CURRENT BUSINESS MODEL

A business model may be defined as a company's strategy for creating, delivering, and
capturing value by defining a value proposition and describing the underlying business
architecture (Amit and Zott, 2001; Casadesus-Masanell and Ricart, 2010; Chesbrough, 2010).
Businesses must understand their business model, what it means, what the fundamental
aspects are, and what it comprises of to communicate, measure, analyse, and adapt it to
stay competitive in a challenging business environment.
There are three parts to the business model: the value creation, value, and the value
delivery. The product or service, the market for the product or service, which is a vital
component of the business model, the delivery, which is the procedure by which the
product will reach the market or consumer, and the expense or cost are the distinct aspects
of a business model (Van der Pijl, 2012).
VALUE IN A COMPANY UNDERSTANDING THEIR BUSINESS MODEL
A business model is essential in creating a framework for how a company may provide value
to its consumers. It explains how the product or service will reach its customers or
consumers, as well as actions to assist the firm remain competitive and expected expenses.
It also assists in determining the amount of capital necessary to get the firm up and going
and through the proof-of-concept phase (Garner, 2010).
When organisations modify their business model through innovation, the practical and
economic value of business models becomes more apparent. Companies with well-
formulated and unique business models, according to Afuah and Tucci (2001), obtain
competitive advantages and larger earnings than competitors.
The analysis conducted by Pohle and Chapman (2006) resulted that companies which set
their innovation focus on business models had gained significant more operating margin
growth in contrast to those companies focusing just on product or service innovation.

COMPONENTS OF A BUSINESS MODEL - OSTERWALDER’S BUSINESS MODEL CANVAS

This report will be based on Osterwalder's business model. Osterwalder's model is a
business management framework comprised of nine building blocks, which are: key
partners, key activities, key resources, cost structure, value prepositions, customer
relationship, customers segments, channels, and revenue streams (Osterwalder, 2010).
These will help us to describe, design and analyze the current business models of eXRt
Intelligent Healthcare Systems.
Business Model Canvas allows business model to be simple, relevant, and intuitively
understandable, while not oversimplifying the complexities of how enterprises function
(Osterwalder & Pigneur, 2010 p.15).

eXRt CURRENT BUSINESS MODEL CANVAS

The nine building blocks of the Business Model Canvas:

Key Partners:
These are the network of suppliers and partners that make the business model work.
Partnerships are needed for optimisation purposes and there is no need for a company to
perform all activities by itself alone since it is operating open innovation. Partners also help
to reduce unnecessary costs and to reduce risks by creating strategic alliances in order to
achieve same goals.
The key partners of eXRt are:
 Ulster university
  Hospitals
 Telemedicine software specialists
 Tech4care
 European union
 Innovate UK

Key Activities:
The most important things a company must do to make its business model work. They are
the actions that are required to create and offer a Value Proposition, reach markets,
maintain Customer Relationships, and earn revenues.
The key activities of eXRt are:
 Branding
● Upgrading
● Content creation
● Relationship management
● Maintenance

Key Resources:
The most important assets required to make business model work. These resources allow an
enterprise to create and offer a Value Proposition, reach markets, maintain relationships
with Customer Segments, and earn revenues. Key resources can be physical, financial,
intellectual, or human. They can be owned or leased by the enterprise or acquired from key
partners.
The key resources of eXRt are:
● €2m research funding
 £300k Start Up funding
 Dr Dominic Holmes (Software Engineer)
 Dr Darryl Charles (computational intelligence expertise)
 Physiotherapists

Cost Structure:

All costs incurred to operate a business model.

The cost structure of eXRt is:

● Content creation
● Maintenance
● Staffing
● Upgrading
● Marketing
● Branding

Value Proposition:
The bundle of products and services that create value for a specific Customer Segment. It is
what differentiates from other companies. Values may be quantitative (e.g., price, speed of
service) or qualitative (e.g., design, customer experience).
Value proposition can be innovative and provide a new feature to customers, they can also
be the same as the existing market has but with added ideas (Osterwalder and Pigneur,
2010).
Exrt is providing physiotherapy services to stroke victims. Their flagship product is called
magic glass which is a physiotherapy software platform for the rehabilitation and recovery
of stroke patients.
The value proposition of eXRt are:
● Solving the problem of the upper limb for stroke patients.
● Increasing rehabilitation recovery.
● Provide help to stroke patients remotely.
● Access to personalised physical rehabilitation programme from the physiotherapist
which are managed and monitored remotely by the physiotherapist via a
web/mobile dashboard.
● Provides an immersive and engaging experience which increases rehabilitation
thereby developing faster recovery.
● Supporting healthcare organisations, with their Covid19 precautions (e.g.: limiting
the need for face-to-face visits).
● Improving outcomes and better quality of life for stroke patients.
 ● A tool which can support healthcare organisations when there is a shortage of
trained staff.
● Delivering rehab, more effectively and more cheaply.

Customer Relationships:
The types of relationships a company establishes with specific Customer Segments. It also
means how do you get, keep, and grow customers. It is an essential because it is very vital
to keep close attention of your customers as they have a significant influence on the
progress of the company.
● Automated product
● Personal assistance
● Physiotherapists accessibility
● Self-service
● Dedicated personal physiotherapist
● Social media platforms
● Websites

Customer Segments:
The different groups of people or organizations an enterprise aims to reach and serve. Exrt
healthcare is currently targeting stroke patients in the UK and Northeastern US. Stroke is the
biggest cause of disability in adults in the United Kingdom. There are 1.3 million stroke
survivors in the United Kingdom and about 100,000 strokes every year with one occurring
every five minutes.
● Stroke patients
● Stroke patients in the UK and US markets
● NHS
● Public and private hospitals

Channels:
This is how a company communicates with and reaches its Customer Segments to deliver a
Value Proposition. Communication, distribution, and sales Channels comprise a company’s
interface with customers. Channels can be direct or indirect, owned or partner channels.
● Hospitals
● Websites
● Social media platforms

Revenue Streams:
The cash a company generates from each Customer Segment (costs must be subtracted
from revenues to create earnings).
● One-off costs
● Yearly support contracts.

STRENGTHS AND WEAKNESSES OF THE CANVAS

Building blocks of the Strength Weakness
canvas
Key Partners Strong
Key Activities Strong
Key Resources Strong
Cost Structure Strong
Value Prepositions Strong
Customer Relationship Weak
Customer Segments Weak
Channels Weak
Revenue Streams Weak

Based on the current business model of eXRt, their key partners, key activities, key
resources, cost structure, and value prepositions are strong because the company already
partnered with well-established partners and suppliers the company needs to create the
value, which is the magic glass, concerning the key activities, the company has a laid down
activities and planned structure to operate successfully in order to create a value
proposition (magic glass), maintain customer relationships, and gain revenue. The company
also has the necessary resources to create the magic glass which includes the technology,
finance, human resources, and intellectual resources. For the cost structure, the company
has enough funds from European Union as well as Innovate UK necessary for the value
(magic glass) creation. The value itself is strong because it has competitive advantage of
been a bespoke intelligent system, user friendly, can be used remotely and also increases
patients’ recovery.

The customer segments, customer relationship, channels and revenue streams are weak
because for the customer segments the value created focuses on the upper limb of stroke
patients alone and also the UK and US markets. The customer relationship is weak because
it is limited to been remotely as there is no direct contact. The channels because it is limited
likewise the revenue streams.