“The basic architecture underlying all successful businesses consists of four interdependent elements that can be represented with four boxes. Every thriving enterprise is propelled by a strong customer value proposition (CVP)—a product, service, or combination thereof that helps customers more effectively, conveniently, or “service, or combination thereof that helps customers more effectively, conveniently, or affordably do a job that they’ve been trying to do. The CVP describes how a company creates value for a given set of customers at a given price. The profit formula defines how the company will capture value for itself and its shareholders in the form of profit. It does this by distilling an often-complex set of financial calculations into the four variables most critical to profit generation: revenue model, cost structure, target unit margin, and resource velocity. Finally, key resources and key processes, are the means by which the company delivers the value to the customer and to itself. These critical assets, skills, activities, routines, and ways of working enable the enterprise to fulfill the CVP and profit formula in a repeatable, scalable fashion.
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Every successful company is fulfilling a real customer job-to-be-done with an effective, well-integrated business model, whether it knows it or not”
Excerto de: Mark W. Johnson. “Reinvent Your Business Model: How to Seize the White Space for Transformative Growth”
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