BT 2015 Annual Report Download - page 30

28 BT Group plc
Annual Report 2015
Our business model
ur business creates value for shareholders b deliverin
for custoers societ and our people.
e invest to build and aintain counications networs in the UK
and overseas we develop products and services that run over those
networs and then we sell the on a subscription basis to consuers
businesses and the public sector.  sellin services we are able to
ae a return on our networ investents and create value for our
staeholders. his eans we can reinvest in the business to eep creatin
value over the short ediu and lon ter.  virtuous circle.
he wa we describe our business odel is evolvin. his ear for the
first tie we include eleents of the s nterated eportin 
raewor. n the raewor the resources used and the relationships
aected b an oranisation are collectivel referred to as the capitals.
he  defines the capitals as financial anufactured intellectual
huan social and natural. e have adopted a siilar approach b
usin a coon set of icons for the inputs outputs and outcoes of
our business odel althouh we describe the in ters that are ost
eaninful to our business.
Inputs
ur business odel starts with the thins that set us apart fro our
copetitors. e have a stron cobination of people technolo
networs and other phsical assets. ur research and developent
activities support innovative new was of doin thins and
advanceents in our technolo. nd we have the financial strenth
toinvest in these areas to sta ahead of the copetition.
hen there are the relationships we have with our staeholders
suchasour custoers and the natural resources we consue as part
ofdoinbusiness.
ind out ore about the e inputs to our business via the pae
references in the business odel raphic.
Outputs
he ain output of our business is our portfolio of products and services.
e ae one b sellin these in the UK and around the world throuh
our custoer-facin lines of business.
e sell throuh a rane of channels includin online contact centres
and des or field-based account anaers. ur revenue is ostl
subscription or contract-based. eople households and s pa for
standalone or bundled services onthl uarterl or annuall tpicall
on 1 to  onth contracts. are corporate and public sector
custoers usuall bu anaed networed  services on contracts
spannin several ears. ur wholesale custoer contracts rane fro
one onth in lenth for reulated products to five ears or ore for
aor anaed services deals.
provin the sills and epertise of our people both throuh on-the-
ob eperience and our investent in their trainin and developent
isanother output of our business. e also enerate intellectual propert
lie patents. inall the waste and eissions produced b our operations
are considered to be outputs ore details of what we are doin to
iniise these can be found on pae 0.
Outcomes
he financial outcoe of what we do hines on the perforance of our
lines of business. oether the contribute to the overall perforance
and e perforance indicators Ks of the roup.
ut there is ore to what we do than ust financial value. hat we
do atters. e help illions of people counicate be entertained
dobusiness and enerall live their lives. e help our custoers reduce
their carbon footprint for eaple b providin conferencin facilities
which ean the do not have to travel as uch. nd we contribute
directl to counities and the health of the UK b providin obs
worin with suppliers and pain ta.
ll of which contribute to the strenth of our brand  a e asset for us
as it can inuence whether a potential custoer bus fro us or one of
our copetitors.
Our strategy
Our culture
Our values
Our goal
Our purpose
alue creation
Inputs
Financial
strenth
Our people
etwors 
phsicalassets
esearch 
developent
taeholders 
relationships
atural
resources
Inputs
inancial strenth
e are ver focused on rowin our cash ow over the
lon ter. oether with a prudent financial polic and a
stron balance sheet we can invest in our business and
inthe thins that set us apart fro our copetitors.
Read more
on page 30
Our people
e have alost 90000 people. heir coitent
epertise and diversit are e to the success of our business.
Read more
on page 30
etwors  phsicalassets
ur networs and platfors are the foundations of the
products and services that we sell. e continue to invest
inthese to iprove the service we oer our custoers.
Read more
on page 33
esearch  developent
e are one of the larest investors in research and
developent in the UK.
Read more
on page 34
taeholders  relationships
he include custoers counities shareholders
lenders our pension schees suppliers overnent
andreulators.
Read more
on page 35
atural resources
e use soe natural resources in doin business.
urener use has declined for the sith consecutive ear.
Read more
on page 40