Innovative Business Solutions

                                                 What is a VBE model?

Every company in business has a VBE model. Every company operates with a VBE framework, making it crucial to understand, the strengths and weakness of its VBE model. The VBE model stands for —Value Model, Business Model, and Ecosystem (VBE). This defines what Value customers buy from the company, how the Value is delivered and who is the ecosystem supporting the value exchange with the customers. It affects the company's business and profitability.

                      Why is it necessary to analyse your VBE model?

Technology and user preferences evolve with time and with every shift, old solutions fade as new ones take their place. This cycle has played out since ages.  Another angle is that  companies with new technologies sometime do not find traction in the market and that is because of the strength of the existing VBE model of companies in the market.  Hence if companies analyse their VBE model, it helps the companies build traction and revenues in the market. 

                                                                                                    What we do?

At GEOOWN consulting, we use our framework to understand your companies VBE model and the strength and weaknesses it has to gain traction in the market. We believe that asking the right questions and understanding the ecosystem in which your company will provide value is the key to your  financial success. The VBE model analysis gives you a clear picture of the opportunities and threats your company will face in the market.  

Over the past 200 years, we've observed that the market leaders possess strong VBE models, while market failures often have weak VBE models, leading to bankruptcy when facing stronger competitors with robust VBE models.

You can take any company which leads a market and underlying their financial performance is a VBE model that makes them strong and resilient in their market.While if you look at any company that went Bankrupt, they faced a competitor with a strong VBE model which disrupted their market share. In the diagram on the side we show Apple having a strong VBE model after the year 2000 and having a weak VBE model prior to the year 2000  Explore in the videos below to see how VBE models have shaped companies in business.

Here are some classic examples of why understanding your companies VBE model is necessary for success in the market. Companies that have understood their VBE models and strengthened them,  have dominated their markets and companies which were blind to their VBE model failed when a company with a better VBE model showed up.

A classic example was Microsoft and Apple, prior to the 2000s in the Computer Software sector. While Apple CEO claimed that Apple made better computers because they designed both the hardware and software, but they had only 2% of the computer market versus Microsofts 98% marketshare. Why?

Because Microsoft had a stronger VBE model to Apples VBE model. Apple missed the point that Microsoft by focussing on just Software had stumbled on a VBE model that had the hardware manufacturers benefitting from the hardware sales if they gave pirated Microsoft software for free, thus enabling the Microsoft software ecosystem. However after Steve Jobs came back to Apple, he used the VBE model to dominate the MP3 market with iTunes and then the VBE model of iOS (iPhone Operating System) to break into the mobile phone market dominated by Nokia and Motorola and Blackberry getting all three companies Bankrupt.VBE model . Other examples were Kodak and Blockbuster being bankrupted as a better VBE model showed up which made their existing VBE model redundant. A recent example is Intel which has challenges with its VBE model because of an Architecture decision they made two decades ago when they went with the CISC architecture versus the RISC architecture when designing their chips. In those times Power was not an issue for CISC or Complex Instruction set Computer  while the RISC or Reduced Instruction set Computer  had to operate in a lower power requirement. When Intel took the decision some two decades ago they never anticipated that the decision would haunt them after 20 years of dominating the computer chip market. Another example was SAP and IFS which were two ERP product makers which had a very different way to approach the market. SAP approached the market with the ecosystem of Advisory companies which it trained in SAP products and certified the practitioners to manage SAP projects, while IFS had an approach that since we have developed the software we will only implement the software in a company. The result was that SAP managed to build an ecosystem that also benefitted when SAP sold their software while IFS was constrained to deliver ERP projects. The end result was that the revenues and market acceptance of SAP as an ERP software company was multiple times of IFS ERP software. These dynamics happens across different sectors including EV companies, Cloud companies, Chip product companies etc.

Watch the first two videos below. The first Video describes VBE models and in this we look at companies which dominated their businesses and we find the VBE model supporting it, and we also look at companies that went Bankrupt, because they did not understand their VBE model changing. The Nokia Management team did not understand the implications of Apples VBE model hurting them and they tried a classical approach to counter Apples threat. Hence I have indicated one side with Horses and swords and the other side with Machineguns and Tanks. 

When Introducing any new way of working like Electric cars or Hydrogen fuel cars, what is important is to understand the VBE model that can support it. Many companies in AI like IBM failed when they launched the IBM Watson AI as they did not work on the VBE model angle of AI but focused primarily on the technology angle of AI. The same case applies to NorthVolt a Battery Manufacturer and a Textile recycling company called Renewcell which went Bankrupt as they focused on their technology and not on building up an ecosystem that would support their technology. You see the VBE model pattern repeating in companies that dominate the Market and companies which go bankrupt. One has a thought through and robust VBE model and the other has a not thought through flimsy VBE model. VBE models affect all companies and the videos below show you different angles of VBE models.

How will the Internet develop : Does Human development from Huntergathers to ownership show a path

What is your companies VBE model

How did Apple use the VBE model to enter the mobile phone market

This Video explains how we would work with the VBE process for your company

Where does your companies Value Model stand

What are the factors that affect your companies VBE model

How a company's VBE model evolves over time

VBE models and successful companies

How Paradigm Shifts affect VBE models

VBE models and data Ownership

About Geoown Consulting

We are a company that works with the leadership team of the company to analyse and validate the VBE model of the company by understanding their dependencies,threats and opportunities. If you are a company that is launching a product you think is innovative in the Market, we help mitigate the risks and build an ecosystem that supports your product or services in the market.   Many companies work on bringing a new technology in the market, but find that the new technology is not accepted by the Market and that results in the company failing to build revenues and acceptance in the Market. Some examples that are common knowledge are Kodak, BlockBuster, Nokia Mobile phones, Microsoft phones, NorthVolt Batteries, Renewcell, IBM Watson AI, Intel chips.   Understanding the VBE model becomes a key to your business success. Please connect with us if you want to understand your VBE model and enable market acceptance and traction.