In this article and video, I take a look at what the Tenaga Nasional business model is and use the business model canvas to make it super clear. Tenaga Nasional is an electric utility in Malaysia and has a very similar business model to most integrated power generation, distribution and retail companies.
Tenaga Nasional is an integrated electricity company. They create electricity from gas, coal and renewable energy and sell it to consumers, businesses and larger industrial users.
To do this they need larger power stations with easy access to the fuel they need, electricity transmission lines to move it from the power stations to the cities, and a distribution network to deliver it to the millions of users and locations where it is needed.
Tenaga makes money by selling electricity measured by the amount of work that the electricity can do (Watts)
Some thoughts that occurred to me as I wrote the above.
- What is the difference between electricity and power? If TNB’s value proposition was about power would that create new opportunities?
- Why does TNB deliver electricity to the doorstep but not to the device?
- What would happen if the cost of transmission was a lot lower or higher? How would that change the business model?
Video Commentary on the Tenaga Nasional Business Model
I go into the Tenaga Nasional business model in a lot more detail in the accompanying video. I also talk a bit about how you can use the business model canvas to map out how you can approach business model innovation in a lot more detail.
Using some mockups the TNB business model I assess performance, existential threats, innovative capability and structural obstacles to change.
The data at this point in the video isn’t real but it illustrates how to do a detailed situation assessment on the business model and is great for companies being disrupted or worried about the depreciation of their business model
