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MGMT20143 : Business Model Deconstruction

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MGMT20143 : Business Model Deconstruction

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Course Code: MGMT20143
University: Central Queensland University

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Country: Australia


1. Provides a succinct description of the business, the industry in which it operates, the market(s) it serves, and the products and services it provides 
2. Describes the business model canvas of the selected business using the nine building blocks
3. Explains the key relationships that exist across the nine building blocks 
4. Identifies and discusses the critical success factors the business has to get right to achieve sustainable success 
5. Evaluates what will contribute to downside risk 
6. Discusses the changes you would make to the business model if this was your business 
7. Quality of critical thinking (ability to critically evaluate evidence, and demonstrate the ability to identify strengths and weaknesses logically) 
8. Quality of communications (ability to clearly and professional deliver information both from the scholarly and non-scholarly sources and maintain a clear line of argument)


In the digital world to detect the security breaches at an advanced level, Jeff Paine founded the company “ResponSight”. This is a Data Science company focusing on securing the breaches of digital security in enterprises or corporates. For this organization uses behavioral analytics to detect the malware and attackers. In 2015, when Jeff Paine and his team have announced the winners at the Disrupt@Scale start-up programme, they got this idea about developing such an application that can take the digital security up to the next level (Responsight, 2018). The idea is to use the behavioral analytics to detect the malware and attackers to secure the digital locking for enterprises or corporates. The company team is consisting of Jeff Paine (CEO), Daniel Cran (CRO), Jo Reason (Head of Marketing), Andrew Barnes (Senior Software Developer), and Andrew Coulthurst (Leading Data Scientist).
Business model
Today traditional system search for threats, ResponSight is focusing on the monitoring the activity or users with their machines to analyze their behavior for security purposes. The start-up raised $75,000 through the Disrupt@Scale program to build its MVP. In 2016, the company has raised a total of $1.15 million in the seed funding programme by Carthona Capital, with another follow investment from Clack Sheep Capital (Responsight, 2018). The company is targeting enterprises that operating in different sectors to provide an advanced version of digital security in the form of behavioural detection of malware and threats (Luthra, Garg & Haleem, 2015).
Building blocks
Osterwalder & Pigneur’s (2010) approach of nine blocks will detail the business model of the company.

Key Partners
· Shearwater
· The Missing Link,
· Gridware,
· Cyber Aware

Key Activities
· Making relationship with security customers in Australia for their business growth

Value Proposition
· to secure their information from attackers
· to provide the security

Customer Relationships
· partner companies

Customer Segments
· Digital industry
· Corporate world
· Government companies  

Key Resources
· Trained staff
· Business partners

Key channels
· Security service providers
· Advertisements

Cost Structure
· Marketing and promotional costs
· Technology installation costs
· Application development expenses

Revenue Streams
· Seed Funding programme

Customer segments

The company is targeting almost every market segment that is operating in the digital industry. The company is providing an advanced version of digital security; therefore every corporate company will need to secure their data from malware and attackers. In this context a whole market segment that is dealing with the digital involvement for their business purpose is the target customer segment for the company.
Key partners
The company has a partnership with several digital security organizations. Business partners of the company are Shearwater, The Missing Link, Gridware, and Cyber Aware. Technology partner of the company is Siemonster.
Value proposition

Make it easy for organizations to secure their information from attackers
Advancing the security system of organization in terms of security (Hassan, 2012).

