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16It is evident that this type of partnership will surely contribute to companies and state closer cooperation, potential threats and risks minimizing, attract additional resources and technology, prevent corruption, help new ideas generating, as well as their effective using in renewing region infrastructure.
That is why we have to implement this practice in Ukraine. Political and economical changes can open new spheres of cooperation, one of which is public-private partnership.
BIBLIOGRAPHY:
1. Public-Private Partnerships in Infrastructure. -Days 2008, December 15-18. -2008. -Washington, D.C.: Edited by Periklis Saragiotis, PPP Program, World Bank Institute. -Day 2.
2. Поабник Програми розвитку ООН «Toolkit on Pro-poor Municipal PPP»,[Електронний ресурс]. -Режим доступ у: http://pppue.undp.org/toolkit.
3. http://www.un.org/partners/business/otherpages/guide. htm
4. United Nations General Assembly resolution, A/ RES/60/215
5. Partnering to renew public infrastructure, by William D. Eggers, Saad Rafi and Ben Sorensen
http://www.summitconnects.com/Articles_Columns/ PDF_Documents/w11_1_07.pdf
6. http://www.francophonie.org/IMG/pdf/wb_ppp_eval_ updated_ieg.pdf
7. Dedicated Public-Private Partnership Units—A Survey of Institutional and Governance Structures. Paris: OECD.2010.
8. Sfakianakis, E., and M. van de Laar. 2012. "Assessing Contingent Liabilities in Public-Private Partnerships (PPPs)."UNU-MERIT Working Paper Series 2012-030, Maastricht Economic and Social Research Institute on Innovation and Technology.
9. UNECE (United Nations Economic Commission for Europe). 2008. Guidebook on Promoting Good Governance in Public-Private Partnerships New York: United Nations
10. WBI and Public Private Infrastructure Advisory Facility. 2012. PPP Basics and Principles of a PPP Framework.http:// www.ppiaf.org/sites/ppiaf.org/ files/documents/Note-One-PPP-Basics-and-Principles-of-a-PPP-Framework.pdf.
PRACTICAL APPLICATION OF THE METHOD BY ALEXANDER OSTERWALDER
Rovinska Nastasia Yuryevna
post-graduate student, department of management, National Aerospace University "Kharkiv Aviation Institute"
ABSTRACT
This article dedicates to the research of business-model. For analysis was chose method by Alexander Osterwalder and real Ukrainian building company. Then the method was approved by the type "case-study". The fundamental purpose of this work is qualification assessment of the method by A. Osterwalder to the building area. In the results of the research was discovered, that method can be used as a visual aid for existent business-model and its general description. At the same time it isn't enough for business decision accepting because it doesn't provide clear answers on business-owners questions/problems.
Keywords: business-model; Business Model Canvas; methods by Alexander Osterwalder, building/construction company, case-
Introduction. The term "business-model" is actively used in modern scientific publicity and periodical press. Nowadays increasing number of authors pay attention to this innovative concept due to searching of new strategic management methods for business-owners and top/ middle managers. Let's bring a summary of authors that have studied this question. There are R. Amit, J. Magretta, H. Tikkanen, D.J. Teece, H. Chesbrough, G. Hamel, A. Soolyate, Z. Mocrunska, V. Kotelnikov, T. Kugusheva, Y. Vukhodets and etc. The consolidated vision of these researches was published by author in other article [1].
One of the most progressive researches in this area is Alexander Osterwalder, who developed methods to describe and analyze existed business-model or prospective one. Effectiveness, uniqueness and versatility of Business Model Canvas (BMC) by A. Osterwalder have been confirmed by real examples of famous world companies as Apple iPod/iTunes,
Lego, Google, Facebook, Skype and etc. But these examples demonstrate only impact into service areas and don't provide any researches in industrial or constructing field. Following this observation the basis purpose for article writing becomes the question of BMC adaptability for the industrial area.
Purpose: the purpose of this article is to analyze method's adaptability, viability and uniqueness with the help of implementation of A. Osterwalder's business-model into real Ukrainian building company.
Body. Alexander Osterwalder in his book "Business Model Generation" says that any business model can be described with the help of so-called "Business Model Canvas" (fig.1) [2]. This Canvas consists of 9 structural units/blocks. Each of them is loaded by functional items and is designed for detail visualization, demonstration and following analysis of company's business-model.
Kry Farwn-rrp Vl r Tj i ■ ' /Viftjlflj Ü* H n r P1 iS iiami-mwrnr «■ \ №jfli/mahi>R —^ ffJnjrt-unrr JFcjfmmi h Cl iL
ficM-iHtrevM Cíiivuir/il JT i
OM JifWfMir«' li n} WMUI rf" r FA MI ji - ■ ■ t§S
Fig.1 Business Model Canvas
2. Osterwalder A. (2009). Business Model Generation. http:// www.businessmodelsinc.com/wp-content/uploads/2011/11/ Business-Model-Generation-preview-of-the-book.pdf
We can practically examine this Canvas analyzing the focus Ukrainian building company called "Alpservice", which is specialized on elevated operations with climbing technique implementation. The main directions are mechanized repairing and anticorrosion protection of constructions/buildings.
