
From the first segments of the canvas on we started creating a tangible model. The essence of what was used for the model, contained the major parts of the model. These major parts are: Spotify; record companies; advertisers; social media and the listener. To generate ideas a brainstorm is often used. other variations of a brainstorm are brain drawing and brain writing. The idea for our model came out of a sort of brain building. To generate ideas we took a hands-on approach. Instead of just making mind maps and writing things down, we decided to all take some random stuff from home and try to come up with ideas through that. This unconventional approach spawned some good ideas, which we combined into a model. We used parts like the representation of flows by tubes, the projection of the music note to show that the user does not actually have the music, but can only listen to it and the inserting of money to get rid of adverts and better music. For the first presentation we made the projection with a bicycle lamp, made a fake button to push for removing the advertisement, and pleased this with some vague forms in a plastic orb. At that point not all the ideas were properly integrated bur as it was only the first presentation, this was not the issue.

Group 1: Thomas Westelaken, Sebastiaan de Monte, Chris Hoedemakers, Daniëlle Peverelli, Teije Oudshoorn

Assignment: Business Modeling

3.3. Tangible Model
The projection of the note was done by sandblasting the front of the ball. The rest of the front that would not be used for projecting any information was painted to represent Spotify.

After the electronics were soldered a framework for the projecting LEDs was hot glued into the front of the ball. The green and blue projecting LEDs are using the same filter so they were carefully positioned and glued at the right angle together with the filter. The red LED was positioned and glued together with another filter for the advertisers.

Most of the electronics and all the projecting LEDs are covered by the dividing disc inserted in the front part of the ball. This way the back end of the ball stays clear. The dividing disc also divides the ball into a user- and ‘the world of Spotify’-part. In the world of Spotify we show the most important flows between the most important parties. These flows are represented by tubes filled with colored liquid. If the ball is turned the user can actually see the different ‘flows’.

The interaction with the model is done by inserting one or two coins. If the user inserts one coin the advertisements will disappear from the screen and the light of the advertisers on the back part will also turn off. If the user inserts a second coin an extra note will appear on the screen representing better music and more functionality.

As a finishing touch we made a stand for the ball that turns off the power of the ball.

Group 1: Thomas Westelaken, Sebastiaan de Monte, Chris Hoedemakers, Daniëlle Peverelli, Teije Oudshoorn

Similar Documents

Free Essay

Business Process Modeling

...Journal Article Review By Sadanand Patil. Instructor: Hamed Saremi. ABSTRACT: In this paper we are going to review three journal articles based on Business Process Modeling and Simulation. These articles explain the importance of business process modeling and simulation in business processes. Authors discuss how modeling and simulation is done. We start with some information about the business processes explained by the authors then we will discuss business process modeling and methods of modeling. We will also go through how simulation modeling helps to evaluate alternate business process strategies. We will also discuss benefits of simulation of business process modeling. The purpose of this paper is to give readers idea about the journal articles, whether they are worth reading and importance of these articles and how these articles will help to understand Business Process Modeling and Simulation. INTRODUCTION: Ray J. Paul, Vlatka Hlupic and George M. Giaglis explained in their article that due to increasing competition, organizations need to make major changes in their each step of business process. BPR (Business Process Re-engineering) helps an organization to enhance the business process and also creates new ways in order to gain a competitive edge in a real market. BPR helps to redesign the business system for the enhancement of an organization. Many organizations faced a failure because of many factors such as difficulty in adapting new process,......

Words: 2589 - Pages: 11

Free Essay

Business Modeling

...The Case for Exotic Adventures Inc. Case Synopsis This case study will analyze the case for Exotic Adventures Inc., which provides customers with expedition like travel that is adventurous from the Amazon. The dilemma causing the need for this analysis is the seasonal and water level dependency which puts their trip at risk due to wildlife issues during low level season. Naturalist suggest that October trips are most favorable, leaving EAI with three options to consider for this analysis, one to cancel the trip all together, two to continue with plans and cut trip short halfway, and third is to anticipate completing the entire trip. State the Assignment Question Less than one week prior to the passengers’ departure, EAI is faced with the questions of should they cancel the trip and refund those 52 passengers who have already paid their money? Should they continue with the voyage and return midway should the water levels be too low while taking into account all of the cost aspects? Or should they risk it and plan on having the entire trip at all costs? Case Analysis Before deciding on which option is more cost effective, we must first understand what Exotic Adventures offers their customers. Their primary service is to provide passengers with expedition type voyages. EAI also provides customers with trips to the Amazon during the low river seasons. This offer is primarily during the month of October. They offer complete packages including air, lodging, and......

