System Integrators need to think beyond supplying and installing their systems. They can substantially improve business results of their clients.

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Innovating Business Model
In Motion Weighing Industry

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Market
Aggregate Material Production and Processing
• Mining
• Fertilizer
• Coal
• Stone Crusher
• Cement
• Farming
• Ports
• Municipality waste
Material Processing Companies
1. Have a need to account weight
of material as they are produced,
processed, stored and moved at
various places.
2. Since materials are moved on
conveyors, there is a requirement
to measure weight of material
while in motion.
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In Motion Weighing, IMW
Uses Load cells placed underneath conveyor and integrated with electronics
to collect, transmit and report weight of material moving in conveyor
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Fierce Competition in IMW Industry
• Since penetration of IMW solution has spread
into more industries, the sophistication of
technology has increased.
• Most of the sophisticated solutions are owned by
companies outside India.
• In India, several of these technologies are
available through their local agents or system
integrators.
No doubt, the industry is becoming fiercely competitive!
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Value Proposition
Channels
In Motion Weighing - Business Model (Old)
Customer
Segment
1
2
3
Like others,
Satpal is an
IMW system
Integrator for a
German
Technology
Company
He offers IMW
Solution to
material
producing
companies
He promotes his service through
web, participates in tenders and
once he wins a tender sends his
engineers to install equipments
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Value Proposition
Channels
Revenue
In Motion Weighing - Business Model (Old)
Customer
Segment
1
2
3
4
Satpal is paid for the
equipment installed at
the site of customers
and he also receives
recurring AMC fee for
maintaining the
equipment.
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Value Proposition
Channels
Revenue
In Motion Weighing - Business Model (Old)
Customer
Segment
1
2
3
4
To deliver the Value
Proposition, Satpal
has a team of
engineers and he has
technology license
from the German Tech
Company
Key Partners
Key Resources
Key Activities 5
6
7
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Value Proposition
Channels
Revenue
In Motion Weighing - Business Model (Old)
Customer
Segment
1
2
3
4
Key Partners
Key Resources
Key Activities 5
6
7
Key Costs 8
Customer
Relationship
9
22-04-2014 8Based on BM Canvas, Alex Osterwalder, ‘The Business Model Generation’

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Value Proposition
Channels
Revenue
In Motion Weighing - Business Model (Old)
Customer
Segment
1
2
3
4
Key Partners
Key Resources
Key Activities 5
6
7
Key Costs 8
Customer
Relationship
9
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Value Proposition
Channels
Revenue
In Motion Weighing - Business Model (Old)
Customer
Segment
1
2
3
4
Key Partners
Key Resources
Key Activities 5
6
7
Key Costs 8
Customer
Relationship
9
Since almost every system integrator
has the same business model and
competition is ever more fierce,
Satpal’s business is under severe
threat. In fact, during last 3 years he
lost significant market share.
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Patel- Another IMW System Integrator
• A year back, else where in the western part of
the country, Patel, a system integrator for a
Canadian Company was in a similar situation.
Competition has grown dramatically . Now almost
all sorts of technologies are competing with each
other. Supplying and installing IMW system has
become a commodity service business. The situation
of current economy is not helping either since the
IMW system is expensive!
But he thought differently!!!
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Value Proposition
In Motion Weighing - Business Model (New)
Customer
Segment
1
2
Patel had heard
enough about
the power of
information and
IT.
Rightly presented,
operational data
dramatically
improves decision
making ability of
an organization
Instead of selling only
installation of IMW system,
he positioned his business
as Business Solution
Provider, with emphasis on
using S/W to improve ,
productivity and
operational efficiency of
the clients22-04-2014 12

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Value Proposition
Channels
In Motion Weighing - Business Model (New)
Customer
Segment
1
2
3
He began promoting his
solution through trade
magazine, he started doing
direct (consultative) selling
presenting analytics, dash
board and reports of IMW
system as the main pitch of his
offer.
Through his s/w
solution he was able
to excite his clients
who found a way to
identify their
operational losses
and inefficiency.
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Value Proposition
Channels
In Motion Weighing - Business Model (New)
Customer
Segment
1
2
3
He further changed the value
proposition by offering the IMW
system on Lease or discounts,
adding an incentive to clients
who were postponing their
CAPEX due to the overall
uncertain economic situation.
Revenue 4
Now he was able to
charge the customer not
just on physical system
but also on productivity
based recurring fee plus
the regular support
provided in software
service
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Value Proposition
Channels
In Motion Weighing - Business Model (New)
Customer
Segment
1
2
3
In order to implement
his new value
proposition he recruited
business analysts and
partnered with a S/W
company to fulfill the
ongoing needs of his
clients business.
Revenue 4
Key Partners
Key Resources
Key Activities 5
6
7
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Value Proposition
Channels
In Motion Weighing - Business Model (New)
Customer
Segment
1
2
3
Revenue 4
Key Partners
Key Resources
Key Activities 5
6
7
Key Costs 8
Customer
Relationship
9
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Value Proposition
Channels
In Motion Weighing - Business Model (New)
Customer
Segment
1
2
3
Revenue 4
Key Partners
Key Resources
Key Activities 5
6
7
Key Costs 8
Customer
Relationship
9
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Value Proposition
Channels
In Motion Weighing - Business Model (New)
Customer
Segment
1
2
3
Revenue 4
Key Partners
Key Resources
Key Activities 5
6
7
Key Costs 8
Customer
Relationship
9
Thus Patel Transformed his business from
the pure play system integrator to a
business productivity solution provider for
material processing industry. He is thsus,
directly influencing his clients business
results. Knowing the amount of benefit his
clients get from his team’s knowledge of
client’s business, getting orders and a
good price is no more an issue. His is now
the fastest IMW business in India despite
all uncertainty of general economy!!!
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The Difference that Makes the Difference
Business Model Satpal Patel
Value Proposition IMW Solution Business Solution
Customer Need Weighing Operational Efficiency
Market Access Tenders Direct Consultative Selling
Delivery Field Installation Installation plus Ongoing
Operational Reports (Advice)
Revenue Material + Service charge Software Application &
Support+ Material
Resources Engineers Biz Analyst Engineers + SW
Developers
Cost Man + Material +Travel S/W Dev + Man + Material +
Travel
Positioning System Integrator Business Partner
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CVMark
The Biz Design Studio
Email: lolla@cvmark.com
Ph: +91 94480 70081
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