Today with the evolution of the form of business organizations and projects began to show us startups share the services and products that enter the market. So we found a gap that business management was not ready to provide tools to help to establish these companies and here emerged the business model that the organization provides to its clients, clarifying the possibilities and resources for construction, delivery and marketing. Business models illustrate the origins, present and future of the concept. Many people know that a system to make money is an economic concept and it is generally agreed that a good business model for performance is needed for the success of any business organization, Customer value corresponds to the customer’s desire to pay for a product or service.
We will talk about business model innovation with Companies not only change their business rules but also transform entire industries with great success .
The business model describes how the company creates and delivers value to its customers and partners. Innovators in the business model outperform product innovators in terms of total return on shareholders
Innovative business models also result in a greater competitive edge than product or service innovations. Companies focused on business model innovations increase operating margins much faster than those who focus on products and services.In contrast to many successful startups. Traditional companies have challenged innovative business models to raise awareness of the benefits of innovation in the business model , So far the capabilities of the company’s new business models are still or protected from competition ,Describes the design of the business model Design of a set of institutions stretching across the organization boundaries can be part of any particular business model.The innovations of the business model are also interested in introducing new work in which companies compete .
A Few important Things when striving for business model innovation:
Uncovering opportunities: diagnose first the current model to understand its limitations, once a company understands it current choices , it is better positioned to brainstorm new opportunities Implementing the new model :
scaling up is the most critical step for business model innovation , Winners of business model innovation are not necessarily the originators of new models , rather they are the first ones to successfully roll out ideas
:building the platform and skills
Many new business models are destructive and can cause large internal resistance, requires innovative business model to a distinct set of capabilities and processes to overcome the enterprise focus in the short term as well to maintain the innovation advantage in the business model on a harmonious basis
Innovation in the business model is the most powerful innovation because it determines how its relationship with its customers is seen in the innovative business model to market something different. See the possibilities in advantages and equal profits.Business model innovations have reallocated billions of dollars from the value of established companies. We understand the power of innovation in the business model that creates new markets and generates greater growth.
Identify opportunities for growth You must take advantage of new opportunities, generate valuable and new ideas to connect with customers and design new or converted business models to achieve the jobs customers need to accomplish them more effectively and efficiently.
Innovation in the business model is the development of new and unique concepts that support financial viability. The main objective is to achieve new revenue sources by improving product value and how to deliver products to customers
In the digital age there has been a driving force for creativity and innovation in the business model, as technology has dramatically changed how to provide services to customers.
Approaching the Business Model on the Firm
In the beginning, a map of all outputs and inputs related to corporate practices is found in physical space (materials and energy), digital space (information), relational space
(interorganizational relations, interpersonal relationships)
The approach contains five basic steps: prevention including minimum minimization, preparation for reuse, recycling, and other recovery such as energy recovery and disposal
The reduction element is the use of least or nothing. This step contributes to the efficiency of the organization and is measurable in monetary terms. The reuse step is about the measures taken to reuse the object
The key issue is to create a profitable value from business models instead of strategies and be based primarily on the social situation
References:
- Lindgardt, Zhenya ( 2009 ) Business Model Innovation .
- Wenberg , Magnus ( 2011) Successful Business Model Innovation .
- Tcece , Divid( 2009 ) Business Model , Business strategy and innovation
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