The Future of the BOPP Industry

Should we stop trying to apply the old rules and think for a moment?

The purpose of this article is to describe how a simple tool (Document), among others, can help to facilitate and progress the development of a New Business Model. We like this tool because require the involvement of Teams so reducing the risk of neglecting key aspects of the business. This tool is useful to keep the Team sticking to a sound debate and arrive to the most complete understanding of the ‘’Must’’ and ‘’Wants’’ for the new BM.

The quality of the findings  will depend on the active participation and open mind attitude of all Team members.

Let’s start reconfirming that a BM describe how an Organization create, distribute and capture Value. It is a must that all Team Members agree and succeed to develop and articulate a very simple concept of BM.

We believe that the best way to describe and frame a BM is through a set of  8-10 building blocks covering the following four areas:

Customers - Offer - Infrastructure - Financial

As an example we report two clusters of key building blocks each related to a different hypothetic business:

                       A                                                     B

-       Key Partnership                           - Value Proposition

-       Key Activities                              - Revenue Model

-       Key Resources                             - Market Opportunity

-       Value Proposition                        - Competitive Environment

-       Customer Relationship               - Competitive Advantages

-       Customer Segments                     - Market Strategy

-       Sales Channels                              - Organization  Development

-       Cost Structure                               - Management Team

-       Revenue Streams                         - Key Infrastructures

The 9 building blocks will form the basis for a handy document (tool) that will support the development of new BMs.

Some of you will remember that in previous articles we made the hypothesis that the current BMs are not anymore up to the challenge. In fact, for instance, We believe that the solution is not to buy 10,5 m extrusion lines and focus only on size. Our humble observation is that cost of ‘’complexity’’ will significantly increase and customers sentiment could get bitter and bitter.

 Our view is different, We suggest to move to new BMs that will not depend only on product but focus on creating value by innovative ‘’Value Proposition’’ that will generate new revenues streams.

Do not misunderstand, the on going consolidation process is a logical move but, we think, is not representing the solution for attaining a fundamental step change in Value Creation.

To attain such a step change We suggest, among others, two main options:

-Move down stream streamlining the Supply chain

-Build ‘On Line Business’’ made possible by an innovative IT Open System

The key question is how will we arrive to develop the best option?

We suggest to identify the most  valid 8-10 critical building blocks for our hypothetical business (option A or B or ….) and for each to define the components (actions, skills and focus points) to be discussed (apply ‘’6 why ‘’methodology) and agreed upon by the teams involved.

Moreover not to be forgotten and respect during the process, the strategic pillars of the BM:

-       Innovative Value Proposition

-       Pricing: Value Based & Dynamic setting

-       Flexible, Tailored and Reliable Processes

-       Transparency

 We acknowledge that as always it is easy to talk about, more difficult to realize

However We hope to have stimulated some curiosity about the development  of new BMs.

Why not create a professional e-community to further discuss the matter  ……waiting  for  signals  of interest.

P.S. On request We are willing to send a document prepared (applying the Building Blocks approach) in relation to an hypothetical ‘’On Line Business model’’