The first Canvas structural unit/block is named "Customer Segments" (hereinafter CS). In this unit/block it is necessary to mark the key customers of the company and to set priorities among the consumers, as well as to answer two questions:
• Who does the company make value proposition for?
• Which customers are more important?
The main Customer Segment for "Alpservice" company is government, i.e. state agencies, which are responsible for the safety, reconstruction and functioning conditions of bridges, overpasses, towers, etc. The next group of prioritized customers for the company is private persons or enterprises, which are in need in elevated/climbing services. Taking into consideration the specific of the company we can say that this one is characterized by the market niche business model. That is why "Alpservice" company directly dependents on the state plan/ schedule of construction/reconstruction and as a result - on state financing. The same factors are also faced by the private companies, too.
The second unit/block of Canvas is called "Value Proposition" (hereinafter VP). This unit concentrates on company's view by customers' eyes. It helps to understand you why customers should choose exactly your company, which kind of benefits can you give them in comparison with rival companies. Other word, this unit emphasizes exclusivity of propositions from the company to its clients.
The control questions of this unit/block are:
• Which values can we offer to our customer?
• Which needs do we satisfy?
• Which set of goods and services can we offer to every
customer segment?
Value proposition of "Alpservice" company is a high-quality service in the field of industrial mountaineering. Advantages of the company are ten-year experience, own production capacity availability, and, of course, human resources based on highly skilled specialists in this area.
Distribution Channels (hereinafter Ch) are the third unit/ block of the Canvas that is designed to describe the company's communications with the customer segments, as well as methods and tools to inform value propositions to the end consumer. The result of this unit/block "sketch" should fix the chain of interactions: VP^Ch^CS.
Distribution Channels suggested by Alexander Osterwalder are not completely adapted for the "Alpservice" company specific. The statement is based on the fact that this company does not use commercial agents' services, does not sell its services through the Internet or brand/partner shops and obviously does not make wholesales. But at the same time it can also be claimed that the company uses the mix of Distribution Channels. We'll try to display it using the promoting stages of products to consumers.
1. In our point of view, analyzing focus company combines in its work three stages of promotion. They are informational stage, selling and delivery. I.e. the company uses the same steps as to increase customers' awareness about services (informational stage), as to give an opportunity to purchase its services (selling stage) and to deliver VP to the customers. These stages are realized with the help of the following activities:
• participation in tenders and competitive bidding;
• maintaining of friendly and partner relations with similar construction companies in order to attract the subcontracts;
• own company's website which assists hypothetical customers in getting detailed information about the capabilities of the company.
2. Evaluation stage. «Alpservice» company is a client-orientated one which is ready for open dialogue with
its customers. Prospective customers can estimate the Value Proposition getting acquainted with the company's production facilities and equipment, studying specialists' qualification as well as documentary/photo reports and former or present customers' recommendations
3. After-sales stage is provided by offering guarantee for "Alpservice" company services. I.e. in each specific contract the warranty conditions are an indispensable item. To sum up, this contract item is about the responsibility of the company for services they provide and in case of defect detection "Alpservice" company is obliged to eliminate it at its own expense.
The fourth unit/block is devoted to the description of the Relationships with Customers (hereinafter CR). If we take into consideration classification/types offered by A. Osterwalder, we can get the conclusion that the type called "Personal Assistance" is the most suitable for "Alpservice" company. As it was said before, the company is very oriented on its customers' needs. So the company as a rule pre-views the prospective objects preparing initial designing estimates and primary documents, acts/certificates that describe defects.
In addition specialists of the company offer to the customers variants of technical solutions, give an expert valuation/diagnostic of different complications, which can appear during working process (for example, poor/limited access to the location), recommend the most suitable materials for every special object etc.
The fifth unit/block is Revenue Streams (hereinafter RS). This unit/block of Business Model Canvas emphasizes on the profit. There is the only RS in "Alpservice" company - it is income from every single transaction. Thus price formation is flexible and changes according to the situation. In case of been in contractual relations with an individual, the price is agreed upon in such a way that maximizes both sides satisfaction.
If the company takes part in tenders, it forms a bargain price by itself, trying to get the most comfortable and financially beneficial conditions. Also it should take into consideration the fact that competitors' financial offers can be lower that ensures victory in auction.
The service price also directly dependents on the resources and deadline. For example, if the customer provides his own materials for the works or insists on any particular brand, the price for the contract will vary. The same situation with deadline - as shorter the timeframe as higher the price is.
