Evolving New
Business Models
for Corporate
Profitability
Opeyemi Agbaje
CEO
RTC Advisory Services Ltd
Strategic
Capital
Business Models
• Businesses are fundamentally concerned
with creating value and capturing returns
from that value.
• Business models explain the firm’s
fundamental core logic and strategic
choices for creating and capturing
value within a value network
Business Models (contd.)
• Core Logic
– Articulate and explicit key assumptions about how the
business makes money and internal consistency of
strategic choices
• Strategic Choices
– Choices and trade-offs embedded in a firm’s strategy
that inform decisions about what the firm will and will
not do
• Value Creation and Capture
– Benefits that a firm generates for consumers in form
of lower prices and/or “better” products or services
that consumers are prepared to pay for in excess of
the cost of creation
Problems of Business Models
• Flawed assumptions underlying the core
logic
• Limitations within the strategic choices
• Misunderstandings about value creation
and value capture
• Flawed assumptions about the value
network
Evolving New Business Models for Corporate Profitability
WHY EVOLVE NEW BUSINESS
MODELS?
Why Evolve New Business Models?
• Markets and Business Environments are
changing…
– Consumers and Demographics
– Industries, Competition and Products
– Globalisation and Technology Change
– Computing, Communication, Convergence
– Economic Changes: Growth and Recession
Nigerian Economic Recession
Macroeconomic Indices are trending negative
Economic Sectors are troubled
Insurance Sector still has significant room
for growth
Evolving New Business Models for Corporate Profitability
THE GLOBAL INSURANCE/FSI
IS CHANGING
Global Firms are rethinking Strategy, Operating and
Business Models and Firm Design
Innovating Business Models is a big topic in global
insurance
Case Study
• IMD Case “AXA WAY: The Pursuit of
Excellence through Quality of Service”
• Focus on PROCESS QUALITY and CUSTOMER
SERVICE
– Process default rate of 2/10 was deemed unacceptable
– Strong focus on process analysis
– Close and systematic monitoring of customer service
• Imperative of CULTURE CHANGE
Evolving New Business Models for Corporate Profitability
AREAS FOR CONSIDERATION
Areas for Consideration
• Technology
• People
– Diversity; Creativity;
Perspectives;
Qualifications; Quality
• Products
– Lifestyle; Relevance;
Benefits
• Investment/Securities
• Distribution
– Technology; Internet;
BancAssurance; Cross
Selling; Cards; Social
Media
• Processes
– Forms; Automation;
Process Review
• Partnerships
• Markets
• Service Quality
Conclusions
• The Nigerian Insurance space has significant
room for growth and transformation.
• For that potential to be realised however,
players within the sector have to rethink their
strategies, business models and assumptions
about how the business works.
• Clearly new models are required. I wish you
best of luck as you create those new models.