Vadim Shmal "Railway transport business processes modeling. Textbook"

Customer relationships are divided into several types, for aВ certain segment ofВ consumers, these relationships can be implemented inВ parallel. The customer relations block helps toВ answer frequently arising questions ofВ cost, implementation inВ practice, segmentation ofВ consumers for aВ certain type ofВ relationship, etc. The types ofВ customer relationships are shown inВ 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 toВ create revenue streams are shown inВ Figure 1.11.

Block 6 – Core resources (key resources)

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

Block 7 – Main activity (key activities)

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

Block 8 – Key Partners

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

9 Block – Expenses structure

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

1.4В The business model ofВ the Russian Railways Holding

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

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

1 BLOCK – Transport and logistics business block

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

The main functions ofВ the block:

– work with shippers;

– development and formation of transport services;

– development of operator and logistics activities.

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

BLOCK 2 – Business block «Passenger transportation»

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

The main functions ofВ the block:

– provision of passenger, baggage and cargo transportation services;

– passenger service and maintenance of passenger trains.

Passenger transportation activities are organized inВ suburban traffic byВ 25В suburban passenger companies, the Directorate ofВ High-speed Communication, JSC В«FPCВ».

BLOCK 3 – Business block «Railway transportation and infrastructure»

This block is the largest block inВ JSC В«Russian RailwaysВ», as it plays aВ key role inВ the work ofВ the holding. Priority areas ofВ development inВ this block are toВ reduce costs, develop new and improve existing transportation and logistics products, purchase and modernize infrastructure for increasing traffic volumes.

The main functions ofВ 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 inВ the international transport market, affects the expansion ofВ other types ofВ business as contractors inВ the construction ofВ infrastructure facilities.

The main function ofВ 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 byВ divisions ofВ 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 main function ofВ the block:

– carrying out activities on social responsibility to employees, society and the state.

The activities ofВ the social block are carried out byВ structural divisions ofВ JSC В«Russian RailwaysВ»: the Department ofВ Social Development, the Department ofВ Personnel Management, the Department ofВ Organization, Remuneration and Motivation ofВ Labor, JSC В«Russian Railways HealthВ».

2В CUSTOMER ORIENTATION INВ THE FIELD OFВ FREIGHT TRANSPORTATION

2.1В The concept ofВ customer orientation and its role inВ the field ofВ freight transportation

The undisputed leader inВ Russia inВ the transport services market is the largest Russian Railways holding, inВ terms ofВ aВ wide geography ofВ transportation and volumes. Despite the leading position inВ terms ofВ transportation volumes, it is also necessary toВ take into account the level ofВ financial and economic activity ofВ the company. It is not always possible toВ get aВ high percentage ofВ profitability from the price factor, since the tariffs ofВ JSC В«Russian RailwaysВ» for most services are regulated directly byВ the state, while imposing obligations toВ carry out more socially significant transportation instead ofВ commercially efficient. At the same time, inВ many market segments, JSC В«Russian RailwaysВ» operates inВ conditions ofВ intense competition with alternative modes ofВ transport.

The Company needs toВ develop non-price competitive advantages, which are based on the formation ofВ aВ strategy toВ improve the quality ofВ services provided and the level ofВ customer service.

Customer orientation is the main element ofВ anti-crisis management, which offers the Holding additional advantages, especially during aВ downturn inВ traffic volumes.

The interpretations of the concept of customer orientation are closest to the working conditions of the Russian Railways holding, in understanding the company’s ability to create an additional flow of customers and additional profit [1].

The main objective ofВ the Holding is aВ mutually beneficial long-term partnership with customers, the constant development ofВ aВ portfolio ofВ products and services inВ the interests ofВ consumers.

For the Holding, which has more than 30 types of business in its portfolio – from freight and passenger transportation, from logistics, construction services, design, IT and even healthcare, a cardinal reversal of all resources and processes towards the client is a unique task covering all processes, from planning to the direct implementation of transportation and its resource provision. It is made even more unique by regulatory conditions, social responsibility and a special role in the country’s economy, determined by the main shareholder – the state.

The model of Russian Railways that has existed up to now, where 90% of business depends on the basic rail transportation service, with tariffs regulated by the state, cannot generate a financial flow to implement the necessary level of investment. The new business model, defined by the Development Strategy of the Russian Railways holding for the period up to 2030, provides for the transformation of the company from a transportation to a transport and logistics company, providing, in addition to the basic transportation service, a full range of services with the expansion of the range of 3PL, 4PL services and the formation of end-to-end supply chains in the cargo segment and multimodality – in passenger transportation.

ToВ form non-price competitive advantages ofВ the Company today, it is necessary toВ develop and implement aВ strategy inВ the field ofВ improving the quality ofВ services provided and the level ofВ customer service. As long as there is no customer orientation, full fulfillment ofВ all obligations on the part ofВ the railway, well-coordinated work between all structural divisions, the cargo will go toВ other alternative modes ofВ transport, and the railway will have heavy losses.

2.2В Tasks and activities ofВ the Department ofВ Business Development and Customer Orientation

InВ December 2014, the Department ofВ Business Development and Customer Orientation was established.

The main goals ofВ the Department, fixed inВ the regulations approved byВ the President ofВ the company, are (Figure 2.1)В [8]:

– formation and implementation of a strategy for customer-oriented activities of the divisions of JSC «Russian Railways» and its subsidiaries in order to maximize customer demand for the services of the holding of the required quality as a basis for increasing its economic efficiency;

– ensuring the achievement of the strategic objectives of the production and economic activities of the Russian Railways holding and the established parameters of its effectiveness through business development and customer orientation.