Words: 927 - Pages: 4

Premium Essay

Reason for Business Modeling

...Reasons that a Business Modeling Course is Included in the MBA Curriculum As a student it is important to know just how Business Modeling is going to help me and why it’s required. The number one reason for this requirement is that it will train me on how to analysis quantitative data and turn me into a successful decision maker. Mark Chussil illustrates the need for good decision in this quote, “Better strategy decisions come from a qualitative shift in how we use numbers, how we generate strategy ideas, and how we align individuals' and corporate goals” (2005). The techniques learned in this course will prepare me to analysis choices and come up with the best decision and how to relate it to company goals if needed (Mark Chussil 2005). Another reason for taking this course is that our business environment is always changing and new business modeling techniques will allow companies to more accurately observe these changes and set themselves apart with the ability to respond in a timely and effective manner (Schlesinger 2012). According to Scott Schlesinger, vice president and head of Business Information Management, Capgemini U.S. LLC. "Organizations that do so will be able to monitor customer behaviors and market conditions with greater certainty, and act in response with speed and effectiveness to differentiate from their competition." Capgemini report shows big data's rising impact on decision-making in North America and globally. (2012, Jun 12). Business Wire,......

Words: 433 - Pages: 2

Premium Essay

Quantitative Business Modeling

...Qualitative Method of Case Analysis - EOPT Theory Case Method Used in MGMT 1P96 Fall 2013 – Brock University Prepared by Michael Robertson Revisions by Jacqueline Glenney INTRODUCTION Qualitative case analysis, as distinct from the quantitative method, deals with organizational issues that impede or prevent companies from being effectively organized. Qualitative case analysis is typically used in Organizational Behaviour, Human Resource Management, Organizational Change, Industrial Relations or any venue that is significantly impacted by human interaction. This type of analysis identifies inconsistencies, incongruities and conflicts that are sub-optimal and allows the analyst to prescribe solutions that address both the acute problems facing the organization (the individual events or actions observed) and the chronic, underlying conditions that promote these sub-optimal conditions. 1. OVERVIEW The overview is a 5 – 7 sentence paragraph that establishes the context in which any analysis or decision must be made for the case in question. This section of the report indicates to the reader that the analyst (You) understands the circumstances of the organization’s dilemma. The writer must identify the key people involved, most critical event or events that have happened and the situation that has resulted. Finally, the writer must detail the apparent decision(s) that must be made. Note: This is not an introduction and absolutely no conclusions are drawn at this point. The writer......

Words: 1437 - Pages: 6

Premium Essay

System Modeling

...System Modeling Margaret Francies Strayer University Term Paper System Modeling Theory– CIS 331 Richard Guirguis Due on 12/8/2010 System Modeling Systems modeling or systems modelling is the approach to the study of the use of models to imagine and construct systems in business and IT development. In business and IT development the term "systems modeling" has multiple meaning. System Modeling can refer to analysis and design efforts, simulation and or system dynamics, and a study of the many uses of these models. There are different approaches to modeling: Agent based data and mathematical modeling. Quality management adopts a number of management principles that can be used by top management to guide their organizations towards improved performance. Principles such as: customer focus, leadership, people’s involvement, the process, system approach to management, continual improvement, facts, and a mutual benefit. . Decision making is a reasoning or emotional process which can be rational or irrational. The cognitive perspective is that the decision making process must be regarded as a continuous process integrated in the interaction with the environment. From a normative perspective, the analysis of individual decisions is concerned with the logic of decision making and rationality and the invariant choice it leads to it can be based on explicit assumptions or tacit assumptions. In decision making, objectives must be established and placed in the order......

