Jeroen Kemperman Jeroen Geelhoed - Brilliant Business Models in Healthcare
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Part I
The Framework for Brilliant Business Models in Healthcare
The Framework for Brilliant Business Models in Healthcare
Springer International Publishing Switzerland 2017
Jeroen Kemperman , Jeroen Geelhoed and Jennifer op t Hoog (eds.) Brilliant Business Models in Healthcare 10.1007/978-3-319-26440-0_11. What Are the Cornerstones of a Brilliant Business Model?
Jeroen Kemperman 1, Jeroen Geelhoed 2 and Jennifer op t Hoog 3
(1)
Zilveren Kruis, Achmea, Amsterdam, The Netherlands
(2)
&samhoud, Utrecht, The Netherlands
(3)
Achmea, Tilburg, The Netherlands
- The truly brilliant business models do not arise accidently but are almost always based on a deep ambition to make a difference and to capture a unique new spot in the world. They are driven by the why. The cornerstones of a brilliant business model are the vision and the brand positioning . A vision sets an organization in motion. It explains where the organization comes from, what the organization is and what it wants to be. In other words, an organizations vision is the most essential component underneath its business model. Everything the organization undertakes must be verifiably consistent with this touchstone. The vision of an organization can be defined by its higher goal , its audacious goal , its core values , and its core qualities .
- Brand positioning . The brand positioning is the position the organization wants to occupy in the minds of existing or potential customers. The positioning of a brand can be defined by its brand essence , its brand roots , its brand promise , its brand values , and its brand proof .
The conceptual framework used in this book was developed in the field based on a number of proven and oft-used business models and insights. It has been honed in our own work at the Dutch insurer Achmea and at the consultancy firm &samhoud. It is a general business framework that can be applied in different sectors. It is frequently used in for-profit and nonprofit organizations. It has also been used to describe (1) an organizations specific brand or proposition or (2) the joint activities in a network or chain of organizations. It has even been used as an aid by individuals who wanted to describe themselves relative to the rest of the world.
For a number of specific parts, other terminology is used in various sectors (which incidentally reveals a lot about the perspective of the various organizations). In this work, the choice has been made to adopt the most used umbrella term in management literature. Take, for instance, the target group or users for which/whom the organization exists. They are often described in terms of what someone does in relation to the relevant provider. In that case, we usually talk about nouns derived from verbs. Examples of this include viewers, readers, guests, shoppers, or callers. Within healthcare, it concerns, for instance, patients (for healthcare practitioners), the insured (for healthcare insurers) or voters (for politicians). Keeping in line with management literature, we will use the umbrella term customers in this context.
The framework for brilliant business models arose as a direct result of the conclusions drawn from the analysis of a large number of organizations achieving exceptional results. These businesses realized rather good profit margins, extremely satisfied customers, very engaged employees and a better society. All these aspects made them in our eyes brilliant. We discovered that these exceptional companies have more in common that rises above the business model alone. Specifically, every one of the businesses in question is vision-driven. In addition, their brand positioning is completely in line with their vision. Further, the vision is converted into the capillary system of the business model. Everything ties together in the cases that we researched. In short, a brilliant business model that creates value for all stakeholders is not brilliant merely due to the business model used. This confirmed our sense that many existing business models are focused too much on one of several considerationsvision, brand positioning, business models, or value creationinstead of taking a broader look at how strongly they actually cohere with and should reinforce each other to build a truly brilliant business.
The ambition in developing the framework for brilliant business models was to integrate vision, brand positioning, the actual business model, and value creation into a conceptual model in order to develop and understand them coherently. Throughout this process, the main message was that the brilliance of a business model is substantiated by balanced value creation for all parties concerned. Becoming successful always requires a good balance between both inside out and outside inbetween making promises and fulfilling them.
The integration and application in one conceptual framework is innovative. The cornerstones and building blocks from this model originate in existing and proved concepts, as well as in the theory and practice of others and ourselves. This relates to theories, models, and insights regarding vision, strategy, segmentation, value chains, value creation, chain management, organizational change, marketing, positioning, and brand management. Similarities to known concepts are, in short, no accident, but rather the result of diligent study and conscious learning and copying by the authors. Thankful use has been made of existing brainwork and the prestige of giants such as Collins, Heskett, Zeithaml, and Aaker. And it makes this approach easier to work with in practice, for many companies have already gained experience with it.
If an organization or brand wants to create sustainable value, a thorough foundation is vital. In that case it concerns the vision of the organization on the one hand and the brand positioning on the other. To put it differently, the answer to the question Who do you want to be? (vision) must be fully coherent with the answer to the question What position does the brand have to occupy in the minds of customers? (brand positioning). It is evident that organizations with brilliant business models generally have an inspiring and authentic vision and brand positioning that is inextricably linked with their business model. It is for that reason that this chapter will first discuss vision and then brand positioning.
1.1 Vision
The beginning is the most important part of the work.
Plato, as cited by Richard Branson
A vision sets an organization in motion. It explains where the organization comes from, what the organization is and what it wants to be. In other words, an organizations vision is the essential component. Everything the organization undertakes must be verifiably consistent with this touchstone.
The vision of an organization can be defined by answering the following four questions:
- Higher goal : Why do we exist?
- Audacious goal : Where are we going?
- Core values : What do we stand for?
- Core qualities : What do we excel at?
It sounds logical to assume that a brilliant business model begins with researching the market by means of customer interviews, competition analyses, and market research. Based on the identified hole in the market, a suitable offer is made. After all, it is eventually about the needs of the customer, one might think. In other words: find out what the needs of the customer are and anticipate that.
Well, that is not the way things work at the start with brilliant business models! On the contrary, Brilliant business models almost always seem to start from the organizations own vision of what they want to offer and change in their environment (inside out). This is nevertheless often a dream defined by looking from the outside world at the organizations future activities or desired change. The first motive is usually an insight that makes it possible to fundamentally serve customers better, that shakes up the market or that is considered beautiful and nice to create by the founders. It is only afterwards that tests are conducted (or simply attempted) as to whether customers are waiting for something like that to happen. And if it is in fact pioneering, it often concerns latent needs. No IKEA customer would have gone to the store mentioning that they want a set of shelves and a set of instructions in a box when what they really wanted was a bookcase. Whereas a business model ultimately only works if it is in line with what the organization is and what customers want, the vision has been deliberately chosen as the starting point in this theoretical foundation (and later also in the case descriptions in this book).
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