The Better Business Analysis Institute Presence, the Better
Business Analysis Podcast with Kingsman Walsh.
Hi everybody and welcome back to the Better Business Analysis
podcast with Benjamin. Walsh Now we're going to be
dipping back into our Business Analysis Unleashed series kind
of just kicking off. Where we left off.
So we've already covered some strategic business analysis
techniques or just. General strategic analysis
techniques that are useful to craft what the market looks
like, what our competitors are doing, what our.
Strengths and our weaknesses are about and now it's time to
really connect that strategy back into the enterprise or back
into the organization. And and when I say.
Terms like enterprise or strategy.
This could relate to a business of any size.
This could relate to a startup company, a charity, a small
business or a. Large enterprise.
So these techniques, even though they might sound burgin and and
complex, and we've already covered a few, they're not that
complicated, They're. Really straight up common sense
questions and techniques that anyone can do.
We. We can apply this to any
business, so don't. Don't think for a minute that
just because you work for a government department or you
work. For a SME or you've got you
know. Five staff.
These techniques aren't applicable now.
The ultimate goal here is to, when we are thinking about the
enterprise, is to set some strategic objectives.
So if you're a BA, you would have heard of the word strategic
objectives or if you're in IT, these are this is kind of what
you're setting for your plan. I mean, sometimes it's referred
to as the. Strategic plan.
These are the high level goals that your business has.
And this could happen, well, once a year.
Sometimes that's referred to as an annual.
Plan, and usually if you're doing it annually, you might
have a strategy that goes to for three years.
It seems to be that the kind of amount of time that we plan for.
You know not too far in terms of the, the future in terms of.
Like a long term strategic plan which might be 15 years.
Or five years, and somewhere between three and five years is
usually what your strategic plan is looking at you.
This is something that shouldn't change that much.
Throughout that period may be reviewed by your senior
leadership team or yourselves if you are a startup.
Company and probably changes more of your startup company in
terms of trying things. And when you're established,
this might happen for. A three-year period.
You might tweak it over the three years, so you've got the
strategy. And we need to build that out.
So that's OK. Really, it starts with these
objectives. What are you trying to achieve?
Over that period and then you start to look at some of the
initiatives. And and be a term you could call
the initiative strategic initiatives themes in the agile
term? And then they drop down to epics
which. Is generally the business area
planning and then you could go down to?
Stories which might be specific to the individual.
It's a very BA method. I think it's a really great
method to use to link projects to objectives, but usually you
don't hear that language and within a MBA or within a
business setting you would hear things.
Like Kri's like key result areas and then Kpi's which are key
performance indicators. Which generally relate down to
an individual. And that's their performance
management of your. Staff they are.
They could be one and the same. So I'll talk about that in a
later podcast, but effectively you.
Could use the BA planning technique, which is great
because then you're talking about projects, which is
effectively what initiatives are.
And you're using all that good projecty stuff and project
management stuff to plan either products or your projects.
And your people change and then, but if you're just talking about
Kri's or Kpi's, it's it's. There are many ways of doing
that and it's not well structured, so I I suggest that
they are done. Together and they are one and
the same. And I'll talk about that
probably as a specific podcast talking about strategic.
Performance planning. But right now all we need to
know is that in order to get some goals for the business and
really set, you know, tasks and and and.
Areas of focus. For our business, we need to
turn our strategic planning into more of the enterprise view.
And there are lots of ways of doing this.
And this is where I would say that you have many choices and
sometimes you have too many choices in terms of how you can
make this happen. One is to simply take the
techniques we've covered so far, like the five forces pistol
models. What analysis?
And just drop out, you know, doing a a big room planning
session at your leadership team, a session, you know, maybe
sharing that with your business. Units waiting for their feedback
and you kind of just talk about it and then you plan strategic
objectives. The only kind of caveat there is
that you're trying to do SMART objectives, the acronym SMART.
Look that up if you don't know what they are in terms of being
specific and measurable and accurate and repeatable and
timely so. They're statements that are like
reduce customer retention by 20% by the end of 2023.
That's a smart objective. And that's the kind of level
we're talking about here when we talk about strategic objectives
and we talk about the. The very high level what and not
necessary how we're going to do that which.
