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JULY 2015
 
Employee in Focus
 

JOHANN WIESPOINTER ABOUT

BUSINESS MODEL CHECKS AND

RPRQ ANALYSES


Or: Why analyses are synonymous with solutions...

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Johann Wiespointner seems to be more the analytical type. In his university days, when he spent a lot of time riding his road bike, every heartbeat, ever kilometer, every meter of elevation was subjected to a painstaking analysis in order to derive "strategic implications" for the next ride. He's calmed down a bit since those heady days. There are no pulse monitors or assessment tools for the rides anymore and his attentions are focused on slightly less athletic endeavors such as photography. Yet in the broader sense even photography is related to "analysis", the ancient Greek word relating to breaking something down into its individual parts, i.e., maximizing resolution, a central component in taking pictures.

And his work? Of course analysis also plays a vital role here in the dissection of facts, particularly when they are related to business model development, business analytics or strategic analytics.

In this interview you'll find out a bit more about the IMP Business Model Check as well as about IMP's special method of analysis, RPRQ, or Relative Price Relative Quality.

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About systematic examination

Simon: Johann, an analysis is a systematic examination in which the "object in question" is dissected into its component parts, reorganized and then evaluated. The relationships and interactions between the individual elements play an essential part in this. IMP's Business Model Check is in fact nothing more than a substantiated analysis of what exists in order to determine the future strategic direction of a company.

Johann: Correct! Our business model check provides companies with an in-depth view of the DNA of their current model as well as a look at the strengths and weaknesses in order to define some of the strategic implications for the future. In doing so, companies need to ask themselves the following questions:

  • Is our business model focused on the customer problems of the future?
  • What social changes and technical possibilities will alter customer behavior and why?
  • What technological developments will potentially change the current product environment and how?
  • What opportunities loom in the added value architecture both within our industry as well as outside our industry?
  • Who are the competitors of the future and what business models will they use to try and win over customers?
  • Etc.


About strategic artistry


Simon: Where does the real art of strategy work lie?

Johann: The art of strategy work lies in the architecture of business models, in other words, business models that simultaneously

  • provide meaningful added value for the customer while
  • possessing an inner logic for transforming this added value into above-average profits.

Long-term profitable growth is never based solely on "revolutionary" products. In fact, success depends more on the composition of unique, sustainable and coherent business models.

Simon: Surely most people will ask: What is that composed of? What is it based on? Which "design elements" play an important role here and how does one create something that we would designate as a business model with unique, intrinsic logic? And most of all, what can an analysis contribute to the whole process?

Johann: The purpose of our analysis is to use a modeling tool we have developed to evaluate a range of business model options through simulation. At the core of it, based on various positioning options, is an analysis of the interplay between the respective OFFERING, the conceptualized ADDED VALUE, the appropriate SALES & MARKETING, and the potential PROFIT LOGIC. The findings from this illustrate the quality of the business model options with regard to the potential of providing customer benefit and capitalizing on that. It also gives us the opportunity of selecting the best option based on all of this substantiated data.


About analytical approaches to solutions


Simon: There are a number of analytical tools available for simulating a business model. ONE method that you embrace is the RPRQ analysis. What is it about RPRQ that so thoroughly convinced you?

Johann: The RPRQ analysis strives to achieve the optimum price-quality ratio possible within a particular business model. It's about the price-to-quality ratio that every company has to establish for its products or services while considering the overall market conditions. Our customer projects consistently show how frequently and blatantly this component is miscalculated. It is not uncommon for companies to keep track of just one portion of their competition only to overlook the ones who are not in their own segment at that current moment. But changes in the market can often lead to underestimated "competitors" playing a transformational role in the price-to-quality ratio and therefore becoming rivals that need to be taken seriously.

Simon: And the RPRQ analysis demonstrates these types of developments in advance?

Johann: That's right! It gives us the opportunity of making adjustments early on. A good analysis thus serves as an early warning system for correctly assessing the competitive environment of a particular market, in particular with regard to quality, service and relationship criteria linked to the associated pricing scheme. We talk with people from inside the company, from competitor companies and of course with customers.

Simon: Thank you for speaking with us, Johann! What I really learned today is that a good analysis is really synonymous with a solution, and that is precisely what our job is: developing solutions for our customers based on substantiated analysis...

 
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JOHANN WIESPOINTNER

... speaking with Simon Tumler about analyses and solutions – and why the one can lead to the other if the right tools are in place.

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