Wednesday, May 6, 2020

Business Model in the Business-Samples for Students-Myassignment

Question: Importance of Business Model in the Business. Answer: A business model has the nature of logistic which is able to provide data along with evidence that describes how a business would be able to generate and deliver values to the customers. It also form of costs, revenue and profits associated with the business so that value of customers can be delivered. There is a different element of business model to create value for customers and divert payment into profits (Richter, 2013). In core, a business model of the business comprises nothing less in comparison of architecture of organizational and financial of a business. business model cannot be compared with spread sheet or computer model, although business model may well lodged in the plan of business and the statements of the income and cash flow projections. But in a clearly manner, the concept of it refers in the phenomenon to a conceptual, in comparison of financial. Figure 1: elements of business model design Source: (Teece, 2010). Business model is important for every sector; there is no need to determine certain sector for applying it. A good business model is able to gain value proposition that are captivating to customers and able to obtain the structure of advantageous cost and risks. It is able to generate significant value capture through the business that make and delivers products and services. It is required to design the business in an appropriate manner after those implementing e-commercially viable architectures for revenues to the success for an organization. It is most important if business is created at first but along with that it is important for this business to keep the model viable (Cant, 2013). It is required for business to focus on effectiveness of excellent people because they would be able to generate the sustainability and profitability. It has been argued by Teece, (2010), the concept of business model is value creation, value appropriation and innovation. Value creation is most important element of the business model. Value creation consider as major aspect in the business to attain the profit from end user For example, Amazon is a multinational company that is able to provide better services and products to their customers, it sets 14 principles within an organization and whosoever would be unable to follow these principles will be get punished by monetary or non-monetary terms. These unnecessary principles are being the reason of lack of creation that is why Germany is the country that does not prefer a single product from Amazon. Value appropriation is considers in the business in the order to gain profit or margin of the company. Two model strategies, leading strategy and rear guard strategies are being used to describe the value appropriation in the business. Innovation is the part of success of the company; b usiness model innovation is a unique concept which supports business in the term of financial viability. It has been analyzed that there are number of successful business model in all over the world, for instance, Wal-Mart, Apple, Google, Toyota, and Zara and so on. These are the well developed companies that made changes in their business model to gain more reparative position in existing market. There are nine block of business model which defines the strategy without facing any complexity. Figure 2: Canvas of business model Source: (Baden-Fuller Morgan, 2010). Cant, (2013), stated that business model as an activity system work an s the design elements of content, structure and governance. It goes beyond independencies in among activities and notions of the structure of networks. It has three elements in it activity system as content, activity system as governance and activity system as structure. Activity system of business model refers to the selection of number of activities. For instance, Banclombia has initiated activities to design microcredit for those Colombians who do not have the access of banking services. To perform the activities, it is required to business to give proper training from the top management to employees. Activity system structure refers that the interlinked of activities in the business model. Activity system governance refers that will be liable to perform the activities in appropriate manner. Along with them business model as activity system can be categorized in to novelty, lock-in, complementarities and effici ency (Dentchev, et. al., 2016). Business model as cost revenue architecture can involve key partner, activities and different resources of business. The modes as cost revenue architect focus on variable and fixed economy. Customer segment and price contribution is being considered in this business model. It forces the business to earn more profit by controlling all unnecessary expenses and provide the business new opportunities to turn business into annuities (Schaltegger Wagner, 2011). These models will be able to resolve the issues of static and dynamic. Business model is able to have impact of reducing issues on the problems. Number of conceptualization component involves in business model which helps out business to get rid of static as well as dynamic issues (Zhang Wang, 2016). There are various components of conceptualization value stream, logistic stream, internal capability factors, economic growth, market factor, competitive advantage and revenue stream. Along with that there is a conceptualized components such as competitors, technological input, system architecture and network architecture, value proposition, value creating, competitors are elements which are able to design