Resources and its types

Resources for product and process, types of resources

1. Resources
Dr. N. Yuvaraj
Assistant Professor
AchariyaArts and Science College
Villianur, Puducherry

4. Resources-Human,financial,physical,andknowledge
factorsthatprovideafirmtoperformitsbusinessprocesses.
Keyresourcesarethemaininputsthatyourcompanyusesto
createitsvalueproposition,serviceitscustomersegmentand
delivertheproducttothecustomer.
Thesearethemostimportantthingsyouneedtohavefor
yourbusinessmodeltoworkandbusinessmodelsareusually
basedonanumberoftangibleandintangibleresources.

5. Thesearethemainassetsthatyourcompany,inparticular,
requirestocreatetheendproduct.
Itisusuallydifferentiatedfromthekeyresourcesbeing
utilizedbyyourcompetitors.
Keyresourcesdealwiththeoperationalendofthebusiness
spectrumanddefinewhatkindofmaterialsyouneed,what
kindofequipmentisrequiredandthetypesofpeopleyou
needtoemploy.

6. Thisaspectplaysadirectroleinbringingyourvalue
propositiontolifeforyourchosencustomersegmentand
definestheminimumyouneedtohavetodelivertoyour
customers.
Thebusinessmodelofanorganizationisamajorindicatorof
thetypeofkeyresourcebeingutilizedbythecompany.

7. Hence,thereisacleardifferencebetweenthekeyresources
employedbyamicrochipmanufacturerandamicrochipdesigner.
Themicrochipdesignerwillprobablyconsiderhishuman
resourcesasthekeyresource.
Whilethemanufacturerwillfavorhisproductionhardwareas
hiskeyresource.
Keyresourcesaredirectlyrelevanttothenumberandtypeof
keyactivitiesyourcompanyengagesin.

8. Ultimately,thequalityofyourkeyresourceswillimpactthe
sustainabilityandprofitabilityofyourcompany.
Forexample,ifyourcompanydoubleditssalesinayear,and
startedgrowingbeyondyourexpectations,youwouldonlybe
abletohandlesuchgrowthifyouarefullycognizantofwhat
yourkeyresourcesareandwhatimpactsuchincreaseddemand
wouldhaveonthem.

9. Hence,youneedtobeabletotellwhetheryourphysical
resourceswouldbeabletoprovideforsuchdemandorrequire
additionalinvestment.
Similarly,willyourcurrenthumanresourcessufficeorwill
additionaltalentneedtoberecruitedtomeetbusiness
requirementsandsoon.

10. TYPES OF KEY RESOURCES
physical,
intellectual,
human and
financial.

11. 1.Physical resources
Physicalassetsaretangibleresourcesthatacompanyuses
tocreateitsvalueproposition.
Thesecouldincludeequipment,inventory,buildings,
manufacturingplantsanddistributionnetworksthatenable
thebusinesstofunction.
AmicrochipmanufacturingcompanylikeIntelneedssemi-
conductorplantsasakeyresourceandwithoutadequate
infrastructureavailable,theorganizationwillfailtoinnovate
andkeepupwithitsbusinesscustomerdemandsandneeds.

12. 2. Intellectual resources
Thesearenon-physical,intangibleresourceslikebrand,
patents,IP,copyrights,andevenpartnerships.
Intellectualresourcestakeagreatdealoftimeandexpenditure
todevelop.
Butoncedeveloped,theycanofferuniqueadvantagestothe
company.
NikeandSonyareheavilydependentontheirbrandtoselltheir
productstoacustomersegmentthatisdevotedtothebrand.

13. Similarly,MicrosoftandAdoberelyonsoftwarethathave
beentweakedandperfectedoveryearsoftrialanderror.
Somebusinesseshaveverystrongintellectualresources.
GoogleiscurrentlybuyingapatentlibraryfromNortelto
boostupitsintellectualresources.

14. 3. Human resources
Employeesareoftenthemostimportantandyetthemost
easilyoverlookedassetsofanorganization.
Specificallyforcompaniesintheserviceindustriesorrequire
agreatdealofcreativityandanextensiveknowledgepool,
humanresourcessuchascustomerservicerepresentatives,
softwareengineersorscientistsarepivotal.