Key activities
Sustainable market reputation of the company partners helping the business to connect with most of the security customers in Australia for their business growth. Organizations are vulnerable to the commercial and personal data, and IP assets at the high risk of breach so company are protecting all of these from external threats. Most importantly the brand value of an organization is secured with such security breaches.
To cover the whole market segment company is taking help from its partner security service providers. Business partners are helping the company business to connect with most of the target market segment corporate offices.
Revenue streams
Till date company has successfully raised a total fund of $2.9 million. In this total amount, company got $1.15 million from the Seed Funding programme organized by Carthona capital followed by the investment from Black Sheep Capital and many more (Crunchbase, 2018).
Cost structure
Cost structure of the company comprises of all the expenditures of the company including its employee’s salary, application development expenses and marketing expenses (Hoepner, Oikonomou, Sautner, Starks & Zhou, 2018).
Key resources
The company is reliable to use the key resources of its business partners companies.
Customer relationships
Company is using the partner companies’ customer relations to explore the market for its new product.
All the nine blocks discussed to describe the business model of the company is inter-related with each other in different terms for the business growth of the company. The value proposition of the consumers is directly related to the customer segment and also with the company partners to expand the business. Key resources available to the company are directly affected by the company’s business partner as more the partnerships more will be the resource availability to the company. In the similar way to explore the maximum customer segment company partners are helping to market the value of their product and their distribution channel can be used by the company to market and distribute its services or products to the market.
Critical Success Factors
There are various factors which contribute to the success of ResponSight Company in Australia. As the organization is a data science firm that focuses on the threat of detecting security breaches in corporate networks by using behavioral analytics. One of the foremost success factors of Respon Sight is the utilization of advanced technology at the workplace. There are various professional service firms which are confronting the risk with employee functioning offsite and linking remotely. To overcome this risk, the firms are moving towards ResponSight’s services so that they can manage client data and its brand reputation. Additionally, another success factor is that the company can integrate its services with other security technologies. It develops data feeds and APIs to offer the quality data to different Threat Intelligence and Security Incident and Event Monitoring. The firm is planning and offering its data science services by using advanced technology innovation that plays an important role in the growth and success of the organization.
Downside Risk
The downside risk is an estimation of safety to experience a decrease in product and service value if there will be changes in conditions in the market. At ResponSight, this is the financial risks which are related to the losses (Hanemann, Sayre & Dale, 2016). The business may face the internal risks related to employees in which the internal employees of the company can open the gateways. Due to this, the third party can enter and use the data. Another risk may be customers’ claims related to defects in the technologies that can affect the brand image of ResponSight. It is very difficult to manage an extensive network of data to the organization might fail in offering its services effectively (Duncan, 2015). Under this huge network, it is not easy to manage the flow, access, and security of data. If the company faces above risks and fails to manage its system, it will have an adverse impact on the organization’s brand reputation.
Business model changes
It is required for the business to make amendments in the business model so that the customer can attract towards this security system. There are many companies around the world that have a biometric system for the purpose of checking the attendance of the employees (Joyce & Paquin, 2016). The business model has suggested that the company is specifically vulnerable to personal data, commercial and IP address at risk of harming the customers and breaching the policies. It is necessary for the business to focus on the latest technology as well. The customer segment of the company is a digital market and the company can expand its business by integrating with other security technologies. The value proposition of the company is to make the secure environment in the corporate world where no one can breach the regulated policies.
Conclusion and recommendations:
It can be concluded that the business model is helpful in describing the importance of each factor in the context of the company. The discussion has been made on the key relationship among nine building blocks that express the reliability of one factor to another. Along with that the risks are integrated into the system of the company which has elaborated under this report. It is the new company in the digital industry that is why it is required for the company to make amendments in the business model as per the latest technology. It has been recommended to the company to keep the focus on the major factor to capture specific details of the user’s activity so that in case of demand of user’s activity, it can provide. It should be done on a requirement basis; otherwise, one can take advantages of it in an illegal way.
Crunchbase, (2018). Overview: Responsight. [Online]. Retrieved from:https://www.crunchbase.com/organization/responsight.
Duncan, I. (2015). Downside of Internet of Things includes security risks. [online] Retrieved from: https://www.seattletimes.com/business/technology/downside-of-internet-of-things-includes-security-risks/.
Hanemann, M., Sayre, S. S., & Dale, L. (2016). The downside risk of climate change in California’s Central Valley agricultural sector. Climatic Change, 137(1), pp.15-27.
Hassan, A. (2012). The Value Proposition Concept in Marketing: How Customers Perceive the Value Delivered by Firms – A Study of Customer Perspectives on Supermarkets in Southampton in the United Kingdom. International Journal of Marketing Studies 4(3) pp. 8-16.
Hoepner, A. G., Oikonomou, I., Sautner, Z., Starks, L. T., & Zhou, X. (2018). ESG shareholder engagement and downside risk.
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Luthra, S., Garg, D., & Haleem, A. (2015). Critical success factors of green supply chain management for achieving sustainability in Indian automobile industry. Production Planning & Control, 26(5), 339-362.
Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation. Hoboken, New Jersey: John Wiley & Sons Inc.
Responsight, (2018). About the company. [Online]. Retrieved from: https://www.responsight.com/company/.
Responsight, (2018). Partners. [Online]. Retrieved from: https://www.responsight.com/partners/.

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