Railway transport business processes modeling. Textbook. Vadim Shmal

Distribution channels (distribution channels)

      Distribution channels have several phases and can be divided into direct, indirect, as well as own and partner. The stages of product promotion to the consumer are shown in Figure 1.9. Product promotion channels may include all or some stages.

      Block 4 – Customer Relations

      Customer relationships are divided into several types, for a certain segment of consumers, these relationships can be implemented in parallel. The customer relations block helps to answer frequently arising questions of cost, implementation in practice, segmentation of consumers for a certain type of relationship, etc. The types of customer relationships are shown in Figure 1.10.

      5 Block – Income flows (revenues)

      Revenue flows exist for each consumer segment. They can be single for each segment, and several flows can be intended for one consumer segment. Revenue channels may have an individual pricing mechanism. Ways to create revenue streams are shown in Figure 1.11.

      Block 6 – Core resources (key resources)

      Key resources primarily allow you to make a profit, as well as provide an opportunity to inform customers about your offers and ensure relationships with your target audience. The type of use of key resources also depends on the classification of the business model (Figure 1.12).

      Block 7 – Main activity (key activities)

      The main activity of the company is divided into 3 categories (Figure 1.13). The activity block helps to determine the appropriate distribution channels, the main actions necessary for the implementation of a product or service, as well as answer questions about further customer relations and determine the method of revenue flow.

      Block 8 – Key Partners

      During the work of the company, relationships with partners are built. There are three main motives for creating partnerships: optimization and economies of scale, reduction of risks and uncertainty, acquisition of certain resources and activities. Key partners can be divided into 4 classification groups (Figure 1.14). Partnership is necessary to support the company, its functioning through the attracted infrastructure, optimization, production savings, as well as in the framework of logistics (supplies) and joint activities.

      9 Block – Expenses structure

      Any business model should be based on minimizing expanses. In this block, it is possible to determine what expenses the company will have for the functioning of its business model. There are two broad classes of expenses structure: the focus on expenses and the focus on value, where most business models lie between these classes. The former always strive to ensure minimized expenses for providing their value, and the latter to ensure the quality of their products. Expenses, in turn, can also be divided into groups (Figure 1.15).

      1.4 The business model of the Russian Railways Holding

      The generalized business model of the Russian Railways holding company can be clearly demonstrated using the Osterwalder model. The main blocks of the model are shown in Figure 1.16.

      In the target model of the Russian Railways holding, there are 5 blocks on which the main work of the company takes place (Figure 1.17) [4].

      1 BLOCK – Transport and logistics business block

      The main priority in this block is the formation of a diversified product basket of the holding. The cargo owner offers comprehensive integrated services according to the main logistics principle «door-to-door delivery of cargo», but with an additional expanded range of services from 2PL to 3PL, 4PL.

      The main functions of the block:

      – work with shippers;

      – development and formation of transport services;

      – development of operator and logistics activities.

      The above-mentioned functions and performance of the business unit are carried out by subsidiaries and divisions of JSC Russian Railways, the largest of which are JSC FСC, JSC UTLC, GEFCO and others.

      BLOCK 2 – Business block «Passenger transportation»

      The business block is aimed at developing offers to consumers of transport services, by accelerating and increasing the multimodality of transportation, improving the quality of traditional service, improving additional and related services.

      The main functions of the block:

      – provision of passenger, baggage and cargo transportation services;

      – passenger service and maintenance of passenger trains.

      Passenger transportation activities are organized in suburban traffic by 25 suburban passenger companies, the Directorate of High-speed Communication, JSC «FPC».

      BLOCK 3 – Business block «Railway transportation and infrastructure»

      This block is the largest block in JSC «Russian Railways», as it plays a key role in the work of the holding. Priority areas of development in this block are to reduce costs, develop new and improve existing transportation and logistics products, purchase and modernize infrastructure for increasing traffic volumes.

      The main functions of the block:

      – ensuring an uninterrupted transportation process;

      – management of train traffic and traction resources;

      – development, repair and maintenance of railway infrastructure.

      The block’s activities are carried out by structural divisions of JSC «Russian Railways», such as the Central Directorate of Infrastructure, the Directorate of Traction, the Central Directorate of Traffic Management, the Central Directorate for Railway Track Repair, the Directorate for the Repair of Traction Rolling Stock.

      BLOCK 4 – Business block «International Engineering and Transport Construction»

      This block strengthens and expands the Holding in the international transport market, affects the expansion of other types of business as contractors in the construction of infrastructure facilities.

      The main function of the block:

      – provision of services for the design, construction, supply of necessary equipment for the maintenance and operation of infrastructure facilities being created.

      Activities within the business block are carried out by divisions of Russian Railways International LLC and RasonConTrans Joint Venture.

      5 BLOCK – Social block

      This block is based on an objective assessment of the added value, which is created due to the social support of the team and the effective use of the block’s assets to provide market services. The main priority is the social and public policy of the Holding, which is carried out outside the collective.

      The