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What is Business
Model?
Business model converts innovation to economic value for the
business.
The business model spells-out how a company makes money by specifying where
it is positioned in the value chain. It draws on a multitude on business subjects including
entrepreneurship,
strategy, economics, finance,
operations, and marketing.
Simply put, a business model describes how a business
positions itself within the value chain of its industry and how it intends
to sustain itself, that is to generate revenue.
In the most basic sense, a business model is the method of doing business by
which a company can sustain itself – that is, generate revenue.
Customer
Focus
Exceptional customer service
results in greater
customer retention,
which in turn results in higher profitability.
Sadly,
mature companies often forget or forsake the thing that made them
successful in the first place: a customer-centric business model. They lose
focus on
the customer and start focusing on the bottom line and quarterly
results. They look for ways to cut costs or increase revenues, often at the
expense of the customer. They forget that
satisfying customer needs and continuous
value innovation is the only path to
sustainable growth. This creates opportunities for new, smaller
companies to emulate and improve upon what made their bigger competitors
successful in the first place and steal their customers.
Competitive Strategies
New Business Model
"The classic business model that has dictated the structure
of every company from General Motors to Microsoft is so at odds with
contemporary economic currents that is must and will disappear."2
Traditional corporations are overstructured, overcontrolled, and overmanaged,
but underled. Top managers should rather concentrate on that handful of real
managerial leadership
tasks that will bring success in the future. Thus, a
new business model is emerging, a
model where "most of key
missions of the organization are distributed to the
myriad individual pieces and unity comes from the vigor of people and the
free flow of knowledge, not a burdensome central headquarters."2...
More
Strategic
Innovation
Strategic Innovation is the creation of
growth
strategies, new product categories, services or
business models that change
the game and generate significant
new value for customers and the
corporation...
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The Growing Role of the Business Architect
In today's knowledge- and innovation-driven
complex economy, business architects are in growing demand. They
are
cross-functionally excellent people who can tie several silos of
business
development expertise together, create
synergies, design winning
business model and a
balanced business system and
then lead people who will
put their plans into action...
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Extended Enterprise
The term "extended enterprise" represents a new concept that
a company is made up not just of its employees, its board members, and
executives, but also its business partners, its suppliers, and its
customers.
The notion
of extended enterprise includes many different arrangements such as
virtual integration,
outsourcing, distribution agreements, collaborative
marketing, R&D program partnerships,
alliances, joint ventures, preferred
suppliers, and customer
partnership...
More
Business Model for
Radical
Innovation Projects
Business model is a broad-stroke picture of how an innovative
concept will create economic value
for the ultimate user, for the firm and
its shareholders and partners. It considers the infrastructure required to
move the product/service to the market in a manner that is both easy and
convenient for customers and profitable for the firm.
Business Model Questions...
Business Model vs. Enterprise Strategy:
Three Differences...
Dynamic Business Models...
Innovative
Revenue Models...
Protecting Your Business Model...
Rethinking the Concept of the Corporation...
Experimental
Business Model: Learning to Predict...
Business Model for
Radical Innovation Projects...
Spin-Out
Model...
Building
Cross-functional Synergies...
Case in Point
Xerox
Corporation...
Case in Point
Dell Computer
Corporation...
Case in Point
Thermo Electron...
Case in Point
Bunsha...
Case in Point
Amazon.com...
Case in Point
Half.com...

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