Business Model Innovation and Sources †Free Samples to Students

Question: Discuss about the Business Model Innovation and Sources. Answer: Introduction: A business model consist specific combination of distribution, supply chain, product, pricing, payment and sales. It is the model which is far more important for the success of the business. It is comprised with two major components that are cost and price. Gross profit is a major point of profitability because the major focus of its only on cost instead of expenses. It does not have concern about the efficiency of business because it focuses on to only business. Business model is very important for the business because it helps to grow the business in a progressive way. A clear business model is important to the growth of any business and it has been considered as the foundation of the innovative technology. New technology cannot come in an existence without a business model. A successful business model is able to enhance the commercial return through cost investment and drive innovation. Business model has the capacity to attract many customers towards the business because with the help of business model, it is proved that the guidance of large scales is not required for the business. A business model consist 9 building blocks which describes all necessary requirements in the favor of business. it defines the strategy of the business without having complexity such as over burdened, high workflow, hierarchy rules, strict rules and regulation. The nine building block of business model is described below: E-business architect is the element of business model. It is the concept in which number of approaches was developed. It has a practical approach which makes able business to think widely. The archetypical business model describes the value proposition, value creation, innovation, customers, organizational architecture and economic dimension to elaborate a complete understanding of making customers in a systematic way with customer value (Baden-Fuller Morgan, 2010). There are seven archetypes which is upper level of abstractions that elaborates basic truths about categories of business. Due to have the tendency of abstractions it is not possible to being evident applying of them. It has prototypes example such as e-commerce and lead generation. Both are the examples of getting something of value and introducing it into the market for the purpose of sale. It has been found that money is being made on the broadcast between the cost of garbing the item and what it can be sold by the seller for the purpose of promoting and marketing. For instance, in the business of online business, same kind of software and content will be the most two common types of things to sold in the market. There are many things will be involved when referring to the concept of a business model as an activity system. An activity in a business model can be engaged by human, physical or capital resources of any elements to the business model. It is required to fulfill the requirement of the overall objective. Am activity system is a group of independent activities of organizational including partners, vendors and customers. Business model as a cost revenue architecture involves key partners, activities and resources. The scale of variable, fixed and economy should be considered effectively. Business model as a revenue stream involves each customer segment and price contribution. The main focus of business model as cost revenue structure to make money by efforts. It would be the target of an organization to make revenue strong so that new opportunities of the business turn into annuities. There are two issues such as static and dynamic. Static issues are having the nature of long term on the other hand dynamic issues have the nature of forceful. The business blocks of business model are able to handle the both issues systematically. Business model as activity system can be used to know about the innovation in the business. There are number of conceptualization components in the business. In the context of e-commerce, conceptual components can be value stream, logistic stream and revenue stream. In the context of entrepreneurial, conceptual components can be market factors, growth factors, competitive strategy, internal capability factors and economic factors. These all are the factors of conceptual arguments which can be used to seek the issues of static and dynamic problem (Sanchez Ricart, 2010). These will be helpful to design or redesign the business models for the business. Apart from that technological input, network architecture, system architecture viewpoint m arket offering, supplier value proposition, customers, competitors and longitudinal process are the conceptual components to design or re-design the business model to analyze the issues of static and dynamic issues. Learning system and delivery system are two major element of business system. As per conceptualization, business system is considered as the assumption of decision maker who is able to decide that in what range business will obtain certain profit at certain time. Profit models as well as business model are the part of business model. As per Itami and Nishano, Google and Toyota are the exact example of the better model. They have settled their model to gin the maximum profit by keeping concern of the customers as well as employee. These are the companies which enhance the productivity of the employees by giving efficient services to their customers without getting any single penny. Toyota is the company which outsources its model of automobile constantly. It maintains the focus on suppliers to gain indirect profit (Itami Nishino, 2010). A business context is a tool of analysis which is operating to analyze the environment in which business operates. Business context can included organization, individual and huge community in it. As per changes in technology and demand of customers, business has to change its business and re-design its model appropriately. There are a number of business notions such as customer, addressable market, value creation, core business and management. It is the business notion of Google, Apple and Facebook that their customers get best possible customer experience (Seville, Buxton Vorley, 2011). The example of addressable market is when Mark Zuckerberg launching a business, he settled out to have a monopoly on customers attention and commitment. It is necessary for the business to make changes without hurting anyone. Value creation is necessary for the business because it beliefs to make tier customers save time and effort, it is considered as the strategic performance indicator. To make am endments for extending a business, it is necessary for the business to make an inventory of what business is at good or what customers are demanded. It is required for the business to replace the notions of expertise by learn ability and innovations (DaSilva Trkman, 2014). Business model is interlinked with technology innovation. The development of technology can help to make new business model for the business. It will definitely impact the managers of the organization in their decision making. There are examples of Google, Amazon and Easy jet which shows that how business get impacted due to changes in business model. The effects of business model innovation are not separated from the effects of business model on performance due to technological innovations. It has been analyzed that innovations by technological influences performance and reviews (Bharadwaj, El Sawy, Pavlou Venkatraman, 2013). Regarding changes in business models, managers of the organization should be more active because a business model is a structure to gain more profit within certain period of time. It contains nine blocks in it and as per technological innovation, it is required to bring changes in the organization (Schaltegger Wagner, 2011). In the article of Zott and Amit ar gued that there are two parameters of design: design elements and design theme. Manager need to focuses on them because design elements describe the specifications of drivers in the context of customer values, which can be elaborated in the term of complementary, lock in efficiency and novelty. Design theme is considered as the structure in which discussion of activity system performance made. With the help of these parameters of articles, manger of the organization would be able to take the decision efficiently because the advantages of these parameters of articles are summarized in the order to create and achieve the outcomes of values. It has been concluded that the business model as a system are able to solve the static and dynamic issues, delivering satisfaction and engaged customers with their needs. Business models can be blindly applied to a setting which brings attention of customers regarding difference and creativity. In this report e-archetype, business model as system activity and business model as cost- revenue structures has been elaborated. Various kinds of business conceptual components have been discussed in this report which will be helpful to reduce the effect of static and dynamic issues within the organization. A business context and notion has been mentioned in this report effectively which will be useful for further studies. Technological innovation can be seen day by day and it is required for the business to make changes its model as per trend of the market. 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. DaSilva, C. M., Trkman, P. (2014). Business model: What it is and what it is not. Long range planning, 47(6), 379-389. 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. 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: https://pubs.iied.org/pdfs/16029IIED.pdf. Teece, D. J. (2010). Business Models, Business Strategy and Innovation. Long Range Planning, vol 43 2010.