or re-design the business model for the purpose to analyze the issues regarding static and dynamic (Sanchez Ricart, 2010). A business model is able to articulate the data and the logic that support a value proposition not only for customers but also maintain a viable structure of revenues and costs. A good business model will be able to deliver the valuable services to value customers. A business context is considered as the tool which is taken is use for analyzing the environment of working within an organization (Boons Ldeke-Freund, 2013). The choices of business model define the architecture of the business. It can be difficult for the business s to make amendments in established business model. For example, American express and Discover card have experienced to change its hybrid models where they issued cards themselves. It was inappropriate for its competitors which provide only network services, as per technology innovation American express issued credit card. Innovative business model helps out to redesign the models and provide opportunity to generate higher returns to the pioneer until and unle ss their features of novels do not copied (Bharadwaj, El Sawy, Pavlou Venkatraman, 2013). It has been analyzed that there is number of business notions such as value creation, core business, customer, management and addressable market. There is a notion of open innovation which refers that companies relying on internal ideas to make its business advance. Open innovation is the part of notion which depends on the outsiders as the source of views and new ideas to commercialize them. Addressable market is focuses on market segments, face book is the example of it, when marks Zuckerberg launched its business, and he set to have the system of monopoly on customers response and commitment. It is the most important for the business to make changes in business without hurting anyone. Value creation is the example of saving time and efforts of the customers; it comes under the performance indicator of strategic. Inventory management is essential tool for the business for bringing changes in business model because it is important for the business to know about the demand of the cus tomers. Business need to replace the notions of expertise by learns ability and innovations (Breuer Ldeke-Freund, 2014). Figure 3: Steps to gain sustainable business model Source: (Teece, 2010). As per the evolution of the company, opportunities for generating revenue at large scale arise. Manager of the organization should take initiative step as per changes in business model. It has been evaluated that business model is connected with the innovation of technology. It will certainly have impact on the decisions of mangers while decision. There is an example of Google, Amazon and Easy jet which is able to demonstrate that how business get influenced because of changes in business model. Technological innovations definitely have influences on the performance of business in desired market (Itami Nishino, 2010). It has been concluded that business model has crucial role in innovation and sustainable business. Business models make ensure to the customers or investors that they are going to tie up with planned organization. In this report the bas of conceptual is thin, but it suggests the various ways to advance the study regarding model of business. Employing more accurate notions would permit other researchers to better understand about the importance of business model. E-business model archetypes, business model as activity system and business model as cost architecture has been elaborated in this report which will give better understanding for further research. References Baden-Fuller, C. Morgan, M.S. (2010). Business Models as Models . Long Range Planning 43 (2010) 156e171. Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., Venkatraman, N. V. (2013). Digital business strategy: toward a next generation of insights. Boons, F., Ldeke-Freund, F. (2013). Business models for sustainable innovation: state-of-the-art and steps towards a research agenda. Journal of Cleaner Production, 45, 9-19. Breuer, H., Ldeke-Freund, F. (2014). Normative innovation for sustainable business models in value networks. Dentchev, N., Baumgartner, R., Dieleman, H., Jhannsdttir, L., Jonker, J., Nyberg, T., ... van Hoof, B. (2016). Embracing the variety of sustainable business models: social entrepreneurship, corporate intrapreneurship, creativity, innovation, and other approaches to sustainability challenges. Journal of Cleaner Production, 113. Itami, H., Nishino, K. (2010). Killing two birds with one stone: profit for now and learning for the future. Long Range Planning, 43(2), 364-369. Richter, M. (2013). Business model innovation for sustainable energy: German utilities and renewable energy. Energy Policy, 62, 1226-1237. Sanchez, P. Ricart, J. E. (2010). Business model Innovation and sources of value creation in low-income markets. European Management Review (2010) 7, 138-154. Schaltegger, S., Wagner, M. (2011). Sustainable entrepreneurship and sustainability innovation: categories and interactions. Business strategy and the environment, 20(4), 222-237. Seville, D., Buxton, A. Vorley, B. (2011). Under what conditions are value chains effective tools for pro-poor development?. Retrieved on 19th April 2017 from: Teece, D. J. (2010). Business Models, Business Strategy and Innovation. Long Range Planning, vol 43 2010. Zhang, D., Wang, X. (2016). Investigating the dynamic spillover effects of low-cost airlines on airport airfare through spatio-temporal regression models. Networks and Spatial Economics, 16(3), 821-836.

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