Design the value model - Integrating value modeling into ArchiMate

CHAPTER IV: Demonstration

4.2 Design the value model

We now use our value viewpoint and follow the instruction to construct the value model with ArchiMate, then compare with the model draw using e3value.

1. Make Value Proposition sketching

Based on the instruction, the first step is to draw the value network and decompose the value proposition. According to the case description, there are five stakeholders involved in the network, including the gift vendor, call center, newspaper publisher, annual reader and new reader. Among these stakeholders, the gift vendor and call center are the partners of the publisher, the reader and new reader are the target clients. The value proposition is to provide gifts for readers and new readers in order to sustain and increase its coverage. In this proposition, the gift vendor responses for sending gifts to the newspaper, and the newspaper publisher cooperates with the call center to provide consulting services through telephones. Figure 68 shows the value proposition exchange diagram of the newspaper.

Figure 68: Newspaper value proposition exchange

According to the case, we identify three components in the value proposition, which includes the consulting service from the call center, the test contract provided by the newspaper and the gift purchased from the gift vendor. The consulting service is provided through various platforms, including telecommunication and internet Users can choose either way to get contact with the newspaper publisher, and the gift could attract more new readers become a user of the publisher. Figure 69 represents the decomposition of the value proposition.

Figure 69: Newspaper value proposition

2. Stakeholder analysis

As discussed before, five stakeholders are involved in this proposition. We use the stakeholder viewpoint to analyze each of the stakeholder’s goals and requirements. Both gift vendor and call center service the newspaper publisher as a supplier by means of simply a trade relation, so we focus on analyzing the strategic goals of the publisher and the requirements from the customers. As shown in Figure 70, the publisher wants to increase the coverage and gain more profit, which requires that the publisher needs to sustain the current customer group while attract more new readers. Meanwhile, as a new user, people prefer to gain a better service from the media provider by means of on-time deliver and easy booking, besides, promotions are welcome.

Figure 70: Stakeholder analysis

3. Align value proposition with stakeholder’s requirements

Through the previous analysis, we have identified the stakeholders’ requirements and shows the decomposition of the value proposition, now we need to align the requirements with the value proposition components to see whether there are gaps between them. Figure 71 shows the

alignment. The alignment shows that the proposition does not cover all the requirements of the customers, the quality of the service is also a key factor to the level of customer satisfaction. In this case, the publisher need also to think whether they can timely dispatch newspapers to customers and updating on the website at the same time. Although this concern does not affect the adoption of the new value proposition, it still needs to be taken into consideration since the sustain of coverage is also an important factor to the publisher.

Figure 71: Reuirement-proposition alignment

Figure 72 shows the refined value proposition. The newly added components are modeled apart from the previous one since it concerns with the quality of the core business that publisher provides to clients. It indirectly influences the success of the subscription promotion. We now identify the value contributions of the promotion:

 Low price: It refers to the subscription fees a test reader has to pay, which include a discount.

 Multi-channel consulting: The new reader can ask for information through multiple channels, which include face-to-face consulting, through the internet (mail, internet) and phone calls.

 Subscription gift: The gift is provided to both new readers and annual readers. Compare to the cost of a one-year permanent subscription fee (80 EUR), the gift is very attractive (an iPod Shuffle for 29 EUR).