Words: 662 - Pages: 3

Premium Essay

Modeling, Visualization, and Assessment

...Modeling, Visualization, and Assessment Modeling, visualization, and assessment are three tools that when incorporated properly, can make any classroom successful. Visualization is now being used in several careers. Disciplines such as mechanical design and architecture have traditional utilized drawings such as plans, sections, and elevations as the primary medium for design communication as well as documentation (Guidera, 2010). Highway design engineers now use visualization as an opportunity to improve the entire planning, design, and construction process for all types of projects, big and small, and from start to finish (Taylor, & Moler, 2010). The following sections will discuss incorporating modeling activities, creative ways to use visualization tools, technologies for assessing student progress, and difficulties expected with the incorporation of modeling, visualization, and assessment. Incorporating Modeling Activities Modeling activities can be tailored to fit any classroom situation. There are several things to keep in mind when using or creating modeling activities for instruction. One thing to keep in mind is that the activity is should be interactive. The modeling should also provide opportunities for them to experiment with the model or modify. The second thing to keep in mind is that the purpose of using a model is to help bridge the gap between observations and the real world. The final thing to keep in mind is that modeling can introduce......

Words: 1357 - Pages: 6

Free Essay

It Problems

...improvement: 10 References: 10 INTRODUCTION: Imtiaz store is a super/hyper mart located on the Dr. Muhammad Ali Shah Road in North Nazimabad. Imtiaz is one of Karachi’s leading retailers, with over 70,000 customers visiting their stores every week. Imtiaz sells a large variety of items sourced from over 2000 suppliers globally. The main product Categories are: * Food Items – local and imported * Modern Bakery * Fresh vegetable and fruit * Meat * Crockery – local and imported * Cosmetics and Perfumes * Medicines * Kitchen and household apparel * Household electronic items Customer Problems at Imtiaz Imtiaz is receiving a number of customer complaints and wishes to hire the services of a business analysis team that can help it overcome these problems. Amongst the host of customer problems that Imtiaz has received through a survey, the following have been identified as most critical from customer satisfaction perspective. Major Customer Problems: New customers face a lot of difficulty navigating through to their desired isle in the store. This causes frustration and dissatisfaction for customers. 2. Customers complain of long waiting lines at the check‐out counters. This is especially infuriating for customers who upon purchases of only a few items need to stand in line behind customers who might have purchased...

Words: 1778 - Pages: 8

Free Essay

Viewing Business Process Security from Different Presepctives

...Viewing Business-Process Security from Different Perspectives Author(s): Gaby Herrmann and Günther Pernul Source: International Journal of Electronic Commerce, Vol. 3, No. 3, Developing the Business Components of the Digital Economy (Spring, 1999), pp. 89-103 Published by: M.E. Sharpe, Inc. Stable URL: http://www.jstor.org/stable/27750897 . Accessed: 31/01/2015 04:15 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . Viewing Business-Process Security fromDifferent Perspectives Gaby Herrmann and G?nther Pernul are crucial success factors inelectronic commerce. ABSTRACT: Security and integrity a framework that includes the securityand integrity This paper offers requirementsof business processes in businessprocess execution. An themodeling and refinement securityand integrity of requirements. High-level security of requirements business processes are viewed fromfivedifferent perspectives. The tasks involved in the different perspectives are described, and the modeling of security re quirements isoutlined by focusingon the example of the legal binding of contracts. KEYWORDS binding, important part of the framework is AND PHRASES: Business process, business-process reengineering, legal semantics. security of markets in recent years, many enterprises Because of the globalization have located their offices and production sites all...