We ask our operational teams and our project teams to come up
with that. One technique that I've seen you
effectively and and effectively. So I'm going to premise this
suggestion. With the fact that I've seen it
as just a time waster. Or or or an artifact that you do
and then you never go back to. And people sometimes see this
as. Being a technique that that
doesn't add as much value as it may portray.
But in saying that of you know it's a we we're evolve our
thinking we use these techniques and some of the questions that.
This particular technique asks are the right questions.
In terms of moving that strategic thinking into business
thinking? So if you're a I would say if
you are a business that is established, you're not a
startup company. This is where the differences
may may come about, and I'm going to assume that you're not
a startup company for for right now, and then I'll.
And then I'll flip to what you can do if you're a startup
company. And and the good reason why
we're going to start here is actually this came first before
the technique that we're going to talk about for startups, the.
Technique that we're going to talk about right now is called
the Business Model Canvas. Okay, it's.
It's an extremely fluid technique and that's why I said
like anything, it could go, it could be so fluid that it could
be flushed down the toilet. Or it could be well managed and
it could. Be, you know, specific to the
company. That you need and you really
need to make it specific to your to your company.
The business model canvas is a one page document, which is why
it's. Kind of great one pages or, you
know, white one. White board of of information is
the way that we really want to express information these days.
Some rise onto A1 pager. That doesn't mean just reduce
your font down to. You know, two point, it's about
having less words and just really specific words.
The business model canvas allows us to carry out really high
level analysis. So we are doing what I would say
true BA work here and but primarily this hasn't come from
the world of BA, come from the world of business.
And it is made-up of nine different sections, so you can
imagine an A for. A piece of paper with, you know,
business model canvas on the top.
And it's divided into different segments.
If you have heard of a lean canvas, which is very much more
of a modern term, then you do know what a business model
canvas is. The difference between a
business model canvas and a lean canvas is a lean canvas which
was evolved out of this technique for startups.
So when I said before. What would you do if you're a
startup company? I would suggest.
A lean canvas, or if you're doing a pivot within your
organization, doing a lean canvas is probably your best
bet. And if you're an established
business, then you're you really want to do a business model
canvas, which basically assumes that.
Few of these key areas I'm going to talk about a little bit more
known and we're we're taking less gambles here even though
the business model canvas is divided into these sections
which I'll talk about. Key partners on the left and
then next to it. Moving from left to right, key
activities, then key resources, your value propositions, your
customer relationships, your channels and then your customer.
Segments on the right. Then underneath all of that, you
kind of have two areas, which are your costs and your revenue
streams. So it's an 1/4.
Piece of paper made-up of these 9 sections.
And really, it's just you can you can Google this, you'll find
a copy of a business model canvas, no problem.
And ironically, you don't fit in left to right.
You you start with your customer segments, so you should start
with your customer segments after it's been.
It's been used quite a bit and people realize that you know
it's you should probably be starting on the right hand side
with who are you serving. So this business model canvas is
A1. Page piece of paper.
There are nine, six areas that you fill in and you start not
necessarily on left to right, but at your customer areas.
Now this relates very, very heavily to a technique that
we've developed at the bit of. Persistence Analysis Institute
called the 4P Plus. Model which is around people.
It's around processes, around projects and it's around
products and it's around, you know, the concept of people
driving things. 1st that they have problems and we aim to
solve them. If you look at the, if you
understand that and you've listened to that podcast, that
will be helpful. Because when we talk about our
customer segments, we're talking.
About the kind of personas, the highest level customer segments.
In the market that we've literally been talking about as
part of our strategic analysis like.
Who is our actual customer and this is a real challenge for a
lot of business, they just don't know, so they might be doing
really well. So they've never really worked
out who their main target customers or their task customer
segment is. It could also be different to
what you started off. Targeting and other customer
segments were attracted to your product and became your main
source of income. So you're talking about your do
the customer segments you actually serve that are
profitable? Do you talk to them as your
customer? So for example, if we were just
running local mechanics, our customer segments could be local
friends and family we know or there could be 1 customer
segment. So people that have a high trust
model there could. Also be a segment around
customers who and new customers who have just found us.
Found out about us through referrals and then it could.
Be just a random customer, so you've got.
These are really high level kind of marketing segments if you
like. That kind of term with personas
that could represent those people you start with those
customer segments. And then you talk about the
value proposition that you offer them.
And because this isn't a lean canvas, you're not making up
what the value proposition is you're actually finding.
