The tools and techniques used in Business Modelling & Multi-Criteria Analysis are categorised into 7 types,:
Business Model Canvas: A visual tool used to describe the key elements of a business model, including customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure.
SWOT Analysis: A technique used to identify the strengths, weaknesses, opportunities, and threats related to a business or organisation.
Porter's Five Forces: A framework used to analyse the competitive forces that shape a market, including the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitutes, and the competitive rivalry among existing firms.
Value Chain Analysis: A technique used to analyse the activities involved in creating and delivering a product or service, including inbound logistics, operations, outbound logistics, marketing and sales, and service.
Cost-Benefit Analysis: A technique used to evaluate the potential costs and benefits of a decision or project, including the costs of implementation, the benefits of implementation, and the potential risks and uncertainties.
Sensitivity Analysis: A technique used to analyse how changes in one or more variables affect the outcome of a decision or project, including the sensitivity of the outcome to changes in the variables.
Scenario Planning: A technique used to develop scenarios that describe possible future events or outcomes, including the likelihood of each scenario and the potential impact on the business or organisation.
The process of Business Modelling & Multi-Criteria Analysis typically begins with a clear understanding of the business or organisation's goals and objectives. We then uses one or more of the tools and techniques listed above to develop a model of the business or organisation, including its structure, behaviour, and performance.
The model is typically developed in 5 stages:
Data Collection: We collect data about the business or organisation, including financial data, operational data, and market data.
Model Development: We develop a model of the business or organisation, using the data collected and the tools and techniques listed above.
Analysis: We analyse the model, using the tools and techniques listed above to identify opportunities for improvement, optimise business processes, and make informed decisions.
Recommendations: We develop recommendations for improving the business or organisation, based on the analysis and the goals and objectives of the business or organisation.
Implementation: We implement the recommendations, using the tools and techniques listed above to ensure that the changes are effective and sustainable.
The tools and techniques used in Business Modelling & Multi-Criteria Analysis help to ensure that the business or organisation is well-understood, and that the decisions made are informed and effective. By using these tools and techniques, WE can help to identify opportunities for improvement, optimise business processes, and make informed decisions that drive business success.
Limited Access to Finance: SMEs often struggle to secure funding due to perceived high risks. Business modelling and multi-criteria analysis can improve credit scoring models, making it easier for financial institutions to assess and approve loan
Inefficient Resource Allocation: Startups may not allocate resources optimally. Multi-criteria analysis helps in evaluating different resource allocation strategies to maximise efficiency and effectiveness
Market Uncertainty: Navigating market volatility can be challenging. Business modelling allows for scenario planning and risk assessment, helping businesses prepare for various market conditions
Operational Inefficiencies: SMEs often face inefficiencies in their operations. By using business modelling, they can identify bottlenecks and streamline processes to improve productivity
Poor Decision-Making: Decision-making can be complex with multiple conflicting criteria. Multi-criteria analysis provides a structured approach to evaluate different options and make informed decisions
Lack of Strategic Planning: Many startups lack a clear strategic direction. Business modelling helps in developing comprehensive business plans that align with long-term goals
Customer Retention Issues: Retaining customers can be difficult. Business modelling can help in understanding customer needs and preferences, leading to better customer relationship management
Regulatory Compliance: Keeping up with regulations can be overwhelming. Multi-criteria analysis can assist in evaluating compliance strategies to ensure adherence to legal requirements