15. FedExtruckdriversarethehumanresourcesthatcombine
withthephysicalresource,suchasthetruckstocreate
delivertheproducttoFedExcustomersandcreatethe
signatureFedExexperience.
Novartis,thepharmaceuticalgiant,ishighlydependentonits
teamoftopscientists,aswellasitshighlyqualifiedsales
forcetocreateandsellitsmedicinestodoctors.

16. Similarly,UBSWealthManagementisoneofthepremier
banksintheworld,butwithoutitsteamofrefinedand
knowledgeablebankers,UBSwouldfailtogarnerthesame
customerreviewsandsatisfactionasitdoescurrently.

17. 4. Financial resources
Thefinancialresourceincludescash,linesofcreditandthe
abilitytohavestockoptionplansforemployees.
Allbusinesseshavekeyresourcesinfinance,butsomewill
havestrongerfinancialresourcesthanother,suchasbanks
thatarebasedentirelyontheavailabilityofthiskey
resource.
Similarly,ChinaLifeinsurancesellsinsurancetoitswide
customerbase.

18. However,ifChinaLifeInsurancedoesnothavesufficient
capitaltocoverinsuranceclaims,itwillnotbeabletosurvive
inthemarket.
Foracarmanufacturer,thephysicalresourcesareinthe
facilitiessuchasassemblyrobots.
Anotherkeyresourcecouldbeintellectualpropertysuchas
patentsandevencustomerintelligence.

19. Thelatterwouldcomeinveryhandyspecificallyknowingtheir
preferenceswhenyouwanttoofferrepeatcustomersspecial
discountsanddeals.
Forcarmanufacturers,designerswouldbeakeyhuman
resource.
Intermsoffinancialresources,amanufacturerwillrequire
capitaltoinvestininfrastructureandinventorybutcan
additionallyalsobeusedtoprovidecustomerswiththeoptionof
buyingcarsonleaseortakingoutaloanonbettertermsthan
thoseprovidedbybanksorotherfinancialinstitutions.

20. KEY RESOURCES ACCORDING TO TYPES OF
BUSINESSES
Thebusinessmodelcanvasstipulatesthatallbusinesses
canbecategorizedintothreetypes.
Allthreeofthesecategoriescontainbusinesseswith
similarkeyresourcerequirements.
ThesethreecategoriesareProductDrivenBusinesses,
ScopedrivenBusinessesandInfrastructureDriven
Businesses.

21. Product Driven Businesses
arecompaniesthatfocusalltheirfunctionsonthecreationand
saleofaproduct.
Ithasuniquecharacteristicsandacustomersegmentwillingand
eagertopurchaseit.
Keyresourcesforsuchbusinessesareintellectualandhuman;
sincetypicallytheseorganizationshaveintellectualpropertyand
expertiseintheirparticularindustryandniche.
RovioisthecreatorofthefamousmobilegamecalledAngry
Birdsisonesuchexample.

22. Scope Driven Businesses
Thesearededicatedtoprovidingavaluepropositiontoa
particularcustomersegment.
AnorganizationaimingtospecializeinbeingtheITprovider
toallLawfirmswithinanareawouldfallunderthebannerofa
ScopeDrivenBusiness.
Suchbusinesseshavekeyresourcesintheirwell-developed
intelligenceabouttheirtargetcustomersegment,an
establishedsetofprocessesandinsomecasesinfrastructure
suchasspecializedservicecenters.

23. Infrastructure Driven Businesses
These,asthenamesuggests,achieveprofitabilitythrough
leveragingtheirdevelopedandimplementedinfrastructure.
Thetelecommunicationsindustryinvestsheavilyindeveloping
thetelecommunicationsinfrastructureinacountryandthen
reapstherewardsforyearswithonlyminorinvestmentsto
keeptheirsystemsupdated.
Retailersarealsoinfrastructuredrivenbusinessesbecause
theydependprimarilyontheirestablishedinfrastructureto
sustaintheirprofitabilityinthelong-term.

24. Thank You