Or you know why those customers are coming to you?
And so for the local friends and family, it could be the value
proposition is a trusted garage where you know that you're
getting quality service for what you're paying for, for those who
are. Referred it could be again, it
could be around trust, but it could also.
Be fair cost for for service and those that are just finding you
funny out about you and don't are just.
Indirect and haven't been referred, just finding you in
the Google search. Or, you know, Yellow Pages or
whatever the equivalent is in the country.
You're in, then that could just all those random customers.
It could simply be that you are available and you have
availability. And that you're you seem to have
a. Good reviews on on Google
Review. So these value propositions are
kind of talking about how. Kind of what are you offering
those people that's different and and and in all those cases I
just listed it is mechanical services, but I was just kind of
a guess specifying the difference in terms of what
they. Would know it's best to write it
in the language in which your customer would state it not.
Necessarily something boring or clinical that you can come up
with. The third part of the section we
go to is the channels. You don't know what channels
are. Channels are all.
The different ways in which you communicate with your customer
inwardly and outwardly. So it could be your website as a
channel podcast. Compare channel for example it
could be the in store if you had a store so face to face it could
be Facebook, could be your social channels.
And it could be your website booking system, you know,
referral. From AA or something, which is
the Automotive Institute in New Zealand.
Not alcoholic Alcoholics Anonymous as it is in the
States. So it's just the ways you
communicate to your customers and you get to draw this up.
It's really quite good if you do a customer journey map with your
business model canvas. If you're not sure about these
things once you've done the customer.
Journey map. You know, once you would just
maybe update your business Middle Canvas through these
three-year cycles. When you're doing strategic
planning, there's customer relationships, which is #4 the
relationships you have with your different customers.
Then there's the. Revenue stream.
So how much money? Is each one of these customer
segments kind of bringing? In through what channel?
Then you move on to the resources required to service
those customers. The key resources, not every
resource. So it might be mechanics.
In this case, key activities that you're providing could be
warrant, warrant, fitness. It could be just basic
mechanical services, it could be.
Oil change, you know, it could be any mechanical breakdown.
Faults could be towing. So what are the key?
Activities you're providing which which are really
important. Another way of writing key
activities it it could. Be what are your main business
capabilities, so your highest. Level business processes that a
customer facing. What is it that your?
Business provides as its catalog of services, so.
You know, that's it's really important and we're going to
bring that, we're going to come up to that and come back to
that. Point when we talk about how we
then take this model and break it down even.
So those key activities are your business processes, but because
this is a business model canvas, we're talking about the ones
that are really more customer focused if under the customer
focus processes. So if we weren't a mechanic?
We were don't know tax department.
Then key activities may not be necessarily all.
Customer facing the key resources which we already
talked about which is 6th, just a point on that is that.
It could be your largest amount of people.
Resources. Not just physical resources.
So I said mechanics before. That would be a good example,
but it could also be. Other resources that you use.
So if you're a mining company, it could be the.
The. The location, the equipment and
also the. I guess you know the the
material that you're mining key partners is #8, which is the
partners that make this business.
Model possible. Not just random people that you
use, but pretty much the partners that.
You have in order to be successful in this business.
Without them, you wouldn't be. The when we say key, these are
all things that you. Have to have.
They're not should haves or. Could haves that or nice to
haves they are. The things that make your
business tick and then. Finally, we land on our costs
and of course, the costs. Are driven from your key
partners, the key activities and the key resources.
Key partners could also be suppliers and that's your kind
of. Cost and then on the up right,
the right hand side of the diagram, but where we started
was really talking about the customers, their relationships,
the channels. And their revenue?
And then in the middle we've got that value proposition.
So you're kind of. Linking one side of the canvas
talking about, you know, what are you providing and the cost
behind it and then the right hand side is more around, OK,
well who's buying it? And between them it's.
The link between your product customer which is your value
proposition. Why you?
Why not your competitor? And so all these questions.
A lot of the answers to these questions, not all of them.
Because now we're looking internally as a kind of an
enterprise analysis technique. We discussed a lot of these
areas as all we discussed a lot of these points.
Throughout some of those strategic analysis techniques,
and really this is a difficult this is not.
Naturally, naturally an easy thing to complete and ask hard
questions, you should be thinking.
