A Lego Model of a Medical Device Company
July 30, 2010 by Mary Adams
Here’s one more example of a Lego model of the knowledge factory of a company. This one is for a medical device company that sells a physical product that is supported by a service. The product is used by consumers in their home. But the company does not have direct contact with the consumers until they call to order the product. Instead the company relies on referral sources.
Here’s how we built their model:
- The golden pieces are the product and the service (structural capital).
- The service is supported by internal competencies (human capital) related to delivery and set up.
- The product is supported by the company’s in-house manufacturing processes (structural capital). Please note that if the company outsourced its manufacturing, this would have been considered relationship capital.
- The sales of the product are made to consumers (relationship capital)
- Who learn about the company through referral sources at healthcare facilities and program partners (relationship capital)
- The referral sources are reached through sales and marketing processes (structural capital)
- These processes are supported by sales and marketing competencies (human capital)
Remember that these models just focus on the core value creation process. It is also possible to model all the support services of the business (IT, finance, HR, etc.) but these are usually not what makes the company unique.
Adapted from Intangible Capital: Putting Knowledge to Work in the 21st Century Organization by Mary Adams and Michael Oleksak.