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What Key Resources do our Value Propositions require? 35

Our Distribution Channels? Customer Relationships?

Revenue Streams?

Key Resources can be categorized as follows: fully created may oΩer substantial value. Consumer Financial
goods companies such as Nike and Sony rely heavily Some business models call for financial resources
Physical on brand as a Key Resource. Microsoft and SAP and/or financial guarantees, such as cash, lines of
This category includes physical assets such as depend on software and related intellectual property credit, or a stock option pool for hiring key employ-
manufacturing facilities, buildings, vehicles, machines, developed over many years. Qualcomm, a designer ees. Ericsson, the telecom manufacturer, provides
systems, point-of-sales systems, and distribution and supplier of chipsets for broadband mobile an example of financial resource leverage within a
networks. Retailers like Wal-Mart and Amazon.com devices, built its business model around patented business model. Ericsson may opt to borrow funds
rely heavily on physical resources, which are often microchip designs that earn the company substantial from banks and capital markets, then use a portion of
capital-intensive. The former has an enormous global licensing fees. the proceeds to provide vendor financing to equipment
network of stores and related logistics infrastructure. customers, thus ensuring that orders are placed with
The latter has an extensive IT, warehouse, and logistics Human Ericsson rather than competitors.
infrastructure. Every enterprise requires human resources, but
people are particularly prominent in certain business
Intellectual models. For example, human resources are crucial in
Intellectual resources such as brands, proprietary knowledge-intensive and creative industries. A phar-
knowledge, patents and copyrights, partnerships, maceutical company such as Novartis, for example,
and customer databases are increasingly important relies heavily on human resources: Its business model
components of a strong business model. Intellectual is predicated on an army of experienced scientists
resources are diΩicult to develop but when success- and a large and skilled sales force.

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