About the change of market here, you should be taking thinking
about each element you put in here.
So if you've got key partners that are we talked about before,
if the buying power of your of the buyer or the seller of your
service has changed then? You know you can't guarantee
that your revenue revenue streams were the same.
If there's going to be some economic uncertainty, cost of
living, then your cost could go up.
Or and therefore you need to. Therefore, you need to put your
sales cost up. Which could affect your revenue
streams, so. All those techniques we talked
about, once you've done your business model canvas, you
should go. Back to your strategic analysis
outputs like your spot analysis and your five forces, your
pistol analysis. And then overlay that and say is
this any different? Is this?
Different, You know? Does this change anything?
Does that mean some of the assumptions we've gotten here
aren't tested? And we need now need to monitor
them. And so that provides you with a
bit of a bit of a connection back to the business and you're.
Starting to really think about your business as a whole.
Again, you could just do this independently of the strategic.
Kind of analysis techniques, but what's?
Important about this is that we know business isn't static, so
you might go all. These things are true, OK, but
I'm just a girl to ignore the market, although the.
Outside of my business. And then your business just
won't last. Because you have said, OK, well
our costs going to be static and our revenues going to be static.
So everything's fine and dandy, and a lot of business do that.
And then the market changes around them and then they're not
competitive enough. Their key?
Partners leave that their value proposition is no longer as
strong as it needs to be. Some of the customer segments
stolen, some of the channels that other businesses that are.
Offering through growing, so you're like lagging.
Behind and your key resource costs go up.
So that's how that those techniques we've already talked
about relate to this. Particular model it's it sounds
really. When you'll Google it and you'll
see a piece of paper. Of this you know and I can
probably link through to 1. However, it will seem easy and
it sometimes is done badly because it's just filled in, but
it isn't necessarily thinking about all those other.
Factors, so make sure when you do this.
Yes, you start by just filling it in with what you know.
Then you're. Applying the strategic analysis
mindset across it the other as I talked about.
Before, I would say there's kind of three areas here that are
really. More difficult than the other
areas. So usually sometimes businesses
have a really hard time working. Out who their target customers
are. So it might kick off a piece of
research to research. Ask your customers questions and
actually find out who they are. Bring them in.
Meet them. Find out more about them.
It might. Kick off a little, you know,
marketing piece of analysis or even going out externally if
you're a big enough company to pay for that.
The other area that people struggle with is the value.
Proposition of some of their products or services.
So they may have a very strong value.
Proposition for their core product or their core offering.
But not so much for some of the other.
Services they provide. So therefore, you know, behind
that whole lot of activities and costs behind it.
So you can have some, you know, quite heated long debate and you
can't just say if, OK, so let me.
Put it this way, if your value proposition sounds very very.
Similar to your competitor and unless you've got some duopoly
monopoly situation. Your company is not going to
last. You need to make sure your value
proposition is strong enough. Now, it may not be strong enough
today, and that's OK, but you must include.
That would be a key. Trigger for saying we need to do
something in our strategic planning and our next you know
three years to differentiate ourselves that could be, it
could simply be a matter. Of offering something for
cheaper then you know, getting less margin.
That's one way of dealing with that problem, but that doesn't
generally. Work in the long term or it
could be around. Changing the you know, the way
in which you offer the service, or just basically increasing.
The value that a customer gets out of your product, so there
that there's two there, so that's.
Customer segments understanding who they are, the value.
And then the other area that I I see people struggle.
With and this is less around their.
Strategy side, so customers and value.
It's the key activities, so every organization that I've
worked. Through work for and that's
there's been many or done consultancy for.
I've never seen a complete kind of process model catalog that
there are definitely. Companies who are quite, you
know, close to that. And then most of the time I see
companies who just don't have any idea the processes are and
so there are really good techniques process.
Modeling techniques to help here does take a lot of time and
investment. It doesn't mean you need to go
to the end of the Greek. My recommendation is if you
don't know what your key activities are.
And make sure you go wide at the highest level before.
You go deep. So what I mean by that is.
Think about what the customer journey is and what needs to be
true in order. To service those customers in
order for them to get their job to be done with your customers.
So providing mechanical services or cars, what is it?
What are the touch points that they go through some of those
activities that I talked about will be customer.
Facing and others will not be customer facing, OK.
So that's the business. Model Canvas O what we might.