Words: 6003 - Pages: 25

Premium Essay

E Business Considerations

...Consideration for building a new e business Table of Contents 1.0 Executive Summary: 3 2.0 Important consideration to build a new E-business: 3 2.1 Business Plan of the E business: 4 2.2 Basic Infrastructure: 5 2.2.1 Client/Server Technology: 5 (A) Two Tier Client/Server Architecture: 6 (B) Three Tier Client/Server Architecture: 6 2.2.2 Web technologies and applications: 7 2.2.3 Collaborative Technologies: 7 (A) Electronic Data Interchange (EDI): 8 (B) Workflow System: 9 3.0 E-Business Networks 10 4.0 Supply Chain Management: 11 5.0 E-Business Model: 11 6.0 Reliability and Quality of Service: 12 6.1 Public Key Infrastructure (PKI): 12 6.2 Infrastructure Availability: 13 6.3 Network Level Security: 13 1.0 Executive Summary: E-business is the largest emerging trend in business today. The movement into e-business is dramatically changing the way people buy and sell. Business is no longer a one for all concepts, that concept is being replaced by a consumer economy that is driven by choice. These choices are not only in product and price but in shopping environment as well, where their transactions can take place face to face or in an online environment. Not only are traditional businesses completing their transactions with other businesses in such an online format, but such transactions are taking place between businesses and consumers as well as consumers to consumers. To build a new E-business there are few consideration which......

Words: 3316 - Pages: 14

Free Essay

Business Information Technology

...The purpose of this report is to understand the effect and impact that business process, competing and/or complimentary technologies and information systems have on an organization. This report has considered two business process models (As-Is & To-Be model) in Conundrum Consultants and discuss about the role of business process modeling for an organization and IT’s importance to an organization After taking the comparison of two models, we found the To-Be Model will be more efficient than the As-Is model for CON. 1Introduction 1.1 Purpose The purpose of this report was to compare two models (As-Is and To-Be model) in CON and make the General Manger clearer understands about the changes before the new changes is implemented 1.2 Scope While comparing these two models, it was important to understand the role of business process modeling and the importance of the IT in business analysis. 1.3 Method The information used in this report was collected by text reference book and online journal report. 1.4 Limitation In the report we only discussed about the process modeling and IT’s benefits to an organization. They may also have some side effects to an organization and we haven’t discussed the side effects in this report. 1.5 Background Conundrum Consultants is an organization of private surveyors who issue building permits, sewerage and waste disposal permits and road access permit for building project in Victoria. The applicants experienced a long application......

Words: 273 - Pages: 2

Free Essay

Student

...1 What is Business Process? A structured, measured set of activities designed to produce a specified output for a particular customer or market. It implies a strong emphasis on how work is done within an organization. 2 What is BPR? It is a fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service and speed. BPR transfer the current process (ASIS) to an improved process (TOBE) 3 What is a BPR Modeling & Analysis Method? Language and procedure with underlying process concepts to build and analyze process models. Business process modeling: Development of representation of business process, representation captures the aspects of process that are key to understanding its functioning and performance. Business process analysis: Examination of structure and performance of business process, assessment of impact of various parameters. 4 How to deal with resistance to change? 4.1 Communication i Stakeholders need to understand (What, why, how) ii Ongoing two-way communication 4.2 Involvement i Saving money  not employ expert ii Ask employee (What do you think?) (appropriate moments) 4.3 Training i Hard skill + Soft skill 4.4 Reward i Extrinsic reward + Intrinsic reward 5 El Sawy’s Approach 5.1 Operationalize process performance target 5.2 Define process boundaries 5.3 Identify key process issues 5.4 Understanding best practices and define......

Words: 669 - Pages: 3

Free Essay

Paper

...Lab 3 – Business Rules Q&A - Wrap-up Lab Set-Up 3 Oracle BPM and SOA Solution Enterprise Modeling BPA Suite 11g Organization and Business Goals IT and Business Infrastructure Document Publish Repository Business Focus Social BPM Workspace Process Spaces Enterprise 2.0 Services Business Process Guides Unstructured Processes BPM Suite 11g User- centric Design BPM Studio Process Composer Process Analysis and Simulation WYDIWYE Model Multichannel Development BPEL Human Tasks Business Rules BAM SOA Suite 11g Service Infrastructure Unified Engine Business Catalog End-to-End Management Integration Services Scalable Architecture IT Focus Application Server Foundation Weblogic Suite 11g JEE Engine Security Services Messaging Scalability High Availability Unified Process Engine Unifies execution to reduce complexity and cost Oracle BPM Suite 11g Oracle BPM Suite 11g • Single efficient engine with Native BPMN 2.0 BPEL, Rules, and Human Workflow execution • Unifies execution of all types of processes • Unified runtime with SOA with shared SOA Services with common persistence, binding, policy management and adapters • Unified security with OPSS Value Value • Reduced complexity and greater reliability and performance • Choice of BPMN 2.0 or BPEL modeling or using both • Simplified integration with a services based environment if you choose BPEL BAM BPMN Human Workflow Business......

