Tuesday, May 5, 2020
Business Model - Value Creation and Business Innovation Model
Question: Discuss about theBusiness Model, Value Creation and Business Innovation Model. Answer: Introduction Globalization and rise of competition amongst various industry players have given rise to formation of strategies for organization(Wensveen, 2009). Corporations hence form a an organizing framework known as the business model that helps them organize various business resources, frameworks and partners. Several researches prominent in the field of business model has been conducted to reflect on its applicability and extension such as to accommodate for key customer value generated through it. The scope of the current article discussion of Zott and Amit's (2010) and Itami and Nishino (2010) the concept of business model has been formed. Business innovative model provides a further extension of business model to depict the innovate value that can be derived into the existing structure of business model(Zott, 2011). The scope of the current essay evaluates and discusses the framework of business model and business innovative model using various literary sources. Analysis Key Involvement in a Business Model Conceptualization Christensen, Bartman Van Bever, (2016) has made significant impact and development in the field of business model to understand its applicability and usability(Kindstrm, 2010). A business can attain its goals and objectives by formation of a typical business model. In their research article they have included relevant and pertinent aspects that key partners and resources contribution into a business. Logistics and raw materials and other factors are part of the business model framework all are arranged in such a way that they can reach the business goals and customer satisfaction. The key driving force behind organization of resources is to arrange facilities and structures to divert them in a manner that can yield tremendous impact on business features(Doz, 2010). Business Models for Solving Static and Dynamic Problems Works done by Sauer et al. (2016) focuses on evaluation of internal along with external resources and capabilities of an organization. An organization can only establish functionality and emerge as a competitor in business. Proper and extensive knowledge regarding internal as well as external resources can yield valuable structure for formation of suitable business framework(Boons, 2013). Schloderer Mezias, (2016) on the other hand recognized two important factors that govern business model within businesses as business systems and profit model. The article by the scholars highlighted that the goal of every business organization is to create a unique value such that consumers purchases products from the organization and is satisfied. Upon consumer purchase profits and revenues for the business is generated thus creating a market share in the industry. The scope of every organization is to capture various functionalities and cater to its stakeholders by way of making profits. While s takeholders especially those internal ones aim to generate profits and revenues for the business the external are focused on deriving much greater value in terms of brand name, corporate social norms and so on(Abdelkafi, 2013). A business model depicts various strategies along with diagrams in a mathematical manner such that all factors with the model can easily be derived and summed to attain goals for the business. Zott and Amit's (2010) article is focused on creating and generating much greater values for the firm and it provides an unique concept where all concepts and models delineates themselves. Business Model as Systems for Firms Partner Business Innovative Model is a new concept and theory with an existing business model framework that can create value addition for the business(Frankenberger, 2013). While works of several researchers have criticized the business model as being static in nature and unable to generate new changes as well as features for the organization business innovate model(BIM) includes features that can address the issue. The scope of BIM concerns itself with development and manifestations into products or services such as to create new offerings and unique customer value. Bitschet al. (2017) proposes organization of the business model in several ways and format that can accommodate for profitability as well along with achievement of its goals(Yunus, 2010). Business model as an Innovation Process A business model or a business innovative model merely creates a framework whereby an organization can function. While strategizing various functions and attaining optimum resource allocation leaders needs to form proper plans and allocate them to several departments such that each one can follow and obtain their own course of action(McGrath, 2010). An innovative framework can be generated by way of following certain employee related procedures such that at every step in problem solving a new process or product can be created. Accommodating for innovation within organizations have acted as key impetus for growth amongst various organizations including leading global chains. The primary focus of organizations to create something new or deliver values to customer in order that brand name and value can be retained and increased. An organization faces several challenges while implementing business models which can be overcome by way of innovative framework and mindset. The literatures fo rm the articles provides a guidance and implementation methods of business model. The articles are immensely valuable as they generate values for the business by way of coordinating between various participants of the business. Thus, the framework provides an interconnection of several diversified and complex problems within one single frame. Kodamas (2009), Zott and Amits (2010) and Itami and Nishinos (2010) Arguments Zott and Amit's (2010) and Itami and Nishino (2010) articles provides a conceptualized and theoretical framework that can accommodate for business model as well as business innovative model(Gambardella, 2010). The models proposed by these scholars reflects of the efficacy as well as efficiency through which an organization can implement a business model framework. Strategizing on innovative capabilities of the firm by incorporating in employees and other resources has been seen to be the key driver for business model frameworks. Kodama (2009) identified various ways that an effective business model can be created and applied onto business framework. Various authors and scholars of business model identified business model as being the key component that drives business by accommodating for capabilities. Itami and Nishino (2010) had immense focus productivity and profitability of organizations. Conclusion Business model is designed for each business for enabling a layout for proper business functionality. Every business model of an organization poses key factors of resources, partners and customers which are the pillars for its framework. The layout for business structure is focused on generating value for the same in terms of customer value, profit or revenue to meet the goals for the business. There has been many pertinent research in the field of business model that provides a framework for designing of an appropriate model for business. Whereas business innovative model is an extension of a business model in order to further extend revenue earning capabilities for a business. A BIM is focused on diverting resources in such a way that a unique value proposition can be created for the business. Both the models have immense applicability in every day businesses and global corporations are designing in ways and means such that their business model and innovative framework can generate value for the overall business. Thus, the article analysis provides a conceptual and theoretical development of the intriguing factors for business model and innovative frameworks. Reference Lists Abdelkafi, N. M. (2013). Business model innovations for electric mobilitywhat can be learned from existing business model patterns?. International Journal of Innovation Management, 1340003. Boons, F. .-F. (2013). Business models for sustainable innovation: state-of-the-art and steps towards a research agenda. . Journal of Cleaner Production, 9-19. Doz, Y. L. (2010). Embedding strategic agility: A leadership agenda for accelerating business model renewal. Long range planning, 370-382. Frankenberger, K. W. (2013). The 4I-framework of business model innovation: A structured view on process phases and challenges. International Journal of Product Development, 249-273. Gambardella, A. . (2010). Business-model innovation: General purpose technologies and their implications for industry structure. . Long range planning, 262-271. Kindstrm, D. (2010). Towards a service-based business modelKey aspects for future competitive advantage. European Management Journal, 479-490. McGrath, R. G. (2010). Business models: A discovery driven approach. Long range planning, 247-261. Wensveen, J. G. (2009). The long-haul low-cost carrier: A unique business model. Journal of Air Transport Management, 127-133. Yunus, M. M.-O. (2010). Building social business models: lessons from the Grameen experience. Long range planning, 308-325. Zott, C. A. (2011). The business model: recent developments and future research. . Journal of management, 37(4), 1019-1042.