Every business model requires them, and it is only through them that companies generate Value Propositions and Revenues.
In this post, we will look at 1 key resources, 2 types of key resources, 3 key resources and value propositions section added4 key resources according to types of businesses, and 5 two case studies. These are the most important things you need to have for your business model to work and business models are usually based on a number of tangible and intangible resources.
These are the main assets that your company, in particular, requires to create the end product, and these are usually differentiated from the key resources being utilized by your competitors. Key resources physical resources business plan with the operational end of the business spectrum and define what kind of materials you need, what kind of equipment is required and the types of people you need to employ.
This aspect plays a direct role in bringing your value proposition to life for your chosen customer segment and defines the minimum you need to have to deliver to your customers. The business model of an organization is a major indicator of the type of key resource being utilized by the company.
Hence, there is a clear difference between the key resources employed by a microchip manufacturer and a microchip designer. The microchip designer will probably consider his human resources as the key resource, while the manufacturer will favor his production hardware as his key resource.
Key resources are directly relevant to the number and type of key activities your company engages in.
Ultimately, the quality of your key resources will impact the sustainability and profitability of your company. For example, if your company doubled its sales in a year, and started growing beyond your expectations, you would only be able to handle such growth if you are fully cognizant of what your key resources are and what impact such increased demand would have on them.
Hence, you need to be able to tell whether your physical resources would be able to provide for such demand or require additional investment.
Similarly, will your current human resources suffice or will additional talent need to be recruited to meet business requirements and so on.
In addition, a company has the option of leasing its key resources or owning them as well as taking on key partners who would provide access to these resources. Physical resources Physical assets are tangible resources that a company uses to create its value proposition.
These could include equipment, inventory, buildings, manufacturing plants and distribution networks that enable the business to function.
A microchip manufacturing company like Intel needs semi-conductor plants as a key resource and without adequate infrastructure available, the organization will fail to innovate and keep up with its business customer demands and needs.
Intellectual resources These are non-physical, intangible resources like brand, patents, IPcopyrightsand even partnerships. Customer lists, customer knowledge, and even your own people, represent a form of intellectual resource.
Intellectual resources take a great deal of time and expenditure to develop. But once developed, they can offer unique advantages to the company. Nike and Sony are heavily dependent on their brand to sell their products to a customer segment that is devoted to the brand.
Similarly, Microsoft and Adobe rely on software that have been tweaked and perfected over years of trial and error.Physical and Technological Resources 1. Description Facilities and Physical Resources Bentley undertook an aggressive plan of physical expansion intended to enhance physical facilities for pedagogy, student life, and faculty and staff effectiveness and efficiency.
Center for Women and Business. After Undergraduate Admissions . This post covers the next building block of the Business Model Canvas, which is Key Resources. In this post, we will look at 1) key resources, 2) types of key resources, 3) key resources and value propositions (section added), 4) key resources according to types of businesses, and 5) two case studies.
KEY RESOURCES Key resources are the main . Key resources can be physical, financial, intellectual, or human. A microchip manufacturer needs capital-intensive production facilities, whereas a microchip designer depends more on human resources. Key resources can be owned or leased by the company, or acquired from key partners.
Jun 27, · Physical Resources Whether a small home business or a retail operation with multiple locations, every organization must have the appropriate physical resources to survive. program plan and the physical resources plan, the focus of this chapter.
business” or whether it was a small commercial motel. • • • • • • • Physical Resource Planning Physical Resource Planning Physical Resource Planning Physical Resource Planning resources.
and. The physical resources of a business include all the tangible resources owned and used by a company such as land, manufacturing equipment and office equipment.
Information technology and its attendant equipment, computers, networks, servers and others, are included in the category of physical resources.