Go through is an example of what.
A business model Canvas is for one of comanies that we all know
about out there. OK, so we're going to do.
A business model canvas for Disney, the large media company
that actually owns quite a lot of assets.
I've read a bit about Disney of. Late now I'm just a fascinating
piece of kind of news article around why Disney was removing.
Great. Content from Disney Plus and it
was around the fact that they weren't making.
As much money as they would like from Disney Plus subscription
and they were having to this asset, this Disney.
Plus asset as a separate kind of company was worth a lot of money
and therefore they would have to pay a lot of tax on that new
company. And so they were removing
content from Disney plus so that their overall value was lower.
So they didn't have. To pay as much tax, which meant
that you and I would have less. Content on Disney Plus.
It was a very, very strange article.
But. Apparently it's something that's
happening in the streaming market and so sparked my
interest And so we'll see if any of that comes out here and we'll
talk about. It a little bit in detail.
So we're going to do the business model canvas.
For Disney, and I'm going to start with the customer
segments. So for Disney, because it's so
huge, it really has a custom. Segment, which is kind of the
mass market. So it's.
Customers who enjoy Disney content across different media
formats and platforms. It does have these kind of
customers that are love individual Disney brands so
star. Disney owned Star Wars, bought
it from Locus film George Locust and obviously Marvel.
Massive. Some franchises that owns many,
but they are the biggest ones. So there's those specific
customers who just love the individual Disney brand.
They have a global market. So they have customers who live
in different customers or regions around the world and
then the family market which is really does where Disney
traditionally started. Which are customers who want
family friendly entertainment? Options for their children.
And then there's there is now. Where Disney's going into which
is the premium market, where customers who are willing to pay
more for exclusive or premium content or experiences from
Disney as well. So that's not just Disney who,
you know, we think about Disney, we think about the cartoons, We
also think about the theme parks.
But they are huge. They do.
Own a lot of assets, media assets and now they're offering
for. Example, if you want to watch a
movie that's just come out and the movies, you can pay extra on
distinct Plus to watch that before it comes out.
So that's kind of a premium. Experience in terms of the.
Kind of channels in which they reach, sorry in terms of the
value proposition that they. Offer and we'll get to channels
after that. They offer, I guess they, they
would say they offer unparalleled storytelling that
entertains. And forms and inspires people
around the globe. Almost their that's their vision
for the company. They have iconic brands, they
have creative minds. They have innovative.
Technology that makes them, you know, quite a premier.
Entertainment company as opposed to a budget one, they have a
diverse. Portfolio of content across
different genres and market and I guess.
They've got a really, really strong brand, the.
Loyalty of Disney. People that love Disney and the
characters and the stories behind them.
People are very much associated with that and then when in their
parks division they have probably they are quite unique
in. Offering this immersive and
memorable experience through the theme park and the reservoirs
and even the consumer. Products that we buy.
So that's quite unique to them, that is.
Quite expensive to run those parks and not other any not many
other entertainment franchises kind of.
Have that same immersive experience.
Finally, I guess you could say that they offer personalized
and. Convenient access to their
content through streaming products like Disney.
Plus, but the same would be true for any other.
Entertainment County these days Who wants to survive but But
it's true that a lot of other entertainment companies don't
necessarily run their own streaming service.
They might publish that their. Content through, sorry, Netflix
for example, or other platforms that exist in terms of the
channels and this is probably where they are huge and it's the
same kind of universal or content or characters that
they're. Providing which makes it unique.
Which is they've got obviously cinema, cinema, theaters.
With TV networks and cable channels, they've got streaming
platforms like Disney Plus and Hulu and ESPN Plus.
They own that as well. They've put, they've got a
pretty big. Presence on YouTube and Facebook
and Instagram mobile apps. They've got theme.
Parks and resorts, they've got merchandise stores and then they
also do. Events and and kind of exhibits
around the world as well. So you know Mickey Mouse if you
just take. Mickey Mouse, that character
which has actually been less and less.
Developed by Disney actually, but when Mickey Mouse was at
its. Top you, you would see that
character across. All those platforms.
So that's quite, quite unique in that respect and it's Disney is
so good. At their merchandising side,
it's pretty much a large part of their business, other
entertainment. Companies have kind of copied
Disney in terms of how it does that.
Now that's kind of the value, that's the customer.
