Energy industry – Business Model Generation

“Our task was to quickly immerse ourselves in the different areas of the company, to analyse and restructure the majority of processes and existing structures. In intensive exchange with the various business units and management levels, we were instrumental in helping our clients create a highly promising business model that would be accepted by their stakeholders.”

Future-proof Re-positioning for the Opening Swiss Energy Market

Increase Competitiveness and Strengthen Market Position through Business Model Generation

In preparation for the opening of the Swiss energy market, a well-established energy service provider had to reposition itself with a customised business model. The focus was on the active expansion of new services in the area of remote meter reading, energy data management and portfolio management.

Assignment

In addition to evaluating the current market situation, new service products for electricity and gas commodities were to be developed. consistency was commissioned to carry out a market analysis and set up a new business model in accordance with the Business Model Generation Approach (BMG)

Implementation

In the time leading up to the BMG process, a comprehensive market analysis was carried out. It reviewed possible competitors and market potential. Particularly in focus were services offered on the Swiss electricity and gas market in the areas of remote meter reading, energy data management and portfolio management. The market research was complemented by a SWOT analysis and profitability analysis. At the same time, to lay a target framework, the cornerstones of a new vision and strategic orientation in the market were formulated. The new business model was then developed and mapped using the Business Model Generation Approach – With nine sections along the Business Model Canvas. First, the value proposition that defines the service products for the electricity and gas commodities was mirrored to the customer segments, which were differentiated by segment, market role, and customer size. After analysing and defining suitable distribution channels, measures were defined to create and strengthen long-term customer relationships. The most time-consuming – as is often the case – was the determination of revenue and cost structures, as well as the resulting pricing for each service product. All factors together form the platform for identifying key activities and partners to implement the business model. Furthermore, the target organisation including business roles and role profiles were defined. At the end of the WHP process, the vision and strategic direction defined at the outset were reviewed, verified and differentiated.

Conclusion

Once again, BMG proved to be a practical method for joint strategy analysis and transparent development of new strategic options. By presenting it comprehensively on a canvas, strengths and possible weak points became clearly visible to all involved. It encouraged them to think in terms of alternatives and new solutions. By applying BMG, it was possible to develop a new business model for the client in a short time and very cost-effectively. The company has successfully used the new model and positioned itself in-line with market and customer requirements.

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