Key Resource (hereinafter KR) is the sixth unit/ block of Canvas. According to the article author's view, this unit describes the links between all previous units/blocks. Obviously, that no business is sustainable without recourses. A. Osterwalder distinguishes 4 types of KR [1]:
• material;
• financial;
• intellectual;
• human.
Business model of "Alpservice" company includes all types of recourses listed before. We'll discuss them in details. In the article we have already mentioned, that the focus-company has own equipment, special building facilities, machines and machinery, vehicles etc. which are considered an integral part of manufacturing process. As well as, to offer high qualified
services the company needs various building materials (for example, painting and abrasive materials, fuel and lubricants etc.), which are bought from the relevant providers. All these capacities can be named material resources of the company.
Obviously, that having own vehicle fleet/cars park, keeping special equipment/machines and buying various building materials implies great monetary investment. As a result the company has to pay regular expense.
Intellectual resources are also present in the manufacturing process of "Alpservice" company. For example, to solve different technological and material engineering questions the company co-operates closely with country's leading experts from Scientific Research Institutes from Kyiv and Kharkov, Lvov Physical and Mechanical Institute named after Karpenko and other organizations.
It is necessary to stress that the main and the most important part of "Alpservice" company functioning is human resources, because all resources listed below are useless without proper specialists.
Based on company specific we pay attention on fact that pool of human resource consists of individuals who are authorized to perform climbing and mountaineering activities and only after that they can do particular job as painters, sandblasters, spotter etc.
The seventh unit/block is dedicated to Key Activities (hereinafter KA). Taking into consideration that KR is something like links in a chain we can say that KA is an actual activity that the company performs for business-model functioning.
The Canvas's author distinguishes three KA: manufacturing, problem solving and platform/network. But for the focus company this KA classification looks very brief. In a case of been in contractual relations with private persons "Alpservice" company is a service provider, and classification "problem solving" is absolutely suitable there.
In case when the company is a contractor of a state building, it seldom corrects the plan or gives recommendations because the works are held in the framework of the project documentation. That is, on one hand, the company provides services; on the other hand it acts as an operator that has to realize a set of specified conditions.
That's why incorrect to say that KA classification of "problem solving" is suitable for our case. The other two classifications cannot be used because of their content, too.
Key Partners (hereinafter KP) is the eighth unit/block. Any company activity more or less connects with other service providers, supplies and partners. Every company decides by its own how to build relations with them based on personal internal believes and rules. Moreover the priority of these connections plays an important role for a healthy business model.
A. Osterwalder in this unite/block provides three basic motivations for partnership creation:
• optimization and economy of production sector;
• risk and uncertainty reduction;
• particular resources providing and common activities.
Let's practically connect KR and KP for "Alpservice"
company organization (table 1).
Table1.
Key Recourse and Key Partnerships Correlation
Type of resource Key Partnerships
Material material or raw suppliers; machine repairing outsourcing/spare parts supplies;
Financial customers; current assets/capital;
Intellectual country's leading experts from Scientific Research Institutes from Kyiv and Kharkov, Lvov Physical and Mechanical Institute named after Karpenko and other organizations;
Human job search sites; newspaper ads; Job centers.
The final ninth unit/block is Cost Structure (hereinafter CS) which is focused on the main expenditure/costs, that the company has during business model functioning.
A.Osterwalder claims that manufacturing companies have a lot of fixed-costs.
Examined "Alpservice" company we got the conclusion that it is the absolutely correct statement.
Expenditures for production facilities keeping, office
After Business Canvas forming we can directly proceed to the analysis. In the author's point of view the first weak point of the present business model of "Alpservice" company is not obviously identified Customer Segments. I.e. there is no specific and stability in this aspect despite the main aim for any company is to find its customer.
rent, salaries and services provided by third parties, essential payments, taxes etc. influence on financial stability of the company.
Material and raw expenditures have mobile/changeable type/character, because they are directly connected with the amount of work. Nevertheless they are an essential part of the company expenditure. We provide visualized business model units/blocks of "Alpservice" company (fig. 2).
Ch seems limited and vulnerable. There is no clear connection with the final buyer. None of existing channels assures that the value proposition will be delivered to the customers' segment.