So really large customer base, not particularly will be the
same. For you and your company it is
quite exceptional. And how big Disney is but their
value? Proposition is really important.
They're finding at the moment that they're.
Value proposition isn't as strong as they would.
Have liked and Disney Plus and also the themes in part the
parks for. Example they're getting going
through some legal problems at the moment in the US.
To do with political players in Florida.
And so all of those strategic planning techniques could have
been would. Have been done by Disney, of
course, and they're now thinking about how those apply to.
Their customers, is that changing the value proposition?
They're. Offering and the channels that
they offer or should they be offering all these channels?
Expensive to do that now in order to.
I guess deliver on all of that. They've got some key resources,
key activities, key partners. And then got this kind of I
guess cost structure that they need to put in but.
In terms of the customers and the value proposition they're
offering and the channels they're getting revenue through,
things like. The box office from the movies,
which has obviously gone down. People are moving to stream
platforms, which kind of forced us into that position.
Again, this is all the strategic analysis we're talking about.
They get distribution fees from movie studios and distributors.
Because they could be surfacing those, I've got subscription
fees from the stream platforms, which again I said is not
necessarily covering their cost. They've got advertising revenue
from TV networks. And online platforms.
So if they're SPN and someone's advertising Coke or whatever,
brewing a game. Then Disney's getting that
money. They have licensing fees from
merchants and manufacturers and retailers, so Disney doesn't
necessarily produce every. Single character.
Or every, you know soft toy. Or every action figure.
They license it to other providers who obviously have a
strict rules. To keep the brand in place are
they almost have to sign off and some of this equipment, but they
get a lot of money through those sales.
They've got ticket sales and admin fees from the themes and
resorts, Then they've got the merchandise sales inside the
theme parks. And resorts and stores, and
that's really important. Because that's there's there's
they make a large amount of money from from that and then
they've got. Sponsorship and partnership
deals with other brands and organizations.
So, I don't know. Let's say Nike wanted to put
out. Some shoes that had.
Spider Man shoes or something that Disney would would be.
Able to own that? Or Star Wars cups or something
that are that a. Specific other company wanted to
use their brand for they make all of the money through all the
very. Complicated bunch of channels or
how they hit their customers and then through all that.
They've got lots of different revenue.
Models through there. So it's quite a.
It is a complicated company and they do a.
Lot of things and not all of them are as profitable.
As others. And then they've got to decide
where they're going to invest and which resources.
Are going to go where. So that's our kind of right hand
side of our. Business Model Canvas, the Kind
of Who are we offering? So what are we?
Offering Where are we offering it?
Why are we special? Why are people coming to us?
And then you know the revenue streams we're getting from our.
Customers to make all that happen.
And the connection between, you know, the product we're selling
and our customer, we've got some resources.
We need to invest, so number one, and some of those are not
just resources we need. To put in like expenses, like
wages, but also the key resources.
That make U.S. special. So if we were ever sold, one
good example here is the intellectual property rights of
Disney. So the characters, the stories,
what they've? Purchased in terms of Lucas
phone for example, the creative talent that they attract, that
is a huge key resource. So they own.
All of all of that and that in. Itself is probably with lots and
lots of money in terms of assets.
They do have a whole technology infrastructure.
And platforms that support content creation and
distribution and consumption, we it would be fascinating to know
how that all works, and I don't think many of us necessarily
know that apart from. Watching maybe some
documentaries on like you know how they used to draw cartoons,
but the equivalent in New Zealand we.
Have Rita here, which is owned by Peter Jackson, who's
obviously with Disney on a few films as well.
And you know, I've had the privilege.
Of kind of seeing behind the scenes on some of those puts and
pieces and it's and it's, it's pretty amazing.
They've got physical assets such as the theme parks, resorts, the
studios, the equipment. They've kind of got this brand
equity and reputation as of Disney so.
If something has the word sponsored by Disney or presented
by Disney, usually think usually think of that as a premium
brand. And then it's of quality, so the
brand itself. Is worth a lot in terms of just
the name the key activities that they kind of actually a doing
and you know Disney Limited is creating the high quality
content across different. Media platforms, they do.
They are more of a high quality than manufacturer.
They're not looking. To just do a whole lot of B or C
grand movies, even though some of the movies may not have been.
Hit That's not really where they.
