Business Evolution:

Business Design

Business Model

The Way of Winning the Competition Battle and Creating Economic Value for Your Stakeholders

"Great businesses turn on a little pin." 

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

• Business Innovation

  • Survival Strategy: Perfecting traditional business model

  • Market Leadership Strategy: Adaptability, creating new business models... More

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... More

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... More

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...

References:

1. "Radical Innovation", Harvard Business School

2. "The Centerless Corporation", by Bruce A.Pasternack and Albert. J. Viscio

3. "Business Models on the Web," Prof. Michael Rappa

4. "New Business Models,: Vadim Kotelnikov

5. "Venturepreneur," Vadim Kotelnikov

6. "SMART Executive," Vadim Kotelnikov

7. "25 Lessons from Jack Welch," Vadim Kotelnikov

8. "SMART Business Architect," Vadim Kotelnikov

9. "Sustainable Competitive Advantage," Vadim Kotelnikov

10. "Strategies of Market Leaders," Vadim Kotelnikov

11. "6Ws of Corporate Growth," Vadim Kotelnikov

12. "Systemic Innovation," Vadim Kotelnikov