Your Revenue Driver

11. Cost Structure (Efficiency)

All the costs incurred to operate a business model:

Cost-Driven and Value Driven
Fixed costs
Variable costs
Economies of scale
Economies of scope

Costs can be derived after defining:

Key Resources
Key Activities
Key Partnerships

Replies to This Discussion

Permalink Reply by Paul Terlemezian on January 4, 2014 at 2:23pm

Our business model needs to consider the clients we have chosen - are they cost-driven or value-driven. Which ones do you prefer? How do you earn the ones you prefer?

Internally our costs are related to our business functions (thanks again to Bob Norton:)

Sales
Marketing
Operations
Product Development
Finance

and cover the following elements common to all of the functions:

People
Space
Materials
Travel
Taxes
Profits

What functions are missing (prepare to debate with Bob?)

What elements are missing? I would like a simple and exhaustive list - 10 to 12 items at most - 6 would be perfect.