So it's not content, it's not volume, it's usually quality of
content. They do a hot.
Basically, they're marketing a distribution company across
global audiences. They do a.
Large amount of that. I'm sure that's a large part of
their workforces in that space. They've got a licensing and
franchising content to generate additional revenue.
So again, they wouldn't be necessarily.
Producing every toy that from the Disney world's they would be
franchising that out and managing that is the completely
separate operation and expansion of their theme.
Parks and Resorts and then they've also got, I guess, have
to be developing and integrating new technologies to enhance
customer experience. That's right.
You know, as we've said before, they're trying to offer
unparalleled storytelling. That entertains and forms and
inspires people. Well, one way they would be
doing. That is by making sure that
they're at the forefront of technology.
And when it comes to customer experience and all of those
partners that make that all. There's obviously the movie
studios themselves and distributors.
There's the TV networks and streaming platforms.
It's the people making the merchandise or the merchandise
manufacturers and retailers. There's the theme park operators
and travel agencies that make that all work.
And I'm not actually sure you know how much of the Disney
might own the park, but they may have.
A separate company that operates it?
I'm not sure. I assume not.
And then they've got the technology providers and
innovators who who are behind the.
Scenes, you know, helping them create that world class content.
So that's the key activities, the key partners and the kind of
resources. That they need in order to
produce the product or products in this case and when we talked
about those key activities like creating high quality content
across. Different media formats.
You could break that down further.
So that's the creation of content, the.
Production of product, that's the highest level business
process in that area. And then secondly, there's.
Marketing and distribution. So that's its own division.
You've got licensing and franchising and you've got
operating, expanding, you know theme parks and then you've got
developing and integrating. New technologies of finding new
customer experience enhancing, that's more developing new
products and so they are the highest level.
Business processes and the company's so huge it will take a
while. You might want to break them up
into different. Divisions at that point, but you
could now see if you had pain points or changes in market,
political environment or. Partnerships or buying or
selling deals or change of environment or social factors
that you could overlay those strategic.
Analysis outputs like strengths, weaknesses and opportunities and
threats over though and and locate where we're in the key
you know where those particular opportunities.
Threats, Positives, Negatives. Or just risk issues, risks, or
pieces of information and map. Them to those specific key areas
and say that this will this area will be affected and so
therefore there's an action or strategic objective or action
plan that we need to put in place to mitigate that or to
take. Advantage of that?
With your key partners, activities and resources, you
then need to think about your cost structure so.
Disney Finally, Disney has a production cost of creating and
generating the content across those media formats and must be
quite. Smart at doing that.
And, you know, trying to get, you know, one piece of content
they've created across all these channels must you know that must
be an efficiency gain and it's not efficient.
That might be part of the strategic plan to make that more
optimal. They've got the marketing and
distribution cost of reaching customers.
They've got the licensing and franchising cost of acquiring
and granting rights to use Disney content.
They've got the operating and maintenance cost of running the
theme parks and the stores and all that, so that's expensive,
so. Again, you know there would be
a. You could do a separate business
model canvas just for that area, the resource system.
The research and development cost of exploring new
technologies and then there will just be standardized costs.
They're so massive that they will have a huge administration
and overhead cost of just. Running the business and they
may be you know, they may have admin and management costs in
each division as well as a global division.
So that gives you an idea of what a business model canvas
would look like. For Disney, this is a.
Really large example to show you the nth degree and your
particular business model. Canvas for your business would
be much I think. Probably a little down from this
in terms of 1. Little you know division
compared to a massive multi corporate like Disney.
It gives you an idea. OK, so this is how you you know.
Please Google Business Model Canvas.
Apply it to your business. Or to a theoretical business to
understand this because this helps link what we've just.
Already done in the previous weeks.
For more of a real bringing it into the business, look at a
lean canvas as well. It is different to this I.
Will cover that in the next week's episode.
This is. That's when you're focusing on
startup. There are a few differences, but
it uses the same layout which is useful, and the sections are
slightly different. Now that we've got this, we can
start looking at our. Highest level business
capabilities and start to look at some actions, some strategic
objectives that we need to put into our strategy.
And then we'll look at, you know, the activities that come
after that in the coming weeks. You're starting to get pretty
good at the strategic planning. I hope you enjoy and enjoyed
this episode and I'll see you next time.