Revenue Streams indicate that the company has not got stable income while expenditure/cost structure demonstrates
Key РлгТка ,4Ups lijppkers of maten ais -о r raw;. Outsourcing гфалг madiíiisiy / spare parts; Gist omens Jtb se such л Ses ; Newspaper aduertsssmem. Labour Excbflnge Country ' s Leading everts Key .Axtntiw Higji-nse works with implementation of alpini sm t ochrii que. Vnlne Pi cp ontioit Scmccs in the lïdd □ f m du stud mo LTiraneering Шипя EfLltidllsllip.'! Personé assistance CiiftDmH1 .^Ltflils St Xt midlines FïivaJe pftfstfis/ organizas ans
K<y Rwoiu fes Msrhinriy, ОТ and mdsiu Courent «pitá üf oi^iiuzdioji Sû (fttiûc research insoiiite ¿rid drained insdmtí Poo! of htinai resources C3UBMII Participation in tenders ¡md «mpHihvc bidding, Internet's resources FainCT Companies
t'est KtlllitTUi Overhead and administraban costs RwndmMoriklf Ratline' Ui ffiHis Tnсопле Oram non-recuirin^ transactors
Fig.2 "Alpservice" company Business Model Canvas
-5S-
the number of fixed-costs. I.e. if there are no transactions, there is no opportunity to cover fixed-costs.
Remaining six units/blocks look quite convincing in its functionality and viability.
Conclusions
In this work was carried out research in the area of the practical application of the method by A. Osterwalder. The results of the research allow to say following:
1. Advantages of the method proposed by Alexander Osterwalder are:
• the clear advantage of this method is its clarity/ visualization. It seems like intuitive understandable processes and participants which find new qualities and characteristics with the help of detailed visualization;
• prioritization. Business model canvas helps to define what is primary and what is secondary for the company;
• teamwork. The process of canvas completing can attract employees of different age groups, skill and professional training, diametric departments etc. It helps to know the opinion of colleagues as well as their attitude to the job. Besides that participants are able to demonstrate the hidden personality qualities which may be useful to the enterprise;
• usability. This method impresses by "step by step" detailed guide that allows implementing it by ourselves, without other training or consulting companies' involvement;
• anilities view. Canvas allows us to analyze the key process of the company, to identify challenges and "bottlenecks", to make the view of the business model multifaceted, including buyers' opinion.
2. Disadvantages of the method are:
• on the way of Canvas making/completing there were uncovered some units/blocks, that were not adopted for the focus company. It indicates that method is not unique and cannot be used as an absolute formula;
• there is no units/blocks to describe;
• Business Model Canvas possible risks. In author's point of view it is a weak point as all business ranges cannot function without risks. Risks should be identified, monitored, discovered etc. Other words risks must be managed;
• method limitation. In the process of business model describing attention is focused only on proposed units/blocks that may lead to omission of important aspects of company's life;
• vitality test. This method doesn't give answer on the key question: "How much is business model vitality?" I.e. after composition Canvas we must use other methods of assessment.
3. The disadvantages that have been discovered are theoretical contribution and let us say that for BM implementation in industrial area we need either modified A. Osterwalder's method or other ones. As a result new scientific field can be created.
4. Practical implications of this article underlies in actual building company business-model developing. Every block and a whole business-model were analyzed according to Canvas. Practical recommendations for each block were provided too. The results of research demonstrate that 3 blocks of BM (Customer Segments, Distribution Channels and Revenue Streams) need to be transformed. Finding results can be used out for other company establishing or for some manage decision elaboration to improve or modify current business.
5. Method can be used as a visual aid for existent businessmodel and its general description. At the same time it is not enough for business decision accepting because it does not provide clear answers on business-owners questions/problems.
Reference:
1. Vykhodets Y.S, Rovinska N.Y. 2013. "Application of the concept «business model» in business analysis and description". Economics and management of engineering industry enterprise: problems of theory and practice. 21(1): 65-76.
МЕХАНИЗМЫ УСТОЙЧИВОГО И БЕЗОПАСНОГО РАЗВИТИЯ ЭКОНОМИКО-ЭКОЛОГИЧЕСКИХ СИСТЕМ ВОДНЫХ БАССЕЙНОВ УКРАИНЫ
Сербов Н.Г.
кандидат географических наук, доцент Одесский государственный экологический университет
MECHANISMS FOR SUSTAINABLE AND SECURE DEVELOPMENT OF ECONOMIC AND ENVIRONMENTAL SYSTEMS OF WATER BASINS UKRAINE
Serbov M.G., сandidate of geographic sciences, associate professor Odessa State Environmental University
АННОТАЦИЯ
Исследование посвящено рассмотрению вопросов экономической оценки основных направлений экологизации производственно-хозяйственной деятельности в водных бассейнах Украины. Представлена схема экономического районирования Украины на систему водных бассейнов.
ABSTRACT
The questions of economic estimation for the basic directions of ecologization of production and economic activity in water pools are considered on the basis of usage of science and engineering achievements for the purposes. A scheme of economic zoning of Ukraine on the system of watersheds.
Ключевые слова: экологизация, экономическая оценка, производственно-хозяйственная деятельность, водные бассейны
Keywords: ecologization, economic estimation, production and economic activity, water basins
Современные условия хозяйствования в Украине связанных с функционированием экономических ком-предопределяют актуальность исследования проблем, плексов, территориально-административных регионов и