Words: 456 - Pages: 2

Free Essay

Entreprenurship Case 6.2

...Case 6.2 Analysis Zipcar: A Business Model Innovator That’s Changing the Way People Think About Cars. 1. Answer: Zipcar has created a model that would be difficult for other companies to imitate with its technology infrastructure and low over-head. I think the motivation of Zipcar is the innovation services and customer first basic purpose. The initial business plan of Zipcar was to provide the convenience of owning a car, without actually having to pay for all the expenses of actually owning a car. They wanted to target those that needed a car for only a few hours, as compared to renting a car for a whole day. Zipcar is the perfect answer for customers who wanted to rent a car for few hours in their home city. That just goes to say that Zipcar had a target niche market and fully utilized technology in their business modeling. The convenience of the car renting process to Zipcar’s customers makes it very likely that they get repeat patronage, giving them a sustainable advantage. About the scale, I would like to give it 4. 2. Answer: Yes, I think Zipcar has a good story to tell. About the question of accessing to market, the company’s target customers are educated and internet savvy urban dwelling people, so I think it’s easy for Zipcar’s employees to clearly explain what they do and what the benefits of its service which is non-car owners will have the service at their disposal whenever they require thru reserving it on the...

Words: 257 - Pages: 2

Premium Essay

Bpmn Lab

...Week 3 Process Modeling Lab Seth Wenner Srw51@pitt.edu Questions 1. Describe your experience creating process models in this lab (e.g. Was the process easy/difficult/frustrating/trivial? Would you be able to create the diagram on your own with just a narrative? What were your biggest challenges?) The lab was fairly easy to complete. The software was intuitive enough to not require much of a learning curve. I think it would definitely be much more difficult to create a model from a narrative, especially with the more difficult model. I didn’t have any significant setbacks or challenges, the “hardest” part was finding shortcuts and better ways of doing things to speed up the process. 2. Assume you’re a new intern tasked with creating a process model that describes the accounts receivable collections process. Where would you look for information that describes the process that would allow you to create a complete process model that outlines everything from the time you first create the invoice to the time you receive payment from the customer? The first thing I would do is find the A.R. supervisor and interview them about the entire process from beginning to end. This would be a good start. After that I would try to follow a single invoice and track its entire journey through the system and make note of all possible paths and nuances of the process. 3. Give an example of a situation where a narrative would be more useful than a process model. A narrative......

Words: 336 - Pages: 2

Free Essay

It Architecture

...Rosen, Director, Cutter Consortium Enterprise Architecture Practice As the complexity of IT grows, more and more organizations are realizing the need for architecture. But the definition of what architecture is, the titles that architects have, and the role of an architect vary widely from one organization to another. Business, IT, management, and even architects don’t necessarily know what a good architect does to add value in his or her organization. This Executive Report discusses the role of the architect and describes 10 activities that architects should perform to add value to projects. ABOUT CUTTER CONSORTIUM Access to the Experts Cutter Consortium is a unique IT advisory firm, comprising a group of more than 100 internationally recognized experts who have come together to offer content, consulting, and training to our clients. These experts are committed to delivering top-level, critical, and objective advice. They have done, and are doing, groundbreaking work in organizations worldwide, helping companies deal with issues in the core areas of software development and agile project management, enterprise architecture, business technology trends and strategies, innovation, enterprise risk management, metrics, and sourcing. Cutter offers a different value proposition than other IT research firms: We give you Access to the Experts. You get practitioners’ points of view, derived from hands-on experience with the same critical issues you......

Words: 11157 - Pages: 45